- Payments giant Ripple has locked 800 million XRP in escrow following the programmed schedule of withdrawals.
- 200 million XRP would be used to cover Ripple’s operating expenses, while the rest is moved to exchanges like Bitstamp.
- Ripple’s withdrawal has moved markets, pushing XRP prices lower amidst rising selling pressure.
The market is moved by payments giant Ripple’s recent scheduled withdrawal of XRP for covering operational expenses and distributing it to customers worldwide. XRP price has resumed its downward trend.
Ripple price plunges in response to XRP flooding exchanges
Ripple Labs moved 100 million XRP after locking 800 million altcoin tokens in escrow. The withdrawal was planned, and the payment giant made three transfers to theBitstamp and Bittrex exchanges.
The payment giant moved $39.3 million worth of XRP tokens in three transactions. Ripple moved the XRP tokens to meet its operating expenses and pay its customers worldwide as part of the schedule.
The moved XRP tokens hit exchange wallets and escrow accounts, and proponents believe that a spike in the altcoin’s circulating supply could increase selling pressure.
Payment giant Ripple is the largest public holder of the altcoin; therefore, the rise in XRP balance on exchanges and in the circulating supply could negatively influence the price.
Gert van Lagen, a crypto analyst and trader, evaluated the Ripple price trend and observed a multi-year bull flag in play on the monthly chart. The analyst argues that Ripple price broke out and tested the bull flag. The next hurdle is the heavy Fibonacci resistance at $0.92. Gert van Lagen has identified bearish divergence in the Ripple price trend.
$XRP [1M] | observations on monthly:
— Gert van Lagen (@GertvanLagen) March 2, 2022
+ multi-year bullflag in play (yellow) -> broken out and tested;
+ Heavy Fibonacci resistance after break-out(red);
+ Bearish divergence on monthly RSI;
Feel free to build your trading strategy based on this chart/information.#NFA #Ripple pic.twitter.com/W7Dno4arGc
FXStreet analysts have predicted a buy opportunity in Ripple before the altcoin hits $1.06.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data
BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears
SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.