Chris Larsen, co-founder of Ripple, has reportedly realized a staggering $764 million in profits from the sale of XRP tokens since January 2018. This revelation has raised eyebrows among investors, particularly as it was highlighted by J.A. Maartunn, an analyst at CryptoQuant. In his recent report, Maartunn identified a pattern: Larsen tends to sell his holdings near local price peaks, leading many to speculate about the implications of such timing on the cryptocurrency’s market dynamics.
Larsen’s latest sale is associated with EvernorthXRP, a management entity overseeing Ripple-linked assets. Observers have noted that each significant rally in XRP’s price is typically followed by selling activity from wallets connected to Ripple executives. This has led to a dual perspective within the investing community; while some view it as strategic profit-taking after substantial long-term holdings, others are concerned that this selling behavior may negatively impact price movements.
As of now, XRP trades below the $2.50 mark, struggling to gain bullish momentum in recent weeks. The trading volume has seen a downturn during this period, contributing to an overall bearish market sentiment. Analysts believe that for XRP to signal a reversal, it needs to surpass the 200-day simple moving average, currently sitting at $2.42. Crossing this threshold could open the door for a potential rise toward the $3.00 mark in the near future.
Technical indicators have been somewhat mixed. The 50-day simple moving average is at $2.38 and the 100-day moving average is at $2.41, suggesting that breaching these levels could indicate a more stable upward trajectory. However, a failure to maintain above these averages may result in continued selling pressure.
Adding another layer of complexity, the relative strength index exhibits a bullish divergence, indicating that the recent price decline may be nearing its end. Additionally, a bullish crossover in the moving average convergence divergence (MACD) could lend further support for a potential upward move.
Despite these indicators, Larsen still retains approximately $9 billion worth of XRP, which could lead to additional selling pressure down the line. His historical tendency to sell at peaks coincides with moments of heightened retail enthusiasm, creating uncertainty, especially in a volatile market environment.
The wider crypto market, particularly altcoins, remains fragile. Many tokens are trading significantly below their 200-day moving averages, and historical trends suggest that altcoins tend to regain momentum only after Bitcoin breaks above its all-time high. Given the current market conditions, investors are showing a preference for liquidity and security rather than speculation, maintaining a conservative stance.
In conclusion, XRP is currently navigating a challenging market landscape. The upcoming movements of Bitcoin and key price levels for XRP will be crucial in determining future market sentiment and potential price action in the weeks ahead.
