XRP News: Ripple Held 800M XRP in Escrow May Flood Exchanges
On XRP news, signs indicate that Ripple has locked 800M XRP units in escrow following the expected schedule of withdrawals. 25% of these will cover Ripple's operating expenses, and the rest of the units will be moved to several exchanges like Bitstamp.
The XRP market took a hit when payments giant Ripple withdrew XRP to cover their operational expenses. The excess units they took were then distributed to different exchanges. The exchanges will then sell these excess units to customers.
However, the XRP price will likely continue its downward trend until the units are sold.
Ripple Labs moved 100 million XRP before locking 800 million units of the digital token in escrow. This was a planned withdrawal, and the payment giant transferred the units to Bitstamp and Bittrex exchanges. The move amounted to around $39.3 million.
As expected, despite how necessary it was to move this massive amount of XRP, the market still
felt the hole it left.
The moved XRP tokens hit exchange wallets and escrow accounts. However,
several members of the community think that this spike in the supply of XRP could increase the
selling pressure of the digital token.
Ripple is the largest public holder of XRP, and this increase in supply can negatively influence
the price of the token.
As a crypto analyst and trader Gert van Lagen said in a tweet, the evaluation for the XRP price trend is that its bullish flag is promising. The next hurdle for the coin is the heavy Fibonacci resistance at $0.92. He then notes that there’s also a bearish possibility for the coin.
Overall, the token’s price movement is still uncertain. However, with the recent happenings in
the SEC v. Ripple case, the same lawsuit that caused XRP price to fall, the chances for Ripple’s recovery are higher.
For now, investors are on the lookout for favourable XRP news before buying the digital token.