- Payments giant Ripple has locked 800 million XRP in escrow following the scheduled withdrawal schedule.
- 200 million XRP would be used to cover Ripple’s operating expenses, while the rest is transferred to exchanges like Bitstamp.
- Ripple’s pullout moved markets, pushing XRP prices lower amid mounting selling pressure.
The market is moved by the recent planned withdrawal of XRP by payments giant Ripple to cover operational expenses and distribute it to customers around the world. The price of XRP resumed its downward trend.
Ripple Price Plunges in Response to XRP Flood Trading
Ripple Labs moved 100 million XRP after locking 800 million altcoin tokens in escrow. The withdrawal was scheduled and the payment giant made three transfers to Bitstamp and Bittrex exchanges.
The payment giant moved $39.3 million worth of XRP tokens in three transactions. Ripple moved XRP tokens to cover its operating expenses and pay its customers around the world as part of the schedule.
The displaced XRP tokens have hit exchange wallets and escrow accounts, and proponents believe a spike in the circulating supply of the altcoin could increase selling pressure.
Payment giant Ripple is the largest public holder of the altcoin; therefore, the rise in the XRP balance on the exchanges and the circulating supply could influence the price negatively.
Crypto analyst and trader Gert van Lagen assessed the Ripple price trend and observed a multi-year bull flag in play on the monthly chart. The analyst argues that the Ripple price has broken out and tested the bull flag. The next hurdle is the strong Fibonacci resistance at $0.92. Gert van Lagen has identified a bearish divergence in the Ripple price trend.
$XRP [1M] | monthly observations:
+ in-game multi-year bullflag (yellow) -> exploded and tested;
+ Heavy Fibonacci resistance after breakout (red);
+ Bearish divergence on the monthly RSI;
— Gert van Lagen (@GertvanLagen) March 2, 2022
FXStreet analysts predicted a buying opportunity in Ripple before the altcoin hits $1.06.