The XRP price has seen a recent drop to $0.55, struggling to surpass the $0.60 resistance level. The main reason behind this decline is Ripple’s unlocking of 1 billion XRP tokens from its escrow wallet on September 1. This monthly token unlock process has caused a supply shock in the market, leading to panic selling among XRP investors. Despite reports that Ripple’s XRP sales are typically done over the counter and do not directly impact the price on exchanges, the fear of a potential sell-off has adversely affected the price of XRP.
Another contributing factor to the XRP price drop is the overall bearish sentiment in the broader crypto market. Bitcoin’s price decline below $58,000 on September 1 triggered a downtrend for most cryptocurrencies, including XRP. The indecisiveness in Bitcoin’s price action has added to the uncertainty surrounding the future trajectory of XRP. If Bitcoin fails to establish a bullish trend and rise above $60,000 soon, XRP’s price may continue to face downward pressure.
Despite the negative impact of the recent XRP token unlocks, Ripple has taken steps to allay investor concerns by locking 800 million XRP tokens ($442 million) back in escrow. This move is seen as a bullish development for the XRP price, reassuring investors that Ripple is not immediately planning to sell off the unlocked tokens. Additionally, the likelihood of the US Securities and Exchange Commission (SEC) appealing its case against Ripple is diminishing as the 60-day window for the Commission to do so approaches its end. This news could potentially improve investor sentiment towards XRP.
Following the token unlocks, some members of the XRP community have criticized Ripple, with accusations of being a “scam.” This negative sentiment could further impact XRP’s price if not addressed effectively by Ripple. Looking ahead, the key factors influencing XRP’s price trajectory include Bitcoin’s price movement, Ripple’s future token unlock plans, and any updates on the SEC case. Traders and investors need to closely monitor these developments to make informed decisions regarding their XRP holdings. Overall, while the recent price drop may be concerning, there are still positive indicators that could potentially support a recovery in the XRP price in the future.
