Ripple Locks 400M XRP in Escrow—Will This Trigger a Bullish Reversal?

Ripple just made a power move—locking up 400 million XRP in escrow. Is this the catalyst XRP needs to break its slump?

Market watchers are split: Some see this as a bullish supply squeeze, while others call it another corporate chess move in crypto's never-ending game of trust.

One thing's certain—when whales play with escrow locks, retail traders should grab their charts and popcorn. Just don't expect Wall Street to notice—they're still trying to mint NFTs of their stock certificates.

XRP Derivatives Hint At Positive Price Action

When looking at the latest data by CoinGlass, the chart shows a 46.10% drop in volume to 4.76 billion while the open interest increases by 0.40% to 4.31 billion. This trend suggests a neutral price action. Additionally, the options volume ROSE by 45.78% whereas the options open interest rose by 9.51%, highlighting increasing market activity.

By evaluating the second column, the 24h long/short ratio is 0.9643, hinting at a stable sentiment. Overall, the market trend suggests a potential retest toward the higher price targets despite uncertain hurdles that are visible in the shorter time frames.

The XRP price has formed a triangle pattern and is currently hovering close to its key support level of $2.14. Notably, the pattern was formed during the month of May and the XRP crypto has been trading within it since then. Furthermore, it has formed a strong resistance zone around the $2.4 mark and a similar support zone around the $2 mark.

These test zones act as a major watch zone for the altcoin as if the XRP coin price breaks either of the zones, it could experience a major price action within a small period.

The Relative Strength Index (RSI) indicator is fairly neutral as it is currently valued at 50.56, just over its midpoint in the daily time frame. With the average trend acting as a support, the XRP token could display a sustained positive action in the coming days.

A positive retest at $2.14 could result in the XRP crypto price breaching its resistance of the triangle pattern and heading toward its $2.31 mark. Sustained bullish action at that point could lead in it moving toward its important test zone of $2.40

Under an optimistic outlook, XRP price could easily surpass the $2.50 mark if a positive development is recorded during the SEC meeting, as expected by market analysts. On the contrary, a bearish action could result in the XRP token dropping toward its low of $2.14 or $2 respectively.

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