- On-chain metrics revealed that exchanges have witnessed an outflow of $70.50 million worth of XRP.
- XRP could fall by 10% to reach $2.55 if it fails to hold the $2.88 level.
Amid the current bearish market sentiment, Ripple Labs is gaining attention from crypto enthusiasts following its recent escrow locking.
Ripple locks 700 million XRP into escrow
On the 2nd of February, blockchain transaction tracker Whale Alert posted on X (formerly Twitter) that Ripple Labs has moved 700 million XRP tokens into escrow.
This means these tokens are temporarily locked and cannot be used for trading or any other activity.
This transaction by Ripple Labs comes at a time when the overall cryptocurrency market is experiencing a notable price decline.
It appears that the move was made to prevent a major drop in XRP’s price amid bearish market sentiment.
Escrow locking and price movements
Moving XRP into escrow has its own benefits. Historically, it appears that whenever Ripple Labs locks tokens in escrow, the price experiences some relief and gains momentum in a bearish market.
Conversely, when Ripple unlocks tokens from escrow, the token tends to see a price drop.
Following this current transaction, XRP was trading near $2.90 at press time, with a price drop of 3.60% in the past 24 hours.
Despite the price decline and bearish market sentiment, traders and investors have shown strong interest in the token, resulting in a 65% increase in the asset’s trading volume.
Bullish on-chain metrics
However, some long-term holders and investors seemed to be taking advantage of the recent price drop, as they accumulated tokens, according to the on-chain analytics firm Coinglass.
Data from spot inflows/outflows revealed that exchanges have witnessed an outflow of a significant $70.50 million worth of XRP in the past 48 hours, whic
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Author: Vivaan Acharya
