Ripple to Unlock 1 Billion XRP in July: Is XRP's Price at Risk?

Ripple's upcoming release of 1 billion XRP on July 1st could impact the cryptocurrency's market value, potentially exerting downward pressure on XRP.

Ripple's Upcoming XRP Unlock: Market Implications

Ripple is set to release another 1 billion XRP on July 1st, with a market value of approximately $470 million USD. This monthly unlocking process, initiated in 2017, has the potential to influence the crypto market by applying downward pressure on XRP's price.

Ripple utilizes two specific crypto wallets, "Ripple (24)" and "Ripple (25)", to manage the monthly unlocking of 500 million XRP each. These unlockings are scheduled to continue until January 2025. In June, following the regular unlocking, Ripple sold 200 million XRP and placed the remaining amount in futures contracts set for September 2027. This month marked the largest sale in Ripple's history, with an additional 200 million XRP being sold.

XRP's Price Trends Amid Monthly Unlockings

Ripple's sales frequently impact XRP's price. In 2024, out of the 14 days of sales, XRP's price increased on only five occasions, while the remaining days saw declines. Additionally, XRP has experienced a downward trend during four of the first six months of 2024. Since the unlocking of 1 billion XRP on June 1st, XRP's price has dropped by 9.25%, currently trading at $0.476.

Investors and traders should closely monitor these unlockings as they can serve as indicators for short-term price movements. However, it is essential to remember that past performance does not guarantee future results and that investing in cryptocurrency carries inherent risks.

Conclusion

Ripple's monthly unlocking of 1 billion XRP is a crucial event for market participants. Staying informed and vigilant about these actions is vital, as they can significantly impact the price of XRP and the broader dynamics of the crypto market.