XRP News Today: XRP Drops 1.1% as Ripple Unlocks 500 Million Tokens

XRP, the cryptocurrency associated with Ripple, experienced a decline in price today following the unlocking of 500 million tokens from escrow by Ripple. This event, reported by blockchain tracking service Whale Alert, triggered speculation and selling pressure in the market. At the time of reporting, XRP was trading at $2.18, marking a 1.1% decrease over the last 24 hours and a 0.9% drop over the past week. The price had fallen sharply by 0.6% in the last hour alone, continuing a bearish trend that began as July started.

On July 1, XRP dropped by 2.85%, erasing some of the gains it had accumulated in the final week of June. During June 23–27, XRP surged over 6.11%, reaching a monthly high of $2.32 on June 30. Despite this recent weakness, XRP remains one of the best-performing major cryptocurrencies over the last 12 months, with a staggering 350% annual gain, outperforming both Bitcoin (71.8%) and Ethereum (-29.1%).

Ripple operates a monthly escrow system that releases 1 billion XRP on the first of every month, ensuring predictable supply and market transparency. This month, Whale Alert confirmed that Ripple unlocked 500 million XRP, which was moved to its well-known wallet, Ripple 27. From there, 200 million XRP was sent to wallet rN8pqR, and 300 million XRP to wallet rKwJaG. Later, Ripple re-locked 400 million XRP into a new escrow via Ripple 15, according to on-chain data. Such moves typically trigger short-term volatility in XRP price, as traders respond to the potential increase in circulating supply.

In Q1 2025, XRP closed with a modest 0.45% quarterly return, held back by 29.3% and 2.52% drops in February and March, respectively. However, the sentiment shifted in Q2: April saw a 4.98% increase, May a 0.80% decrease, and June a 2.95% increase. With a strong rebound at the end of Q2, bulls had hoped for a positive July. However, the market’s early pullback raises short-term concerns.

Despite the current dip, analysts remain bullish. A top crypto market analyst predicts that XRP could climb to $6.50 – or even $8 – in July, driven by increasing institutional interest and macro-level crypto momentum. But to get there, XRP must first reclaim key resistance levels at $2.25 and $2.32. If those levels are cleared with volume, the next leg up may follow quickly.

Ripple’s monthly escrow unlock, which releases 1 billion XRP, can cause selling pressure because it increases the circulating supply of XRP. While Ripple often re-locks a significant portion, the initial release creates an expectation of increased supply, which, if not met by proportional demand, can lead traders to sell, thus pushing the price down in the short term. Ripple’s escrow system ensures market transparency and stability by providing a predictable, scheduled release of XRP tokens on the first of each month. This controlled distribution prevents sudden market shocks from an unmanaged supply. By re-locking unused XRP, Ripple also demonstrates an active management strategy aimed at balancing supply with market demand, fostering long-term confidence.

Institutional interest plays a crucial role in XRP’s potential price surge. Growing institutional adoption, often spurred by increasing regulatory clarity and the utility of XRP in cross-border payments, can significantly increase demand. This inflow of “smart money” from large financial players is a key factor analysts point to for driving XRP towards higher price targets like $6.50 or $8. Investing in XRP carries risks due to its price volatility, which can be influenced by monthly escrow unlocks creating short-term supply fluctuations. While the long-term outlook remains positive for many, investors face potential short-term dips if demand doesn’t absorb new supply. Broader market trends and regulatory developments also contribute to its price uncertainty.