Ripple Labs has caused a stir in the cryptocurrency community by releasing 500 million XRP in two separate transactions, deviating from its usual distribution pattern. This decision has sparked discussions and speculations about the company’s intentions, especially since the transactions originated from an address associated with Ripple since 2017 but had been inactive since 2021.
Adding to the uncertainty, Ripple Labs has made no official communication regarding this unusual activity, leaving the community to speculate about its motive. It is worth noting that this release is part of the company’s strategy to release 1 billion XRP monthly from escrow.
This move comes at a time of market turbulence, with the total market cap down by 19% and XRP experiencing a 10% decline in the last seven days, a 2% decline in the last 24 hours, and a 19% decline in the last 30 days. This has caused the asset to fall below the important support level of $0.5 to $0.48.
Despite the impact on XRP’s price, the core mission of the Escrow Strategy remains intact. Ripple Labs aims to ensure market liquidity and facilitate cross-border transactions while maintaining the stability and integrity of the ecosystem beyond short-term market fluctuations.
The possibility of XRP bouncing back is still uncertain, but analyst Dark Defender believes that there is a chance for a new all-time high. He predicts that XRP could reach $5 and potentially even $18 if it stays within the range of $0.46 and $0.39.
Furthermore, Dark Defender emphasizes the potential for the global crypto market capitalization to reach $23 trillion by January 2025. With XRP accounting for 1.2% of the market share, the price could trade at $2.8 when the predicted market cap level is reached.
Another analyst, EGRAG CRYPTO, also remains bullish on XRP, predicting a surge to $4. The resilience and strength shown by XRP bulls in the face of market challenges are seen as positive indicators for the future of the cryptocurrency.
In conclusion, Ripple Labs’ recent release of 500 million XRP and the subsequent discussions and speculations have raised questions about the company’s intentions. However, the Escrow Strategy remains intact, and analysts believe that there is still potential for XRP to reach new highs in the future.
