Ripple Unlocks One Billion XRP, Why Is It Significant?
Ripple, the leading blockchain company, on Friday unlocked another 1 billion XRP from escrow as part of its monthly release strategy. It allows Ripple to maintain XRP liquidity in the crypto market and help make businesses leverage XRP during cross-border transactions. However, the strategy brings a temporary downside in XRP price due to an increase in supply.
Ripple Unlocks Another Billion XRP
Whale Alert on September 1 reported one billion XRP unlocked from escrow in four transactions. First, 300 million XRP unlocks worth $153 million. A subsequent unlock of 100 million XRP worth $51 million. Moreover, the last two transactions with 200 million and 400 million XRP unlocked by Ripple, which is totally worth over $300 million. Thus, the XRP move is worth more than $500 million.
Whale Alert also revealed that a whale transferred 19.92 million XRP worth more than $10 million to crypto exchange Binance. It happened after Ripple unlocked one billion XRP.
Typically, XRP unlocks follow a decline in price due to an increase in the supply of crypto. However, it’s important for Ripple to provide liquidity amid massive demand for XRP from businesses, partners, and exchanges.
Meanwhile, the crypto community was expecting another message from Ripple as it prepares to celebrate its victory against the U.S. SEC. Ripple CEO Brad Garlinghouse confirmed a party in New York City on September 29.
Why XRP Price Action Is Significant?
An analysis by CoinGape Markets predicts that an ascending triangle pattern formation on the four-hour chart signals a 12% breakout to $0.6. However, it needs liquidity before an upside push to $0.55 and then to $0.6. The one billion XRP unlocks will provide liquidity for a rebound again.
XRP price fell 3% in the past 24 hours, with the price currently trading at $0.50. The 24-hour low and high are $0.504 and $0.528, respectively.
Also Read: New Lawyer Enters Coinbase Vs US SEC Lawsuit
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