Ripple Co-Founder Sells $140 Million XRP After All-Time High

XRP experienced a sharp 11% decline from its July 17 peak of $3.65 following a massive token transfer by Ripple co-founder Chris Larsen. The cryptocurrency market witnessed significant volatility after Larsen moved 50 million XRP tokens to multiple addresses, with blockchain analyst ZachXBT confirming that approximately $140 million worth of these tokens reached centralized exchanges and off-ramp services.

On-Chain Data Reveals Clear Price Correlation

On-chain analytics from CryptoQuant demonstrate a direct correlation between Larsen's wallet activity and XRP's price movement. The data shows heightened wallet activity between July 17 and July 24, precisely coinciding with XRP's peak performance and subsequent decline. During this critical period, the wallet's cumulative balance experienced a significant reduction.

The market's reaction was immediate and pronounced. XRP fell from its local high near $3.65 to approximately $3.25 before showing signs of partial recovery. This price action pattern mirrors similar movements observed during previous market cycles, particularly the 2017-2018 bull run when founder wallet outflows aligned with market tops.

Massive XRP Holdings Create Market Overhang

Current on-chain data reveals that Larsen-linked wallets maintain control over more than 2.81 billion XRP tokens, representing approximately $8.4 billion in value at current market prices. This substantial holding creates a structural overhang for the token, particularly if additional sales occur through open market transactions.

The timing of these transfers, occurring just days after XRP reached its all-time high, suggests a calculated profit-taking strategy. This pattern of insider selling at market peaks has become a recurring theme in XRP's price history.

2012 Agreement Exposes Early XRP Distribution

Recent social media discussions have brought renewed attention to a 2012 agreement between Ripple's founding team, including Chris Larsen, Jed McCaleb, and Arthur Britto. The document reveals that Britto received a 2% allocation of all XRP tokens, then known as Ripple Credits, along with lifetime development rights on the Ripple protocol without requiring company approval.

This historical agreement underscores the centralized nature of XRP's initial distribution and reinforces ongoing concerns about supply concentration among early insiders. The revelation adds context to current debates about founder influence on token pricing.

Historical Patterns Show Recurring Insider Activity

The scale and timing of Larsen's recent transfers carry significant weight when viewed against historical precedent. On-chain analysis indicates that the previous major outflows from this wallet occurred near XRP's historic 2018 peak, establishing a pattern of insider selling at market tops.

This historical context amplifies concerns about insider-driven price suppression and market manipulation. The recurring nature of these events has led to increased scrutiny from both retail and institutional investors.

Market Resilience Despite Selling Pressure

Despite the substantial sell-off pressure, XRP has demonstrated remarkable resilience in the current market cycle. The token remains among the best-performing large-cap cryptocurrencies this quarter, suggesting strong underlying demand and market confidence.

Technical analysis reveals robust support levels near the $3 price point. Market participants are closely monitoring for a confirmed rebound above the $3.40-$3.50 resistance range, which could signal renewed bullish momentum.

Future Price Action Depends on Founder Transparency

The visible impact of founder activity on XRP's price movements has created cautious market sentiment among traders and investors. Future price stability may depend largely on how remaining founder-controlled tokens are managed and whether sales are conducted through over-the-counter markets or institutional desks rather than open exchanges.

With billions of XRP tokens still under founder control, transparent communication and responsible asset management will be crucial factors in determining the token's long-term price trajectory. The cryptocurrency community continues to monitor these large wallet movements as key indicators of potential market direction.

The recent events highlight the ongoing challenge that centralized token distribution poses for XRP's price stability and market perception, even as the project continues to gain institutional adoption and regulatory clarity.

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