Ripple less than two weeks away from dumping 1 billion XRP onto the market

Ripple is approaching its next scheduled XRP escrow unlock, with 1 billion tokens set to be released on June 1 as part of its long-standing monthly process.

The escrow system was first introduced in December 2017 when Ripple locked 55 billion XRP into a series of time-based contracts on the XRP Ledger. 

Under the arrangement, up to 1 billion XRP becomes available on the first day of every month in an effort to improve transparency around the company’s token holdings and prevent unexpected large-scale distributions.

Although the 1 billion XRP figure often attracts market attention, historical trends indicate that Ripple rarely injects the full amount into circulation. 

Instead, the company typically returns between 600 million and 800 million XRP into escrow through new contracts. As a result, the actual increase in circulating supply usually ranges between 200 million and 400 million XRP.

This approach has remained consistent throughout the year, with Ripple following a similar pattern during the January to May unlocks.

The unlocked tokens are typically used for operational funding, liquidity support, and strategic partnerships. XRP’s circulating supply currently stands at about 61 billion to 62 billion tokens out of a maximum supply of 100 billion.

Market participants generally view the monthly escrow releases as routine events with limited impact on price volatility since the schedule is known in advance and only part of the unlocked XRP usually enters circulation.

Instead, XRP’s price movements have been driven more by broader cryptocurrency market sentiment, regulatory developments, and institutional adoption trends.

The upcoming unlock is coinciding with a period in which XRP has struggled with volatility, failing to reclaim the crucial $1.50 resistance level. 

Notably, the asset has lacked network-specific catalysts, mainly relying on the cryptocurrency market sentiment, which has remained in consolidation.

XRP price analysis 

As of press time, XRP was trading at $1.42, having corrected by about 3.6% in the past 24 hours, while on the weekly timeframe, the asset was down 0.6%.

Meanwhile, XRP’s technical indicators suggest the asset is maintaining short-term strength despite broader bearish sentiment. 

The token is slightly above its 50-day simple moving average (SMA) of $1.39, indicating that near-term momentum remains relatively stable.

However, XRP is still trading well below its 200-day SMA of $1.74, which points to lingering weakness in the broader long-term trend and suggests the asset has yet to fully regain a stronger bullish structure.

Meanwhile, the 14-day relative strength index (RSI) stands at 61.22, placing XRP in neutral territory.