XRP Price Plunges: Ripple Co-Founder’s Massive Sale Ignites Market Fears
The world of digital assets is rarely calm, and recent events surrounding XRP have once again sent ripples through the market. Investors are closely watching as Ripple co-founder Chris Larsen executed a significant sale of over 100 million XRP tokens, valued at approximately $200 million. This massive transaction, occurring amidst a 15% drop in XRP’s value during the week of July 25, 2025, has intensified concerns about potential further sales and their impact on the cryptocurrency’s price trajectory. For anyone invested in or considering XRP, understanding the implications of this move is crucial.
XRP Price Under Pressure: A Major Sale Event Unfolds
The recent downturn in XRP price has been directly linked to a substantial sale by Ripple co-founder Chris Larsen. Reports from various platforms, including AInvest, Mitrade, and CryptoQuant, confirmed that Larsen offloaded over 100 million XRP tokens, translating to approximately $200 million. This significant transaction took place during a period when XRP’s value experienced a notable 15% decline in the week leading up to July 25, 2025.
- Who: Chris Larsen, Ripple co-founder.
- What: Sold over 100 million XRP tokens.
- When: During the week of July 25, 2025.
- Value: Approximately $200 million.
- Market Impact: Coincided with a 15% drop in XRP’s value.
Such large-scale sales by early stakeholders frequently correlate with heightened market volatility. The cryptocurrency community is now grappling with the potential for ongoing pressure on XRP’s value, especially given the scale of Larsen’s remaining holdings.
Ripple Co-Founder Chris Larsen’s Strategic Moves: A Deeper Look
Chris Larsen, who stepped down from his executive role at Ripple in 2020, still retains a substantial stake in XRP. As of July 25, 2025, his holdings stood at an astonishing 2.58 billion tokens, valued at roughly $7.9 billion. This immense reserve raises questions among analysts and investors alike.
J.A. Maartun of CryptoQuant, among others, suggests that Larsen’s remaining holdings could indeed lead to additional sales, particularly if current market conditions persist. This scenario contrasts with co-founder Jed McCaleb’s more gradual exit in 2022, which had a less pronounced market effect.
While some argue that such transactions are simply part of routine liquidity management for major holders, critics warn that large-scale selling can exacerbate downward pressure, especially in lower-liquidity markets. Larsen’s recent activity is part of a broader trend, with over 107 million XRP sold since November 2024, indicating a pattern of strategic profit-taking. Understanding the motivations behind these sales is key to anticipating future market movements.
Understanding the XRP Market Impact and Technical Levels
The immediate impact of Larsen’s sale on the XRP market impact has been a focal point for traders. Approximately $140 million of the recent XRP movement was observed on centralized exchanges, a pattern often linked to upcoming liquidations. This suggests that a significant portion of the tokens moved were intended for sale, directly contributing to the price decline.
Technically, the price of XRP fell to $3.18 on July 23, 2025, consolidating near $3.16. These levels are crucial for traders monitoring potential reversals or further declines. Here’s a quick look at key technical points:
| Price Point | Significance |
|---|---|
| $3.16 | Current consolidation/technical support |
| $3.18 | Recent low point |
| $3.66 | Resistance level; a break above could trigger renewed buying |
| $2.25 | Critical support; a decline below could signal deeper corrections |
The timing of these sales has sparked intense debate. While founder sales are not uncommon near price peaks, the sheer scale of Larsen’s recent moves raises questions about micro-market dynamics and their ability to influence sentiment.
Broader Cryptocurrency News and Investor Sentiment
The recent cryptocurrency news surrounding XRP also needs to be viewed within the broader market context. Bitcoin’s dominance, for instance, has dipped to 59–61%, suggesting a shift of capital towards altcoins like XRP, SOL, and Dogecoin. Despite XRP’s 14% weekly decline, there are mixed signals regarding institutional demand, with rising open interest in XRP futures indicating continued professional engagement.
Legal expert Bill Morgan has downplayed the notion that a single actor could solely drive the market, attributing XRP’s weakness more to macroeconomic trends and ongoing regulatory uncertainty, particularly Ripple’s persistent legal challenges with the SEC. However, he acknowledges that prolonged selling by a major holder like Larsen could amplify downward pressure, especially given the existing regulatory cloud.
The cryptocurrency community remains divided on the implications of this sale. Proponents frame it as a calculated move to manage liquidity amidst XRP’s unique regulatory environment, emphasizing that it’s part of a broader, long-term strategy. Critics, conversely, argue that such significant selling by a co-founder undermines confidence in Ripple’s strategic direction and the token’s stability.
Actionable Insights for XRP Holders
For traders and investors, vigilance is key. Here are some actionable insights:
- Monitor Key Levels: Keep a close eye on the $3.16 support level. A sustained break below this could signal further declines towards $2.25.
- Watch for Rebound: If XRP reclaims the $3.31 mark, the recent dip might be temporary noise, suggesting a potential short-term recovery.
- Consider Broader Trends: Factor in Bitcoin dominance and overall macroeconomic conditions, as these significantly influence altcoin performance.
- Assess Sentiment: While institutional interest in futures remains, public sentiment can shift quickly in response to large sales or regulatory developments.
Conclusion: Navigating Uncertainty in the XRP Market
The recent $200 million XRP sale by Ripple co-founder Chris Larsen has undeniably shaken the market, contributing to a significant XRP price drop and sparking widespread debate. While large-scale sales by early investors are a part of the crypto landscape, the sheer volume and timing of this particular transaction have amplified concerns about future market stability. Investors are advised to remain cautious, focusing on key technical levels and staying informed about both Ripple’s internal dynamics and the broader regulatory environment. The coming weeks will be crucial in determining whether this dip is a temporary setback or a precursor to deeper corrections for XRP.
Frequently Asked Questions (FAQs)
Q1: Why did Ripple co-founder Chris Larsen sell such a large amount of XRP?
While the exact motivations are not publicly disclosed, such large sales by early stakeholders are often attributed to liquidity management, portfolio rebalancing, or strategic profit-taking. It’s a common practice for founders to diversify their assets over time.
Q2: How much XRP does Chris Larsen still hold after this sale?
As of July 25, 2025, Chris Larsen still holds a substantial 2.58 billion XRP tokens, which were valued at approximately $7.9 billion at the time of the report. This significant holding is why fears of further sales persist.
Q3: What was the immediate impact of the sale on XRP’s price?
The sale coincided with a 15% drop in XRP’s value during the week of July 25, 2025. This immediate price reaction highlights the market’s sensitivity to large movements from major holders.
Q4: Are these sales similar to Jed McCaleb’s XRP distribution?
While both involved large sales by co-founders, Jed McCaleb’s distribution of XRP was a more gradual, pre-scheduled exit that had a less pronounced immediate market effect. Larsen’s recent sale appears to be a more concentrated event within a shorter timeframe.
Q5: What are the key price levels for XRP to watch after this event?
Traders are closely monitoring the $3.16 level as immediate support. A break above $3.66 could signal renewed buying pressure, while a decline below $2.25 may indicate deeper corrections.
Q6: Does this sale indicate a lack of confidence in Ripple or XRP?
Opinions are divided. Some view it as a routine liquidity management move, while others see it as undermining confidence, especially given Ripple’s ongoing legal challenges with the SEC. It’s crucial for investors to consider both perspectives and broader market factors.
