XRP Price Prediction as Ripple Re-Locks 700 Million XRP in Escrow Account

XRP has garnered renewed attention following Ripple's decision to return 700 million XRP to escrow, a move that occurred after the usual monthly release. This action coincided with rising inflows to Binance and a notable price increase, drawing the focus of analysts.

Market Structure and Intraday Price Behavior

XRP is trading near $1.39, having experienced a 3% increase in the past day. The intraday trading pattern shifted significantly after Bitcoin surpassed the $70,000 resistance level. Initially, the price saw a mild decline, moving from $1.37 to $1.34, with sellers maintaining control. However, this downward movement lacked strong pressure and shaped a short period of lower highs, indicating a weak structure.

The market triggered buy-side interest as the price broke through short-term resistance, leading some short sellers to cover their positions. Following this surge, XRP largely maintained its gains, trading between $1.38 and $1.40 and forming higher lows, which contributed to a more stable market tone.

Analyst Chatnerd noted that XRP's buy-side liquidity is positioned above the $1.50 to $1.70 zone. The analyst cautioned that the price might reach this region before any significant swing, emphasizing the importance of the $1.30 to $1.20 band holding to support the current setup.

Escrow Activity and Exchange Flows

Ripple's relocking of 700 million XRP drew attention as it followed the standard release from escrow on March 1. Typically, only about 30% of the released amount remains in circulation. Amidst recent market tensions, the event and reports of large inflows to Binance have been closely monitored.

CryptoQuant data indicated net XRP flows reaching approximately 470 million within a week. Analyst StephIsCrypto suggested this could lead to near-term selling pressure if holders decide to profit from the recent price surge.

These inflows have heightened scrutiny of liquidity conditions. While some traders interpret the deposits as a potential supply event, there has been no confirmation of token sales. However, observations on X suggest that exchange inflows tend to increase during periods of price compression.

XRP Price Technical Outlook and Near-Term Prediction

According to crypto analyst Dark Defender, the XRP chart still reflects a macro downtrend, with the token continuing to form lower highs and lower lows. A long descending trendline has acted as resistance since January. The analyst suggests a potential completion of a C-wave near $1.12 to $1.15, where a sharp wick previously formed, after which the price entered a new range.

Dark Defender observed that XRP is currently trading between the $1.21 Fibonacci support and the $1.47 Fibonacci resistance, creating a compression area. The price is also nearing the descending trendline around $1.38 to $1.42, which is identified as a critical decision point for future movement. A breakout above this line could lead to $1.47 and potentially the supply area between $1.60 and $1.85, provided volume increases.

The Relative Strength Index (RSI) is near the mid-range with a slight upward trend, indicating reduced selling pressure. However, buyers require more momentum for a confirmed shift. The analyst suggests there is a possibility for XRP's price to continue recovering before the RSI becomes overbought.

Furthermore, with Bitcoin's rise, analyst Javon Marks' prediction of a potential 600% increase for the XRP/BTC pair may be approaching, which could drive XRP's price above $10.