Ripple unlocked 1 billion tokens worth $500 million. Following this, the altcoin price slipped below the critical support level. Now what’s next for XRP price?
This altcoin released huge token!
Adhering to its well-established monthly release strategy, Ripple today unlocked an additional 1 billion XRP from escrow. This particular action plays an important role in supporting XRP liquidity in the dynamic crypto market. This makes it easier for businesses to leverage the potential of XRP for seamless cross-border transactions. However, it must be acknowledged that this strategy often leads to a temporary decrease in the market value of XRP due to the increase in supply brought about by this strategy. Whale Alert reported on September 1 that one billion XRP was released from escrow in a series of four transactions.
Ripple unlocks XRP tokens. Source: Whale AlertThe beginning of this intriguing series was the unlocking of 300 million XRP, equivalent to $153 million in market value. Immediately afterwards, another 100 million XRP, corresponding to 51 million dollars, was released. In two subsequent transactions, Ripple unlocked 200 million and 400 million XRP. Their total value is over 300 million dollars. Hence, the cumulative movement for the altcoin has crossed the $500 million threshold.
Crypto whales transferred 20 million XRP
Adding to the intrigue, Whale Alert also exposed the actions of a whale in the crypto realm. This major player transferred 19.92 million XRP, worth an impressive amount of over $10 million, to the famous crypto exchange Binance.
https://twitter.com/whale_alert/status/1697398935139082502
The traditional outcome of an XRP un-lock event occurs in the form of a short-term depreciation in the altcoin price due to an increase in circulating supply. However, it is necessary to underline the critical role that Ripple plays in providing liquidity, especially in light of the increasing demand for XRP from businesses, strategic partners and leading cryptocurrency exchanges. At press time, XRP is trading at $0.4937, down 3.22% on the day. The altcoin also saw a 5% decline for the week. While XRP is finding support at $0.47439, it is facing a tough resistance at $0.54252.
Altcoin faces September crash
Crypto analyst oxGorki expects a bearish September for XRP. In the first days of September, XRP enthusiasts and investors were greeted with a red candle. Because the altcoin price dropped more than 3%, falling below $0.5 per token. The burning question on everyone’s mind: What’s next for XRP? The answer to that question probably lies in its historic performance in September.
According to data from CryptoRank, XRP has an average return of 15.1% in the ninth month of the year. This is an impressive figure at first glance. However, a deeper look at the archives reveals a more nuanced story. XRP’s history in September has seen it finish September in the red more often. Since 2013, four Septembers have performed excellently for XRP, with gains ranging from 46.2% to 94.4%: in 2013, 2016, 2018, and 2021. In contrast, the remaining six Septembers were marred by losses. Thus, the median negative led to a profitability of 1.39%.
Source: CryptorankThis trend indicates that XRP is more likely to finish September in negative territory compared to its closing price in August. However, as these historical fluctuations show, the cryptocurrency market is far from an exact science. While statistics provide valuable information, the crypto market is often driven by unpredictable factors such as regulatory changes, market sentiment and external events. Therefore, although history serves as a guide, it cannot paint the full picture of the altcoin price’s September trajectory.
The opinions and estimates in the article are those of the analysts and are not investment advice. As Kriptokoin.com, we strongly recommend that you do your own research before investing.
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