XRP Price Plunge: Ripple Co-Founder’s $170M Move Ignites Bearish Pressure & $2.8B Crypto Market Liquidation

The cryptocurrency market is abuzz with significant developments, particularly concerning XRP. Recent actions by Ripple co-founder Chris Larsen have sent ripples through the market, directly impacting the XRP price and triggering a wave of crypto market liquidation. This article dives deep into the latest XRP news today, analyzing the forces behind the recent downturn and what it means for investors.

What Triggered the XRP Bearish Pressure?

The immediate catalyst for renewed XRP bearish pressure stems from a substantial movement of tokens by Ripple co-founder Chris Larsen. Blockchain records reveal that on July 17, Larsen transferred 50 million XRP, an amount valued at approximately $170 million at the time. These tokens were distributed across four distinct wallets:

• 30 million XRP to a wallet suspected of being linked to a crypto exchange or third-party service.
• 10 million XRP to another wallet with similar suspected ties.
• The remaining 10 million XRP was split evenly between two newly created wallets, each receiving 5 million XRP.

This significant activity follows a previous transfer of $26 million in XRP to Coinbase, further fueling market speculation. Traders often interpret such large, unexplained movements by prominent figures as potential signals of strategic reallocation, preparation for large sales, or even liquidity needs. While Larsen has remained publicly silent on the rationale behind these transfers, the market has reacted with heightened uncertainty, contributing to the overall XRP bearish pressure.

Understanding the Crypto Market Liquidation Impact

The token movement by the Ripple co-founder has coincided with a broader surge in selling activity across the market. Over the past week, the cryptocurrency landscape has witnessed a staggering more than $2.8 billion in crypto market liquidation. A significant portion of this impact has been felt directly by XRP, with over 450 million XRP tokens—worth over $2.8 billion—being liquidated. This reflects a notable erosion of investor confidence in short-term price stability for the asset. As of the latest data, XRP trades near the $3 mark, struggling to overcome a critical resistance range between $3.18 and $3.25. Analysts emphasize that without a decisive upward movement beyond this zone, XRP may remain vulnerable to further downside.

Analyzing Current XRP Price Action and Support Levels

Despite the recent downturn, there are tentative signs of stabilization in the XRP price. The asset recently rebounded from the $3.04 level, a point historically recognized as significant support, even identified through patterns like the Elliott Wave Theory. Shorter-term Relative Strength Index (RSI) metrics also indicate a weakening of sell momentum, suggesting the possibility of a near-term bounce. A retest of the $3.21 resistance level would be crucial to confirm whether the recent low marks a temporary bottom. However, failure to sustain gains above this threshold could push prices back toward the $3.04 level for further consolidation, testing the resilience of this key support.

What Does This Mean for Ripple Co-Founder’s Strategy?

The actions of the Ripple co-founder, Chris Larsen, have naturally led to widespread speculation. While his exact intentions remain unconfirmed, such large-scale movements by a key figure in the Ripple ecosystem often signal strategic adjustments. These could include portfolio rebalancing, providing liquidity for various ventures, or even preparing for philanthropic endeavors. The lack of public comment from Larsen adds to the market’s interpretative challenge, leaving investors to weigh the possibilities against the backdrop of broader market sentiment and ongoing regulatory developments. Understanding the potential implications of such high-profile token movements is key for anyone following XRP news today.

Navigating Today’s XRP News Today: Beyond the Volatility

While the current dip has certainly dampened immediate sentiment, it’s important to view the recent XRP news today in a broader context. Despite the near-term volatility and the XRP bearish pressure, XRP remains one of 2025’s top performers, having surged over 220% since the beginning of the year. Its robust market capitalization, currently around $185 million, reflects sustained demand even amidst the lingering legal challenges with the U.S. Securities and Exchange Commission (SEC). While the unresolved litigation continues to cast a long-term shadow, immediate market dynamics suggest that investors are primarily focused on short-term price action and liquidity developments. Monitoring key resistance and support levels will be crucial for investors navigating this period of heightened activity.

The recent actions by Ripple co-founder Chris Larsen have undeniably introduced significant volatility and XRP bearish pressure into the market, leading to substantial crypto market liquidation. While the immediate XRP price action suggests caution, the underlying technical indicators hint at potential stabilization. Investors should remain vigilant, keeping a close eye on key resistance levels and broader market sentiment as new XRP news today unfolds. The interplay between high-profile token movements, technical analysis, and ongoing regulatory battles will continue to shape XRP’s trajectory in the coming weeks.

Frequently Asked Questions (FAQs)

Q1: What caused the recent XRP price drop?
A1: The recent XRP price drop was primarily triggered by the movement of 50 million XRP tokens (worth approximately $170 million) by Ripple co-founder Chris Larsen. This action, coupled with significant crypto market liquidation, led to increased selling pressure.

Q2: How much XRP was moved by Chris Larsen?
A2: Chris Larsen moved a total of 50 million XRP tokens, valued at approximately $170 million at the time of the transfers on July 17.

Q3: What does “crypto market liquidation” mean in this context?
A3: In this context, crypto market liquidation refers to the forced closing of leveraged positions by exchanges when a trader’s margin falls below a certain level due to adverse price movements. Over $2.8 billion in crypto, including 450 million XRP, was liquidated in the past week, indicating significant market sell-offs and losses for some traders.

Q4: Is the XRP price expected to recover soon?
A4: While short-term technical indicators show signs of weakening sell momentum and a rebound from a key support level ($3.04), analysts note that a decisive move above the $3.18-$3.25 resistance range is needed to confirm a sustained recovery and alleviate XRP bearish pressure. Failure to do so could lead to further consolidation.

Q5: How do Chris Larsen’s actions affect XRP’s long-term outlook?
A5: While the Ripple co-founder’s actions have created short-term volatility and speculation, XRP’s long-term outlook is still influenced by factors like its utility, adoption, and the ongoing SEC litigation. These large token movements can impact short-term supply dynamics and market sentiment but don’t necessarily dictate the long-term fundamental value.