XRP price today is facing renewed downward pressure following Ripple’s latest monthly escrow unlock. On July 1, blockchain monitoring platform Whale Alert reported that 500 million XRP tokens were released from escrow, sparking market speculation and triggering a short-term sell-off. With the asset now trading around $2.18, investors are closely watching whether this dip is a temporary setback or the start of a broader correction.
Despite the recent pullback, XRP continues to demonstrate strong long-term performance, significantly outpacing major cryptocurrencies like Bitcoin and Ethereum over the past year. As market sentiment remains cautiously optimistic, understanding the mechanics behind Ripple’s token release system—and its impact on price—can offer valuable insights for traders and long-term holders alike.
XRP Price Today: Bearish Momentum Returns
At the time of writing, XRP is trading at $2.18, reflecting a 1.1% decline over the past 24 hours and a 0.9% drop over the last seven days. The price saw a sharp 0.6% dip within just one hour, reinforcing bearish momentum that began at the start of July.
On July 1, XRP fell by 2.85%, erasing gains accumulated during the final week of June. From June 23 to June 27, the token surged by over 6.11%, peaking at $2.32 on June 30—its highest monthly value. While the current correction has dampened short-term optimism, it's important to contextualize this movement within XRP’s broader trajectory.
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Over the past 12 months, XRP has delivered an impressive 350% return, making it one of the top-performing major digital assets. In comparison, Bitcoin gained 71.8% over the same period, while Ethereum posted a loss of 29.1%. This stark contrast highlights XRP’s resilience and growing investor confidence despite regulatory and market headwinds.
Understanding Ripple’s Escrow System
Ripple employs a structured monthly escrow mechanism designed to promote transparency and stabilize market supply. Each month, exactly 1 billion XRP tokens are released from escrow on the first day. However, not all of these tokens enter circulation immediately.
In this month’s release, Whale Alert confirmed that 500 million XRP were unlocked and transferred to Ripple’s known wallet, Ripple 27. From there:
- 200 million XRP were sent to wallet rN8pqR
- 300 million XRP were moved to wallet rKwJaG
Notably, on-chain data reveals that Ripple subsequently re-locked 400 million XRP into a new escrow via Ripple 15. This practice of re-locking unused tokens is a key feature of Ripple’s supply management strategy, helping mitigate inflationary pressure and reassure investors.
While the initial unlock often triggers short-term volatility due to fears of increased selling, Ripple’s consistent re-locking behavior demonstrates responsible stewardship of its token supply—a factor that supports long-term price stability.
XRP Price Performance in Q2 2025
The first quarter of 2025 was relatively sluggish for XRP, with the token closing Q1 with only a 0.45% gain. February and March saw losses of 29.3% and 2.52%, respectively, weighed down by broader market uncertainty and regulatory caution.
However, momentum shifted in Q2:
- April: +4.98%
- May: -0.80%
- June: +2.95%
The strong rebound in late June, culminating in a peak at $2.32, reignited bullish sentiment. Many investors had anticipated a continuation of this upward trend into July. However, the post-escrow price drop has introduced short-term hesitation, prompting traders to reassess support and resistance levels before re-entering positions.
Can XRP Reach $6.50 or $8 in 2025?
Despite current volatility, many analysts remain bullish on XRP’s long-term potential. Several market experts project that XRP could climb to $6.50—or even reach $8—by mid-to-late 2025. These optimistic forecasts are grounded in several key drivers:
- Institutional adoption: Growing interest from financial institutions in using XRP for cross-border payments.
- Regulatory clarity: Progress in Ripple’s ongoing legal battles, particularly with the SEC, which could unlock new use cases and exchange listings.
- Macro crypto trends: Renewed institutional inflows into digital assets amid favorable monetary policy expectations.
For XRP to embark on such a rally, it must first reclaim critical resistance levels at $2.25 and $2.32. A sustained breakout above these points with strong trading volume would signal renewed buying pressure and potentially accelerate upward movement.
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Frequently Asked Questions (FAQs)
Why does Ripple’s monthly escrow unlock sometimes cause selling pressure on XRP’s price?
Ripple’s monthly escrow unlock releases up to 1 billion XRP, increasing the available supply. Even though a large portion is typically re-locked, the initial release creates market anxiety about potential selling by Ripple or third parties, leading to short-term price declines if demand doesn’t absorb the supply.
How does Ripple’s escrow system help ensure market transparency and stability for XRP?
By releasing tokens on a fixed monthly schedule and publicly re-locking unused portions, Ripple provides predictable supply dynamics. This transparency reduces uncertainty and helps investors plan around known events, fostering trust and long-term market stability.
What role does institutional interest play in XRP’s potential price surge?
Institutional adoption is a major catalyst for price growth. As banks and payment providers increasingly explore or adopt RippleNet and On-Demand Liquidity (ODL) using XRP, demand rises. This “smart money” inflow often precedes significant price rallies.
What are the risks of investing in XRP given its current volatility and escrow unlocks?
Key risks include short-term price swings tied to monthly unlocks, regulatory uncertainty despite recent progress, and broader crypto market downturns. Investors should be prepared for volatility and ensure their strategy accounts for scheduled supply releases.
Is XRP still a good investment after the July price drop?
Many analysts believe so. The long-term fundamentals—strong use case in global payments, disciplined supply management, and growing adoption—remain intact. The July dip may present a strategic entry point for investors with a medium-to-long-term horizon.
How can I track future escrow releases and on-chain movements for XRP?
Blockchain explorers and analytics platforms like Whale Alert provide real-time updates on large XRP transactions and escrow activity. Monitoring these tools can help anticipate market-moving events and adjust trading strategies accordingly.
Final Thoughts
The recent decline in XRP price following the 500 million token unlock reflects typical market sensitivity to supply events. However, Ripple’s consistent practice of re-locking unused tokens underscores its commitment to responsible supply management.
With a proven track record of outperformance, growing institutional interest, and increasing clarity around its regulatory standing, XRP remains a compelling asset in the digital currency landscape. While short-term fluctuations are inevitable, the path toward $6.50 or higher remains plausible if demand continues to build.
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As always, investors should monitor key technical levels, on-chain activity, and macro developments closely. By combining informed analysis with disciplined risk management, traders can navigate volatility and position themselves for potential gains in the evolving XRP ecosystem.
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