Recent XRP transfers by Ripple founder Chris Larsen have raised concerns in the market. Analysis shows these actions do not necessarily indicate long-term issues for the cryptocurrency.
Chris Larsen's XRP Transfers
Between July 17 and July 24, Chris Larsen transferred 50 million XRP, valued at about $175 million. Much of this amount—around $140 million—was likely sent to centralized exchanges, which sparked concerns among traders about a potential market decline for XRP. Following these actions, the price of XRP fell from $3.25 to $3.
Historical Analogies and Community Reactions
Some analysts, including a noted XRP analyst, urged against panic, pointing to the example of Jed McCaleb, another Ripple co-founder, who sold 266 million XRP in 2020. This suggests that Larsen's actions may not impact the long-term strength and growth of the asset. Community members also speculate that large transfers could be part of planned exits by early investors.
XRP Price Support at $3
Despite Larsen's sales, other signals indicated buying interest. In the same week, whale accounts purchased over 130 million XRP, signaling support around the $3 level. Analysts noted that the current XRP price is supported at a key Fibonacci level, which may serve as a launching point for further growth.
While major transfers of XRP by Ripple founders may create short-term concerns, historical trends suggest that the cryptocurrency can recover and continue its growth.
