- Ripple locks 700 million XRP in escrow to prevent further price declines amid market downturn.
- XRP trading volume surges 65% despite a 3.60% price drop in the last 24 hours.
- Long-term holders accumulate XRP, indicating potential buying opportunities during current market conditions.
Ripple has made headlines by locking 700 million XRP tokens into escrow. This move stands out, especially as the market faces a decline in prices. Many are wondering what this means for the future of XRP. Will this development help boost XRP, or is it just another temporary action?
Escrow Locking and Market Impact
On February 2nd, Whale Alert shared that Ripple Labs had moved 700 million XRP into escrow. This effectively locks the tokens, making them unavailable for trading. The goal? To protect XRP from further price drops during a time when the market is feeling bearish.
History shows that when Ripple locks tokens in escrow, XRP often experiences relief. In these situations, the token can gain momentum, even in a down market. However, unlocking tokens tends to result in a price drop. This recent action seems to be aimed at stabilizing XRP’s value.
Bullish Signals Despite Price Drop
Currently, XRP trades at $2.90, with a 3.60% drop in the last 24 hours. Despite this, trading volume has surged by 65%. This increase shows that investors remain interested, even when market sentiment is low.
Some long-term holders are taking advantage of the price dip. According to data from Coinglass, $70.50 million worth of XRP has left exchanges in the last 48 hours. This indicates that many see the current price as a good buying opportunity.
XRP is holding a key support level at $2.88. If the price drops below this point, the next support level is $2.55. However, XRP remains above the 200 Exponential Moving Average (EMA), signaling a potential uptrend. Major liquidations could happen if XRP hits either $2.791 or $2.963.
