Published in the public ledger, Ripple, a major holder of XRP, unstaked 1 billion XRP for November. The unlock comes monthly as per the planned schedule of Ripple for distribution of XRP.
This comes at the end of a month marked by negative performance for XRP. October closed on a bearish note.
More so, the latest token release of XRP has been under the spotlight. The current price performance which is trading near recent lows.
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Ripple Releases 1 Billion XRP Amidst Market Decline
Every month, Ripple releases 1 billion XRP from escrow. The market watches this event because it can affect the price of XRP.
According to market watcher Whale Alert, the release was done in three separate transactions. The said transactions added up to the cited 1 billion XRP.
Of these, Ripple’s address “rw2…3wY” was allocated two portions; the first of which contained 400 million XRP, valued at approximately $203.7 million and the second portion having an additional 100 million XRP, valued at $50.94.
The second Ripple address with the tag “rDq…EsF” also received the remainder of the XRP, 500 million, which is equivalent to $254.7 million.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (254,704,531 USD) unlocked from escrow at unknown wallethttps://t.co/f4UnqjfR3E
— Whale Alert (@whale_alert) November 1, 2024
All of these addresses now contain a large amount of XRP. That is one billion XRP in total across all of these addresses.
Ripple usually repays a large number of these tokens to the escrow. Approximately 200 million XRP are for operational use.
This month’s release is back to the usual schedule for Ripple. It was near the beginning of the year, and saw partial unlocks of lower amounts.
XRP Price Movement Following October Losses
XRP price had a tough October. It closed the month with a 16.74% decline, the steepest monthly drop since April.
Even so, XRP rose to $0.53 on October 29. It then followed a sharp decline of 3.71% in two days to trade at current levels around $0.51.
Digital asset trading continues below the 50-day simple moving average (SMA) of $0.5543. It is seen as a bullish signal if XRP gets close to it.
The recent bearish trend is in response to the numerous challenges that the broader market presented to the cryptocurrency market in October. However, if Ripple’s periodic escrow releases lead to increased liquidity and trading interest, then XRP trajectory could be favorable towards the end of the month.
Market Trends and Expectations for XRP Post-Escrow Release
As we have observed Ripple’s current escrow release pattern. The market is waiting to see how XRP price will respond.
Over the years, Ripple disburses a certain amount of XRP held in escrow. It’s for the enhancement of the network and for its expenses with any remaining amount being put back into escrow.
In the previous three months, Ripple has continued to roll out the standard one billion tokens every month. Some experts have regarded it as a way of consolidation.
The return to consistency could be due to Ripple’s efforts in trying to restore order in the market by avoiding volatility. Analysts have indicated that for the XRP to begin a recovery, it has to find its way past important barriers such as the 50-day SMA.
A consistent trading pattern above this average could be positive for the growth of XRP price. Also, the recent move by CryptoTradingFund (CTF) of integrating Amazon with the XRP Ledger also points towards a positive direction.
This innovation enhances the application of the XRP Ledger and creates a way for other retailers to follow the same trend. This raises the number of transactions and activity on the platform which could boost Ripple.
