XRP News Today: XRP drops 10% as $140M sell-off triggers $7.3M in liquidations on Binance

XRP traders faced significant losses as long positions were liquidated on Binance following a massive sell-off linked to Ripple co-founder Chris Larsen. On-chain investigator ZachXBT reported that Larsen-associated wallets transferred 50 million XRP—valued at approximately $175 million—starting July 17, with $140 million allegedly directed to centralized exchanges [1]. The transactions coincided with a sharp price decline, eroding XRP’s recent all-time high of $3.65 and triggering one of the year’s largest liquidation events. Binance data showed 2.3 million XRP, worth $7.3 million, were liquidated on July 23, as the asset dropped nearly 10% in 24 hours [1].

The sell-off intensified concerns about market stability, with pseudonymous analyst Darkfost noting the collapse of critical support levels and a 19% price drop from July 21. XRP fell from $3.60 to under $3.05 within hours, forcing leveraged traders into forced closures. Despite a partial rebound to $3.11, the token remained 14% below its July 18 peak. ZachXBT highlighted that Larsen’s wallets still hold over 2.8 billion XRP, valued at $8.4 billion, raising questions about potential future dumping [1].

Analysts remained divided on the implications. John Squire downplayed the volatility, comparing the July 24 drop to a “coffee break” relative to XRP’s 2018 crash, while Armando Pantoja described the pullback as “healthy” and projected short-term targets of $4.10 and $8–$12 by year-end [1]. Meanwhile, chartist Ali Martinez cited whale accumulation of 280 million XRP in the prior ten days as a bullish signal, suggesting institutional interest could counterbalance the sell-off [1].

The market turmoil coincided with a separate 75 million XRP liquidation on Upbit, further pressuring liquidity and exacerbating the price decline [2]. Critics argued the concentrated ownership of XRP—Ripple’s co-founder controls a significant portion of the 50 billion tokens issued—poses systemic risks, particularly for assets with unresolved regulatory status. The U.S. Securities and Exchange Commission (SEC) continues to investigate whether XRP qualifies as a security, adding uncertainty to the token’s future [1].

While the sell-off highlighted XRP’s vulnerability to large-scale selling, some analysts emphasized its long-term potential. A July 16 forecast from CoinCentral suggested the token could test a $6 support level if the bearish trend reverses, though this remains speculative [3]. The incident has reignited debates about governance structures in crypto markets, with calls for reforms to mitigate risks from major holders influencing liquidity.

For now, XRP traders remain cautious, balancing the immediate impact of the $140 million sell-off against broader market conditions and regulatory outcomes. The token’s ability to regain its pre-liquidation value will depend on institutional adoption, macroeconomic factors, and the resolution of ongoing litigation. In the short term, however, the event underscores the fragility of assets lacking robust real-world use cases and diversified ownership structures [1].

Sources:

[1] [XRP Price Falls 10% Amid $140M Transfers Linked to Ripple Co-Founder]

https://coincentral.com/xrp-price-falls-10-amid-140m-transfers-linked-to-ripple-co-founder/

[2] [XRP Plummets 15% as Upbit's 75M XRP Sell-off Crushes Liquidity]

https://www.ainvest.com/news/xrp-news-today-xrp-plummets-15-upbit-75m-xrp-sell-crushes-liquidity-analysts-2507/

[3] [XRP Price Prediction Signals $6 Target Despite Long Squeeze Pain]

https://coincentral.com/xrp-price-prediction-signals-6-target-despite-long-squeeze-pain/