- Ripple Labs has initiated the strategy release of 1B XRP from its escrow accounts, worth over $510M.
- The XRP saw a minimal impact on price down by 3.50% over the past 24 hours.
In a strategic move aimed at maintaining the liquidity of the XRP cryptocurrency, Ripple Labs has released a total of one billion XRP coins from its escrow accounts. The release was executed in four transactions, with the overall transferred XRP valued at $510 million.
According to popular blockchain tracker Whale Alert, the transactions occurred on September 1 at 12:00 a.m. (UTC), with the first transaction seeing the unlocking of 300 million XRP tokens. Subsequent transactions included the release of 100 million XRP in the second, 200 million XRP in the third, and an impressive 400 million XRP in the final transaction.
The phased release of XRP from escrow is part of Ripple’s strategy to maintain a balanced circulation of the cryptocurrency, thereby preventing any drastic downfall.
Ripple Labs introduced the process of locking XRP in escrow accounts back in 2017 as a means to ensure controlled distribution. This method involved a gradual monthly release of one billion tokens over a span of 55 months. As per this schedule, the final transaction is anticipated to be made available by December 2023.
Out of the total supply of 99,988,458,761 XRP, approximately 52,977,697,600 XRP, equivalent to about 47%, are currently in circulation.
XRP’s Price Reaction
Notably, this recent escrow release has demonstrated limited impact on the XRP price. Currently, XRP is trading at $0.5093, reflecting a 3.50% decrease over the past 24 hours. This price dip coincides with a broader trend of price decline affecting several major cryptocurrencies in the market. The SEC’s decision to delay the Bitcoin ETF until October additionally contributed to the decline in the crypto market.
In terms of its moving averages, XRP’s current outlook reveals an upward track relative to its 200-day moving average (MA), though it remains below its 50-day MA. The Relative Strength Index (RSI) for XRP stands at 34.21, indicating an oversold condition.
If the bearish sentiment continued, XRP’s price could potentially plummet to support levels of $0.4538. Or even further down to $0.3275. Conversely, if bullish momentum takes charge, XRP’s value could surge to $0.5837 and potentially reach as high as $0.9421.
What do you think about Ripple’s release of one billion XRP, and how would it impact the XRP’s price in the future? Tweet to us at @The_NewsCrypto and let us know your thoughts.
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Source: https://thenewscrypto.com/crypto-news-ripple-unlocks-one-billion-xrp/