Ripple (XRP) co-founder Chris Larsen recently caused significant market shock by selling approximately $200 million worth of XRP during a price decline. His remaining holdings are still substantial, raising concerns about potential price volatility depending on future sales.
According to cryptocurrency market tracking data, Larsen has disposed of over 100 million XRP in the past week, during which XRP has dropped approximately 14% and is currently trading around $3.16. Notably, about $140 million of these sales were processed through centralized exchanges, which is interpreted as a signal of significant selling pressure.
Larsen currently holds 2.58 billion XRP, valued at approximately $7.9 billion at current market rates. As a result, the industry is cautious about the possibility of additional sales. CryptoQuant analyst J.A. Maartun analyzed that "this sale appears to have a strategic nature beyond simple profit-taking".
Such repeated large-scale sales by founding members can inevitably negatively impact XRP's credibility. In fact, Larsen has progressively sold over 107 million XRP since November last year. While this could be a profit-realization strategy designed according to market demand, the concentrated token ownership structure is clearly causing side effects.
Nevertheless, XRP is currently defending its price between $3.10 and $3.16, forming a short-term support line. Technical analysis suggests that as long as the support zone between $2.25 and $3 is maintained, the potential for further sharp declines is limited, with expectations of a potential rebound if it breaks through $3.66.
Legal expert Bill Morgan emphasized that "interpreting market collapse solely based on an individual's sales is an excessive interpretation", highlighting that global regulatory environments and macroeconomic variables could be more fundamental causes.
Meanwhile, Bitcoin's (BTC) market share remains at 59-61%, showing a trend of some funds moving to altcoins. Particularly, major altcoins like XRP, Solana (SOL), and Dogecoin (DOGE) are showing rapid recovery, rekindling investor interest.
XRP's short-term market flow could change depending on Chris Larsen's future intentions. If XRP recovers to $3.31 and exchange inflows decrease, this decline might be a temporary adjustment. Conversely, additional sales without supporting buying pressure could lead to further drops below $2.25.
Investors should pay attention to major holders' movements and focus on whether XRP can defend its technical support zone.
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