- Ripple moved a large amount of XRP (3 billion) from its escrow wallets to an unknown wallet.
- This transfer is three times more than Ripple's usual monthly escrow transfer.
- Despite the large movement, XRP's price remains stable.
- Some experts think the transfer is likely an internal shift within Ripple, not a sell-off.
- Analysis suggests XRP could experience a short-term price increase instead of a drop.
Potential Largest XRP Sell-Off in Years on the Horizon
According to the whale activity tracking service, Whale Alert, there has been a significant transfer involving approximately 3 billion XRP tokens, valued at around $1.5 billion, from Ripple’s escrow wallets into an unidentified wallet. This massive movement of tokens has raised alarms within the cryptocurrency community, with investors and traders keenly observing potential impacts on XRP’s market price.
Escrow Activities and Speculations
Ripple typically releases a predetermined amount of tokens from its escrow wallets at the beginning of each month. This amount generally totals around 1 billion XRP, a routine that has been maintained for quite some time. However, the asset movements observed for July deviate markedly from the norm, as the transferred amount is triple the usual figure, causing considerable unease among investors.
On June 1st, Ripple unlocked the standard 1 billion XRP, worth $520 million, via the XRP Ledger escrow system from two accounts labeled 'Ripple (24)' and 'Ripple (25)'. Suspicion arose when, in addition to the customary 200 million tokens sent to the treasury each month, another 200 million XRP from the dormant account 'Ripple (35)' was transferred to 'Ripple (1)'.
A crypto commentator and blockchain educator tracked these transactions, noting that a total of 3 billion XRP, equivalent to a significant 5.45% of the total circulating supply, moved within a single day.
Unlocking from Escrow: Internal Movements or Cause for Concern?
While this token movement deviates from Ripple's typical fund transfers, some commentators suggest that there may be little cause for alarm. They propose that many of these transactions are likely internal movements and escrow relock-ups. Despite the community's concerns, XRP's price has remained relatively stable following the $3 billion transfer and the supposed escrow releases, even though the cryptocurrency often experiences volatility during significant sell-offs.
XRP's Price Outlook
Currently, XRP is trading within an ascending wedge in the short to medium term. The cryptocurrency appears to be attempting a rebound from the base of this formation, potentially aiming for a minor 15% rally to the top of the wedge around $0.588. Overall, XRP’s bullish momentum seems to persist, with significant support expected at $0.48, below which the bullish sentiment may weaken.
Disclaimer: Voice of Crypto strives to provide accurate and current information but is not liable for any missing or incorrect details. Cryptocurrencies are highly volatile financial assets, so thorough research and informed financial decisions are essential.
