Ripple Labs Inc., a leading blockchain payments firm, has released a significant amount of XRP from escrow, a move that could impact the cryptocurrency's market price.

1 Billion XRP Floods the Market

Ripple Labs is known for its role in managing XRP and maintaining the coin's market momentum through gradual releases from escrow. Recently, the firm conducted several transactions involving XRP, releasing a total of 1 billion tokens in two distinct transactions. According to Whale Alert, Ripple Labs received 300 million XRP worth $156,065,808 from an unknown wallet and another 200,000,000 XRP valued at $104,026,638 from another wallet. Additionally, 500 million XRP was sent to Ripple-linked addresses.

Historical Impact on XRP Price

Historically, XRP's price has been influenced by the Ripple escrow release. The direction of this surge is often influenced by market sentiment. Currently, whale accumulations have triggered a mild recovery, with the combined market cap jumping by 0.54% in 24 hours to $2.54 trillion. The price of XRP has also surged by 0.23% to $0.5196.

Market Sentiment and Trading Volume

However, the trading volume hints at a bearish trend, with a 53% decline to $565,557,394. This underscores the sustained dampened sentiment in the market. Whether this recent escrow release will derail the XRP recovery with market dilution remains to be seen.

What's Next for XRP?

XRP remains one of the most watched digital currencies, maintaining its position among the top 10 assets by market cap. Following this escrow release, there is an expectation that the market will settle down and XRP will maintain its balance. The digital currency has maintained a tight trading range over the past month, soaring from a low of $0.4879 to a high of $0.5689. Should XRP break free from this range, it might shoot toward its highest level for the year at $0.72. This breakout is also dependent on the outcome of the Ripple versus SEC lawsuit in the coming weeks or months.