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XRP Under Pressure After Ripple Moves 200 Million Tokens — Here’s Why?
Ripple is back in the spotlight after blockchain watchers flagged two hefty XRP transactions on April 2. Blockchain tracker Whale Alert first spotted 200 million XRP, worth nearly $420 million, flowing from an unknown wallet to Ripple. Hours later, Ripple quietly locked 330 million XRP (about $693 million) back into its escrow system.
200 Million XRP moved to Ripple wallet. Source: Whale Alert on X Ripple’s Usual Moves, But Market Still Reacts
Ripple has long been known for managing token’s supply through regular wallet transactions and its escrow system. But every time hundreds of millions of tokens shift around, XRP holders light up with speculation. Is Ripple preparing for a big sell? Will XRP flood exchanges?
This time was no different. The 200 million XRP inflow immediately triggered questions about whether Ripple might introduce new supply to the market just as token struggles to hold its footing. The inflow came from an “unknown” wallet — a label used when wallet ownership isn’t fully verified, though it may still be Ripple-related.
Ripple has historically maintained that these transfers primarily serve its liquidity partners and ODL service, not open market sales. Still, traders know better than to ignore wallet activity, especially when prices are teetering.
Escrow to the Rescue? Not Entirely
In a follow-up transaction, Ripple locked 330 million XRP back into escrow, exceeding the amount initially transferred. Ripple’s escrow system, first introduced in 2017, is designed to manage token’s circulating supply through time-locked smart contracts. The company typically releases 1 billion XRP monthly from escrow, with unused portions regularly returned.
Ripple Locks 330 Million XRP into Escrow. Source: Whale Alert on X
The latest lockup suggests Ripple is maintaining its commitment to limiting the free float of XRP, reducing the likelihood of an immediate influx of tokens onto the market. While the escrow lock calmed short-term fears, XRP’s technical setup is still flashing warning signs.
You May Also Like: XRP ETF Approval Odds Jump to 85% After SEC Ends Legal Battle with Ripple
XRP Holds Its Breath Above Critical Support
At press time, XRP is trading at around $2.12, sitting just above its 200-day Exponential Moving Average (EMA) near $1.94 — a level that traders often watch as a last line of defense during bearish phases.
XRP/USD Daily Price Chart. Source: TradingView
The token also struggles beneath its 20-day, 50-day, and 100-day EMAs, with all three averages hinting at ongoing downward pressure. Meanwhile, the Relative Strength Index (RSI) hovers near 40, indicating weak momentum but stopping short of oversold territory.
For XRP holders, this combination is all too familiar — Ripple keeping supply tight while price action stays sluggish. Despite Ripple locking more tokens than it received, XRP hasn’t managed to shake off the bearish mood. Ripple’s actions this week might protect against a sharp supply shock, but without fresh demand or positive catalysts, XRP risks sliding below its 200-day EMA — a breakdown that could lead to a deeper correction.
200 Million XRP moved to Ripple wallet. Source: Whale Alert on X Ripple’s Usual Moves, But Market Still Reacts
Ripple has long been known for managing token’s supply through regular wallet transactions and its escrow system. But every time hundreds of millions of tokens shift around, XRP holders light up with speculation. Is Ripple preparing for a big sell? Will XRP flood exchanges?
This time was no different. The 200 million XRP inflow immediately triggered questions about whether Ripple might introduce new supply to the market just as token struggles to hold its footing. The inflow came from an “unknown” wallet — a label used when wallet ownership isn’t fully verified, though it may still be Ripple-related.
Ripple has historically maintained that these transfers primarily serve its liquidity partners and ODL service, not open market sales. Still, traders know better than to ignore wallet activity, especially when prices are teetering.
Escrow to the Rescue? Not Entirely
In a follow-up transaction, Ripple locked 330 million XRP back into escrow, exceeding the amount initially transferred. Ripple’s escrow system, first introduced in 2017, is designed to manage token’s circulating supply through time-locked smart contracts. The company typically releases 1 billion XRP monthly from escrow, with unused portions regularly returned.
Ripple Locks 330 Million XRP into Escrow. Source: Whale Alert on X
The latest lockup suggests Ripple is maintaining its commitment to limiting the free float of XRP, reducing the likelihood of an immediate influx of tokens onto the market. While the escrow lock calmed short-term fears, XRP’s technical setup is still flashing warning signs.
You May Also Like: XRP ETF Approval Odds Jump to 85% After SEC Ends Legal Battle with Ripple
XRP Holds Its Breath Above Critical Support
At press time, XRP is trading at around $2.12, sitting just above its 200-day Exponential Moving Average (EMA) near $1.94 — a level that traders often watch as a last line of defense during bearish phases.
XRP/USD Daily Price Chart. Source: TradingView
The token also struggles beneath its 20-day, 50-day, and 100-day EMAs, with all three averages hinting at ongoing downward pressure. Meanwhile, the Relative Strength Index (RSI) hovers near 40, indicating weak momentum but stopping short of oversold territory.
For XRP holders, this combination is all too familiar — Ripple keeping supply tight while price action stays sluggish. Despite Ripple locking more tokens than it received, XRP hasn’t managed to shake off the bearish mood. Ripple’s actions this week might protect against a sharp supply shock, but without fresh demand or positive catalysts, XRP risks sliding below its 200-day EMA — a breakdown that could lead to a deeper correction.
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