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Finbold 2025-05-03 14:09:26

Ripple just unlocked 1 billion XRP; Incoming crash?

Summary ⚈ Ripple unlocked 1B XRP in May, worth $2.2B, as part of its routine strategy. ⚈ XRP price remains steady amid SEC case, ETF hopes, and whale accumulation. ⚈ Short-term bearish signs, but long-term trend stays positive. Ripple has executed its routine monthly unlock of 1 billion XRP tokens from escrow for May, which could introduce fresh price swings for the cryptocurrency . On-chain data indicates that the unlock, involving XRP worth approximately $2.2 billion, occurred in three separate transactions on May 2. Ripple first unlocked 200 million XRP ($440.52 million) at 22:28 UTC to its Ripple (26) address. A minute later, it released another 300 million XRP ($660.86 million) to the same address. At 22:31 UTC, 500 million XRP ($1.1 billion) was unlocked to a separate address, Ripple (27). Ripple’s 500 XRP transaction. Source: WhaleAlert Despite the large volume, Ripple’s monthly 1 billion XRP unlock is part of a long-standing, scheduled strategy to manage supply with minimal historical market impact. Since 2017, Ripple has placed 55 billion XRP in escrow to ensure transparency and predictability, addressing concerns over market flooding. Monthly, 1 billion XRP is released to support operations, ecosystem growth, and liquidity for ODL (On-Demand Liquidity) services. Typically, 700 to 800 million XRP is re-locked , with the rest used for expenses, institutional sales, or partnerships, maintaining a balance between liquidity and price stability. Ripple unlocks impact on XRP’s price Past unlocks have not consistently led to significant price drops. For instance, despite the previous unlock, XRP rallied, exiting its extended consolidation below the $2 mark. The price has mainly been influenced by other fundamentals surrounding the token, with the regularity outlook and broader market sentiment playing key roles. With the Ripple and SEC case nearing a conclusion, XRP has failed to make notable gains and is instead relying on general market sentiment and hype around the potential approval of a spot XRP exchange-traded fund ( ETF ) in the U.S. Although the SEC has delayed its decision on the product, there is anticipation that the country might follow suit after Brazil unveiled the first spot XRP ETF , which has the potential to attract institutional investment. A regulatory decision is expected between June and mid-October this year. Despite these fundamentals, whales continue to show confidence in the asset, accumulating about 900 million XRP in April . XRP price analysis By press time, XRP was trading at $2.20, down less than 1% over the last 24 hours. On the weekly chart, the token is up about 0.2%. XRP seven-day price chart. Source: Finbold XRP is facing short-term bearishness, considering the asset’s 50-day simple moving average ( SMA ) sits at $2.22, just above its current price. Meanwhile, the 200-day SMA at $1.91 suggests a longer-term uptrend. The 14-day relative strength index ( RSI ) at 55.17 remains neutral, showing no strong momentum in either direction. Featured image via Shutterstock The post Ripple just unlocked 1 billion XRP; Incoming crash? appeared first on Finbold .

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