Ripple Escrows 700M XRP as Price Tests Key Support
The Key Points at a Glance
Ripple Labs has moved 700 million XRP tokens into escrow. This measure aims to stabilize the XRP price while the overall cryptocurrency market is bearish. Historically, such actions have influenced the XRP price both positively and negatively. Currently, XRP is struggling with a critical support level at $2.88. If this level is breached, the price could decline further. At the same time, on-chain data shows strong interest from investors seizing the opportunity to accumulate XRP.
Ripple Locks 700 Million XRP in Escrow
On February 2, 2025, the blockchain tracker Whale Alert reported that Ripple Labs moved 700 million XRP tokens into escrow. An escrow is a trust account where assets are temporarily locked, preventing them from being traded or otherwise utilized. This measure comes at a time when the cryptocurrency market is under pressure. The move could be aimed at protecting the XRP price from further declines.
How Escrow-Locking Impacts the XRP Price
The act of moving XRP into escrow has historically stabilized the price or even triggered a short-term rally. Conversely, releasing tokens from escrow often leads to a price drop. Following the recent transaction, XRP was trading at approximately $2.90, reflecting a 3.60% decline over 24 hours. Despite the price drop, trading volume surged by 65%, indicating heightened interest from traders and investors.
On-Chain Data Indicates Accumulation
According to the analytics platform Coinglass, investors have taken the opportunity to accumulate XRP. Over the past 48 hours, XRP worth $70.50 million has been withdrawn from exchanges. Such outflows often suggest that investors are holding tokens in private wallets, which is interpreted as a sign of long-term confidence.
Liquidation data indicates that at a price of $2.791, long positions worth $55.10 million would be liquidated. Conversely, if the price rises to $2.963, short positions worth $35 million could be impacted.
Technical Analysis: Critical Support Levels
Technical indicators reveal that XRP is currently testing a critical support level at $2.88. If this level fails to hold, the price could decline by another 10% to $2.55. On a positive note, XRP remains above the 200-day EMA (Exponential Moving Average), which signals a long-term upward trend.
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Our Assessment
Ripple’s decision to move 700 million XRP into escrow could provide short-term stability while the cryptocurrency market remains weak. However, the risk of further price declines persists if key support levels are breached. The strong accumulation by investors, however, demonstrates that confidence in XRP remains intact over the long term. Traders should closely monitor price developments, particularly the $2.88 level, which is considered crucial.
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Price | $2.39 |
| 24h % | -18.75 % |
| 7d % | -20.70 % |
| 30d % | -2.08 % |
| 60d % | 2.55 % |
| 1y % | 369.55 % |
| Official Links | Website |
| Socials | X |
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