$XRP

XRP faces significant downward pressure, dropping nearly 6% within 24 hours as a $1.02 billion token unlock raises concerns about supply constraints.

As on-chain activity declines sharply, with an 87% drop in active addresses since March, user engagement appears to be fading.

According to data from COINOTAG, bearish technical indicators suggest XRP could struggle to maintain its footing above critical support levels.

XRP’s recent token unlock raises supply concerns amid declining network activity, suggesting potential challenges for the cryptocurrency’s stability.

Ripple Wallet Activity Sparks Fears of Oversupply

Recent on-chain data reveals that Ripple has unlocked 500 million XRP, valued at approximately $1.02 billion, from its escrow account. This substantial movement of tokens has ignited concerns regarding possible oversupply in the market.

The tokens were transitioned from the “Ripple (27)” escrow address to two operational wallets, namely “Ripple (12)” and “Ripple (13).” This indicates a potential preparation for distribution or even sale, raising alarms about increased market liquidity. Analysts point out that if Ripple opts to sell a portion of these tokens, it could lead to short-term selling pressure, further impacting XRP’s market price.