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The XRP price has fallen to $0.55 as the crypto token continues to struggle to get above the $0.60 resistance level. This recent decline is due to several factors, including Ripple’s recent token is unlocked.
Ripple’s unlocks cause the price to drop
According to the on-chain analytics platform Whale alertRipple has unlocked 1 billion XRP tokens ($559 million). escrow wallet on September 1. This was part of the token unlockswhich the crypto company is known to perform on a monthly basis. These token unlocks were performed in three transactions, with these three transactions unlocking 500 million XRP, 200 million XRP, and 300 million XRP from the escrow wallet.
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This led to bearish sentiment for the XRP price, causing it to decline. Ripple’s XRP unlocks always cause a supply shock, which is why XRP Investors to panic and sell their assets out of fear that the crypto company may want to remove some or all of the tokens it has unlocked from escrow.
This panic among XRP investors comes despite reports that Ripple’s XRP sales have no impact on the crypto’s price on exchanges, as they are likely sold over the counter. Meanwhile, Ripple once again faced criticism from some members of the XRP community following its recent token unlock, with one of them calling the crypto company a ‘scam’.
Another reason the XRP price fell to $0.55 is the current bearish sentiment in the broader crypto market. Bitcoin (BTC) fell below $58,000 on September 1, setting off a downtrend for other crypto tokens.
The price action of the flagship crypto has remained indecisive, weighing on the fate of other tokens. The XRP price is undoubtedly at risk of falling lower if Bitcoin fails to establish a bullish trend quickly enough and rises above $60,000.
Some positives for the XRP price
Despite the panic caused by Ripple’s XRP is unlockedit is worth noting that the crypto company locked 800 million XRP ($442 million) tokens back on deposit. This is a bullish development for the XRP price as it will help allay the fears of XRP investors who believed that Ripple wanted to sell the 1 billion XRP tokens that were previously unlocked.
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Another positive for XRP and its holders is the likelihood of the US Securities and Exchange Commission (SEC) be attractive case against Ripple decreases as the 60-day period in which the Commission can do this approaches. If the SEC ultimately chooses not to appeal, that will create bullish momentum for the XRP price given how high it is influence the lawsuit has taken place over the crypto so far.
At the time of writing, XRP is trading around $0.549, down over 1% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
