XRP faced a sharp 14% decline this week, as the market reacted to large transactions traced back to Ripple co-founder Chris Larsen. The sell-off comes just days after XRP surged to a multi-year high of $3.64, its highest price since 2021.
$175 Million in XRP Moved—$140M Sent to Exchanges
Between July 17 and July 24, a wallet linked to Larsen moved 50 million XRP, worth an estimated $175 million. Of that, $140 million was transferred to centralized exchanges, according to blockchain investigator ZachXBT.
Such movements are widely seen as signals of potential liquidation, as tokens are generally not stored on exchanges unless being sold or swapped.
The transactions were made shortly after XRP reached its peak, raising concerns about strategic profit-taking or potential market signaling from insiders.
Price Pullback Follows Liquidation Cascade
Following the large token transfers, XRP’s price dropped to around $3.08, testing support between $3.06 and $3.10 before stabilizing. The correction coincided with over $105 million in long positions being liquidated, marking the second-largest altcoin liquidation in a broader $735 million crypto market correction.
The majority of the losses occurred on Thursday, when XRP plunged nearly 10% in just a few hours.
Larsen-Linked Wallets Still Hold Over $8.4 Billion in XRP
Despite the sell-off, wallets associated with Larsen reportedly still hold over 2.81 billion XRP, equivalent to $8.4 billion, or 4.6% of XRP’s total market capitalization.
Neither Ripple nor Chris Larsen has commented publicly on the transfers. However, market watchers remain on edge due to the potential implications of such large-scale movements.
XRP Outlook: Traders Still Eyeing $6 Target
Even with the current drop, bullish sentiment persists in parts of the XRP community, with some traders maintaining price targets as high as $6, citing long-term adoption, utility in payments, and the possibility of renewed institutional interest.
XRP’s volatility remains high, but so does market interest — as token movements from insiders continue to influence short-term sentiment.
Conclusion: Whale Activity Triggers Market Caution
The recent price action highlights the outsized influence of high-profile wallets on token performance. As XRP attempts to recover, investors are likely to monitor exchange flows and on-chain signals closely to anticipate the next major move.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.