XRP Price: Will Chris Larsen’s **Massive** Cash-Outs **Threaten** Recovery?

The cryptocurrency world often buzzes with significant events. Recently, a particular action by a prominent figure has caught the attention of many. Specifically, Ripple co-founder and former CEO Chris Larsen has reportedly amassed hundreds of millions in profits from XRP sales. This raises a crucial question: Will these substantial ‘cashing out’ activities negatively impact the XRP price? Many investors are now closely watching the market. This article dives deep into the details, providing a comprehensive XRP market analysis.

Ripple Co-founder’s Profitable History Unpacked

Chris Larsen, a pivotal figure in Ripple’s history, has been a significant holder of XRP since its early days. His profit-taking activities have become a topic of intense discussion within the community. Indeed, data suggests Larsen has realized considerable gains from his XRP holdings. Since 2018, his realized profits from XRP sales have reached an astonishing figure. This trend prompts further investigation into its potential market effects.

According to J. A. Maartunn, an analyst at CryptoQuant, Larsen has a consistent pattern. He tends to cash out his holdings near local price highs. This observation has fueled speculation among XRP holders. Maartunn’s analysis indicates that Larsen’s realized profit has surged. It expanded significantly in 2025, reaching over $764 million. This marks a substantial increase from less than $200 million recorded more than seven years ago. Consequently, this pattern raises concerns about potential selling pressure on the asset.

Many see these actions as strategic profit-taking. However, others express concern. They accuse Larsen of deliberately offloading large amounts when the price peaks. This debate highlights the differing perspectives on such large-scale transactions. Therefore, understanding the context behind these sales is vital for any XRP market analysis.

Chris Larsen XRP: The Evernorth Investment and Recent Transfers

Recent wallet movements linked to Chris Larsen have drawn particular scrutiny. An X post by Maartunn flagged a transfer of 50 million XRP from Larsen’s wallet. This transaction, initially causing some apprehension, was later clarified by Larsen himself. He confirmed the transfer was an investment. Specifically, it went into the Evernorth treasury.

Larsen publicly stated, “Congrats @ashgoblue and the @evernorthxrp team on today’s launch! Evernorth fills the missing link today in XRP capital markets, and XRP usage in DeFi products. I’m proud to invest 50M XRP in the firm (you may see some wallet movement on this).” (October 20, 2025)

This clarification provides context for a specific large transfer. Nevertheless, the broader pattern of withdrawals persists. Maartunn emphasizes that this isn’t an isolated incident. He reiterates Larsen’s recurring habit of selling near local highs. Furthermore, reports suggest Larsen still holds a substantial amount of XRP. Notionally, this figure could be up to $9 billion. This remaining stash will likely continue to exert potential selling pressure on the market. Consequently, monitoring these holdings remains a key aspect of XRP market analysis.

Understanding the Impact on XRP Price Stability

Large sales by major holders, often called ‘whales,’ can certainly influence market dynamics. When a figure like the Ripple co-founder executes significant sales, it introduces a supply increase. This added supply can, in turn, put downward pressure on the XRP price. Investors often react to such movements. They might interpret them as a lack of confidence, even if the intention is simply profit-taking.

The XRP price currently trades significantly below its multi-year highs. These highs were reached around $3.66 on July 13. A drawdown of 34% has occurred since then. Some analysts attribute part of this decline to large outflows from wallets associated with Chris Larsen. Therefore, these actions are not merely isolated events. They form part of a larger narrative influencing market sentiment and price action. Understanding this interplay is critical for anyone following cryptocurrency news.

The potential for future sales from Larsen’s remaining holdings also casts a long shadow. Should he continue to realize profits, the market could face sustained selling pressure. This scenario could hinder XRP’s recovery efforts. Conversely, if the market absorbs these sales without significant price drops, it might indicate strong underlying demand. This resilience would be a positive signal for the asset’s stability.

Key Levels for XRP Market Analysis

To understand the potential trajectory of XRP price, technical analysis becomes indispensable. Several key levels on the daily chart demand close attention from traders and investors. These levels often act as significant support or resistance points. Breaking above or falling below them can signal important shifts in market sentiment.

Currently, the XRP/USD pair faces a critical challenge. It needs to reclaim the 200-day Simple Moving Average (SMA) at $2.60. Flipping this trendline into support is crucial. Historically, reclaiming this SMA has often preceded significant price recoveries for XRP. For instance, a similar pattern was observed in July. Successfully breaking this level could pave the way for higher targets above $3.00. This milestone would mark a significant turning point for the asset.

Beyond the 200-day SMA, other levels also warrant attention:

• $2.74-$2.80 Range: This area currently hosts the 50-day Simple Moving Average (SMA). Overcoming this resistance would demonstrate growing bullish momentum.
• $2.94 (100-day SMA): A decisive break above this level would be a strong indicator. It would signal the potential end of the prevailing downtrend. This move would instill greater confidence among investors.

These moving averages provide a clear roadmap for XRP’s short-term and medium-term price action. Therefore, monitoring these levels is paramount for informed trading decisions. This technical perspective forms a vital part of any comprehensive XRP market analysis.

Bullish Signals Emerge for XRP

Despite the concerns surrounding Chris Larsen’s sales, some bullish signals are emerging. These indicators suggest a potential for an upward reversal in the XRP price. Traders often look for such divergences to identify buying opportunities. These signals provide a glimmer of hope amidst the selling pressure.

One notable indicator is the Relative Strength Index (RSI). The chart shows a bullish divergence from the RSI. A bullish divergence occurs when the price falls, but the RSI rises. This pattern typically indicates weakening in the existing downtrend. It suggests that seller exhaustion may be setting in. Consequently, investor interest might increase, prompting more buying on dips. This technical setup often precedes a price rebound.

Furthermore, a possible bullish cross from the Moving Average Convergence Divergence (MACD) could add further fuel. The MACD is a momentum indicator. A bullish cross suggests that short-term momentum is shifting above long-term momentum. This signal often reinforces the potential for upward price movement. These combined technical factors paint a more optimistic picture for the immediate future of XRP. As Crypto News Insights reported, bulls must drive the price above the 20-day Exponential Moving Average (EMA) at $2.55 to signal a decisive comeback. This level is crucial for confirming a reversal in trend.

In conclusion, the XRP market faces a dual narrative. On one hand, the significant profit-taking by the Ripple co-founder introduces potential selling pressure. On the other hand, several technical indicators suggest a looming recovery. Investors should therefore conduct their own thorough research. Every investment and trading move involves inherent risk. Understanding both the fundamental and technical aspects is key to navigating this dynamic market. This comprehensive cryptocurrency news update aims to provide a clear perspective on these complex factors.