- Ripple unlocked 1 billion XRP tokens worth $500 million from escrow as part of its planned monthly distribution strategy.
- The unlock coincides with rising anticipation in the community awaiting the SEC vs. Ripple verdict.
- XRP price hovers around $0.5060 as the altcoin struggles to sustain recent gains.
Ripple, the cross-border payment remittance giant, has unlocked a total of 1 billion XRP tokens from escrow on Thursday. This unlock is a part of the scheduled monthly distribution strategy of the XRP token.
Ripple typically sends back the unused XRP tokens to the escrow account after the initial distribution is complete. The released tokens are typically used to cater the needs of Ripple clients for On-Demand Liquidity (ODL).
Also read: XRP likely set for price rally as network activity heats up
Ripple unlocks 1 billion XRP tokens on June 1
Based on data from whale wallet tracker on Twitter Whale Alert (@whale_alert), Ripple unlocked 1 billion XRP tokens in three transactions. The first two released 300 million and 200 million altcoins, respectively, while the third transaction unlocked 500 million XRP tokens from escrow.
The unlock is a part of the firm’s monthly distribution strategy, so it is likely that the development is priced in by traders. XRP price is $0.5066 at the time of writing, on Binance, according to data from TradingView.
There have been similar token unlocks on April 1 and May 1 as well, when the payment giant returned the unused XRP tokens back to the escrow account soon after. As seen in the price chart below, 1 billion XRP token unlocks in April and May initially resulted in a price decline in the asset, but there was a near-complete recovery within two weeks of the unlock.
If history repeats, XRP price could decline from $0.5060, wiping out recent gains. If the fall materializes, the altcoin should complete its recovery by mid-June.
XRP/USDT one-day price chart Binance
XRP price is currently above three long-term 10, 50 and 200-day Exponential Moving Averages (EMAs)at $0.4894, $0.4658 and $0.4407, respectively. A decline below the three long-term EMAs would signal an impending correction in XRP price.
The token unlock comes at a time when the XRP community awaits a verdict in the US Security Exchange Commission (SEC) vs. Ripple lawsuit. A positive outcome for the payment giant is likely to fuel a recovery in XRP price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.