XRP News Today: Chris Larsen Transfers 50M XRP, XRP Drops 13% as Sell Pressure Fears Rise

XRP investors are closely monitoring recent activity linked to Ripple co-founder Chris Larsen, who transferred 50 million XRP to exchanges, sparking concerns about potential sell pressure. The transaction, occurring just days after XRP hit a near all-time high of $3.60 on July 17, has intensified scrutiny over Larsen’s remaining holdings. According to on-chain data, the Ripple co-founder still controls 2.58 billion XRP, currently valued at $8.83 billion, prompting analysts to caution against complacency [1].

J.A. Maartunn, an analyst at on-chain data firm CryptoQuant, emphasized the risk posed by Larsen’s substantial remaining balance. “If $200 million was just the warm-up… what’s next?” he warned on X, urging traders to “protect yourself” and avoid becoming “exit liquidity” [1]. The analyst’s comments highlight the potential for further market volatility should Larsen decide to offload more tokens.

The recent price action underscores these concerns. XRP fell 13% to $3.18 following the transaction, aligning with broader market jitters. Bitcoin’s sharp decline to $114,500—a result of a dormant Satoshi-era wallet moving 80,000 BTC—fueled uncertainty, triggering over $500 million in crypto liquidations within 24 hours, per CoinGlass [1]. While the XRP drop is partially tied to broader market conditions, the timing of Larsen’s move has amplified investor anxiety.

Market metrics further illustrate the tension. XRP’s perpetual futures notional open interest surged to a record $8.8 billion, reflecting heightened speculative activity. This level surpasses the previous high of $8.3 billion recorded in late January [1]. Positive funding rates indicate long positions dominate, suggesting bullish sentiment. However, the growing concentration of XRP in wallets holding 1 million or more tokens—now controlling 47.32 billion XRP—underscores the influence of large holders on price dynamics.

The ripple (no pun intended) effects of Larsen’s activity extend beyond immediate price swings. With the SEC and Ripple nearing the end of their legal battle—Ripple CEO Brad Garlinghouse recently announced plans to withdraw the company’s cross-appeal—the market remains sensitive to regulatory and insider-related developments. Analysts argue that while the 50 million XRP transfer is relatively small compared to Larsen’s total holdings, it serves as a signal for market participants to remain vigilant [1].

As of July 27, 2025, the XRP market continues to balance optimism over regulatory clarity with caution about insider liquidity events. The interplay between large holder activity, open interest trends, and macroeconomic factors will likely shape near-term price action, with traders advised to monitor both on-chain flows and broader market sentiment.

Source: [1] [Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure] https://cryptonews.com/news/ripples-chris-larsen-still-holds-2-58b-xrp-analyst-warns-of-potential-sell-pressure/