1 Billion Ripple Released! XRP Price Drops Amid Macroeconomic Headwinds

▲ XRP, Cryptocurrency decline/AI-generated image ©

Amid a combination of macroeconomic risk aversion and the burden of 1 billion XRP being released, XRP (Ripple) is testing the $1.04 support level.

According to cryptocurrency market aggregator CoinMarketCap on August 1 (local time), XRP traded at $1.06, down 1.60% over 24 hours. While the total cryptocurrency market capitalization decreased by 1.01% during the same period, XRP followed Bitcoin (BTC)'s movements, recording a larger decline than the market average.

The main reason for the market downturn is the hawkish remarks from the U.S. Federal Reserve. As Fed Chairman Kevin Warsh emphasized his commitment to achieving the 2% inflation target, investor sentiment across the cryptocurrency market, which is sensitive to interest rate forecasts, contracted. Even positive regulatory news, such as the approval of the European Union's crypto regulation MiCA, could not offset macroeconomic instability.

Ripple's monthly regular escrow release also added to the pressure. The 1 billion XRP automatically unlocked on August 1 was worth approximately $1.06 billion based on the price at the time. Although most of the released volume is typically re-deposited into escrow, making it a recurring event already reflected in the market, it can act as potential supply pressure in a fragile investment sentiment environment.

Technically, XRP is trading below all major exponential moving averages, with the 50-day exponential moving average at $1.13 acting as strong resistance. The daily Relative Strength Index (RSI) was 41.33, indicating bearish momentum but not yet entering the oversold territory. If the $1.04 level is maintained, there is a possibility of sideways movement in the $1.04-$1.10 range, but if the support breaks, there is a risk of a drop to $0.90. For a trend reversal, an increase in spot buying volume and a clear closing price above $1.10 are required.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*