From bygone days to the present moment, the saga of XRP, which harbors one of the grandest enigmas in the realm of cryptocurrencies, persists as the legal battle between Ripple and the SEC unfolds, coinciding with the imminent traditional monthly unlocking event by Ripple. This circumstance has instilled a sense of unease in the financial sphere.
XRP Unlocks
Ripple Inc. is set to unlock close to 1 billion XRP tokens valued at approximately $470 million on July 1 as part of their scheduled transactions. This impending move is anticipated to exert a downward pressure on the price of XRP.
Since 2017, historical records reveal that Ripple has consistently unlocked 1 billion tokens at the onset of each month through its escrow treasury mechanism. As per data furnished by XRPScan, the company has been utilizing the ‘Ripple (24)’ and ‘Ripple (25)’ wallet addresses for transactions since May 2024. These wallets specially reserve 1 billion XRP tokens every month, locked until January 2025.
Two unlocking events are slated to occur: one involving 100 million tokens and another involving 400 million tokens from the ‘Ripple (24)’ escrow, totaling 500 million XRP. Further, a solitary escrow release of 500 million tokens is planned from ‘Ripple (25)’ on July 1.
On June 1, a collective sum of 1 billion XRP tokens were unlocked from the ‘Ripple (24)’ and ‘Ripple (25)’ escrow addresses. Subsequently, Ripple earmarked 200 million tokens for operational continuity and payments, while safeguarding the remaining portion in a novel escrow, scheduled to commence unlocking in September 2027.
Moreover, the company designated 200 million XRP tokens for sales, elevating the targeted quantity for its largest monthly sale in history to 400 million tokens.
XRP Price Forecast
Taking into account the influx of supply resulting from the unlocking procedures, the sales initiatives by Ripple have instigated notable selling pressure on XRP. Historical evaluations underscore how the XRP price has depreciated post Ripple’s token sales.
In the year 2024, among the fourteen sales conducted by Ripple, merely five yielded positive price movements. Notably, price upticks were witnessed on February 5, February 11, April 14, May 13, and May 20, whereas downturns transpired on the remaining nine occasions.
A comprehensive XRP analysis indicates that four months out of the initial six in 2024 exhibited a pessimistic monthly forecast. The 1 billion XRP unlock event on June 1 also triggered a dip in the price.
At the time of drafting this rendition, XRP exchanges hands at $0.47 post a 1.85% decline. The market capitalization stands at $26.1 billion, with a 24-hour trading volume amounting to $880 million.
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Disclaimer: The content presented in this work should not be perceived as investment counsel. Investors are advised to recognize the high volatility and inherent risks associated with cryptocurrencies and are urged to undertake independent research.
