XRP Price Slips Amid Ripple’s Massive 1 Billion Token Unlock, Sparking Bearish Sentiment Across Crypto Markets
The price of XRP took a sharp downturn today, dropping nearly 5%, following Ripple’s release of 1 billion tokens from escrow. Despite XRP’s recent rally, this large unlock has triggered concerns among market observers. On-chain data shows that the American blockchain payments company unlocked a staggering 1 billion XRP, raising alarms even as the token posted gains in weekly and monthly charts of 6% and 11%, respectively.
Ripple Releases 1 Billion XRP From Escrow, Fueling Concerns
According to blockchain tracker Whale Alert, Ripple unlocked the 1 billion XRP tokens on October 1 in a series of three transactions. These included 500 million, 400 million, and 100 million tokens, respectively, amounting to a total value of $621.76 million. The substantial increase in circulating supply has prompted concerns from investors, given the basic principles of supply and demand. Consequently, the token saw a sharp 5% drop over the past 24 hours.
Despite the sell-off triggered by the escrow unlock, other metrics suggest a more optimistic outlook. Recent reports from CoinGape Media highlighted significant whale accumulations of XRP, indicating strong investor interest. Additionally, Ripple’s growing involvement in stablecoin initiatives adds to this positive momentum. In a recent development, 80,000 RLUSD was minted, further bolstering confidence in the firm’s ecosystem. These positive indicators suggest that XRP’s broader rally may outweigh the short-term bearish sentiment caused by the unlock.
XRP Price Performance
XRP price experienced significant volatility in the aftermath of the token release, with the price dropping to $0.6214, a nearly 5% decrease over the past day. During the same period, XRP’s intraday low hit $0.611, while its high reached $0.6524. Nonetheless, the token’s weekly and monthly performance remained strong, with gains of 6% and 11%, respectively, signaling continued bullish sentiment among market participants.
Additionally, data from Coinglass revealed a 7% decline in XRP futures open interest (OI), falling to $956 million. Meanwhile, the derivatives trading volume saw a dramatic 50% decrease, slipping to $2.21 billion, further contributing to investor uncertainty.
Despite the short-term market turbulence, analysts remain optimistic about XRP’s long-term potential. Another report from CoinGape Media forecasts a potential price surge for XRP by Christmas, with some speculating that the token could reach as high as $3. Market watchers are keeping a close eye on the coin, anticipating further significant shifts in the near future.
Leave a comment