Ripple Co-Founder’s $120M XRP Dump Splits Market Sentiment: Panic or Buy Dip?
- Chris Larsen’s $120M XRP transfer split traders between panic, caution, and opportunity.
- XRP holds steady near $2.4 as weak October sentiment keeps buyers cautious and alert.
- RSI at 42 signals fading bearish strength, while early accumulation hints at a rebound.
Ripple’s co-founder Chris Larsen has once again rattled the XRP community after moving 50 million XRP, worth about $120 million, in one swift transaction this week. The sale occurred during a tense period for XRP, which has struggled through one of its weakest months of the year. Consequently, this sentiment has traders now torn between panic and opportunity.
A Familiar Pattern of Timed Sales
Blockchain data from CryptoQuant analyst Maartun shows that Larsen’s sales have followed a pattern that many long-time XRP watchers know too well. Since 2018, his disposals have reportedly generated more than $764 million in profits, often occurring near market peaks. The latest sale marks his biggest to date.
Source: X
However, further analysis revealed the transfer was connected to Evernorth, a new XRP-focused digital asset treasury platform preparing for a $1 billion public raise. Larsen later confirmed the link, noting, “I’m proud to invest 50 million XRP in the firm — you may notice some wallet movement on this.”
Even so, the sale revived old debates. Critics view the timing as a little too precise, while others argue that it’s simply disciplined asset management by one of the crypto industry’s earliest builders.
A Record of Realized Gains
Larsen’s sales map the history of XRP’s biggest cycles:
- 2018: About 200 million XRP were sold near $3.84, returning roughly $500 million.
- 2021: Around 500 million XRP at $1.96, for close to $1 billion.
- 2025: The latest 50 million XRP adds another $120 million to the tally.
From his original allocation of 9 billion XRP at Ripple’s founding in 2012, Larsen still holds an estimated 2.5 to 2.6 billion XRP, worth roughly $8.5 billion today — a position that gives him lasting influence over market perception.
Sellers Lose Grip as XRP Hints at a Fragile Rebound
XRP continues to face stubborn market headwinds even as signs of recovery start to appear. Historically, October has often proven a challenging month for the token, and this year is no exception. Besides, hopes that new ETF approvals might lift sentiment have faded as the U.S. government shutdown slows regulators and weighs on investor mood.
The token also suffered a sharp sell-off during the “Crypto Black Friday” rout, touching its lowest level since November 2024. Still, some stability has returned. As of publication, XRP trades near $2.4, up 2 percent on the day and roughly 9 percent over the week, yet it remains boxed between $2.30 and $2.50.
Source: TradingView
Meanwhile, momentum indicators suggest sellers remain in control but are losing steam. The RSI, for instance, hovers around 42, still below the neutral 50 mark. While that means bears have the edge, the upward movement from oversold levels hints at a potential shift toward renewed buying.
Volume data supports this view but also raises caution: the red bars on the chart are larger, indicating that selling pressure still outweighs demand, even as smaller green candles mark the start of tentative accumulation.
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Key Levels To Watch
However, the token’s ability to defend the $2.3 support during the recent downturn has drawn attention. Analysts say holding that floor signals renewed interest from buyers. If this support holds, XRP could revisit the $2.5–$2.6 resistance area by the weekend, a zone that has repeatedly acted as a supply barrier in previous rallies.
A breakout above that range might open the path toward $2.7. Nevertheless, renewed panic tied to Chris Larsen’s $120 million XRP sell-off could weigh on sentiment again. If selling pressure intensifies, the token risks another slide toward $2.1, or even a retest below the $2 mark.
In summary, XRP’s path forward remains uncertain as traders weigh fear against potential opportunity. Chris Larsen’s recent token move stirred debate, yet XRP’s stability around vital support zones signals cautious optimism. Market direction will likely depend on whether buyers can sustain momentum amid ongoing regulatory and liquidity pressures.
