Ripple has recently unlocked a substantial amount of XRP tokens, causing concern among investors. This release is part of Ripple’s strategy to maintain liquidity and control supply in the market by releasing 1 billion XRP tokens monthly.
While these releases are important for market liquidity and meeting the needs of Ripple’s business partners, they can also lead to short-term price dips as the available supply increases.
The release of 500 million XRP tokens, split into two batches of 200 million and 300 million, has raised worries among investors due to the struggling XRP prices. The increased supply has resulted in a slowdown in demand, which is unfavorable for investors.
Ripple acknowledges that these regular escrow releases can cause temporary price fluctuations for XRP. However, they remain committed to this strategy as it ensures a steady supply of XRP for various use cases. Ultimately, Ripple’s long-term vision is to establish XRP as a reliable and trustworthy asset for international payments.
As of now, XRP is trading at $0.4843, experiencing an 11% drop in the past 24 hours. This decline is in line with the overall market trend, led by Bitcoin’s 5% decrease. The recent price trend can be attributed to the political and security instability in the Middle East.
Cryptocurrency is seen as a hedge against traditional markets, leading smart investors to take advantage of the price dip and accumulate tokens in anticipation of the next breakout.
The ongoing SEC v. Ripple case is also a significant factor affecting price movement. Ripple CLO Stuart Alderoty highlighted the SEC’s recent loss in court, where a judge ruled that the SEC is not entitled to disgorgement if a buyer doesn’t suffer financial loss. This ruling could have implications for Ripple’s legal battle with the agency, potentially resulting in a demand for up to $2 billion from Ripple.
The resolution of the case could also generate greater investor interest, particularly from institutional investors, which could pave the way for the launch of an XRP ETF. Ripple CEO Brad Garlinghouse has expressed optimism about the SEC approving more crypto ETFs in the future, although no specific timeline has been provided.
XRP bulls will aim to defend the $0.48 support level to sustain the altcoin’s bullish momentum. On the upside, they will target breaking above the $0.70 resistance level as they strive towards $1 and the all-time high of $3.89.
Recommended for you:
– Guide to Buying Ripple (XRP)
– Tutorial for Ripple XRP Wallet
– Check XRP Price in the Last 24 Hours
– More News about Ripple (XRP)
– What is Ripple (XRP)?
