XRP price climbed above $2 as over 500 million tokens were locked in escrow until 2028, removing more than $1 billion from circulation. Long-term holders have resumed accumulation after nearly a month of selling pressure, signaling renewed confidence in sustained upside.
What Happened: Supply Lock
On-chain data shows that over 500 million XRP were recently transferred into an escrow mechanism designed to lock supply until 2028. This action removes more than $1 billion worth of XRP from circulation, altering market conditions by limiting available liquidity during periods of rising demand.
The altcoin's recovery allowed XRP to briefly surpass BNB in market capitalization rankings.
This development marks a resurgence in investor interest following weeks of consolidation.
Escrow-based supply locks tend to have stronger price impact when demand remains stable. With fewer tokens available for trading, even modest increases in demand can lead to outsized price reactions, creating conditions for a potential supply shock.
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Why It Matters: Accumulation Returns
The HODLer net position change metric shows long-term holders shifting back into accumulation. Over the past week, wallets classified as LTHs have consistently increased their XRP balances, marking a clear reversal from nearly a month of steady selling pressure.
Long-term holders typically reduce exposure during uncertainty and re-enter when confidence returns.
Their renewed buying suggests belief in sustained upside rather than a short-term price spike, while older wallet activity often provides structural support during rallies by reducing downside volatility.
XRP price is up 6.7% over the last 24 hours, trading near $2.05 at the time of writing.
However, downside risks remain present. If selling pressure intensifies, XRP could slip back to $1.90, with a loss of this support exposing the price to $1.86 and invalidating the bullish thesis.
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