XRP Drops 14% After $175M Moved to Exchange by Ripple Co-Founder’s Wallet
XRP’s recent price decline follows a series of significant transactions from a wallet linked to Ripple co-founder Chris Larsen. Between July 17th and 24th, approximately 50 million XRP, valued at roughly $175 million, were transferred. Blockchain analyst ZachXBT reported that a substantial portion, around $140 million, was sent to centralized exchanges. This movement is generally interpreted as a precursor to liquidation, as large XRP holdings are not typically maintained on exchanges for extended periods. The transactions coincided with XRP reaching a record high of $3.64 before retracting to approximately $3.
Neither Larsen nor Ripple has publicly addressed these transactions. However, ZachXBT noted that wallets associated with Larsen still retain over 2.81 billion XRP, representing a considerable holding worth approximately $8.4 billion and about 4.6% of XRP’s total market capitalization.
The price drop has been substantial, with XRP experiencing a decline of over 14% in the past week. A significant contributor to this fall was a Thursday liquidation cascade that eliminated over $105 million in XRP long positions. This event formed part of a broader cryptocurrency market crash that saw liquidations totaling over $735 million. The XRP price dipped as much as 10% during this period, testing support levels around $3.06–$3.10 before stabilizing near $3.08.
Despite the recent volatility and price correction, a bullish sentiment persists among some traders and analysts. Reports from earlier this week, including those from CoinDesk, suggest a medium-term price target of $6 for XRP. This projection indicates a belief in the long-term potential of XRP, despite the short-term pressure caused by the recent large-scale transactions and market downturn. The considerable XRP holdings still controlled by entities linked to Larsen remain a key factor to watch in gauging future market movements. The lack of public comment from either Larsen or Ripple adds to the uncertainty surrounding the recent events and their potential long-term implications for XRP’s price.
