Ripple Unlocks 1 Billion XRP... Will XRP Fall to $1?

▲ Ripple (XRP) ©

Ripple unlocked 1 billion XRP, but the price impact was limited, and its future direction depends on whether it maintains support at $1.05, according to an analysis.

According to crypto media outlet Finbold on August 2 (local time), Ripple released 1 billion XRP, worth approximately $1.08 billion, from escrow as part of its long-term supply management program. Whale Alert data indicates that this volume moved in a total of three transactions.

Specifically, 500 million XRP worth approximately $532.86 million, 300 million XRP worth $319.65 million, and 200 million XRP worth $213.11 million were released, respectively. Ripple introduced the escrow system in December 2017 to enhance the transparency of XRP supply, regularly releasing up to 1 billion XRP into the market on the first day of each month.

However, not all unlocked XRP is supplied to the circulating market. Since 2026, Ripple has re-escrowed approximately 700 million XRP each month into new escrow contracts, while using the remaining approximately 300 million for operating expenses, liquidity services, partnerships, and ecosystem development. Following the August release, the circulating supply of XRP increased to approximately 62.5 billion, with over 32 billion remaining in escrow.

Since the regular escrow release schedule is public and a significant portion is re-locked, its impact on the price has been limited in the past. This time, too, XRP traded around $1.05 at the time of the release, experiencing no significant shock. At the time of reporting, it recorded $1.08, up more than 2% from 24 hours prior, but it had fallen by about 1% on a weekly basis. Short-term trends are expected to be more influenced by Bitcoin (BTC)'s movements, overall cryptocurrency market sentiment, and macroeconomic conditions than by escrow releases.

Technically, $1.05-$1.06 is a key support zone. If this price level is breached, it could fall to $1.02 and then to the psychological support level of $1. Conversely, if it reclaims $1.09, where the 20-day Exponential Moving Average (EMA) is located, $1.10 and $1.12-$1.15 are cited as the next resistance levels. An analysis suggests that if $1.06 is held and $1.09 is breached, the short-term bullish outlook strengthens, but if $1.05 breaks down, additional downward pressure could increase.

*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.*