Skip to content
- Ripple released 1 billion XRP in May, deviating from its usual schedule, causing speculation over strategic changes.
- XRP is consolidating between $1.96 and $2.50, with key support at $1.80 and upside targets at $2.68 and $3.00.
- Momentum grows as influencers and institutions, like CME and possibly BlackRock, signal increasing interest in XRP.
Ripple Labs executed its scheduled XRP escrow release two days later than usual, unlocking 1 billion XRP in three separate transactions. The move, worth an estimated $2.2 billion at the current average exchange rate, has stirred speculation about a potential strategic pivot in the company’s liquidity management approach.
According to blockchain tracker Whale Alert, Ripple distributed the tokens in three tranches: 500 million, 300 million, and 200 million XRP. These transactions were executed from Ripple’s official escrow wallet and mark a deviation from the firm’s long-standing tradition of initiating monthly releases on the first day of each month.
Ripple’s monthly XRP unlocks have been part of a programmed escrow system established in 2017. The framework designers created it to stabilize XRP’s supply and maintain market liquidity. They did this by releasing one billion tokens per month over a 55-month schedule, using a total of 55 billion XRP originally held in escrow.
However, the May release stands out not only for its delay but also for the continued shift in timing regarding Ripple’s escrow re-locks. On May 2, one day before the full release, Ripple locked up 700 million XRP in escrow. It marks the third consecutive month where re-locking occurred before the main release, a reversal of the prior practice of re-locking tokens after distribution.
Ripple Strategy Shift as XRP Holds Key Levels
While Ripple has yet to offer a formal explanation, analysts and observers suggest the altered timeline may reflect evolving liquidity strategies, internal policy updates, or a response to prevailing market dynamics. The company has not confirmed any of these theories.
The release comes as XRP trades within a relatively narrow range between $1.96 and $2.50. Analysts describe current market behavior as consolidation, noting that XRP continues to hold above crucial support zones, including the 0.5 Fibonacci retracement and the historical resistance-turned-support near $1.80.
Technical analyst Casitrades warned of a potential short-term pullback, suggesting that XRP could retest the $2.25 level or even dip toward $1.90, citing an overbought RSI condition. Nonetheless, longer-term sentiment remains cautiously optimistic. If XRP manages to break and sustain above $2.25, analysts point to potential upside targets of $2.68 and $3.00.
XRP rally brewing as influencer rejects dead coin
Adding fuel to the XRP fire, popular crypto influencer John Squire took to X (formerly Twitter) on May 1 to push back against the persistent narrative that XRP is a “ dead coin.” Instead, Squire described the asset as “loading,” suggesting that it is in the early stages of what could become a major rally.
Squire emphasized XRP’s unique position among top-tier cryptocurrencies as having survived and emerged from a years-long legal battle with the U.S. Securities and Exchange Commission (SEC). Now that the case is resolved, he predicts a wave of institutional adoption.
Supporting this thesis, CME Group is reportedly preparing to launch cash-settled XRP futures later this month, a move that would place XRP alongside other major assets like Bitcoin and Ethereum in the derivatives market. This follows a similar product rollout by Coinbase in April, further validating institutional interest.
Adding to the momentum are unconfirmed but widely circulated rumors of a potential XRP trust product from asset management titan BlackRock. According to Squire, this signals early positioning by Wall Street rather than speculative retail hype.
Related | MicroStrategy Launches $84 Billion Plan to Buy More Bitcoin
