Ripple ranges above $0.47 as few XRP escrow timelocks expired on Monday
- Ripple escrow timelock expired on Monday, and one billion XRP tokens were unlocked.
- The one billion token unlock is part of Ripple’s unlocks scheduled till January 2025.
- XRP hovers around $0.48 on Tuesday, adding more than 1% to its value on the day.
Ripple (XRP) escrow unlocked 1 billion tokens on Monday as part of the planned unlock until January 2025. XRP hovers around $0.48 early on Tuesday, adding more than 1% to its value on the day.
With no new developments in the SEC vs. Ripple lawsuit, market participants closely watch escrow unlocks and on-chain metrics to identify where XRP is headed next.
Daily Digest Market Movers: Ripple unlocks 1 billion XRP from escrow, social dominance rises
- As part of scheduled routine unlocks, the escrow timeline for 1 billion XRP tokens expired on Monday, according to Bithomb data.
- The unlock occurred in three tranches of 400 million, 100 million, and 500 million XRP, respectively.
- As seen in previous instances in February and May, the scheduled unlocks do not significantly impact the XRP price.
- On-chain data from crypto tracker Santiment shows that social dominance, a metric used to identify the relevance of XRP among traders, hit a three-month peak.
- The rise in social dominance of an asset is associated with increasing mentions on social media and higher demand for XRP among traders.
- The chart below shows a spike in social dominance, bringing it above levels previously seen in the last week of March.
 [13.05.17, 02 Jul, 2024]-638555136923538912.png)
XRP social dominance vs. price
- XRP holders realized over $63 million in losses on Monday, a large negative spike in the Santiment’s Network Realized Profit/Loss (NPL) metric. This is consistent with capitulation among retail traders and signals a recovery in the altcoin is likely.
 [13.06.44, 02 Jul, 2024]-638555137225711199.png)
XRP Network Realized Profit/Loss vs. price
Technical analysis: XRP hovers around $0.48 on Tuesday
Ripple has been in a state of decline since March 11, but XRP is hovering around $0.48 on Tuesday. The altcoin could climb toward the Fair Value Gap (FVG) between $0.4825 and $0.4841. Further up, XRP faces resistance at the psychologically important $0.50 level.
XRP/USDT daily chart
If selling pressure resumes, XRP could correct to the June 7 low support at $0.4508.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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