XRP Price Overview
• XRP is currently down 2.1% and trading at $0.4654 on Sunday
• 24-hour trading volume of XRP surpassed $800 million
• Ripple Unlocks 1 billion XRP Tokens from Escrow worth around $470 million
Ripple Unlocking Tokens From Escrow
San Francisco based blockchain startup Ripple Labs recently released 1 billion XRP tokens worth around $470 million from its escrow account. This token release is part of an ongoing series of monthly allocations, which are aimed at bolstering the expanding ecosystem and satisfying the growing appetite for digital currency. Typically, any remaining XRP is sent back to escrow, thus prolonging the distribution timeline. However, critics have raised concerns that Ripple’s dominance over a majority of the XRP tokens stored in escrow may result in centralization of the network.
Strong Performance in Q1 2023
Ripple reported impressive results for Q1 2023 with total sales reaching an impressive $361.06 million, a substantial jump compared to their sales recorded in Q4 2022 at $226.31 million. In addition to this, transaction volumes on both decentralized and centralized platforms also increased significantly during this period.
Price Retracement of XRP
The price of XRP has been in a downtrend since Saturday after reaching a peak high at $0.5865. Although bulls had an opportunity to prevent losses with support at $0.5, overhead pressure intensified and led to extended retracement to around $0.4358 level by Monday morning (UTC). Currently, support on the downside is provided at around $0.46 which sits marginally above the upper descending trendline as well as near the 100-day Exponential Moving Average (EMA) line (in blue).
Are Whales Buying?
Amidst these developments some market watchers have voiced concerns that Ripple’s potential to unlock sizable quantities of XRP monthly might have an impact on the token’s pricing given its already dominant position within the crypto marketspace . As such it remains uncertain whether whales are currently buying up more large amounts of XRP or if further losses are expected in the coming days ahead for this asset class given current market conditions .