- Ripple locks 700M XRP in escrow Apr 1, second month deviating from 1B release
- CEO Garlinghouse addresses sales criticism, hints at potentially scaling down later
- XRP trades ~$2.12, faces key resistance at $2.27 20-day EMA; RSI weak (~40)
Ripple has once again locked 700 million of XRP tokens in escrow, according to on-chain analytics platform Whale Alert. This move aligns with the organization’s long-standing programmed escrow mechanism. This program typically ensures a predictable release schedule, releasing 1 billion XRP from escrow each month, with unused portions usually re-locked.
These released tokens are generally allocated for institutional sales, operational expenses, and other company purposes. A similar pattern involving only 700 million XRP was also observed last month, deviating from the standard 1 billion monthly release figure seen previously.
According to some market analysts, this deviation could be a sign Ripple is maintaining tighter control over its token supply following public criticisms of price manipulation linked to its programmatic sales.
Ripple CEO Addresses XRP Sales Concerns
The XRP tokens locked back into escrow this month reportedly originated from surplus holdings within Ripple’s company accounts.
In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse addressed criticism on the company’s historical XRP sales activities, hinting at the possibility of scaling down these programmatic sales sometime in the future.
Garlinghouse also pushed back against detractors during the interview. He accused them of spreading misinformation regarding Ripple’s XRP handling practices and sale purposes.
Contextually, Ripple Labs’ Chief Technology Officer, David Schwartz, publicly claimed last month that Ripple as a company has no legal or fiduciary obligation to act specifically in the financial interest of independent XRP token holders when deciding on its own sales.
He stated the company is free to sell its substantial XRP holdings according to its business needs.
How is XRP Price Reacting
At the time of writing, XRP is trading at $2.119, experiencing a slight decline of 0.7% in the past 24 hours, CoinMarketCap data shows.
The token faces strong immediate resistance at its 20-day Exponential Moving Average (EMA), which currently sits near the $2.27 price level. This EMA is influencing its near-term price momentum.
The Relative Strength Index (RSI) reads a value of 40.49 for XRP, indicating bearish-to-neutral price momentum. Moreover, the gradient of the RSI line suggests a similar sentiment as investors can expect sideways movement to continue until the 20-day EMA is reclaimed.
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