Due to the large-scale selling situation of Ripple co-founder Chris Larsen, the XRP price plummeted, leading to the third-largest Longing position forced liquidation on Binance this year. At the center of this incident is the sale of 500,000 XRP from a wallet suspected to be connected to Larsen. An estimated $14 million worth has been flowing into centralized exchanges, further amplifying market tension.
On-chain analyst ZachXBT revealed that from the 17th, Larsen-related wallets transferred 50 million XRP to multiple addresses. A significant amount directly flowed into exchanges, with some transfers made in large units of 30 million XRP or 10 million XRP. This timing, right after XRP broke its highest price since 2018 at $3.65, has raised voices suggesting potential insider selling.
The peak of confusion was on July 23-24, when XRP dropped about 10% in a day and fell a total of 19% from the previous week's high. During this process, XRP Longing positions using leverage were consecutively liquidated on Binance, with approximately 2.3 million XRP, worth $7.3 million, evaporating. This was recorded as the third-largest forced liquidation for XRP this year.
The wallet believed to be owned by Larsen still contains approximately 2.8 billion XRP, valued at around $8.4 billion, keeping market-wide selling pressure concerns unabated.
However, some experts recommend viewing this adjustment in a short-term context, calling the reaction excessive. Cryptocurrency analyst John Squire compared it to the 2018 XRP crash, describing this decline as "just a brief coffee break" and emphasized staying calm for investors. Another analyst, Armando Pantoja, called it a "healthy adjustment" and predicted XRP could rise to $4.10 short-term and $8-12 by year-end.
Supporting further rise expectations, technical analyst Ali Martinez highlighted market recovery possibilities by presenting data showing whale investors newly purchased about 280 million XRP in the past ten days.
Consequently, despite experiencing significant volatility from large internal selling, investor sentiment remains resilient. The mid to long-term price rebound potential continues to draw attention.
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