In the last 24 hours, XRP has made a minuscule increase, moving closer to the $0.35 threshold. At the time of this writing, one token is worth $0.3452, representing a 2% increase over the course of the last twenty-four hours.
The little uptick takes place after the token’s price saw a severe drop earlier in the day. The price fell from $0.3394 to $0.2998 in less than half an hour, which means that XRP saw a decline of an astounding 12% over that time period.
After recovering a significant portion of the unexpected price drop, XRP is now up against a price barrier of around $0.3444, which has not been broken through as of yet. The release of one billion XRP from Ripple’s escrow account, which took place yesterday, Sunday, is one event that often attracts the attention of XRP investors on the first of the month.
It seems quite doubtful that this was the reason for the dramatic drop in price, given the circumstances. Although the community has been aware of the activity for many years, there was still an element of surprise when it occurred this time.
In a related development, on the first day of the new year, WhaleAlert published a report stating that a total of one billion Ripple (XRP) tokens were freed from escrow accounts. Instead of being released straight from Ripple’s escrow accounts, the tokens were released from unidentified accounts. This is an anomaly.
The coins that were previously frozen are reportedly being stored at addresses that are controlled by Ripple. This information comes from Bithomp. The tokens have not been transferred to any exchanges or other on-demand liquidity (ODL) platforms; they are still stored in the wallets that were previously mentioned.
If XRP’s price rises steadily, the next barrier to look out for is around $0.3664, which is the second big resistance level. It may find support around $0.3333 if it can’t break over $0.3454. It seems unlikely that the price of Ripple’s token will drop below $0.3250 without a substantial decline in value.
However, the aforementioned support and resistance levels may change depending on the outcome of the SEC’s legal lawsuit against Ripple. However, the court’s decision might render these thresholds irrelevant or cause them to change. Let’s see what happens next!