Analysis of Ripple's Token Unlocking and Price Movements
Ripple, the issuer of XRP, is preparing to unlock 1 billion tokens valued at $520 million on June 1. This routine activity might have repercussions on the future pricing of XRP.
Reflections on XRP Activity in May
Since 2017, Ripple has regularly unlocked 1 billion tokens on a monthly basis using escrow mechanisms. Previous records indicate the utilization of addresses such as 'Ripple (22)' and 'Ripple (23)' until April.
May witnessed the introduction of new addresses 'Ripple (24)' and 'Ripple (25)' to substitute the earlier ones. These new addresses are scheduled to unlock 1 billion XRP monthly until January 2025.
On May 1, Ripple unlocked 1 billion XRP from 'Ripple (24)' and 'Ripple (25)'. A portion of these tokens, equivalent to 200 million, were sold to cover expenses, while the remaining 800 million tokens were re-locked until September 2027.
Price Analysis of XRP
The influx of a substantial token supply has raised concerns about the potential impact of Ripple's sales on the price dynamics of XRP. Historical data suggests that XRP prices often experience declines during these sales periods.
In 2024, only 5 out of 12 sales events led to positive price movements, while the remaining days witnessed price drops, making these sales events closely monitored by stakeholders.
The initial months of 2024 witnessed negative price movements for XRP. Following the unlocking of 1 billion XRP tokens on May 1, the price exhibited a neutral stance.
Current XRP Price Status
As of now, the price of XRP is recorded at $0.5174, reflecting a 0.73% decrease in the last 24 hours. The market capitalization has decreased to $28 billion, while the 24-hour trading volume has seen a 5% decline, now amounting to $1.254 billion.
