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XRP price in trouble as 200 million tokens are injected into circulation

  • Ripple price is at risk of further drop as the altcoin trades below the 200-day Moving Average. 
  • According to a fixed schedule, Ripple has unlocked 1 billion XRP on April 1 of which 200 million will join circulation. 
  • Analysts have predicted a drop in Ripple price as the circulating supply of the altcoin increases. 
XRP price in trouble as 200 million tokens are injected into circulation
Ekta MouryaEkta MouryaFXStreet

Ripple price remains at risk of collapse as the circulation of the altcoin, XRP, increases significantly. Following fixed schedules, the payment giant has unlocked 1 billion XRP tokens; 800 million were locked back in escrow accounts. 

Also read: Dow Jones futures fall as yields spook markets

Ripple price at risk of drop with 200 million XRP injection

Ripple price remains at risk of a further drop as the payment giant unlocks 1 billion tokens. XRP followed the programmed release of 1 billion XRP on April 1, 2022. Of the billion, the payment giant has moved 800 million XRP back to escrow, locking them up until May 1, 2022. 

The remaining 200 million XRP tokens will be injected into the altcoin’s circulating supply. The payment giant will use the tokens to cover its operational expenses and support the liquidity of XRP across cryptocurrency exchanges. 

Analysts have evaluated the Ripple price trend and predicted a drop in the altcoin’s price. Ripple price is in a tussle with its 200-day MA on the daily chart. Ripple price also continues to struggle below $0.9. 

Analysts have observed an intersection between the 200-day MA and static resistance at $0.93. The ascending trend line that acted as support is now resistance at $0.93. 

@GrizzlyBTClover, a pseudonymous crypto analyst, believes Ripple price is stuck below $0.93, after bears defended this resistance level. A breakout past this level would be key and could push Ripple price to $1, and the following two price targets at $1.3 and $1.7. 

Psychological resistance is at $1 for Ripple price. If bulls fail to take control of Ripple price, XRP could drop below $0.70. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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