XRP’s Strategic Escrow Move Fails to Boost Price Amid Market Challenges
Ripple’s recent decision to lock 470 million XRP tokens in escrow has not spurred the anticipated price rally, highlighting ongoing market struggles. Despite the supply squeeze tactic, XRP ended May with a 1% decline, reflecting weak holder confidence and unfavorable tokenomics. With 70% of tokens acquired NEAR $3.40, the current price of $2.20 underscores the challenges ahead for XRP.
Ripple Locks 470M XRP in Escrow Amid Fragile Market Sentiment
Ripple’s strategic move to lock 470 million XRP tokens in escrow has failed to catalyze a price breakout, underscoring deeper structural challenges. The supply squeeze—a classic crypto market tactic—collides with weak holder confidence and unfavorable tokenomics.
XRP closed May down 1%, erasing earlier gains and joining Cardano as one of the few major underperformers. Approximately 70% of tokens were acquired near the $3.40 peak, leaving most investors underwater. This creates latent sell pressure that could trigger cascading exits if recovery falters.
The escrow maneuver reveals Ripple’s attempt to engineer scarcity, but market mechanics outweigh optics. Without fresh catalysts, XRP risks prolonged stagnation—a cautionary tale about supply-side interventions in bearish conditions.
XRP Price Prediction For June 3
XRP continues to struggle within a bearish trend, with its price recently breaking below a critical support zone. Temporary stabilization was found between $2.10 and $2.20, but the overall momentum remains weak. A short-term bounce attempt is underway, though resistance looms at $2.30-$2.34, followed by stronger barriers at $2.44 and $2.55-$2.62.
A potential head and shoulders pattern—unconfirmed but concerning—threatens further downside if validated. Key support levels to monitor include $2.05 and $2.00; a breach below the latter could accelerate declines toward $1.80. For any bullish reversal, XRP must decisively break above the $2.21-$2.28 resistance zone, a MOVE currently unsupported by market sentiment.
XRP Investors Debate Wealth Threshold: Is 50,000 Tokens the Magic Number?
The XRP community is embroiled in a heated debate over the ideal holding size for life-changing wealth. crypto commentator King Vale advocates for a 50,000 XRP benchmark—a position now requiring a $108,500 investment at current prices. On-chain data shows the top 1% threshold has dipped from 56,304 to 50,835 XRP since January, though dollar costs have quadrupled since late 2024.
Opponents counter that strategic trading trumps raw accumulation. With XRP’s 2024 rally making large positions prohibitively expensive for many, the divide reflects broader tensions in crypto between hodler mentality and active portfolio management. Vale’s followers point to prior accurate calls, while critics emphasize adaptability in volatile markets.
Nasdaq-Listed VivoPower Announces $100M XRP Treasury Strategy in Partnership with BitGo
VivoPower International, a Nasdaq-listed company, has unveiled a $100 million XRP treasury strategy—marking the first major institutional commitment to XRP by a publicly traded firm. The energy solutions provider will collaborate with BitGo for custody and OTC trading services, signaling growing institutional confidence in digital assets beyond Bitcoin.
The move mirrors MicroStrategy’s Bitcoin treasury approach but shifts focus to XRP, with plans to develop DeFi initiatives and support XRP Ledger growth. "This isn’t a hedge. This is a full-blown XRP treasury strategy," noted analyst Jungle Inc., suggesting the deal could catalyze further corporate adoption of XRP.
BitGo’s involvement provides institutional-grade security and liquidity infrastructure, with the partnership announcement triggering renewed discussions about XRP’s role in corporate balance sheets. The development comes amid accelerating institutional interest in crypto treasury strategies, with XRP now emerging as a viable alternative to bitcoin for corporate allocations.
