Key Points
- On the 1st of July, Ripple will let loose a total of 1 billion XRP.
- XRP price could be under pressure.
- Monthly unlockings have been associated with influencing the market.
- This has caused price drops over recent months.
Concerns have emerged following Ripple’s announcement that it plans to release 1 billion XRP on July 1st; this may result in pushing down prices for the altcoin.
Risk of collapsing? Ripple Will Unlock 1 Billion $XRP in July?
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— GreenTeeNake (@NakeTee80422) June 27, 2024
Ripple’s Upcoming XRP Unlock: Market Implications
Ripple has planned another release of 1 billion XRPs on the first day of July which is equivalent to nearly $470 million USD. In order to control supply and adjust market dynamics for their cryptocurrency, they initiated this kind of system on a monthly basis starting from last year. Yet, these kinds of huge releases can impact the market by driving down every Ripples’ price.
The company uses two crypto wallets called “Ripple(24)” and “Ripple(25)” specifically for the unlocking each month of 500 million XRPs respectively until January 2025. After releasing some more in June as per usual unlocking.
Ripple managed to sell out all but left with other still counting futures contracts due in September 2027 involving 200 million dollars worth equivalent amount that was put into forward sales.
The highest-ever sale was completed by Ripple with more than an additional selling off another two hundred million XRPs.
XRP’s Price Trends Amid Monthly Unlockings
Sales made by Ripple affected its price often. In fourteen days during 2024, only five days saw increases while others experienced declines.
Additionally, four are showing a downfall whereas there is a downward trend noted in case six months out of twelve years reported for XPR during the first half itself after releasing one billion XRPs on June 1 resulting in a 9.25% down drop in the market value of XRP worth $0.476.
Such unlockings can be an indicator for short-term price movements and are therefore essential to watch by investors and traders, but we should note that.
when it comes to investing in cryptocurrencies you would have been warned about the risks involved and that is why past results do not determine what happens in the future.
This is a significant event for the market that participants need to look out for since every move made has enormous implications on XRP’s price as well as broader crypto market dynamics.
