Does Ripple unlocking $3.28 billion XRP affect the price?

XRP is at a breakout point after a prolonged bullish trend, but the momentum has been curtailed by FUD (Fear, Uncertainty, and Doubt), following a large unlock. Ripple executives have made efforts to calm the situation, but their explanations have not been enough to save XRP's price amidst the weekend volatility.

Ripple unlocks 1 billion XRP: Important information

On Saturday, concern and suspicion spread within the XRP community after Ripple decided to unlock 1 billion tokens from its escrow account. According to information from Whale Alert, Ripple unlocked a total of 1 billion XRP tokens through three transactions: 500 million, 100 million, and 400 million tokens, with a total value of up to 3.28 billion USD.

Does Ripple unlocking $3.28 billion XRP derail the price?Ripple unlocked 1 billion XRP | Source: Whale Alert on XThis token was previously held in an Escrow( account according to a 2017 protocol aimed at stabilizing the supply in the market. These transactions have attracted the attention of investors, amidst speculation that they could lead to a sell-off.

"They want you to buy XRP while they sell it," CFA Rajat Soni, a prominent user on X, wrote.

Soni's comments, along with many other opinions, allude to the possibility that Ripple is manipulating its escrow account disbursement schedule. Meanwhile, the price of XRP has seen a series of positive growth, supported by favorable developments in the ongoing lawsuit between Ripple and the SEC )U.S. Securities and Exchange Commission(.

In this context, Ripple's CTO, David Schwartz, has spoken out to clarify concerns, arguing that the unlocking of escrow accounts is a routine routing activity.

"They always unlock on the first day of the month. You may not see any activity on the ledger just because the margin account has been unlocked. The ledger doesn't do anything automatically; it always waits for someone to send a transaction to activate it," Schwartz explained.

Community members also pointed out that Ripple's margin account has randomly unlocked some contracts in the past two months.

However, Ripple's escrow system remains a controversial topic, with the company holding a large volume of XRP in this agreement. Data from XRPscan shows that approximately 35.6 billion XRP is still held in escrow after the unlock on August 9.

"... can Ripple manipulate the release date of the margin contract at any time? So theoretically, can they unlock the entire 36 billion XRP in the next 5 minutes?" a user asked.

Based on its operating mechanism, Ripple's escrow contract unlocks a maximum of 1 billion XRP per month, a system designed to avoid flooding the market.

This system helps maintain the price of XRP, and while its structure may be predictable, individual transactions, especially those displayed on the XRP Ledger, often tend to have a strong impact on the market.

Ripple Price Outlook: How are XRP Buyers and Sellers Positioning Themselves?

Analysts believe that the price of XRP may be preparing for a breakout on higher time frames. However, the price of Ripple seems to be cooling off on the one-day time frame before the next move, with bullish investors starting to position themselves.

Based on the bullish volume records )green(, bullish investors are waiting for an opportunity to interact with Ripple's price right in the demand zone between $2.9611 and $2.7354. This means that the downtrend could continue another 5% to 7% before potentially reversing.

The RSI ) Relative Strength Index ( is also decreasing, indicating that momentum is weakening. If the immediate support level at $3.1061 does not hold, the price of XRP may drop until bullish investors have a say at the mentioned level, with the demand zone providing significant support below.

![Does Ripple unlocking $3.28 billion XRP affect the price?])https://img-cdn.gateio.im/webp-social/moments-586c61f829cc23f0f07644e7858e2a4f.webp(Ripple price performance )XRP(. Source: TradingViewConversely, if buying pressure increases at current levels, XRP price may continue its bullish trend, potentially overcoming bearish investors )red volume pattern(. However, with the supply area between $3.4000 and $3.5493 putting pressure on the upside, bullish investors looking to open long positions on XRP may want to wait for a candle to close above the average or middle line of the supply area at $3.4687.

A candle closing above this level on the daily timeframe could trigger further bullishness, allowing Ripple's price to reclaim the peak of $3.6607. Such a move would equate to a 7% increase compared to current levels.

Mr. Giáo

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