The movement of half a billion XRP out of Ripple escrow accounts has left many questions in the minds of several XRP community members.
According to data from Whale Alert, the funds were unlocked in two separate transactions totaling 500 million XRP, with an estimated value of $306.5 million. The first transaction unlocked 200 million XRP ($122.63 million), and the second unlocked 300 million XRP ($183.89 million). This deviates from the standard practice of Ripple releasing XRP monthly, sparking speculation about the purpose behind this sudden transfer.
The origin of the tokens has also piqued the interest of the community. Both transactions stemmed from an address linked to Ripple since 2017. However, public records on Bithomp indicate that this address has been inactive since 2021. The re-emergence of this dormant address and the substantial movement of XRP have raised questions about Ripple’s intentions.
The lack of official communication from Ripple regarding this activity has further fueled online discussions. Social media platforms are rife with theories attempting to explain the rationale behind this unscheduled release. This reaction is common when unusual escrow releases occur.
Potential Impact on XRP’s Price
One major concern surrounding this event is its potential effect on the XRP market. The influx of a significant amount of tokens outside the usual schedule has led some to anticipate a price decline. XRP has dropped significantly over the past 24 hours, showing a 10.18% decline to $0.548.
Although the digital asset showed some resistance, it succumbed to market forces and dropped below the crucial $0.6 resistance level.
What’s Next for XRP?
Ripple still holds a significant amount of XRP. Its current holdings remain at approximately 39.9 billion tokens. The lack of explanation from Ripple surrounding this unscheduled escrow release has fueled speculation and uncertainty within the XRP community reflected in the price decline.
However, this decline might be short-lived. XRP has been consolidating above $0.6 for a while and the asset’s price could resume this movement as it prepares for a massive breakout. While the surprise move has caused a stir, XRP’s prolonged stability inspires confidence in its short-term future.
Multiple analysts have predicted an impending breakout, and Google Gemini recently picked XRP among cryptocurrencies to invest in for the best returns in the current bull cycle.
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