- Ripple unlocks 1 billion from escrow wallet
- XRP price analysis – Bearish price trend persist
Ripple, the network behind XRP has kick-started the year 2020 with the release of funds from its escrow wallet worth $192 million. So far, Ripple has kept up with its 55-month escrow schedule. Officials claim that they would lock up 55 billion XRP, and release these funds monthly over 55 months.
According to Ripple, this was done to incentivize investors to keep using XRP and be consistent with the network. The official statement read thus: “We use Escrow to establish 55 contracts of 1 billion XRP each that will expire on the first day of every month from months 0 to 54. As each contract expires, the XRP will become available for Ripple’s use.”
Ripple further added: “You can expect us to continue to use XRP for incentives to market makers who offer tighter spreads for payments and selling XRP to institutional purchasers.”
Before the start of the project, Ripple was selling about $300 million in XRP monthly. But in 2019, sell-offs surged noticeably, with Ripple disposing of more token in 2019 than any other year. The escrow project has so far failed to curtail the striking decline in the price of the XRP token relative to both BTC and the U.S dollar. The XRP/USD pair declined to over two-year lows in December 2019.
David Schwartz, Ripple’s chief technology officer stated that XRP sells did not in any way make Ripple richer. He also labeled the company’s selloffs as “negligence.” The influence of the escrow release is barely noticeably, stable just above $0.19 while other major altcoin declines by about 1%.
XRP Price Analysis – Bearish Price Trend Persists
XRP is currently trading at $0.193 and is supported by the short-term and medium-term moving average. The XRP/USD pair is trading better than the noticeable 52-week low at $0.1784. The price level close to $0.20 remains the target as the price of the coin is facing crucial resistance as it pulls the price beneath $0.1990.
XRP (XRP) Price Today – XRP / USD
The 4-hourly price trend of XRP/USD has been on a downward trend. After facing a decline from $0.23, XRP is currently facing crucial resistance at $0.1990. A breakout above the mentioned price level can push the price to a bullish edge. The MACD of the coin is trading above zero but has sustained a bearish edge as the signal line prevails the MACD line. The RSI of the coin is currently at 53.60 and seems less unstable, which is proven by the 20-day Bollinger BAND.