XRP Price Plunge: Ripple Co-Founder’s $140M Sale Triggers Alarm

The cryptocurrency world is abuzz once again, and for XRP holders, the latest developments have certainly sparked concern. The **XRP price drop** observed in July 2025 has left many wondering about the forces at play, particularly after significant token sales by a key figure in the Ripple ecosystem. If you’re invested in XRP or simply curious about what moves the crypto market, understanding these dynamics is crucial.

Unpacking the Latest **XRP News Today**: Chris Larsen’s Sales

In a move that has reignited debates across the cryptocurrency community, Ripple co-founder Chris Larsen has continued to divest substantial amounts of XRP tokens. Between July 17 and July 25, 2025, Larsen reportedly transferred approximately $140 million worth of XRP to various exchanges. This activity coincided with a notable 10% decline in XRP’s price during the same period. This isn’t an isolated incident; similar transfers in June 2025 also correlated with a 10.33% drop in XRP’s value and triggered $86 million in liquidations across the market.

Such large-scale movements by major holders, often referred to as ‘whales,’ naturally draw scrutiny. When a figure as prominent as a **Ripple Co-Founder** sells off a significant portion of their holdings, it can send ripples—pun intended—through the market, influencing investor sentiment and potentially amplifying price corrections. Analysts are closely watching Larsen’s activity, suggesting it could indicate ongoing selling pressure, despite him still holding a massive 2.58 billion XRP tokens, valued at an estimated $7.9 billion as of early July.

The Ripple Effect: How **Ripple Co-Founder** Sales Impact the Market

The actions of early investors and founders, especially those with vast token allocations, can have a disproportionate impact on market dynamics. Here’s why:

• Supply Increase: Large sales inject more tokens into the circulating supply, which, if not met by equivalent demand, can lead to price depreciation.
• Sentiment Shift: When a co-founder sells, it can be interpreted by some as a lack of confidence in the project’s short-term prospects, prompting other investors to sell.
• Liquidation Triggers: Sudden price drops can trigger stop-loss orders and margin calls, leading to cascading liquidations that further exacerbate the price decline. For instance, a single-day 10% drop on July 23 wiped out $7.3 million in long positions on Binance.

It’s important to note the historical context. Larsen’s July 17 transfer of $175 million worth of XRP preceded a 15% price decline in the subsequent week, reinforcing a pattern where large sales contribute to short-term volatility. CryptoQuant analyst J.A. Maartun has highlighted that Larsen’s continued sales might signal further downward pressure, potentially indicating a larger divestment strategy.

This contrasts sharply with the approach of fellow Ripple co-founder Jed McCaleb, who famously ceased selling his XRP allocation in July 2022 after largely divesting his holdings. Both McCaleb and Larsen were initially allocated 9 billion XRP from Ripple’s 2012 founder distribution, showcasing divergent strategies in managing founder holdings and their potential market impact.

Beyond **Chris Larsen XRP** Sales: Broader Market Forces at Play

While the focus on **Chris Larsen XRP** sales is understandable, it’s crucial to acknowledge that XRP’s price trajectory is influenced by a multitude of factors, not just individual whale activity. The cryptocurrency market is complex, and its movements are often a result of interconnected global events and trends. These include:

• Macroeconomic Trends: Global inflation, interest rate hikes, and geopolitical events can influence investor appetite for risk assets like cryptocurrencies.
• Regulatory Updates: Ongoing legal battles, such as Ripple’s case with the SEC, and broader regulatory clarity (or lack thereof) significantly impact investor confidence in XRP.
• Technological Advancements: Developments within the Ripple ecosystem, partnerships, and adoption of XRP Ledger technology play a long-term role in its value proposition.
• Overall Crypto Market Sentiment: Bitcoin’s performance often sets the tone for the entire market. A correction in Bitcoin can pull down altcoins, including XRP, regardless of individual token dynamics.

Legal expert Bill Morgan has rightly cautioned against oversimplifying XRP’s performance solely to founder sales, emphasizing the broader context of regulatory updates, technological progress, and general crypto market trends. Understanding these multifaceted influences is key to forming a balanced view.

Navigating **Crypto Market Dynamics**: What Does This Mean for Investors?

For investors, the current **crypto market dynamics** surrounding XRP present both challenges and opportunities. The heightened volatility due to large holder sales underscores the importance of a well-informed investment strategy. Here are some actionable insights:

• Do Your Own Research (DYOR): Don’t rely solely on single news events. Investigate the underlying technology, use cases, and regulatory landscape.
• Diversify Your Portfolio: Spreading investments across different assets can mitigate risks associated with any single cryptocurrency’s price fluctuations.
• Consider Long-Term vs. Short-Term: Short-term price movements are often more susceptible to whale activity and market sentiment. Long-term value typically hinges on adoption, utility, and fundamental strength.
• Monitor Whale Wallets (with caution): While tracking large transfers can provide insights, it’s not a definitive predictor of future price. These movements are just one piece of the puzzle.
• Stay Updated on Macro News: Global economic indicators and regulatory shifts can have a profound impact on the entire crypto market.

What’s Next for **XRP Price Drop**? Forecasts and Factors

The recent **XRP price drop** has certainly tested investor resilience. Analysts remain divided on the immediate and long-term outlook. Some forecasts suggest XRP could rebound significantly, potentially reaching $3.66–$5 by late 2025. However, such projections are contingent on numerous variables beyond individual selling behavior, including:

• A favorable resolution to Ripple’s legal challenges.
• Increased adoption of Ripple’s payment solutions by financial institutions.
• Overall bullish sentiment returning to the broader cryptocurrency market.
• Controlled supply distribution and reduced selling pressure from major holders.

As XRP navigates this volatile landscape, the actions of major holders like Larsen will undoubtedly remain a critical factor for market participants to monitor. The intricate interplay between founder token activity, liquidity events, and external macroeconomic conditions highlights the inherent complexity of predicting short-term price movements in the crypto space.

Conclusion: The recent **XRP price drop**, coinciding with significant sales by Ripple co-founder Chris Larsen, serves as a powerful reminder of how influential large holders can be in the cryptocurrency market. While these sales contribute to short-term volatility and liquidity concerns, it’s essential for investors to adopt a holistic view. Balancing insights from whale behavior with broader industry developments, regulatory clarity, and macroeconomic trends is crucial for effectively navigating the evolving XRP ecosystem and making informed investment decisions. The future of XRP, like any digital asset, will be shaped by a confluence of factors, making continuous monitoring and a balanced perspective indispensable.

Frequently Asked Questions (FAQs)

Q1: Why do Ripple co-founders sell their XRP holdings?

A1: Co-founders may sell their holdings for various reasons, including personal financial management, diversification of assets, funding new ventures, or simply realizing profits from their early allocations. It’s a common practice for founders of successful companies to liquidate portions of their equity over time.

Q2: How do large XRP sales by whales like Chris Larsen impact the price?

A2: Large sales by whales can significantly impact price by increasing the circulating supply, which, if not matched by demand, can lead to price depreciation. They can also trigger negative market sentiment, prompting other investors to sell, and contribute to cascading liquidations from leveraged positions, amplifying price drops.

Q3: Is Chris Larsen’s selling activity the only reason for XRP’s price drop?

A3: No, while Chris Larsen’s sales certainly contribute to volatility and can exacerbate price drops, they are not the sole factor. Broader market forces such as macroeconomic trends, regulatory developments (like the SEC lawsuit), overall cryptocurrency market sentiment, and technological advancements within the Ripple ecosystem also play significant roles in XRP’s price trajectory.

Q4: How can investors protect themselves from the volatility caused by whale sales?

A4: Investors can protect themselves by diversifying their portfolios, conducting thorough research beyond single news events, understanding their risk tolerance, and adopting a long-term investment perspective rather than focusing solely on short-term fluctuations. Monitoring whale movements can be informative, but it should be part of a broader analysis of market fundamentals and technical indicators.

Q5: What are the long-term prospects for XRP despite recent sales?

A5: The long-term prospects for XRP depend on several factors, including the resolution of its legal battles, the continued adoption of Ripple’s payment solutions by financial institutions, and overall growth in the utility and ecosystem of the XRP Ledger. While large sales can create short-term headwinds, the underlying technology and use cases remain critical for long-term value.