Ripple Unlocks $1.02 Billion XRP, Price Drops 6%
1min read Ripple has unlocked 500 million XRP, valued at approximately $1.02 billion, from its escrow account. This significant movement of tokens from the “Ripple (27)” escrow address to two operational wallets, “Ripple (12)” and “Ripple (13),” has raised concerns about potential increased market supply. The escrow account still holds another 500 million XRP, but the transfer of such a large amount into accessible wallets could lead to short-term selling pressure on XRP’s price if Ripple decides to sell a portion of these tokens.
XRP is currently under pressure, with a nearly 6% decline in the past 24 hours, hovering just above the $2 mark as bearish momentum builds. Technical indicators such as the Directional Movement Index (DMI) and Exponential Moving Averages (EMA) suggest growing downside risk. The ADX, which measures trend strength, has sharply declined, indicating a weakening trend. The +DI has dropped, signaling a decline in bullish momentum, while the -DI has surged, pointing to rising bearish pressure. This shift in directional strength, combined with the large token unlock, suggests that XRP may face further downside unless demand quickly absorbs the incoming supply.
Network activity for XRP has collapsed by 87% since mid-March. The number of 7-day active addresses, which surged to a record high of 1.22 million in March, has plummeted to just 158,000. This dramatic reversal suggests that the recent spike in engagement may have been short-lived or event-driven rather than indicative of sustained adoption or growing user demand. High activity typically signals strong user interest and utility, often aligning with price support or rallies. Conversely, sharp declines in active addresses can signal waning demand, decreasing network usage, and potential selling pressure. With such a steep drop in activity, XRP’s price may struggle to find an upside unless new catalysts reignite user engagement.
Ask Aime: What impact will this XRP unlock have on its price and market?
XRP’s EMA structure reflects a strong ongoing downtrend, with short-term moving averages positioned well below the long-term ones and a wide gap between them, signaling persistent bearish momentum. Unless bulls step in soon, XRP’s price may test support around $1.90, a key level that has held in the past. A break below this level could expose the asset to further downside toward $1.77. However, if XRP manages to reverse the current trend and regain upward momentum, it could climb to challenge resistance at $2.06. A successful breakout above that level might pave the way for a continued rally toward $2.22.
