An undisclosed address has reportedly unlocked 500 million XRP, with speculation of another 500 million XRP being released soon. This development could potentially put the price of XRP at risk, as Fox Business Senior Correspondent Charles Gasparino suggests that the Ripple ruling may be overturned.
Since December 2017, Ripple Labs has been implementing its monthly XRP distribution strategy, gradually releasing a portion of the escrow-held asset into circulation. Originally, the strategy called for the release of 1 billion XRP every month for 55 months. However, due to the relocking of a significant portion of these funds back into escrow, the company had to extend its final escrow deadline to April 2017. As part of this strategy, a staggering 500 million XRP, valued at $314.87 million, was unlocked on April 1, 2024, according to data from Whale Alert.
Interestingly, today’s release was carried out by an unknown address, unlike previous releases. This has sparked curiosity and speculation within the XRP community, suggesting that another 500 million XRP may be released soon.
Ripple has faced criticism over the years for its unpredictable distribution strategy. In February 2024, it was reported that Ripple locked 800 million XRP shortly after its monthly release of 1 billion XRP. In the first transaction, 500 million XRP tokens, valued at $253 million at the time, were locked away after being transferred from “Ripple 23” to “Ripple 11”. The second transfer involved 300 million XRP, valued at $151 million at the time.
In response to the release of 500 million XRP tokens, the price of XRP saw a 24-hour increase of $0.77, trading at $0.6274. However, the asset’s value declined to $0.614459 at press time, losing 2.5% in the last hour.
The sudden shift from bullish to bearish for XRP can be attributed to a 0.11% decrease in its open interest and a 36% drop in volume. The Relative Strength Index (RSI) of the asset was at 51 a few hours ago, indicating that XRP was neither overbought nor oversold. However, at press time, the 5-minute RSI dropped to 40, and the Trend Mean confirmed a neutral sentiment at 37.
Analysts predict that if buyers fail to regain control at the current price, XRP could fall as low as $0.573. On the other hand, if bulls secure control, the price could target a significant resistance level at $0.6765.
The future price movement of XRP largely depends on the outcome of the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). Charles Gasparino suggests that the Ripple ruling may be overturned following Judge Katherine Polk Failla’s decision in the Coinbase vs SEC case. If this happens, the price of XRP could experience a significant drop similar to what occurred in 2020. However, analyst JayDee believes that there is potential for a 650-fold increase in the asset, as previously reported by Crypto News Flash.