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Popular crypto payment platform Ripple has released 240 million XRP tokens in its latest escrow unlock for March. This comes at a time when XRP’s price has declined significantly. Data from the top XRP Ledger explorer, XRPScan, revealed that Ripple has commenced its token sales for March 2024.
Ripple Unlocks 240 Million XRP Tokens Despite Price Slump
Currently, Ripple XRP token sales in March 2024 are ongoing. The first sale occurred on March 5, when the company’s wallet (Ripple 1) transferred 100 million XRP to an unidentified address.
According to the data, this transaction was worth approximately $63 million. Also, Ripple transferred an additional 140 million XRP worth over $95.4 million on March 13. Cumulatively, XRP sold over $154 million worth of XRP tokens within two weeks.
Notably, these sales seemed to influence XRP’s market value and increased volatility. For instance, on March 15, XRP lost over 17% of its market value, dropping from a high of $0.67 to a low of $0.55.
However, XRP seems to have bounced back from the slump, returning to the $0.61 price level today.
Also, Ripple released only 500 million XRP tokens from escrow wallets this month rather than the anticipated 1 billion tokens, according to an on-chain report by Bithomp, the second transaction attempt to release another 500 million failed.
This failure is similar to what happened in February when 600 million tokens were released while 400 million failed to be released from the escrow. However, Ripple attempted another transaction, which was successful, releasing 400 million XRP tokens on February 25.
So, it is quite possible that Ripple could release more tokens later this month to complete the escrow unlocks. As a result of these transactions, XRP faces price volatility on the daily chart as the escrow unlocks continue.
XRP is facing pressure from sellers. Will we see a recovery?
XRP is facing bearish pressure from the sellers but has found strong support at the $0.60 price level. Notably, XRP formed a large green candle on March 11, confirming strong buyer pressure. However, XRP declined between March 12 and 16 as sellers seized control of the market.
Despite an attempt by XRP buyers to regain control on March 17, they faced resistance at the $0.62 price level. The upper wick of today’s candle is testing the $0.62 resistance, and a break above it could restart the rally. However, XRP shows no signs of recovery yet, and today’s candle has dropped below the median band of the Donchian Channel (DC).
This implies that XRP’s price could decline even further if the sellers continue to mount pressure and it moves below the $0.60 support.
Also, the Relative Strength Index (RSI) displays a value of 49.38 and is still dropping as it approaches the oversold region below 30. Based on the indicators and chart patterns, XRP will likely decline further in the coming days.
However, the $0.55 support could become the pivot point for the asset to rally again.
Damien Fisher is a seasoned crypto news writer with a relentless curiosity for blockchain technology and cryptocurrencies. With a career spanning over a decade, Damien has solidified his position as a trusted authority in the industry. Besides contributing insightful articles to TechReport, he also lends his expertise to reputable sites like Invezz and CryptoCoin.News. Through his work, Damien continues to provide valuable information to readers, keeping them informed about the latest developments and trends in the ever-evolving world of cryptocurrencies. His passion for the subject and dedication to accuracy make him a standout figure in the crypto news space.
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