The first week of September will witness million-dollar unlocks of popular projects such as IMX, APE and SUI. Prior to that, a well-established altcoin made the headlines with a billion-dollar transfer. The million-dollar fund released raises concerns about the price drop.
September kicks off with huge token unlock events of popular altcoin projects
Leading blockchain company Ripple announced on Friday that it has unlocked another 1 billion XRP as part of its monthly release strategy. This move allows Ripple to maintain XRP liquidity. It also gives businesses the opportunity to use XRP for cross-border transactions. However, there has been a temporary drop in XRP prices due to increased supply.
On-chain tracker Whale Alert reported on September 1 that a total of 1 billion XRP was released in four different transactions. First, 300 million XRP was released and $153 million went into circulation. Then, $51 million of 100 million XRP was unlocked. Finally, a total of 600 million XRP was released in two transactions by Ripple. This equates to over $300 million. So, in total, over $500 million in XRP was put into circulation.
🔓 🔓 🔓 100,000,000 #XRP (51,074,676 USD) unlocked at #Ripplehttps://t.co/20YSfxXdg0
— Whale Alert (@whale_alert) September 1, 2023
Although this strategy of Ripple was intended to encourage the use of XRP, it caused fluctuations in XRP prices due to the increase in supply in the short term. Altcoin whales are also accompanying the token unlock event with hefty transfers.
This XRP whale transferred $10M to Binance wallet
Whale Alert later reported that a whale transferred 19.92 million XRP worth more than $10 million to crypto Binance. This transfer came after Ripple unlocked 1 billion XRP. Usually, XRP unlocks follow the price drop due to the increase in altcoin supply. But Ripple needs to provide liquidity to meet the massive demand for XRP from businesses, partners and exchanges.
Meanwhile, the altcoin community was waiting for new statements from Ripple after its victory over the SEC. Ripple CEO Brad Garlinghouse created a stir by confirming that the event will be held in New York on September 29. cryptocoin.comThe victory of Ripple on July 13, which we have quoted as the 13th of July, led to radical changes in the altcoin market.
What’s next for XRP price? How have altcoin investors reacted to the transfers?
Current analysis shows that the ascending triangle formation on the four-hour chart for XRP marks a 12% breakout. This setup leads to the critical $0.6 level for the altcoin. However, it needs liquidity before it rises to $0.55 and then to $0.6. Unlocking one billion XRP will provide liquidity for rebound. Investors are somewhat concerned as the XRP price is currently down over 3.5%.
