The recent unlocking of 1 billion XRP tokens by Ripple has sent shockwaves through the XRP investor community, creating doubts, fears and uncertainty. This important move, equivalent to approximately $153 million, was executed in multiple trades, raising a crucial question: what lies ahead for XRP?
Ripple fights for stability: $1 billion at stake?
In numerous transactions, Ripple has unlocked 1 billion XRP tokens worth $153 million. While not new, this move has been part of Ripple’s ongoing strategy since 2017 to maintain liquidity in the XRP market and divert its use in cross-border transactions. While this strategy serves the broader purpose of increasing XRP’s utility, it may have temporary implications for the cryptocurrency’s price.
Leading cryptocurrency tracking platform, Whale Alert, reported that Ripple initiated the unlocking process on Sept. 1 through four transactions. The first transaction revealed 300 million XRP, equivalent to $153 million. Subsequently, another 100 million XRP (worth approximately $51 million) was released. In the last two transactions, Ripple released 200 million and 400 million XRP, injecting more than $300 million into the market. This influx of XRP tokens is nothing short of significant.
Read more: Here’s how XRP can boost Ripple’s IPO value!
The Binance transfer
Interestingly, shortly after XRP was unlocked, a major XRP holder known as “whale” transferred nearly 20 million XRP, worth more than $10 million, to the Binance cryptocurrency exchange. This transaction came in the wake of Ripple’s release of one billion XRP.
However, the aftermath of the release is more important. For XRP price stability and On-Demand Liquidity (ODL) needs, Ripple normally returns a large majority of these funds back on deposit within a few days.
Meanwhile, the XRP community eagerly awaits further updates from Ripple, especially after the recent legal victory against the US Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has confirmed that the company plans to celebrate its triumph with a party scheduled for September 29 in New York City.
XRP Price Action Analysis
Turning to XRP’s price action, some analysts have pointed to an ascending triangle pattern on the four-hour chart, suggesting a possible breakout of around 12% to reach USD 0.6. But looking at this bullish scenario, it largely depends on the availability of sufficient liquidity, which can be achieved through the recent release of one billion XRP. XRP is currently trading at USD 0.50, down 3% in 24 hours from USD 0.504 to USD 0.528. The XRP community awaits how these developments will improve the use and value of XRP in the coming days.
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With the recent victory, Ripple is confident that they will not go down, but the question arises: how will Ripple’s release of one billion XRP affect the price?