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- Ripple Labs releases 500 million XRP from escrow, sparking speculations and discussions with respect to the rationale as recent distributions deviate from regular patterns.
- An analyst predicts that XRP could still hit $5 and later reach $18 as long as it trades within the $0.3917 and $0.6649 support range.
Ripple Labs recently became the talk of the town after releasing 500 million XRP in two separate transactions, deviating from the regular pattern of its distribution. It can be recalled that 200 million XRP ($122.63 million) was initially released on April 12, followed by another 300 million XRP ($183.89 million). Interestingly, the rationale behind this decision became a topic of discussion among crypto holders with others finding it intriguing for the transactions to originate from an address associated with Ripple since 2017 and had become inactive since 2021.
With the discussion of the price impact yet to be concluded, Ripple Labs has unlocked another 500 million XRP from escrow, according to an on-chain transaction tracking platform Whale Alert. Compounding the uncertainty, Ripple Labs has made no official communication with regard to this unusual activity, leaving the community to speculate about its intention.
For context, this routine forms part of the strategy of the blockchain company to release 1 billion XRP monthly from escrow. Interestingly, the immediate activity comes against the backdrop of market turbulence that has brought the entire market to its “knees”. The total market cap is down by 19% with XRP, at the time of this report, down by 10% in the last seven days, 2% in the last 24 hours, and 19% in the last 30 days. This has dragged the asset below the crucial support level of $0.5 to $0.48.
Escrow Strategy Intact: Would XRP Bounce Back?
Regardless of the ripple effect on the price of XRP, the core mission of the Escrow Strategy is still effective. As explained by the company, this move is designed to sustain market liquidity and facilitate cross-border transactions. Most importantly, it is meant to underscore its commitment to maintaining the stability and integrity of the ecosystem beyond the short-term market fluctuation.
XRP’s possible bounce back has been an open question after a whale with a wallet address “r4wf7….h4Rzn” moved 28.8 million XRP ($13.7 million) to Bitstamp exchange. While many believe that this could be a sell-off, others speculate that it could be a part of Ripple’s liquidity management efforts considering its previous stake in the exchange. Amid the ongoing discussion, another 100 million XRP ($48 million) was transferred from an unknown wallet address.
Despite the ongoing bearish activities, a renowned analyst identified as Dark Defender believes that the chance for a new all-time high has not vaporized. According to him, the asset can still hit $5 and later reach an unexpected height of $18 once it maintains its position within the $0.46 and $0.39 range.
As long as these are maintained our 5 Elliott Wave structure targeting $5.85 & $18.22 remains the same. And any further moves between $0.3917 to $0.6649 are side moves and are normal.
The analyst also stressed the possibility of the global crypto market capitalization hitting $23 trillion by January 2025. With XRP accounting for 1.2% of the market share, the price could be trading at $2.8 when the market cap reaches the predicted level.
Confirming this is analyst EGRAG CRYPTO who believes that XRP still looks bullish. According to his prediction reviewed by Crypto News Flash, XRP could surge to $4,
Remarkably, not even the body of the weekly candles is closing below the arc, which is incredibly bullish! XRP Army, STAY STEADY! The XRP bulls are showing remarkable resilience, strength, and power in this battle.
