Ripple unlocks 1 billion XRP: Impact on price and outlook
Ripple has just taken one of the important monthly steps: unlocking 1 billion XRP from escrow accounts, worth approximately $1.92 billion at current market prices. This is part of Ripple's long-term strategy to provide transparency and predict supply for the community. In total, 55 billion XRP will be gradually released from escrow accounts according to Ripple's plan.
Short-term Impact
1. Price Volatility:
The release of a large amount of XRP may cause temporary selling pressure, especially when the price has just reached its highest peak in 7 years. However, the market has become accustomed to these monthly unlocks, making the actual impact often milder.
2. Market Reaction:
After the unlock, the price of XRP only decreased by about 2.4% on the first day of December. This indicates that the current market is absorbing the increased supply well without a strong sell-off.
XRP Price Situation
Currently, XRP remains stable at $1.93 on the Bitstamp exchange, significantly higher than previous periods. In November, XRP rose nearly 284%, highlighting the strong resurgence of this asset.
Upcoming Outlook
• Large cash flow at the beginning of the week: Peak trading days like this coming Monday will be an important test for XRP's strength after the unlock.
• Community Confidence: With the long-term upward trend, interest from both institutional and individual investors continues to support the price.
Ripple is demonstrating a good ability to manage token releases, keeping the price of XRP from being negatively affected significantly. In the near future, market developments will depend on how the company uses the unlocked XRP and the actions of major investors.
