XRP is facing serious problems; Ripple shoveled its regular gigantic amount of tokens from escrow
Ripple has released another huge amount of XRP tokens, one billion, which is unleashed only on the first day of each month. In the meantime, whales have shifted nearly half a billion XRP via the top crypto exchanges, pushing 180 million in a single chunk.
Ripple withdraws one billion XRP
According to Whale Alert, earlier Sept. 1, Ripple withdrew a billion XRP from escrow. This tremendous amount of crypto was extracted in three transactions, bearing 500,000,000; 200,000,000 and 300,000,000 XRP.
Ripple has been unlocking these big lumps of XRP since 2018 with a goal to support the token’s liquidity. As a rule, only around from 100 to 200 million XRP tokens are added to the supply in circulation, and the rest gets locked back in escrow.
According to Ripple’s website, the company planned to make 55 releases from escrow, thus withdrawing 55 billion XRP. Therefore, it should have ended these operations earlier this year. However, Ripple continues to release a billion tokens on the first day of each new month. One billion XRP is worth $237,000,000 at the current exchange rate.
Whale Alert also reported several transactions performed by whales between large crypto exchanges as they shifted massive amounts of the seventh-ranked token, XRP. Overall, these trading platforms shifted 404.6 million XRP. The largest single transfer here carried an astounding 180,000,000 XRP. The rest of the transactions moved 74.6 million, 50 million, 40 million and 60 million. These tokens were moved with the participation of such exchanges as Binance, Bittrex, Bitso and Bitstamp.
— Whale Alert (@whale_alert) September 1, 2022
Large movements of XRP have been reported by Whale Alert quite often over the past month as the coin’s price has dropped into the $0.03 range and has remained there. As a result of a recent Bitcoin slump, the whole crypto market has been floating in the red zone. At the time of this writing, the leading cryptocurrency is trading below the $20,000 level, and Ethereum has dropped to $1,556. XRP is changing hands at $0.3251, losing more than 6% over the past week. Bitcoin has gone down below the all-time high (ATH) of $20,000 achieved in December 2017.
XRP is facing serious problems
Despite the stalemate on the market, we are seeing a diverse dynamic among digital assets on the market today as some assets like XRP are losing local support levels, or old classics like Litecoin are returning to the top of the most profitable assets on the market.
Despite the brief success of Ripple in the court and relatively calm performance on the market, XRP lost the local support level, which should have been the foundation of a potential future rally.
The trendline we discussed previously was present on numerous assets across the market, and XRP was no exception. The trendline formed back in July when XRP bounced off the local psychological resistance of $0.3.
Following increased selling pressure, XRP plunged by more than 10% in less than 24 hours, performing another test that appeared successful at first. Unfortunately, after five days of consolidation, bulls lost the battle against bears, and the price of the token tumbled below $0.33, breaking the 70-day support that guided the asset upward.
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