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