Today, the price of XRP saw a sharp decline following Ripple’s release of 1 billion tokens, leaving investors concerned. On-chain data shows that on October 1, Ripple, the American blockchain payment company, unlocked a massive amount of XRP, stirring uncertainty in the market. The increased supply has affected the demand balance, pushing the price down by 5% in the last 24 hours, despite a positive weekly and monthly performance for the token.
Ripple Unlocks 1 Billion XRP
According to data from Whale Alert, Ripple unlocked 1 billion XRP tokens across three separate transactions, totaling approximately $621.76 million in value. The transactions were divided into 500 million, 400 million, and 100 million XRP. This move has significant implications for Ripple’s future plans, yet the market has reacted negatively to the sudden increase in supply.
Investors on Edge Amid Price Decline
The influx of such a large amount of XRP into the market has disrupted the supply-demand balance, leading to a 5% price drop in the last 24 hours. Currently, XRP is trading at $0.6214, down from a daily high of $0.6524. While this has created some concern, long-term investors remain cautiously optimistic about the future of the token.
Despite this recent drop, XRP’s weekly performance still shows a 6% gain, with a 11% increase over the past month. This suggests that while the short-term outlook may seem negative, XRP could still present long-term growth potential. Moreover, the growing accumulation by major investors (whales) and Ripple’s work on stablecoin projects have fostered a positive market sentiment.
Ripple’s Stablecoin Plans and Market Impact
Ripple’s RLUSD stablecoin project has also drawn attention from investors. The company recently minted 80,000 RLUSD, signaling an acceleration in its stablecoin initiatives. These strategic moves are expected to strengthen Ripple’s position in the crypto industry. If Ripple successfully expands its use cases, this could create further upward momentum for XRP in the future.
What’s Next for XRP?
While the release of 1 billion XRP has caused short-term price pressure, some experts believe that XRP has the potential for strong performance in the coming months. Crypto analyst Myles G Investments forecasts that XRP could reach $3 by the end of the year, stating on social media, “XRP will hit $3 by Christmas. Laugh now, cry later.” His prediction has sparked significant discussion within the crypto community.
Myles further suggests that this price point would mark only the beginning of a bull cycle, indicating more room for growth in the long term. However, current market volatility, paired with ongoing legal uncertainty from the SEC’s potential appeal against Ripple, has left some investors unsure. Should Ripple achieve a favorable outcome in its legal battles, the price of XRP could rise sharply.
Ripple Faces Uncertainty as Market Volume Falls
Recent data indicates a drop in XRP’s market volume. According to Coinglass, open positions in XRP futures decreased by 7% to $956 million, and the derivatives trading volume fell by 50% to $2.21 billion. These declines have contributed to an overall sense of uncertainty, and the ongoing price fluctuations suggest that volatility is likely to continue.
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