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- On-chain metrics revealed that exchanges have witnessed an outflow of $70.50 million worth of XRP.<\/span><\/em><\/li>\n
- XRP could fall by 10% to reach $2.55 if it fails to hold the $2.88 level.<\/span><\/em><\/li>\n<\/ul>\n
Amid the current bearish market sentiment, Ripple Labs is gaining attention from crypto enthusiasts following its recent escrow locking.<\/span><\/p>\n
Ripple locks 700 million XRP into escrow<\/b><\/h2>\n
On the 2nd of February, blockchain transaction tracker Whale Alert<\/a> posted on X (formerly Twitter) that Ripple Labs has moved 700 million XRP tokens into escrow. <\/span><\/p>\n
This means these tokens are temporarily locked and cannot be used for trading or any other activity.<\/span><\/p>\n
This transaction by Ripple Labs<\/a> comes at a time when the overall cryptocurrency market is experiencing a notable price decline. <\/span><\/p>\n
It appears that the move was made to prevent a major drop in XRP\u2019s price amid bearish market sentiment.<\/span><\/p>\n
Escrow locking and price movements<\/b><\/h2>\n
Moving XRP into escrow has its own benefits. Historically, it appears that whenever Ripple Labs locks tokens in escrow, the price experiences some relief and gains momentum in a bearish market. <\/span><\/p>\n
Conversely, when Ripple unlocks tokens from escrow, the token tends to see a price drop.<\/span><\/p>\n
Following this current transaction, XRP was trading near $2.90 at press time, with a price drop of 3.60% in the past 24 hours. <\/span><\/p>\n
Despite the price decline and bearish market sentiment, traders and investors have shown strong interest in the token, resulting in a 65% increase in the asset\u2019s trading volume.<\/span><\/p>\n
Bullish on-chain metrics\u00a0<\/b><\/h2>\n
However, some long-term holders and investors seemed to be taking advantage of the recent price drop, as they accumulated tokens, according to the on-chain analytics firm Coinglass.<\/span><\/p>\n
Data from spot inflows\/outflows revealed that exchanges have witnessed an outflow of a significant $70.50 million worth of XRP in the past 48 hours, which indicated potential accumulation.\u00a0<\/span><\/p>\n
This substantial outflow further suggested an ideal buying opportunity.<\/span><\/p>\n
At press time, the major liquidations were at $2.791 on the lower side and $2.963 on the upper side, with traders being over-leveraged at these levels.<\/span><\/p>\n
![\"XRP](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/image-2025-02-02T153134.423.png\")
<\/a><\/p>\nSource: Coinglass<\/p>\n<\/div>\n
If the market sentiment doesn\u2019t improve and the price falls to the $2.791 level, nearly $55.10 million worth of long positions will be liquidated. <\/span><\/p>\n
Conversely, if the sentiment shifts and the price rises to the $2.963 level, nearly $35 million worth of short positions will be liquidated.<\/span><\/p>\n
Technical analysis and upcoming levels\u00a0<\/b><\/h2>\n
According to AMBCrypto\u2019s technical analysis, XRP was at a crucial support level of $2.88, while momentum seemed to be declining.<\/span><\/p>\n
- XRP could fall by 10% to reach $2.55 if it fails to hold the $2.88 level.<\/span><\/em><\/li>\n<\/ul>\n
![\"XRP](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2025\/02\/XRPUSDT_2025-02-02_15-33-05-e1738490657426.png\")