- Ripple unlocked 500 million XRP from its routine escrow but addressed market concerns by locking up 700 million tokens again to prevent excess supply.
- XRP’s price stays steady at $2.22 while technical data reveals measured optimism during this period of consolidation.
- RSI and MACD suggest gradual upward potential, but weak histogram bars hint at near-term indecision.
Ripple’s 500 million XRP transfer has generated debate in the crypto community. The transfer was revealed by on-chain analytics service, Whale Alert on May 2.
The initial interpretation was that the company was making attempts to sell the tokens. However, a closer inspection of the transaction and the other ones that followed, which were also revealed by Whale Alert, suggest that the transfers were not to external wallets.
Usually, Ripple returns unused tokens to escrow to reduce market volatility and control supply. After unlocking 1 billion XRP during this cycle, Ripple moved half of these tokens to one of its internal wallets and re-locked it immediately.
In addition, Whale Alert also revealed that Ripple relocked another 200 million XRP in two separate transactions. These actions indicate that Ripple is not planning to increase the token’s available supply significantly.
Hence, it eliminates any concerns that the company is about to start a large-scale XRP dump.
XRP Gains 1.28% as Technicals Point to Cautious Optimism
Meanwhile, current CoinMarketCap data shows that XRP trades at $2.22 after gaining 1.28% in value in the last 24 hours. The 1-day chart for XRP on TradingView shows a period of consolidation after some volatility earlier.
Also, there hasn’t been any significant changes to its trading volume. This indicates a period of indecision among market participants at this time. The coin’s relative strength indicator (RSI) is currently 54.21, which is slightly above the neutral level of 50.
A rising trend in this indicator suggests bullish sentiment is gaining strength. The MACD supports this view, as the blue MACD line stays above the orange signal line. Bullish momentum also appears in the positive histogram bars.
But the small histogram bars hint that the upward momentum might be slowing down or stabilizing. Hence, it’s unclear that the Ripple-linked token will surpass its next crucial resistance level of $2.3 soon.
Source: TradingView
