Ripple Labs has recently caused a stir by releasing 500 million XRP in two separate transactions, deviating from its usual distribution pattern. This decision has sparked speculation and discussion among crypto holders, especially since the transactions originated from an address associated with Ripple since 2017 but had been inactive since 2021.
Adding to the uncertainty, Ripple Labs has not provided any official communication regarding this unusual activity, leaving the community to speculate about its intentions. The on-chain transaction tracking platform Whale Alert reported that another 500 million XRP has been unlocked from escrow.
It is important to note that this release is part of Ripple Labs’ strategy to release 1 billion XRP monthly from escrow. However, this move comes at a turbulent time for the market, with the total market cap down by 19%. XRP itself has seen a 10% decrease in the last seven days, a 2% decrease in the last 24 hours, and a 19% decrease in the last 30 days. As a result, the asset has fallen below the critical support level of $0.5 to $0.48.
Despite the impact on XRP’s price, the core mission of Ripple Labs’ Escrow Strategy remains intact. This strategy aims to ensure market liquidity, facilitate cross-border transactions, and maintain the stability and integrity of the ecosystem.
The possibility of XRP bouncing back has been a topic of discussion, especially after a significant amount of XRP was moved to the Bitstamp exchange. Some believe this could be a sell-off, while others speculate it may be part of Ripple’s liquidity management efforts. In addition, a renowned analyst named Dark Defender believes that there is still a chance for XRP to reach new all-time highs, with a potential target of $5 and later $18, as long as it stays within the $0.46 and $0.39 range.
The analyst also predicts that the global crypto market capitalization could reach $23 trillion by January 2025, with XRP accounting for 1.2% of the market share. In this scenario, the price of XRP could be trading at $2.8.
Another analyst, EGRAG CRYPTO, also sees a bullish outlook for XRP and predicts a surge to $4. He points out that even the weekly candles of XRP’s price chart are not closing below a certain arc, which indicates strong bullish momentum.
In conclusion, Ripple Labs’ recent release of 500 million XRP has raised speculation and discussion among crypto holders. Despite the market turbulence, the core mission of Ripple Labs’ Escrow Strategy remains intact, and analysts still see potential for XRP to reach new highs in the future.
