Well, it certainly seems like Ripple’s legal tussle with the U.S. Securities and Exchange Commission (SEC) will never come to an end. In an intense battle since 2020, now recent events have injected a new level of uncertainty. A notable incident on February 25 saw the unlocking of 400 million XRP tokens worth a substantial $217.5 million, deviating from the usual schedule.
Why should you care? Read on.
Normally, Ripple employs an escrow mechanism involving monthly releases of one billion XRP, with a portion being sold. The recent unlocking, however, reported by Whale Alert, diverged from this routine, capturing the attention of the crypto community. This move is a part of Ripple’s overall plan, as it holds approximately 40 billion XRP tokens in escrow, set for gradual release over the next 42 months.
The monthly releases contribute to the circulating supply, potentially impacting the price, especially when combined with Ripple’s practice of selling a portion of these tokens. The timing of the recent unlocking and its departure from the regular schedule have prompted raised eyebrows within the community.
Diving into the XRP Release
Adding a layer of mystery to this unexpected event is the memo accompanying the XRP release. The memo includes peculiar shout-outs, leaving the community curious and speculating about the significance of these references.
Did You Know? Ripple and Coinbase Get a Boost? Top SEC Lawyer Switches Sides, Joins White & Case
Renowned crypto analyst Alan Santana, who previously believed that XRP might not experience a severe correction based on its past six months of performance, revisited his assumption in light of recent developments.
Santana identified a crucial uptrend line on the XRP chart, established since 2020. He warns that a break below this trendline could signal a bearish trend with severe consequences, suggesting a potential 35% drop in XRP’s price.
As of the latest update, XRP is priced at $0.54438900, reflecting a minor change of -0.07% over the past 24 hours. The market capitalization stands at $29.72 billion, with a year-to-date change of -11.48%.
Technical indicators show bullish sentiments prevailing for XRP, with one-day gauges aligning with a ‘buy’ sentiment at 10, supported by moving averages at 8. Oscillators indicate a ‘neutral’ stance at 8.
As the legal battle progresses beyond the discovery stage, critical upcoming deadlines loom. March 13 marks the date for the SEC to file remedies-related briefs, followed by April 12 for submitting motions opposing remedies proposals. The final deadline for remedies submissions is April 29, adding to the tension surrounding XRP’s fate.
XRP finds itself at the centre stage, surrounded by pending lawsuits, untimed escrow unlocking, and mixed community speculations.
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