- XRP price sets out from support at $0.3600, targeting $0.4200.
- Support by the 200-day SMA and the triangle’s x-axis help the token sabotage an 11.77% drop.
- Ripple executives zero in on XRP tokens in escrow accounts and how they relate to circulating supply.
XRP price flips bullish after tagging its primary support at $0.3600. The buyer congestion in this zone disrupted a potential drop to $0.3179. A glance at the technical outlook reveals that XRP price may close the day above $0.3800, with $0.4200 coming within reach.
Ripple executives shed some light on XRPs in escrow accounts
Ripple executives contributed to a discussion on what the XRP tokens in escrow accounts mean for the crypto project’s circulating supply. The XRP enthusiast who started the conversation also sought to understand whether a conflict existed between the two entities – Ripple Labs and XRP.
All Ripple executives were asked to shed some light on the matter, from the CEO Brad Garlinghouse, the Director of Engineering, Nik Bougalis, the CTO David Schwartz, former developer Matt Hamilton to Tiffany Hayden, the self-proclaimed CEO of XRP.
Hayden was the first to answer and outline that all XRP tokens in escrow accounts are eligible for selling; besides, holders are at liberty to lock their tokens in the same manner. Hamilton said there was little difference between the XRPs in escrow accounts and the Bitcoins on the Lightning network.
“There’s a practical difference, though. If I want to pay you a Bitcoin, I can use the bitcoins in lightning to do it. If I want to pay you some XRP, I can’t use XRP in escrow to do it. That, at least IMO, could justify calling one part of circulating supply and one not,” CTO David Schwartz weighed in with some clarity.
A project’s circulating supply affects supply and demand dynamics. This is not the first price Ripple has been accused of dumping tokens in the market when they sell the tokens in escrow accounts. However, the company maintains that its actions do not negatively impact XRP price.
We had not reached a conclusion when we published this article, but many agreed that a thin line differentiated the XRPs in circulation and the tokens in escrow accounts. Questions were raised about whether Satoshi Nakamoto’s Bitcoins are a circulating supply for the largest cryptocurrency.
XRP price makes an impressive U-turn
XRP price teased an 11.73% decline when it formed a descending triangle on the four-hour chart. With the aid of the 200-day Simple Moving Average (SMA), the pattern’s x-axis prevented a bearish breakout to $0.3179.
XRP/USD four-hour chart
A sharp upswing has already sent XRP price to trade at $0.3772 at the time of writing. It is only a matter of time before the price explodes above the hypotenuse and makes a gigantic move to $0.4200.
The Moving Average Convergence Divergence (MACD) on the same four-hour chart reinforces the bullish reversal. Traders should watch for another buy signal as the 12-day Exponential Moving Average (EMA) exceeds the 26-day EMA.
XRP Supply Distribution
Conversely, traders should not ignore whales holding over 10 million tokens. According to Santiment, addresses in this cohort plunged to 327 from 347 in three months. The decline was gradual, implying that XRP is yet to build confidence among large volume holders. For this reason, traders should consider booking profits at $0.4000, although the most bullish may wish to hold on till $0.4200.