XRP’s price is experiencing renewed selling pressure, partly due to Ripple’s latest escrow unlock. On July 1st, blockchain tracking services reported that Ripple unlocked 500 million XRP tokens from escrow, sparking market speculation. With the price hovering around $2.18, investors are weighing whether July will bring a breakout or further decline. Below, we analyze the price action, Ripple’s escrow mechanics, and future prospects.
XRP Price Drop: Impact of Token Release
As of today, XRP trades at $2.18, down 1.1% over 24 hours and 0.9% weekly. The price dipped 0.6% in the last hour alone, continuing a bearish trend that began in early July.
- June Performance: XRP surged 6.11% from June 23–27, peaking at $2.32 on June 30.
- July Decline: A 2.85% drop on July 1 erased some gains.
Despite recent volatility, XRP remains a top performer over 12 months, boasting a 350% gain, outperforming Bitcoin (71.8%) and Ethereum (-29.1%).
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How Ripple’s Escrow System Works
Ripple’s escrow system releases 1 billion XRP monthly to ensure supply predictability. This month:
- 500 million XRP unlocked and moved to Ripple’s wallet (Ripple 27).
- 200 million XRP sent to wallet rN8pqR; 300 million XRP to rKwJaG.
- 400 million XRP re-locked into escrow via Ripple 15.
These actions often cause short-term XRP price fluctuations as traders react to supply changes.
XRP Price Trends in 2025
| Quarter | Performance | Key Details |
|---|---|---|
| Q1 | +0.45% | Declines in February (-29.3%) and March (-2.52%). |
| Q2 | Net positive | April (+4.98%), May (-0.80%), June (+2.95%). |
Despite Q2’s rebound, July’s early pullback raises concerns.
XRP Price Prediction: Can It Hit $6.50 or $8?
Analysts remain bullish, citing:
- Institutional demand: Growing adoption in cross-border payments.
- Technical levels: Breaking $2.25 and $2.32 could fuel a rally toward $6.50–$8.
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Conclusion
While the XRP price today faces pressure from escrow unlocks, long-term optimism persists. Key factors to watch:
- Resistance levels: $2.25 and $2.32.
- Supply management: Ripple’s re-locking strategy.
- Market demand: Institutional interest and macroeconomic trends.
FAQs
Why do Ripple’s escrow unlocks affect XRP’s price?
Escrow releases increase circulating supply, often leading to short-term selling pressure if demand doesn’t match the new supply.
How does Ripple ensure market stability?
Monthly scheduled releases and re-locking unused tokens prevent supply shocks, fostering transparency.
What drives XRP’s potential surge to $8?
Institutional adoption, regulatory clarity, and utility in payments are critical catalysts.
Is XRP a risky investment?
Yes—volatility from escrow unlocks and broader market trends pose short-term risks despite long-term potential.