Will XRP Escrow Push Whales To Accumulate More XRP?
XRP, Ripple’s native token, experienced a slight price retreat in the previous week as the crypto market faced increasing selling pressure. Despite the shift in market sentiment, the value of XRP has remained relatively stable.
However, the upcoming monthly escrow unlocks by Ripple could exert downward pressure on the price of XRP in the coming weeks.
A Possible Selling Pressure
In March, XRP embarked on an impressive upward price rally. But its momentum faced sporadic pauses in July as Bitcoin (BTC), the world’s largest crypto asset, recorded increased activities and made headlines. Additionally, in the last 30 days, XRP experienced a notable decline of over 8%, while BTC saw a significant spike of 13%.
The unexpected drop marked a break in XRP’s price surge streak over the past several weeks. According to on-chain metrics, Ripple recently unlocked an additional pool of 1 billion XRP tokens worth $454 million into circulation through multiple transactions.
It is worth noting that Ripple adheres to a fixed routine of adding more XRP tokens to its circulating supply, which can intensify the selling pressure among the token holders. Hence, it is no surprise that XRP’s price has dropped by about 0.17% in the past 24 hours.
Moreover, the modest decrease suggests unlocking Ripple’s Escrow did not spark a selling frenzy among XRP holders. Thus, the token’s market sentiment remains relatively steady.
XRP maintains a substantial circulating supply of over 52.2 billion tokens, contributing to its market capitalization of $25.2 billion. Despite the recent marginal price drop, its massive market cap highlights the widespread adoption and investor interest in XRP.
Furthermore, the stability exhibited by XRP, despite the minor dip in value, could be attributed to various factors. Such factors include the overall resilience of the crypto market, positive news surrounding Ripple’s partnerships and developments, the confidence of XRP holders in the long-term potential of the asset, or a combination of these factors.
Observers believe that participants will continue to closely monitor XRP’s price movements and trading patterns, as any significant shifts in sentiment or market dynamics could impact its value.
Awaiting The Verdict Of Ripple’s Ongoing Lawsuit
Meanwhile, crypto industry participants and observers have shifted their focus to the long-drawn lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) as they await a summary judgment.
With recent developments resulting in the SEC’s release of the infamous Hinman speech-linked documents and emails, there is a sense of optimism that the resolution of the XRP-SEC lawsuit may be drawing nearer than envisioned. Despite this positive sentiment, experts who closely monitor the progress of the XRP lawsuit have aired their individual opinions.
They suggest that a ruling from the U.S. district court could be delivered next month, adding to the anticipation and speculation surrounding the case. Analysts opined that the legal tussle’s outcome holds significant implications for Ripple and XRP investors and the broader cryptocurrency community.
A favorable judgment for Ripple could likely pave the way for increased regulatory clarity in the crypto industry. At the same time, an unfavorable ruling could adversely affect Ripple’s operations and the value of its XRP token.
As the legal proceedings unfold, stakeholders eagerly await further developments and the resolution of the long-drawn XRP lawsuit.
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