In the previous escrow unlocking, about 400,000 XRP remained in outside wallets, to be distributed or sold. This time, Ripple once again faced doubts about its intentions to sell the coins, especially as XRP prices continued to slump.
XRP moved down as low as $0.21 during the latest sell-off, and is once again at the $0.219 threshold. At this point, the XRP loss for 2019 is once again close to 30%, with only outlandish hopes for an eventual rally.
Still, the readiness of Ripple to hold onto the assets may re-spark hopes of future development. Currently, the usage of XRP is optional on the RippleNet decentralized protocol. Transactions on the Ripple network also showed a significant pickup in October and November, rising to a few millions per day.
At this point, it is uncertain what the source of transactions is, but there are records of significant transfers of value through Ripple’s protocol. Actual XRP transactions are only a part of the mix.
XRP Still Sparks Hopes
The recent return of the entire escrow balance for the month was also viewed as bullish, essentially limiting the free supply of XRP.
?institutions have enough XRP 1. XRP cheap 2. 1B XRP out of escrow 3. 1B XRP back to escrow 4. Institutions buy from exchanges/other OTC 5. No small discount XRP from ripple/escrow no issue due to low price 6.Increasing XRP demand on exchanges 7.Increasing upwards pressure price
But XRP also enjoys a collection of staunch supporters, which see the asset rising based on Ripple network usage and future adoption. Even if the rise is not immediate, some see XRP as undervalued, and the currently low prices as a buying opportunity.
XRP has managed short-term rallies, but the overall trend remains downward. At the start of December 2018, XRP traded at $0.35 and moved close to $0.30 for most of the months, except for a mid-year rally. XRP is now entering an extended slide closer to the $0.20 range.
Ripple still holds close to 50 billion coins, and its escrow operations will continue for more than 17 years based on a predetermined schedule.
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