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Ripple (XRP) Price Defy Expectations as Monthly Unlock Nears
Blockchain payment project Ripple will unlock 1 billion XRP tokens on August 1. This is part of its usual monthly practice based on its goal of placing 55 billion XRP tokens in escrow over several years.
At press time, the unlock tokens will cost $603 million. Interestingly, as the event approaches, the XRP price is surprisingly rising.
Ripple Interest Increases, Profits Decrease
XRP’s monthly unlocks date back to 2017. According to Ripple, the mechanism is part of its mission to relieve pressure on the token, especially since it has an extremely large supply. Sometimes, the unlock causes XRP’s price to stall or drop slightly.
Therefore, if the price continues to rise for the next two days, August could be different. The daily volume of on-chain transactions in profit supports this bias. This volume measures the number of transactions involved in the profits made.
Typically, an increase in realized profits puts downward pressure on the price of a cryptocurrency. However, for XRP it is different because, on July 29, the profit volume was over 480 million. But at the time of writing, it is two times lower, which indicates that profit taking has decreased.
To know more: Everything You Need to Know About Ripple vs SEC
Low profit-taking could offer price stability. So, if token holders refrain from booking profits in the coming days, XRP price could trade above $0.63.
Additionally, Open Interest in Ripple’s native token has risen to its highest level since April 16. As of press time, the OI, as it is affectionately called, is $667.68 million. Open Interest refers to the sum of the value of open contracts in the market.
As, The increase indicates a net increase in positioning and speculative activity around XRP. OI also has an impact on the price, as a rise along with a price rally indicates aggressive buyers. If the value continues to rise, it could offer an impulsive breakout for XRP.
XRP Price Prediction: A Surge Against All Odds
According to the daily chart, XRP has formed a symmetrical triangle, which was crucial for the recent engulfing candle, which quickly pushed the price from $0.59 to $0.60. A symmetrical triangle appears when two trend lines with equal opposite slopes converge.
Depending on the direction of the cryptocurrency, this tight pattern can cause a crash or a breakout. For XRP, it is the latter, indicating that the bulls are in control of the prevailing trend. Interestingly, the price action is counter to the trend of Bitcoin (BTC) and other cryptocurrencies.
The last time this happened It was early July and XRP rallied 40% in a matter of days. At press time, the Relative Strength Index (RSI) is 66.94, which indicates that the momentum around the token is bullish.
If this continues, XRP price could surpass $0.65 in the short term. Also, if August brings good news, the token price could attempt to reach its yearly high of $0.72.
To know more: Ripple (XRP) Price Prediction 2024/2025/2030
There have also been some analyst predictions about X. In particular, BeInCrypto has chosen one from the pseudonymous trader Mikybull, who opined that XRP is showing similar signals to the 2017 bull run.
“XRP is showing significant technical signals that occurred in 2017 and led to huge gains later. Historically, the chart always precedes the news,” he explained.
However, if a profit occurs, the token may not be able to sustain this prediction. If this happens, the price of the cryptocurrency may drop to $0.60.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.