Ripple (XRP) Price Prediction: 3 Billion Transfer to Mystery Wallet Fuels Bearish Sentiment
Key Insights
Ripple transferred a significant amount (3 billion XRP) from its escrow wallets to an unknown wallet
This movement is three times larger than Ripple's usual monthly transfer from escrow.
Despite the large transfer, XRP's price hasn't shown a significant drop so far.
Some commentators believe the transfer might be internal to Ripple and not a sell-off.
Analysis shows that instead of a price dip, XRP might be poised for a short-term price increase.
We might be about to see the largest XRP sell-off in years.
According to whale activity tracking service, Whale Alert, there has been a massive transfer of around 3 billion XRP tokens, all worth around $1.5 billion from Ripple’s escrow wallets into an unknown wallet.
This amount of tokens moving right from Ripple into an unknown wallet has sparked concerns across the crypto community, with investors and traders closely watching to see what might become of XRP’s price from here.
Escrow Activities and Speculations
Normally, Ripple releases a certain amount of tokens from its escrow wallets at the start of every month.
These XRP tokens are usually about 1 billion and have been going on for quite a while.
However, the asset movements for July are strange, in that they are three times more than the usual amount, and investors are more than spooked.
Ripple unlocked the usual 1 billion XRP, worth $520 million, on 1 June, through the XRP Ledger escrow system from two labelled accounts: 'Ripple (24)' and 'Ripple (25).'
However, things soon became suspicious when aside from the usual 200 million tokens sent to the treasury each month, the dormant account, labelled 'Ripple (35)' added another 200 million XRP to 'Ripple (1),'.
Crypto commentator and blockchain educator tracked these transfers, and calculated a total of 3 billion $XRP —which is a staggering 5.45% of the total circulating supply of $XRP—moved in a single day!
Unlocking from Escrow
Granted, this movement of tokens, as mentioned earlier, is very different from the usual way that Ripple moves its funds.
According to another commentator, however, there might not be much to worry about, because “most of these transactions are internal movements and escrow relock-ups”.
There might be nothing to worry about
So far, XRP hasn't moved significantly on the $3 billion XRP movement and so-called escrow releases, despite how the cryptocurrency tends to fluctuate when selloffs happen.
XRP's price outlook
The chart above shows that on the short to medium terms, XRP is currently trading inside an ascending wedge.
The chart above also shows that the cryptocurrency is attempting to rebound from the base of this formation and could be looking at a minor 15% rally to the top of the wedge around $0.588.
Overall, XRP’s bulls seem to be alive and kicking, and will only lose the fight if we see a break below $0.48.
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