Ripple begins 2024 with 1 bln ritual unlock: How about XRP?
- XRP stayed flat as Ripple unlocked its usual monthly tokens.
- Shorts with targets below $0.60 could be liquidated.
In two separate transactions, Ripple [XRP] performed its first customary token 1 billion unlock of 2024. According to details from Whale Alert, a first set of 500,000,000 tokens was unlocked from escrow.
Minutes later, another 500,000,000 tokens left the Ripple wallet.
Another year, another unlock
At press time, the value of the total tokens unlocked was $611.42 million. For the uninitiated, Ripple unlocks these tokens as a strategy to stabilize the XRP price.
However, the latest unlock is different from the ones done by other projects. This is because the blockchain payment firm relocks them in escrow to keep the circulation in check.
Ripple might complete the token unlock mechanism by April or May 2027. But how did XRP react to the event this time? According to CoinMarketCap, XRP was able to hold on to $0.61.
This value was around the same as XRP’s price seven days back, implying that volatility around the cryptocurrency was low. This was also confirmed by the Relative Strength Index (RSI).
The contraction of the bands also indicated that the XRP’s price fluctuation might be minimal. However, the lower band of the BB touched XRP at $0.61.
This suggested that XRP was oversold at press time. Should buying pressure appear, $0.61 could be the level XRP reverses from to the upside. In the meantime, the Relative Strength Index (RSI) showed that buying momentum was resuming.
Steady lads, bulls need to deploy capital
At press time, the RSI reading was 44.93. But XRP would need the RSI to rise above the 50.00 midpoint to confirm the reversal. If this happens, then XRP could be on its way to hitting $0.65.
Furthermore, Accumulation/Distribution (A/D) stabilized, indicating that bulls had not started to buy XRP. If the A/D keeps hovering around the same area, then XRP might keep consolidating around $0.61.
Meanwhile, the Cumulative Liquidation Levels Delta (CLLD) that traders were shorting the Ripple native token but with medium leverage.
The CCLS is the sum of the difference between all long liquidation levels and all short liquidation levels within a set period.
Positive values of the CLLD indicate that there are more long liquidations. Negative values, on the flip side, suggest that there are more short liquidations. AMBCrypto also assessed the Liquidation Levels.
Source: Hyblock CapitalLiquidation Levels show the estimated price that could result in traders’ loss of money. This could either be for long-positioned market players or shorts.
How much are 1,10,100 XRPs worth today?
From the chart shown below, traders with positions targeting prices lower than $0.60 could face liquidation. As it stands, XRP might keep consolidating until the next Ripple unlock in February.
However, rising above $0.65 could be on the cards depending on the accumulation garnered.