XRP Price Forecasts Following the Release of 400 Million Tokens from Escrow
Ripple’s famous XRP is currently facing a difficult situation as it continues to battle the U.S. Securities and Exchange Commission in a legal dispute that has been ongoing since 2020. Adding to the tension, 400 million XRP tokens worth around $217.5 million have recently been unblocked.
The unlocking of these tokens from Ripple’s escrow was reported by Whale Alert on February 25, deviating from the usual schedule. Ripple’s escrow mechanism involves monthly releases of one billion XRP, with a portion of them being sold.
At present, Ripple holds approximately 40 billion XRP tokens in escrow, which are set to be released over the next 42 months. This monthly release increases the circulating supply of XRP, potentially putting downward pressure on its price, especially when combined with Ripple’s practice of selling a portion of these tokens.
The unexpected timing of this recent unlocking of XRP from Ripple’s escrow has raised concerns within the community. Adding to the mystery is the accompanying memo, which includes peculiar shout-outs.
In terms of price predictions and analysis, crypto analyst Alan Santana revisited his previous assumption that XRP might not experience a significant correction due to its past six months of correction. However, recent developments have proven this expectation to be inaccurate.
Santana has identified a crucial uptrend line on the XRP chart, established based on candle closes since 2020. He warns that a break below this trendline could indicate a bearish trend with severe consequences. Rejections at key Exponential Moving Averages (EMAs) every week can further contribute to a bearish perspective. Santana suggests that XRP’s price could potentially drop by 35%.
As of the time of writing, XRP is priced at $0.54438900, reflecting a 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 that bullish sentiments are prevailing for XRP, as one-day gauges align with a ‘buy’ sentiment at 10. Moving averages support this sentiment at 8, while oscillators indicate a ‘neutral’ stance at 8.
Looking ahead, there are critical upcoming deadlines in the Ripple lawsuit. These include March 13 for the SEC to file remedies-related briefs, April 12 for submitting motions opposing remedies proposals, and April 29 as the final deadline for remedies submissions.
XRP remains at the center of attention, surrounded by pending lawsuits, untimed escrow unlocking, and mixed community speculations.
Tags: Ripple (XRP)