Ripple Sell-off Alert: 200 Million XRP Reserved for April's Reserves

Ripple has set aside 200 million out of the 1 billion XRP unlocked in April for its monthly sell-off, amounting to nearly $120 million, amid XRP trading below the $0.60 resistance.

The company regularly unlocks 1 billion XRP tokens monthly from the 39.90 billion tokens locked in escrows from the initial distribution. Following this, an arbitrary amount is re-locked for further release, with Finbold tracking these unlocks to identify patterns influencing both the asset's long-term value and short-term price action.

Ripple's Strategic Asset Management: Escrow Transfers and Lock-ins Set for Future Selling Activity

In April, Ripple prepared for its selling activity by transferring the 200 million XRP from 'Ripple (22)' to 'Ripple (1)', both controlled by the institution. Additionally, escrows within 'Ripple (22)' and 'Ripple (23)' have reached finality, with no further unlocks expected for these accounts.

Ripple (1) account summary. Source:XRP Scan

The 'Ripple (22)' account sent 300 million tokens to 'Ripple (12)' and re-locked the amount in an escrow until August 2027, following the initial transfer for April's sell-off. Similarly, 'Ripple (23)' sent 100 million and 400 million to 'Ripple (12)' and 'Ripple (13)', respectively, with both also locked in escrows until August 2027.

Monthly Ripple (XRP) unlock – April, 2024. Source: Finbold

Analysis of XRP Price Amid Sell-offs

Previous sell-offs by Ripple have coincided with significant XRP price movements, with Finbold tracking these activities on XRP's daily chart year-to-date. Notably, only two out of eight days of sell-offs resulted in slight positive price action, while the negative days were more impactful.

Currently, XRP trades at $0.585, having lost range support at $0.60. Investors are advised to closely monitor Ripple's selling activities in April as they could potentially lead to further drops in price.