Ripple moves 500M XRP worth $1.1B as market eyes $2.30 resistance
Ripple shifted 500 million XRP, worth around $1.1 billion, creating new conjecture in the cryptocurrency industry.
The move, detected by blockchain monitoring service Whale Alert on May 2, fuelled concerns of a large-scale dump. On-chain data, however, shows that it was not a transfer to external wallets, but rather one of Ripple’s regular monthly escrow unlocks.
The company’s structure release mechanism allows for the sale of up to 1 billion XRP (XRP) monthly from escrow. Unused tokens are typically transferred to escrow to regulate supply and reduce market volatility.
Out of the 1 billion XRP unlocked this cycle, Ripple transferred 500 million to an internal wallet and swiftly relocked it. Another 200 million XRP, which appears to have previously been in Ripple’s operational wallet, was relocked in two distinct transactions. These steps allayed fears of a big dump, indicating that Ripple has no immediate plans to flood the market with additional supplies. At press time, XRP was trading around $2.21 and appeared to be stabilising just below a crucial resistance zone at $2.30.On the daily chart, the price is supported by the 20-day exponential moving average at $2.17 and the 50-day EMA at $2.20, indicating that the short-term bullish structure is intact. However, momentum is still lacking. The average directional index, which measures trend strength, is only 12.7, while the relative strength index is neutral at 53. Traders’ lack of conviction is shown by oscillators such as the moving average convergence divergence and stochastic, which are neutral or slightly positive.
If bulls can break above the $2.30 resistance mark, XRP might go closer to $2.50.
Aside from the chart, XRP is facing some big-picture questions. The Securities and Exchange Commission recently delayed a judgement on Franklin Templeton’s spot XRP ETF, stretching the deadline to mid-June. This decision has created some doubt in the token’s short- to medium-term prognosis.
Meanwhile, Ripple continues to strive for expansion. After introducing its RLUSD stablecoin last year, the business reportedly bid $5 billion to acquire Circle, the creator of USD Coin (USDC). Although Circle rejected it, the move demonstrates Ripple’s intention to expand its position in the stablecoin industry. Everyone’s attention is currently focused on $2.30. A clean break above could provide new momentum, but failing to do so may result in a short-term slump.
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