Incoming billion XRP unlock and what it means for the price: details

TL;DR

Ripple will unlock 1 billion XRP in August, which could affect the price due to increased supply. Analysts are predicting a bullish trend for XRP, expecting a significant breakout. Upcoming unlocks

Ripple is scheduled to unlock 1 billion XRP in early August, a practice that occurs every month and is part of the company’s strategy to ensure a transparent release of its holdings. The initiative dates back to 2017, when Ripple placed 55 billion XRP tokens in a series of escrows.

“The escrow consists of independent escrows on the ledger that release a total of one billion XRP each month for the next 55 months. This provides an upper limit to the amount of new XRP that can be put into circulation.

The amount of XRP released into circulation is likely to be much less than this. Any additional XRP left over each month will be placed into a new pool to be released during the first month, which is currently not released,” the team explained at the time.

The current USD equivalent of the upcoming unlock is over $600 million and will increase the circulating supply of XRP.

It is worth noting, however, that the structured and predictable nature of the event may stabilize investor sentiment as market participants are aware of the planned initiative and can prepare accordingly. The price of XRP remained relatively flat following the token unlock last month.

Ripple is not the only crypto project that will launch a substantial amount of coins in the coming days. Wormhole plans to unlock 600 million tokens (worth over $170 million) on August 3rd, while Optimism will increase its circulating supply by 16.54 tokens (equal to nearly $30 million) on August 31st. july

XRP Price Predictions

Crypto X is full of bullish analysts predicting a massive resurgence in the price of XRP in the near term. Mikybull Crypto recently argued that the asset has formed “a pennant continuation pattern” on the daily chart.

“The breakout will be massive. The pattern rarely fails,” they added.

A bullish pennant continuation pattern usually occurs after a strong price move and is characterized by a consolidation phase with converging trend lines. Remember that the price of XRP rose from less than $0.40 in early July to more than $0.63 two weeks later. In the following days, it went through enhanced volatility before consolidating around the current $0.60 mark.

Crypto Tony also chimed in, maintaining that XRP remains in the $0.56-$0.65 support zone. The trader promised to jump on the bandwagon as soon as the price crossed the upper level.

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