Data reported by Whale Alert, a crypto data tracker, reveals that 800 million XRP tokens have been relocked into Ripple’s escrow.
On October 1st, Ripple executed its routine monthly release of one billion tokens from its escrow, a system initiated back in 2017 to help stabilize XRP’s price.
Ripple’s escrow mechanism is designed to ensure a controlled and predictable distribution of XRP into the market. Instead of inundating the market with tokens, Ripple has committed to releasing 55 billion XRP in monthly installments of one billion over 55 months.
Following each monthly release of one billion XRP, approximately 800 million XRP are returned to escrow and locked up until the next month, with around 200 million XRP entering the circulating supply.
Whale Alert reports that the 800 million XRP tokens were returned to Ripple’s escrow in three separate transactions. The first transaction involved 500 million XRP, valued at $257,857,157, being locked back into escrow. The second and third transactions consisted of 200 million XRP worth $103,233,285 and 100 million XRP worth $51,617,381, respectively.
Additionally, in the past 24 hours, Whale Alert recorded the transfer of 28,500,000 XRP, equivalent to $14,739,997, from an unidentified wallet to Bitstamp.
XRP Price Movement:
Traditionally, October, often referred to as “uptober,” has been a favorable month for Bitcoin and other cryptocurrencies. Historical data indicates that only two months since 2013 have seen negative monthly returns for Bitcoin.
With this historical context in mind, expectations are optimistic for XRP’s price performance in October. Currently, XRP is trading slightly higher in the last 24 hours at $0.521.
At the moment, bulls are encountering resistance at the $0.523 level, which coincides with the daily Moving Average (MA) at 200. This resistance level is crucial, as a breakthrough could pave the way for a potential rally towards the highly coveted $0.64 level.
Conversely, XRP appears to be establishing support near the $0.50 mark to cushion against potential price declines.