Ripple will unlock 1 billion XRP tokens valued at $628.5 million as the calendars show April 1st. This event will present itself to investors as part of Ripple‘s monthly sales process, which could negatively affect the XRP price in the upcoming weeks.
Ripple’s XRP Sales
Looking back, since 2017, Ripple has been unlocking 1 billion tokens on the first day of every month through completed escrows. April will mark the beginning of a new era with different accounts used for XRP’s internal inflation calculations over the past few years.
According to data from the March unlock, the company had been transacting using the ‘Ripple (22)’ and ‘Ripple (23)’ accounts, as per XRPScan.
Now, Ripple will use the ‘Ripple (10)’ wallet. From this wallet, Ripple will unlock 100 million and 400 million XRP, and in the ‘Ripple (11)’ wallet, two unlock transactions of 200 million and 300 million tokens will be executed.
March Unlocking Events
In line with the escrow system, 1 billion XRP tokens were unlocked from the ‘Ripple (22)’ and ‘Ripple (23)’ accounts on March 1st. Ripple then set aside 200 million tokens to cover some expenses in March and re-locked the remainder for July and August 2027.
Despite this, Ripple spent an additional 240 million XRP from the old reserves by using the ‘Ripple (1)’ wallet account. During this process, the sales were conducted in two parts and all sent to the same address, ‘rP4X2…Kxv3’.
How Much Is 1 XRP in Dollars?
Amidst these pressures, the price outlook for XRP continues to attract attention. It has been observed that after past unlocking events, XRP’s price experienced significant and negative movements.
Interestingly, only on two of the past eight days was a slight positive price movement seen, but today a sharper rise is observed. However, XRP’s negative movements have been more severe.
As of writing, the XRP price, after experiencing a bit of recovery indicating a 2% increase, is trading at $0.6378, continuing to stay above the $0.60 support level.
Following this price movement, it is approaching the $0.65 resistance level. Therefore, investors would benefit from closely monitoring Ripple’s sales activities in April after the unlocking of tokens worth more than $628.5 million.
