XRP price has dropped to $0.57 following Ripple's unlocking of an additional 500 million XRP for August. This development has raised questions and discussions in the crypto community, particularly regarding the potential implications of Ripple's recent actions on the price movement of XRP.
Ripple's decision to unlock 500 million XRP from its escrow wallet has received considerable attention. According to Whale Alert, the transfer was made in one transaction to an address linked to Ripple, which is rDq…EsF. When this transfer was made, the released XRP had a value of around 281.69 million dollars. The sudden increase in the amount of XRP being transacted has caused people to doubt how it will affect its market value.
Previously, Ripple used to release 1 billion XRP from escrow every month as a routine.
Usually, while locking back 800 million tokens for business needs and other expenses such as partnership development and payroll, the company retains only about 200 million tokens. However, for August, things changed slightly when instead of releasing one billion coins after relocking 800 million from a previous balance, this led to questions on whether such actions could influence prices and therefore led to the decline of XRPs market value.
The price of XRP experienced volatility at a low of $0.5446 and recovered slightly at $0.5711, showing a 1.35% decrease over the last twenty-four hours. What is more significant about this recent performance picture is that altcoins have been experiencing fluctuations due to Bitcoin’s volatility in cryptocurrency markets lately.
July saw XRP hit monthly highs, reaching $0.65, making it one of the best-performing altcoins during that period. However, it has been declining since early August, losing approximately 11.1% within that period under review. Supporters attribute these negative movements partly to general market sentiment and profit-taking following July’s rally.
Some analysts think that XRP is showing signs of potential future growth amidst present market trends. According to Mickle, a US-based financial advisory firm, XRP has formed a symmetrical triangle pattern just like it did between 2013 and 2017. During this period, the price of XRP remained flat before breaking out with a huge bullish rally that saw it skyrocket to almost $4.
Mickle’s analysis shows that current market behaviour can mimic past events and foretells an upward movement. Some investors are looking forward to recording significant returns, while others argue that such predictions may be too ambitious considering XRP's current market capitalization. If XRP manages to break out of its current pattern, conservative estimates place the currency at around the $2-$5 range.
expect the legal outcome to favour Ripple by driving its adoption among institutional investors as well as business partnerships with other stablecoins, whereas others like Rachelle Renee are not sure of any impact on XRP price yet.
This has provided institutions with regulatory certainty on XRP not being a security, enabling them to use it without worries about regulators. The expected judgment will dwell more on Ripple’s past actions and possible fines, such as $2 billion, but nothing towards affecting XRP directly.
Ripple’s XRP experienced an impressive 50% price surge in mid-July as investors anticipated a possible resolution of the SEC case. The price spike was bolstered by comments from Ripple CEO Brad Garlinghouse, who said there could be a settlement soon after. Nonetheless, the suit’s end remains uncertain for both XRP investors and market analysts.