An unknown address has reportedly unlocked 500 million XRP, with speculation of another 500 million being released soon. This news comes as Fox Business Senior Correspondent Charles Gasparino suggests that the Ripple ruling may be overturned, potentially endangering the price of XRP.
Since December 2017, Ripple Labs has been implementing its monthly XRP distribution strategy, releasing a portion of the asset held in escrow into circulation. Originally, the strategy called for the release of 1 billion XRP each month for 55 months. However, due to the relocking of a significant portion back into escrow, the company has extended its final escrow deadline to April 2017.
Today, on April 1, 2024, an unknown address unlocked a staggering 500 million XRP worth $314.87 million. This release, unlike previous ones, has sparked curiosity and speculation within the XRP community, suggesting that another 500 million XRP may soon be released.
Ripple has faced criticism for its unpredictable distribution strategy in recent years. In February 2024, it was reported that 800 million XRP were locked soon after the monthly release of 1 billion XRP. The first transfer involved 500 million XRP tokens ($253 million at the time), which were transferred from “Ripple 23” to “Ripple 11”. The second transfer added 300 million XRP ($151 million at the time) to the escrow wallet.
The release of 500 million XRP tokens has had an impact on the price of XRP. Within 24 hours, the price increased to $0.6274 from $0.77, but it has since declined to $0.614459, losing 2.5% of its value in the last hour.
This sudden shift in XRP’s price has been attributed to a 0.11% decrease in its open interest and a 36% drop in volume. The Relative Strength Index (RSI) of the asset was at 51 a few hours ago, indicating that XRP was neither overbought nor oversold. However, at press time, the 5-minute RSI dropped to 40, and the Trend Mean confirmed a neutral sentiment at 37.
Analysts predict that if buyers fail to take control of the current price, XRP could fall as low as $0.573. On the other hand, if bulls secure control, the price could target a significant resistance level at $0.6765.
The future price movement of XRP heavily depends on the outcome of the legal battle between Ripple and the US Securities and Exchange Commission (SEC). Charles Gasparino suggests that the Ripple ruling may be overturned, which could lead to a significant drop in XRP’s price, similar to what was seen in 2020. However, analyst JayDee believes that there is potential for a 650-fold increase in the asset’s value.
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