Ripple Unlocks 500M XRP as Legal Expert Weighs US Reserve Possibilities

Ripple Unlocks 500M XRP: What’s Happening?

Ripple has unlocked 500 million XRP from escrow, according to Whale Alert, a data-tracking service. This follows an earlier release of one billion XRP tokens, transferred from unknown wallets to Ripple in four separate transactions, leading to a 13% decline in the XRP price.

XRP Price Decline and Market Reaction

Following the latest escrow releases, the XRP price has declined by 13% in the last 24 hours, currently trading at $2.55. Over the past seven days, XRP has experienced a 17.93% drop, with a 24-hour trading volume exceeding $9.7 billion.

Analyst Insights

Crypto analyst Dark Defender notes that XRP is currently oversold in 4-hour time frames, anticipating a potential reversal if key Fibonacci support levels hold. Another crypto analyst, Egrag Crypto, previously predicted that if XRP maintains an upward trajectory, its market cap could grow to $4 trillion, potentially driving the XRP price to $70 in the long term. However, in a recent update, the analyst has noted a potential XRP price correction to $2.30 and $1.90 as the support to watch out for.

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[Image description: A graph showing the XRP price decline over the past 24 hours]

Is XRP a Potential US Reserve Asset?

Jeremy Hogan, a pro-XRP lawyer, has shared his thoughts on XRP’s potential role in a US digital asset reserve after last week’s clash of Bitcoin enthusiasts and XRP supporters. He suggests that the US government may consider holding XRP as a strategic asset, similar to gold or oil reserves.

"Almost everyone on crypto-X is looking at the issue from a ‘crypto’ perspective. None of that really matters to the Federal Government," Hogan stated. He argued that if the US views XRP as beneficial for economic stability or as a hedge against future risks, it could potentially hold large reserves of the digital asset.

Hogan also speculated that if necessary, the government could assert control over Ripple or escrowed XRP in extreme situations, similar to past actions involving gold reserves in 1933.

Conclusion

The recent unlock of 500 million XRP from escrow has sparked discussions within the crypto community, with some analysts predicting a potential reversal in the XRP price. The current market reaction, including a 13% decline in the XRP price, may be attributed to the large volume of XRP being moved. As the market continues to evolve, it remains to be seen how XRP will perform in the long term.

FAQs

Q: What is the current XRP price?
A: The current XRP price is $2.55.

Q: What is the total amount of XRP unlocked from escrow?
A: 500 million XRP has been unlocked from escrow, in addition to the earlier release of one billion XRP tokens.

Q: What is the market reaction to the XRP unlock?
A: The XRP price has declined by 13% in the last 24 hours, with a 24-hour trading volume exceeding $9.7 billion.

Q: Are there any analyst insights on the XRP price decline?
A: Yes, analysts have noted that XRP is currently oversold in 4-hour time frames, anticipating a potential reversal if key Fibonacci support levels hold.