XRP Is Under Pressure After Selling $120 Million Worth of Tokens
After on-chain data showed that Ripple co-founder Chris Larsen sold almost $120 million worth of XRP from his own wallets, the market momentum for XRP dropped dramatically. The move, which happened at the same time as a 2.5% drop in price, made traders worry about more insider selling and how it might affect short-term sentiment.
Ripple just announced a $1 billion funding round and the purchase of treasury management company GTreasury. This action comes only days after that. People are wondering if Larsen’s liquidations helped pay for the deal.
Historic Pattern of Bearish Signals Reemerges
CryptoQuant, a company that does on-chain analytics, found many red spikes that showed substantial amounts of money leaving wallets associated with Larsen. Similar patterns have happened before bearish episodes, such as when XRP went down during the 2018 cycle. Analysts say that the latest movement is similar to those past signs, which means that traders should be careful for now.
Market expert Maartunn said that the occurrence may be a distribution phase. “He’s getting his money.” He remarked on X, “You’re holding the bag,” which meant that individual investors could have to deal with short-term volatility while big holders sell their investments.
Ripple Expands With GTreasury Acquisition to Boost Global Liquidity
Ripple is still going for ambitious growth tactics, even when investors are worried. People see Ripple’s purchase of GTreasury, a company that specializes in managing worldwide liquidity and payments, as a big step toward expanding RippleNet’s services for businesses. The company’s treasury is now worth over $1 billion, which gives it the money it needs to get people to use its payment system.
These efforts make Ripple’s company stronger, but short-term traders are still worried about supply shocks caused by insider sales. Even if long-term investors still believe in XRP’s utility-focused plan, the timing of Larsen’s transactions has made things even more ambiguous.
Recommended Article: Ripple Backs $1B Evernorth Crypto Treasury to Accumulate XRP
Whale Activity and Market Divergence
It’s interesting that on-chain data reveals that the number of XRP addresses with more than one hundred tokens is still going up, even while prices are going down. This tendency of accumulation shows that lesser whales and ordinary investors see the current price levels as a chance to buy more.
Additionally, Glassnode’s realized profit measures show that both long-term and short-term holders are becoming less active. In the past, XRP’s price has gone up as realized gains went up, but this time they are still low. Analysts see this as an indication that most of the speculative sellers have left, which lowers the pressure to sell and opens the door for a possible rebound.
XRP Trades in Downward Channel as Bulls Defend Key $2 Support Zone
XRP is still moving sideways within a downward-sloping parallel channel, which is a pattern that commonly happens during mid-trend declines. The coin just rallied off of the $2 support level and is now facing possible resistance at $2.80, which is in line with the 0.618 Fibonacci retracement zone.
If the price breaks over $2.80, it might start a positive turnaround that aims for $3.05 and then $3.40. On the other hand, if support doesn’t stay above $2.00, it might go down much further below $1.80, where purchasing interest has traditionally returned.
Market Sentiment: Fear Meets Strength
XRP’s short-term mood is still ambiguous. The co-founder’s sale has caused some short-term panic, but on-chain accumulation and profit-taking that is slowing down show that the market is still strong. Pepperstone Group analysts said that risk assets still have “room to rise.” They see recent drops as possible buying opportunities when the crypto market as a whole recovers.
But the state of the global market will be very important. A stronger U.S. currency or less money available might make people less willing to take risks, but increased hope in stocks and digital assets could help the market bounce back.
XRP Eyes Recovery as Selling Pressure Eases After Larsen Liquidation
Chris Larsen’s large-scale liquidation caused short-term gloomy sentiment, but technical and on-chain evidence suggests that the worst selling pressure may already be lessening. If XRP can get back over the $2.80 resistance level, things might soon turn toward a wider recovery phase.
In the next several weeks, traders should keep a careful eye on wallet outflows, institutional activity, and the overall mood of the market. Ripple’s growing treasury operations and steady buying from smaller investors imply that XRP may still be able to get back to the $3 level by the end of the year, even though things are rough right now.
