This XRP Price fell to $0.55 as the crypto token continues to struggle to break above the $0.60 resistance level. This latest decline is due to several factors, including Ripple’s latest token unlock.

Ripple Unblocking Causes Price Drop

According to the chain analytics platform Whale AlertRipple unlocks 1 billion XRP tokens ($559 million) from its trust wallet September 1. It was part of unlocks tokenswhich the cryptocurrency firm is known to carry out on a monthly basis. These token unlocks were carried out in three transactions, with 500 million XRP, 200 million XRP, and 300 million XRP being unlocked from the custodial wallet in these three transactions.

This has caused a bearish sentiment for the price of XRP, causing it to drop. Ripple’s unlocking of XRP always causes a supply shock, which causes XRP Investors to panic and sell off their assets out of fear that the cryptocurrency company will want to get rid of some or all of the tokens it has unlocked from escrow.

This panic among XRP investors comes despite reports that Ripple’s sale of XRP does not affect the price of the cryptocurrency on exchanges, as it is likely to be done over the counter. Meanwhile, Ripple has once again faced criticism from some members of the XRP community after the recent unblocking of tokens, with one of them vocation cryptocurrency company is a “scam”.

Another reason for the XRP price drop to $0.55 is the current bearish atmosphere in the broader cryptocurrency market. Bitcoins (BTC) fell below $58,000 on September 1, triggering a downtrend in the market for other crypto tokens.

The price action of the flagship cryptocurrency has remained inconclusive, which has affected the fate of other tokens. The price of XRP is undoubtedly at risk of falling if Bitcoin fails to establish an upward trend quickly enough and exceeds $60,000.

Some positives for the XRP price

Despite the panic caused Ripple XRP Unlockingit is worth mentioning that the cryptocurrency company closed 800 million XRP tokens ($442 million) back in escrow. This is a bullish development for the XRP price as it will facilitate allay concerns among XRP investors who believed that Ripple was going to sell the 1 billion XRP tokens that were previously unlocked.

Another positive feature of XRP and its holders is the likelihood that the U.S. Securities and Exchange Commission (SEC) referring to him case against Ripple drops as the 60-day window in which the Commission can do so approaches. If the SEC ultimately decides not to appeal, it would provide some bullish momentum for the price of XRP, given how much hit cryptocurrency lawsuit has been issued so far.

At the time of writing, XRP is trading at around $0.549, down more than 1% in the past 24 hours, according to data data from CoinMarketCap.

Featured image created with Dall.E, chart from Tradingview.com