XRP Token Unlock: Does the Release of 1 Billion XRP on May 1 Affect Price Stability?

In XRP news today, there are reports of a slew of new XRP tokens that will be unlocked in early May. This news may make some XRP investors nervous as they may think that increasing supply could cause problems. However, these token issuances have become the norm over the past few years, as we typically unlock them monthly. In addition to this, market data also shows that open interest and user activity of this token is increasing. Based on these developments, the value is expected to increase soon Does the Unlocking of 1 Billion XRP on May 1 Affect the Price? According to reports, 1 billion XRP tokens will be unlocked on May 1st. This amount is equivalent to a value of approximately $2.19 million, which will be added to the market. This amount may be concerning, but the unlocking schedule of Ripple has been ongoing for many years. Tokens will be issued with margin accounts. After that, only a few tokens will be used for operating costs. Most of the coins issued will return to the margin accounts, limiting the impact on the price performance of XRP. Are XRP Traders Short Selling Despite Open Interest Rising? According to reports, two main wallets will be responsible for token issuance. One wallet will issue nearly 200 million and 300 million XRP tokens, with two escrow amounts. Another wallet will issue the remaining 500 million XRP. Although this issuance in itself will not actually affect the price of XRP, some community members still have complaints. They believe that accumulation issuance will decrease value as supply increases without corresponding demand. This occurs at a time when open interest for XRP is rising and indicates a positive market sentiment.

The XRP/USDT chart shows that the open interest of the XRP token has risen from $3.14 billion to $4.13 billion since April 21. This surge in open interest indicates an increase of nearly 32% over two days. The number of futures contracts measuring open interest and the increase in this metric suggest that derivative traders have returned. If these new futures contracts are long contracts, there will be a bullish move with the price of XRP rising; however, they are not. Market data shows that most of these contracts are short contracts, signaling a bearish sentiment. Will XRP Rise in Price as Buying Pressure in the Market Increases? However, other indicators show a neutral market sentiment as the funding rate remains close to 0. Additionally, there is the delta of the accumulated spot tape volume, which can be seen in the XRP/USDT chart. This indicator shows the net difference between active buy and sell orders across all markets. The indicator shows a score above 0 for the current market performance, indicating increasing buying pressure. Besides these technical indicators, there are some fundamental developments that could help the price of XRP rise. A positive fundamental change is the new SEC chairman, Paul Atkins. The new official head of this department is known to be a cryptocurrency-friendly figure. For this reason, the community is very excited to see Ripple and the SEC reach an agreement. Such positive news about XRP could also help Ripple achieve new high values. It is also predicted that the SEC will wait for its new chairman before voting on any agreements. Could the Upcoming XRP ETFs Be a Catalyst for a Price Rise? After such positive fundamental changes, the number of active XRP addresses has also risen. We have seen an increase of nearly 67.5% in active addresses from April 19 to April 20. This comes ahead of the launch of more XRP ETFs, pending SEC approval. Therefore, the future of XRP looks optimistic as more positive developments are on the way.