XRP News Today: Ripple Co-Founder's $175M XRP Transfer Sparks 10% Price Drop as Market Faces $976M Liquidations

A wallet linked to Ripple co-founder Chris Larsen moved 50 million XRP—valued at approximately $175 million—since July 17, with $140 million reportedly transferred to exchanges. This activity coincided with XRP’s record high of $3.60 on July 18, marking a significant on-chain event for the cryptocurrency [1]. The wallet, dormant for years, previously executed large-scale transfers in January 2025. The movement follows a $112 million hack of Larsen’s wallets in 2024, fueling speculation about potential selling pressure or liquidity management strategies [1].

The timing of the transfer has sparked debate among analysts. While some interpret the movement as a signal of bearish sentiment or increased selling pressure, others caution against immediate conclusions. Legal experts emphasize that XRP’s regulatory challenges with the U.S. Securities and Exchange Commission (SEC) complicate interpretations of on-chain activity, as liquidity constraints have historically limited large-scale transactions [2]. The altcoin market has since experienced a sharp correction, with XRP dropping 10% on June 7 amid broader losses across the sector.

The broader crypto market faced a $976 million liquidation wave, with XRP and Ethereum leading the losses. CoinGlass data revealed $115 million in XRP-related liquidations and $200 million in Ethereum losses during the selloff. Analysts attributed the downturn to unwinding leveraged long positions and shallow order books, exacerbating downward momentum [3]. Despite the short-term volatility, over 70% of top 10 altcoin traders still hold long positions, indicating persistent optimism about a recovery [3].

The Altcoin Index fell to 34, its lowest level in months, as market capitalization retreated below $1.5 trillion. Vincent Liu of Kronos Research highlighted that unwinding leveraged positions and order-book fragility amplified the downturn. Meanwhile, Bitcoin bucked the trend, posting a 0.26% gain during the selloff, while stablecoins maintained resilience [3]. Valentin Fournier of BRN noted that corporate demand and reduced FTX repayment obligations could mitigate further downside risks, though near-term volatility remains a key concern [3].

The on-chain activity underscores the delicate interplay between institutional holdings, market sentiment, and regulatory uncertainty. While large transfers to exchanges often raise sell-off concerns, XRP’s legal challenges have historically constrained liquidity, making it difficult to draw definitive conclusions from such movements. Analysts stress that the transaction does not confirm a bearish outlook but highlights the token’s vulnerability to regulatory and market dynamics [2].

Sources:

[1] [Ripple Co-Founder’s Wallet Moves $175M in XRP Amid Price Rally] (https://coinpedia.org/crypto-live-news/ripple-co-founders-wallet-moves-175m-in-xrp-amid-price-rally/)

[2] [XRP Analysts Warn of 35-46% Correction Risk or $4.42] (https://www.ainvest.com/news/xrp-news-today-xrp-analysts-warn-35-46-correction-risk-4-42-target-key-resistance-tested-2507/)

[3] [Ethereum and XRP Lead $976 Million Liquidation Wave as Altcoin Rally Pulls Back] (https://cryptoslate.com/ethereum-and-xrp-lead-976-million-liquidation-wave-as-altcoin-rally-pulls-back/)