XRP’s bullish momentum hit a roadblock this weekend after Ripple unlocked $3.28 billion worth of tokens from its escrow accounts—a move that rattled traders and fueled fresh waves of FUD (fear, uncertainty, and doubt).
The timing was particularly sensitive. XRP had been inching toward a breakout following several days of steady gains, buoyed in part by optimism over Ripple’s long-running legal battle with the U.S. SEC. But the massive token release quickly shifted sentiment.
The Unlock: What Happened
Blockchain tracking service Whale Alert flagged three transactions on Saturday:
- 500 million XRP
- 100 million XRP
- 400 million XRP
Combined, they totaled 1 billion tokens, valued at roughly $3.28 billion.
These tokens weren’t new to the market—they were held in escrow as part of a 2017 mechanism designed to prevent sudden supply shocks. Each month, Ripple can release up to 1 billion XRP, a process meant to be predictable and transparent.
Still, some in the community questioned the move’s intent. One X (formerly Twitter) user, CFA Rajat Soni, remarked:
“They want you to buy XRP while they sell it.”
Such speculation reignited long-standing debates about Ripple’s control over XRP supply and the potential market impact of large unlocks.
Ripple’s Response
Ripple CTO David Schwartz pushed back on the narrative, noting that monthly releases are standard:
“They always release on the first day of the month. You may not necessarily see any on-ledger activity just because the escrow has released.”
Even so, several community members pointed out that escrow activity in recent months has seemed less predictable, with multiple contract releases occurring close together.
According to XRPScan, about 35.6 billion XRP remains locked in escrow following the August 9 release—just over half of the cryptocurrency’s total supply.
Price Outlook: Bulls vs. Bears
Market analysts see a mixed picture for XRP in the short term. On higher timeframes, the setup still suggests a potential breakout. But on the daily chart, momentum is fading.
- Immediate support sits near $3.1061. A break below could push prices down 5–7% toward the demand zone between $2.9611 and $2.7354, where buyers are likely waiting.
- RSI levels are dropping, signaling cooling momentum.
- Resistance looms in the supply zone between $3.4000 and $3.5493, with a midline threshold at $3.4687 that bulls will need to reclaim before any sustained rally.
If XRP closes above that midline on the daily chart, analysts say it could pave the way for a run toward $3.6607—about a 7% gain from current prices.
For now, both sides are watching closely. Bears see room for further downside if selling pressure mounts, while bulls are banking on the upcoming support zones to trigger the next leg higher.
