Concerns Arise as 400 Million XRP Tokens are Unlocked: Will XRP Price Plummet?
Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) seems to have no end in sight. The recent events have only added to the uncertainty surrounding the case. On February 25, Ripple unexpectedly unlocked 400 million XRP tokens, worth $217.5 million, deviating from its usual schedule.
Normally, Ripple follows an escrow mechanism that involves monthly releases of one billion XRP, with a portion being sold. However, this recent unlocking caught the attention of the crypto community as it diverged from the routine. Ripple holds around 40 billion XRP tokens in escrow, which are set for gradual release over the next 42 months.
The monthly releases contribute to the circulating supply of XRP, potentially impacting its price, especially when combined with Ripple’s practice of selling a portion of these tokens. The timing of the recent unlocking and its departure from the regular schedule have raised eyebrows within the community.
Adding to the mystery is the memo that accompanied the XRP release, which included peculiar shout-outs, leaving the community curious and speculating about their significance.
Renowned crypto analyst Alan Santana, who previously believed that XRP might not experience a severe correction based on its past performance, revisited his assumption in light of these recent developments. Santana identified a crucial uptrend line on the XRP chart, established since 2020, and warned that a break below this trendline could signal a bearish trend with severe consequences, potentially leading to a 35% drop in XRP’s price.
As of the latest update, XRP is priced at $0.54438900, reflecting a minor change of -0.07% over the past 24 hours. Its market capitalization stands at $29.72 billion, with a year-to-date change of -11.48%. Technical indicators show bullish sentiments prevailing for XRP, with one-day gauges aligning with a ‘buy’ sentiment at 10, supported by moving averages at 8. Oscillators indicate a ‘neutral’ stance at 8.
The legal battle between Ripple and the SEC is progressing, and there are critical upcoming deadlines to note. On March 13, the SEC is expected to file remedies-related briefs, followed by April 12 for submitting motions opposing remedies proposals. The final deadline for remedies submissions is April 29, which adds to the tension surrounding XRP’s future.
In summary, Ripple’s legal tussle with the SEC continues, and recent events, including the unexpected unlocking of XRP tokens, have added to the uncertainty. The price of XRP may face a significant drop if it falls below a crucial support line, according to a crypto analyst. Meanwhile, important deadlines are approaching in the ongoing legal battle. XRP finds itself in the spotlight, surrounded by lawsuits, untimed escrow unlocking, and speculative discussions within the community.