XRP ($2.02) has exhibited a modest uptrend since mid-April, with two short-lived peaks reaching nearly $2.30. However, over the last 24 hours, the token reversed course, falling 2.78% to trade at $2.23 at the time of writing. This recent price decline comes just before a significant event that could impact XRP’s market dynamics.

On May 1, Ripple Labs will unlock 1 billion XRP from escrow, a move worth slightly over $2.2 billion at current prices. This scheduled release is part of Ripple’s ongoing strategy and long-established escrow system. Although these monthly unlocks typically have a minimal impact on price, the unfortunate timing could exacerbate existing bearish pressure.

Dormant Ripple Wallets to Activate

In the upcoming cycle, two previously inactive wallets—Ripple (26) and Ripple (27)—will re-enter the scene. These wallets have remained untouched for years but are now scheduled to unlock large batches of XRP. Ripple (26) will release two escrows totalling 500 million XRP (200 million and 300 million), while Ripple (27) will unlock a single escrow of 500 million XRP. Data from XRPScan, accessed on April 22, confirms these figures.

Related article: Ripple Connects TradFi and DeFi Through $1.25B Acquisition

Despite the potential surge in supply, any downward price impact will likely remain short-lived. Ripple typically relocks most of the unlocked tokens after allocating a portion for operational and liquidity needs. This practice may help reduce fears of long-term inflationary pressure.

Moreover, XRP’s price trajectory in 2025 doesn’t solely depend on internal tokenomics. Broader macroeconomic trends, such as the escalating Trump trade war, continue to shape crypto market sentiment. Bitcoin’s volatile movements also have an influence on altcoins like XRP.

SEC Postpones Spot XRP ETF Decision

In addition, the U.S. Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s proposed spot XRP exchange-traded fund (ETF). While the current SEC appears relatively crypto-friendly, the delay could still harm investor sentiment.

Related article: Ripple Prioritizes Stablecoins and Tokenization Over Going Public

Ripple’s upcoming 1 billion XRP unlock coincides with a short-term price correction, raising concerns about intensified sell pressure. However, historical patterns suggest that any price dip may be temporary, especially since Ripple often relocks the majority of released tokens. 

In the broader picture, XRP’s price remains closely tied to macroeconomic conditions and regulatory developments, which could outweigh the effects of token unlocks in the long run.

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