The post XRP Price Plunge as Ripple Locks Away 800 Million Tokens in Escrow appeared first on Coinpedia Fintech News
In a busy start to August, Ripple has made headlines by moving a massive 1 billion XRP and unlocking 500 million tokens from escrow. This significant activity has come at a time when XRP’s price has slipped below $0.58, sparking both curiosity and concern among investors.
Ripple’s Monthly 1 Bln XRP Unlock
Blockchain payment project Ripple unlocked 1 billion XRP tokens on August 1. This move is part of its regular monthly practice, aimed at gradually placing 55 billion XRP tokens into escrow over several years.
In August, Ripple carried out its usual escrow unlocking procedure, starting with the release of 500 million XRP tokens. Early this morning, 300 million XRP was transferred to the address rw2..3wY at 00:16 UTC, with an additional 200 million XRP following just two minutes later. This transaction brought the balance of the rw2..3wY address back up to 500 million XRP.
In total, Ripple moved 1 billion XRP and secured 800 million tokens in escrow within a span of twenty minutes.
Notably, this month’s escrow unlocking deviated from the typical practice of releasing the full 1 billion XRP at the start of the month. This deviation has been observed throughout the year, with only a few months sticking to the usual pattern.
XRP Price Analysis
The timing of these transactions coincides with a notable drop in XRP’s price. After a strong rally that saw XRP reach $0.65 on July 31, the cryptocurrency has faced a downturn.
Looking at the daily chart, XRP recently formed a symmetrical triangle pattern, which played a key role in the price movement. This pattern, characterized by two trendlines converging with equal and opposite slopes, was crucial in the formation of a recent engulfing candlestick. This pattern quickly drove the price up from $0.59 to $0.60.
The last time XRP formed a similar pattern was in early July, resulting in a 40% price increase within just a few days. Currently, the Relative Strength Index (RSI) stands at 66.94, suggesting strong bullish momentum around the token.
XRP’s price may potentially exceed $0.65 in the short term. If August turns out to be favorable, the token could aim to reach its yearly high of $0.72. As of now, XRP is trading at $0.5732, having fallen 5.94% in August alone.