- 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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.