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

Business

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

Published

1 month ago

February 3, 2025

Dripp

Ripple has unlocked 500 million XRP from escrow, with transactions detected by Whale Alert. This follows an earlier release of one billion XRP tokens, transferred from unknown wallets to Ripple in four separate transactions, prompting a 13% decline in the XRP price.

Ripple Unlocks 500M XRP: What’s Happening?

According to Whale Alert, Ripple has unlocked another 500 million XRP from escrow. The data-tracking service also detected previous transactions totaling one billion XRP, moved in four batches—430 million, 300 million, 200 million, and 70 million XRP.

These transactions coincide with Ripple’s regular escrow release schedule, which involves unlocking one billion XRP every month.

This process is designed to provide liquidity while maintaining stability in the XRP market. Despite the scheduled nature of these releases, the large volume of XRP being moved has sparked discussions within the crypto community.

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.

Cyrpto analysts Dark Defender has noted that XRP is currently oversold in 4hr time frames hence he anticipates a potential reversal if key Fibonacci support levels hold. Moreover, crypto analyst Egrag Crypto previously predicted that if XRP maintains an upward trajectory, its market cap could grow to $4 trillion, possibly driving 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 being the support to watch out for.

Despite recent price declines, some analyst STEPH IS CRYPTO remains optimistic about XRP’s long-term potential. The analysts suggest that if the XRP price forms a double-bottom pattern, it could signal a breakout towards a new all time high of $30 especially if the XRP ETF is approved under Trump adminastration.

Is XRP a Potential US Reserve Asset?

Jeremy Hogan, a pro XRP lawyer, has shared thoughts on XRP’s potential role in a U.S. digital asset reserve after last week’s clash of Bitcoin enthusiast and XRP supporters. He suggested that the U.S. 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 U.S. 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.