XRP News Today: XRP Plunges 12% After Co-Founder Sells 175M Tokens Sparking Market Volatility

XRP experienced a sharp decline of over 12% on July 24, 2025, following the transfer of 175 million tokens by co-founder Chris Larsen. The massive sell-off triggered immediate market volatility, with the cryptocurrency’s price plummeting amid increased short-term risk aversion. Whale activity intensified as investors began buying XRP near $3.00, signaling potential accumulation at lower price levels. The sell-off also coincided with the liquidation of over $89 million in long positions across major exchanges, exacerbating downward pressure on the asset [1].

The ripple effects extended beyond XRP, impacting broader crypto markets. Bitcoin and Solana both saw minor pullbacks, reflecting heightened sensitivity to liquidity shifts. Market participants attributed the sell-off to Larsen’s decision, though Ripple CEO Brad Garlinghouse emphasized caution, warning against deepfake scams and fraudulent XRP airdrops during the period of volatility [2]. Despite the short-term selloff, XRP remains up 220% year-to-date, highlighting underlying resilience in the asset’s performance.

Historical patterns suggest a potential for recovery. July has historically been a strong month for XRP, while August typically sees an average 12% correction. Similar past whale-driven sales have resulted in temporary price shocks but eventual rebounds. Analysts noted that the current market reaction aligns with prior trends, with whale and institutional interest reinforcing XRP’s appeal as a long-term investment. The accumulation at $3.00 was flagged as a key “smart money” zone by AI Invest, indicating strategic buying despite the near-term turbulence [3].

The sell-off also coincided with broader regulatory uncertainty, as delays in the SEC’s approval of a spot crypto ETF weighed on investor sentiment. However, the surge in whale activity suggests confidence in XRP’s fundamentals. While the immediate market reaction was bearish, the long-term outlook hinges on whether institutional buyers maintain their purchasing pace and whether regulatory clarity emerges to stabilize the sector.

Source: [1] [title1XXXXXXX] [https://coinmarketcap.com/community/articles/6882a5d22eb2b3609475191c/]

[2] [title2XXXXXXXXXXXX] [https://coinmarketcap.com/community/articles/6882a5d22eb2b3609475191c/]

[3] [title3XXXXXXXXXX] [https://coinmarketcap.com/community/articles/6882a5d22eb2b3609475191c/]