XRP Price Dives 5% Amid Ripple's Token Unlock and Macro Fears

XRP's price has taken a hit after Ripple unlocked 1 billion XRP tokens from escrow on September 1, which is part of its regular monthly schedule. The token's price dropped by about 5% in 24 hours to $1.31 on Wednesday.

The event introduces potential supply pressure and selling pressure, coinciding with a broad risk-off market. This is not the first time Ripple has unlocked tokens from escrow, but it does add to the existing supply in the market.

Historically, most of these tokens are re-locked, which would reduce the impact on the token's price. However, the current fragile market sentiment makes this a challenging environment for XRP's recovery.

The unlock acts as a persistent headwind, reminding traders of the token's controlled inflation schedule during risk-averse periods. The entire crypto market fell, with total cap down 1.62%, driven by macro fears such as renewed U.S.-Iran military strikes and expectations for a Federal Reserve rate hike.