XRP price has fallen to a critical support level due to Ripple's token unlocking and the neutral sentiment prevailing in the cryptocurrency industry.
Ripple Token Unlocking
XRP price dropped to $2.7345, marking its lowest point since July 11 and 25% below this year's peak. The market capitalization dropped to $164 billion from a year-to-date high of $201 billion. On September 1, Ripple Labs unlocked 1 billion XRP tokens from escrow, which intensified the situation. It's important to note that this is a regular practice for Ripple, where 55 billion tokens are held in escrow, and 1 billion is unlocked each month.
XRP Price Analysis
Technical analysis suggests XRP may aim for the support level at $2.3438 before a possible rebound. The Relative Strength Index (RSI) has dropped to 44, indicating it is not yet oversold. Negative trends are also reflected in the number of RLUSD stablecoin addresses, which decreased by 35% to 4.6k.
Outlook and Predictions
The main factor influencing XRP price this month will be the October deadline for SEC approval of ETFs. The token may rebound as investors anticipate approval, with chances now exceeding 80%.
XRP prices continue to fluctuate amid significant events in the Ripple ecosystem and expectations of a key SEC decision. Investors are closely monitoring current trends and potential price changes.
