XRP Sheds 5% after Ripple Unlocks 1bn Tokens from Escrow
XRP price shed about 5% in 24 hours to $1.31 on Wednesday, underperforming Bitcoin’s 1.76% drop, primarily driven by Ripple’s monthly token unlock adding supply pressure amid a broad, risk-off market.
Ripple unlocked 1 billion XRP from escrow on September 1, as part of its regular monthly schedule. While historically most tokens are re-locked, the event introduces potential supply overhang and selling pressure, coinciding with fragile market sentiment.
The unlock acts as a persistent headwind, reminding traders of the token’s controlled inflation schedule during risk-averse periods.
The entire crypto market fell, with total cap down 1.62%. This was driven by macro fears: renewed U.S.-Iran military strikes spiked oil prices and 10-year Treasury yields hit 4.81%, raising expectations for a Federal Reserve rate hike.
The decline in the token’s price was exacerbated by overheated derivatives – CME XRP futures open interest surged 36% to over $530 million, a signal often preceding a squeeze or correction.
XRP’s drop wasn’t isolated—it was caught in a macro-driven risk-off move, with leveraged positions amplifying the downside.
Technically, XRP is testing the critical 50% Fibonacci retracement support at $1.34, drawn from its August low of $0.988 to its high of $1.68. Holding this level is crucial for maintaining the bullish structure from its recent 30% monthly gain.
The short-term trend hinges on this support. A bounce here could see a retest of the $1.42 resistance. The U.S. nonfarm payrolls report is on September 4. Strong data could reinforce hawkish Fed expectations, keeping pressure on XRP and other rate-sensitive assets.
XRP’s decline blends a coin-specific supply event with a hostile macro backdrop, creating a challenging environment for a quick recovery. XRP Price Climbs as Goldman Sachs Leads ETF Holdings in Q2
