Ripple moved 500 million XRP, valued at around $1.1 billion, sparking fresh speculation across the crypto space.
The transfer, flagged by blockchain monitoring service Whale Alert on May 2, initially sparked speculation of a large-scale dump. On-chain data, however, indicates that it was not a transfer to external wallets but rather a part of Ripple’s routine monthly escrow unlocks.
Up to 1 billion XRP (XRP) can be sold each month from escrow thanks to the company’s structure release mechanism. Unused tokens are usually returned to escrow to control supply and lower market volatility.
Out of the 1 billion XRP unlocked this cycle, Ripple sent 500 million to an internal wallet and quickly re-locked it. Another 200 million XRP, which appears to have already been in Ripple’s operational wallet, was also relocked in two separate transactions. These moves helped calm fears of a major dump, signaling that Ripple has no immediate plans to flood the market with extra supply.
At press time, XRP trades near $2.21 and appears to be consolidating just below a critical resistance zone at $2.30. The 20-day exponential moving average at $2.17 and the 50-day EMA at $2.20 support the price on the daily chart, indicating that the short-term bullish structure is still in place.
But momentum is still lacking. The average directional index, which gauges trend strength, is low at just 12.7, and the relative strength index is neutral at 53. Lack of conviction among traders is indicated by oscillators such as the moving average convergence divergence and Stochastic, which are either neutral or slightly bullish.
XRP may see a push toward the $2.50 region if bulls can break above the $2.30 resistance level. However, a decline toward $2.05 or even $2.00 is more likely if the price falls below $2.16 and is unable to hold the 50-day EMA. The flat volume indicates that traders are holding off on making a move until they receive a clearer signal.
Beyond the chart, XRP is facing some big-picture questions. The Securities and Exchange Commission recently delayed a decision on the spot XRP ETF proposed by Franklin Templeton, pushing the deadline to mid-June. This action has added some uncertainty to the token’s short to mid-term outlook.
Meanwhile, Ripple continues to push for growth. After launching its RLUSD stablecoin last year, the company reportedly made a $5 billion bid to acquire Circle, the issuer of USD Coin (USDC). Although Circle turned it down, the move shows Ripple’s determination to grow its presence in the stablecoin space
For now, all eyes are on $2.30. A clean break above could bring fresh momentum, but failure to do so may lead to a short-term pullback.
