Ripple Moves 500 Million XRP: Market Impact and Future Outlook
On May 2, Ripple transferred 500 million XRP, worth about $1.1 billion. This move initially raised concerns about a potential large-scale sell-off. However, blockchain data shows it was part of Ripple’s regular monthly escrow unlock process.
Each month, Ripple can release up to 1 billion XRP from escrow. Unused tokens are usually returned to control supply and stabilize the market. This time, Ripple sent 500 million XRP to an internal wallet and re-locked it. Another 200 million XRP was also re-locked in seperate transactions.These actions eased fears of a massive dump.
Currently, XRP trades near $2.21, consolidating just below the $2.30 resistance. The 20-day and 50-day EMAs support the price, suggesting a short-term bullish trend. However, momentum is weak. The average directional index is low at 12.7, and the relative strength index is neutral at 53.
Breaking above $2.30 could push XRP toward $2.50. But if it falls below $2.16, a decline to $2.05 or $2.00 is possible. traders are waiting for clearer signals.
Adding to the uncertainty,the SEC delayed a decision on the XRP ETF proposed by Franklin Templeton until mid-June. Despite this, Ripple is pushing for growth. After launching RLUSD, it reportedly bid $5 billion for Circle, the issuer of USDC, though the bid was rejected.
For now, the $2.30 level is crucial. A clean break above it could bring fresh momentum; otherwise, a short-term pullback may occur.
