XRP News Today: Ripple Co-Founder's XRP Sale Sparks 18% Drop Amid SEC Uncertainty

Ripple co-founder Chris Larsen’s recent large-scale sale of XRP tokens has been identified as a key driver behind the cryptocurrency’s 18% price decline over three days, pushing it below its all-time high of $3.65. Alongside the delayed resolution of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) and technical weaknesses in market charts, the move has intensified selling pressure and investor uncertainty [1]. Larsen transferred 50 million XRP—valued at approximately $175 million—to four distinct wallets and exchanges between January and the present. According to on-chain analyst ZachXBT, $140 million of these tokens were directed to crypto exchanges or related services, amplifying market concerns about further sell-offs [2]. Additional transfers included 30 million XRP to two wallets and 10 million XRP to another, with nearly $35 million allocated to new addresses. Larsen has continued sending XRP to these four wallets, suggesting ongoing distribution rather than a one-time event [3].

The prolonged uncertainty surrounding Ripple’s $125 million settlement with the SEC has also contributed to market volatility. On July 26, a federal judge dismissed Ripple and the SEC’s motion for an indicative ruling, stating that a final judgment and penalty could be reached without judicial intervention. While Ripple CEO Brad Garlinghouse confirmed dropping the company’s cross-appeal in the 2nd Circuit Court following the SEC’s agreement to settle, no concrete developments have emerged in over a month. Analysts note that the typical 1-2 month timeline for SEC enforcement approvals suggests a resolution could still be delayed until August or later. This ambiguity has triggered profit-taking by investors, exacerbating the price decline [4].

Technical analysis further underscores the bearish momentum. XRP broke below its ascending channel pattern, with key support at $3.36 failing to hold, causing the price to drop to $2.98—a level aligned with the 38.20% Fibonacci retracement. Although the asset’s 24-hour trading volume surged 140%, reflecting heightened trader interest, derivatives data reveals conflicting signals. CoinGlass reported a 0.21% hourly increase in XRP futures open interest to $9.26, but the 24-hour total fell over 14%. Notably, CME and Binance experienced declines of 5% and 16%, respectively, in XRP futures open interest. Meanwhile, the Relative Strength Index (RSI) dipped from 85 to 60, indicating potential for a rebound after a period of consolidation [5].

At the time of reporting, XRP traded at $3.10, down 10% in the past 24 hours, with a low of $2.99 and high of $3.46. The price remains above the 50-, 100-, and 200-day simple moving averages on the daily chart. Analysts suggest that a further drop to $2.80 could set the stage for a rebound toward $6, though the all-time high remains a critical resistance level.

Source:

[1] [Ripple’s Chris Larsen Dumping XRP Among Top 3 Reasons Behind Price Crash] [https://coinmarketcap.com/community/articles/68824cc484d34a1323c775cd/]

[2] [Ripple’s Chris Larsen Dumping XRP Among Top 3 Reasons Behind Price Crash] [https://coinmarketcap.com/community/articles/68824cc484d34a1323c775cd/]

[3] [Ripple’s Chris Larsen Dumping XRP Among Top 3 Reasons Behind Price Crash] [https://coinmarketcap.com/community/articles/68824cc484d34a1323c775cd/]

[4] [Ripple’s Chris Larsen Dumping XRP Among Top 3 Reasons Behind Price Crash] [https://coinmarketcap.com/community/articles/68824cc484d34a1323c775cd/]

[5] [Ripple’s Chris Larsen Dumping XRP Among Top 3 Reasons Behind Price Crash] [https://coinmarketcap.com/community/articles/68824cc484d34a1323c775cd/]