XRP has resumed its bullish trend after Ripple locked 900 million tokens in escrow. This new development has triggered a rapid shift in the momentum of the cryptocurrency, which is now one of the best performers in the last week.
Ripple Moves 900 Million Tokens Back To Escrow
On June 1, Ripple carried out one of its scheduled token unlocks of 1 billion XRP tokens. These unlocks are already set ahead of time to ensure that there is a controlled release of supply into the market, allowing investors to anticipate what was coming.
These tokens are brought into supply based on the demand and growth in the market, and sometimes not all of the tokens are utilized, which means the unused coins go back into escrow. This was the case this time around as only 10% of the entire 1 billion unlocked tokens were left in circulation.
On the same day, Ripple proceeded to lock a total of 900 million coins back in escrow across three transactions in less than 10 minutes. Each transaction was reported by the on-chain analytics platform Whale Alerts, which flagged the first transaction carrying 200 million tokens worth around $101.7 million.
XRP price sits above $0.5 | Source: XRPUSD on TradingView.com
The next two transactions carried 300 million and 400 million tokens each, worth $152.7 million and $204.18 million, respectively, in the Ripple Escrow wallet. This meant that only 100 million new XRP tokens were left in circulation worth approximately $51 million.
Can XRP Sustain The Bullish Momentum?
The price of XRP is currently up 2% in the last day but is seeing more upside on the weekly chart. Its 11% surge over the last seven days brought its price above $0.52 on Friday, although it has started to trend downward since then.
Nevertheless, the digital asset is now trading above its 50-day and 100-day moving averages. Both of these levels suggest that bulls are still very much in control of the digital asset and as such, there could be a continuation of the bull rally, at least in the short term.
If the bulls are able to maintain this level through the weekend, then XRP could see another run-up to retest the $0.55 resistance. Clearing this level would put the next possible resistance at $0.6, securing good profits for investors before the bears find their footing.
At the time of writing, XRP is changing hands at a price of $0.5157.
Credit: Source link
