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XRP erases $1 billion from its market cap in a week

XRP erases $1 billion from its market cap in a week

As the sell-off continues across the wider cryptocurrency sector, XRP is no exception, having lost over $1 billion from its market capitalization in a matter of mere days despite efforts to increase liquidity by unlocking 1 billion XRP from Ripple’s escrow system and later re-locking 80% into two escrows.

Specifically, XRP’s market cap seven days ago, on September 4, stood at $26.58 billion, whereas by press time, it had dropped to $24.98 billion, indicating a loss of $1.6 billion, according to the latest data retrieved from crypto market monitoring platform CoinMarketCap on September 11.

XRP 7-day market cap chart. Source: CoinMarketCap

XRP price analysis

Meanwhile, the price of XRP has dropped to $0.4716, suggesting a drop of 4.79% in the last 24 hours, as well as a 5.62% decline across the previous seven days and a loss of 24.53% on its monthly chart, as the most recent information shows.

XRP 7-day price chart. Source: Finbold

At the time of publication, the strongest support level for the currently sixth-largest crypto asset by market capitalization stood at $0.485051, whereas it was facing the strongest resistance at the price of $0.514243.

As it happens, the slump arrived not long after Ripple unlocked one billion XRP from its escrow system in a series of several transactions carried out on September 1, which has been the company’s way of putting new tokens into circulation and bolstering liquidity of the XRP token since 2017.

Subsequently, on September 5, the blockchain company relocked 800 million XRP, or 80% of the previously unlocked total, into two different escrows, keeping 200 million of the token for itself, which it can deploy to the market at any moment, potentially impacting the token’s price in the short term.

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