The latest unlocking of the slated escrow tranche saw the release of 1 billion XRP coins. As the year near its end, XRP is still down around 30%, the volume that will be distributed or sold by Ripple is still unknown following the December release of coins. Currently, there is a massive supply of coins and little demand above projected trading and some restricted testing by banks. The selling of these coins might be done on OTC markets. XRP price analysis shows that the coin has declined as low as $0.21 during its recent sell-off, although some analysts indicated this as a buying level.
XRP is currently two years away from surging at prices above $3.40, a level that has never been retested in dollars or BTC terms. The one billion XRP unlocked by Ripple marks the supply allotted for December per its pre-determined schedule. At its current valuations, 1 billion XRP amounts to about $225 million, the coin’s trading price is currently in a dangerous zone. Currently retesting at a support level close to $0.20, should the support zone waver, it could mean danger for the third-largest digital currency.
Ripple Unlocks slated December XRP
Previously in December 2017, Ripple announced that it would be putting 55 billion XRP into an escrow wallet and would release 1 billion XRP monthly to hasten the XRP ecosystem.
The release of funds made this month implies that there is another $220 million worth of XRP available for Ripple to use. Putting in mind the bearish price trend in the crypto sphere and the rather hostile year for altcoins, every fund unlocked brings in a new wave of anxiety for XRP holders.
Will the XRP price reacts to the fund unlocked?
So far, the release of escrow funds has often been linked with an imminent price decline since the XRP coin can be share into the market. This month’s fund release has brought the circulating supply close to 44 billion.
Although some altcoins have had some sort of support, XRP has stayed inactive over the past month trending downwards. Surprisingly, the just concluded Ripple Swell Conference was not strong enough to influence the price of the coin positively.
Currently, it is tentative if the XRP market would suddenly afford more major volumes to captivate the selling price. The price of the token seems overstretched in contrast to other coins. In the days to come, Ripple will reveal how much was returned into the escrow, the return was limited last month coinciding with the deteriorating of the crypto’s bear market.