Chris Larsen, the co-founder and former CEO of Ripple, has made headlines recently after reportedly realizing over $764 million from XRP sales since 2018. Analysts suggest that his consistent selling, particularly near local price peaks, may be contributing to XRP’s ongoing struggle to recover from its recent price declines.
XRP is currently trading at $2.38, which is 34% below its multi-year high of $3.66 recorded in July 2025. This substantial drop has raised alarm among investors, especially with the knowledge that Larsen still holds approximately $9 billion in XRP. The large sell-offs linked to his wallets have caused many traders to question the token’s long-term recovery potential.
Larsen’s Sales and Market Impact
According to data from CryptoQuant analyst J. A. Maartunn, Larsen has engaged in a pattern of selling XRP near local price highs. The most recent sale involved a transfer of 50 million XRP from a wallet associated with him, which he later confirmed was an investment into the Evernorth treasury. However, this trend of cashing out has led to increased scrutiny from the market.
Maartunn noted that Larsen’s realized profits have surged dramatically in 2025, jumping from under $200 million in previous years to over $764 million this year alone. This trend indicates continued selling pressure, exacerbating concerns about XRP’s price recovery.
Technical Analysis and Price Resistance
As XRP faces downward momentum, analysts emphasize the importance of breaking key resistance levels to reverse its current trajectory. The first major hurdle lies at the 200-day Simple Moving Average (SMA), currently positioned at $2.60. A sustained recovery above this level is deemed crucial for any bullish sentiment to take root.
Further resistance levels are observed at the 50-day SMA, which ranges between $2.74 and $2.80, and the 100-day SMA sitting at $2.94. Overcoming these barriers could potentially shift the trend in a more favorable direction for XRP.
Potential for Recovery
Despite the selling pressure, some technical indicators suggest that XRP may find support in the near term. A bullish divergence forming on the Relative Strength Index (RSI) indicates that while prices are falling, the RSI is rising, a phenomenon that often signals seller exhaustion and can attract new buyers. Additionally, a potential bullish crossover on the Moving Average Convergence Divergence (MACD) could signal a shift in momentum if confirmed in the coming days.
However, for XRP to see a significant upward trend, it must first surpass the 20-day Exponential Moving Average (EMA), currently at $2.55. Historical data shows that previous recoveries often followed successful retests of these moving averages, leaving the market cautiously optimistic yet vigilant.
Market Sentiment and Future Outlook
Market participants are closely monitoring the activity of Ripple insiders, particularly Chris Larsen. With billions still held by him, the potential for further selling remains a concern. Although Larsen characterized his latest transfer as an investment move, the overarching trend of cashing out near local highs has sparked anxiety among XRP holders.
The ongoing selling activity may continue to affect XRP’s price stability, leading many to speculate about the cryptocurrency’s ability to reclaim key technical levels. As traders keep a watchful eye on Larsen’s wallet activity, the future trajectory of XRP remains uncertain, with recovery facing potential headwinds in the near term.
