Ripple co-founder Chris Larsen’s wallet recently moved 50 million XRP worth $175 million from July 17 to July 23. Blockchain sleuth ZachXBT reported the move that revealed a total of around $140 million was deposited onto exchanges as a possible sign of sell activity amid rising XRP prices.
The move was as XRP traded for a fleeting moment at $3.60 before reversing below $3.10, prompting criticism. Hesitations re-emerged around insider dominance of XRP stability in pricing amidst its frequent volatility, along with its top-five cryptocurrency status. Related wallets for Larsen continue to hold 2.81 billion XRP, roughly valued at $8.4 billion.
XRP transfer sparks new hype debate
The XRP community responded vigorously. While some laughed off the dump, others took it as decentralization. Another user expressed Larsen was seeking to relinquish tokens to long-term holders with a view to more equitable supply distribution while strengthening network robustness in the long run.
The 50 million XRP distributed across several addresses, involving two new wallets that both gained 5 million tokens. This pattern of movement attracted both contrasting explanations, either a foreseen strategy for a sale or measures toward broader distribution of tokens.
Despite the selloff, technicians like Dark Defender remained bullish, XRP’s decline a natural correction. Similarly, CrediBULL Crypto saw a “triple tap” pattern along with a successful retest of past resistance, foretelling XRP breaking out higher from support near $1.90.
SEC lawsuit update and market sentiment
Traders seek news of Ripple’s litigation with the SEC, with a combined status report due August 15. A combined status report is due August 15. Speculators anticipate a settlement up to a potential $50 million without an injunction. This is bullish for XRP and Ripple.
Statistical analysts estimated settlement likelihood between 70% and 90%. If so, XRP might have sidestepped additional corrections. This positive development cancels short-term bear market concerns, leading to further holding by some traders despite aggressive sell-offs related to Larsen’s activities.
Following the dump, XRP declined by more than 10% from its highs. It fell below vital support levels, including $3.27, as well as the 23.6% Fibonacci retracement level of $3.28. It led to large-scale stop-loss activations and liquidations worth $81.7 million that further intensified the bear momentum of the market.
The alt market also saw a complete value wipeout of $100 billion. On the South Korea-based Upbit exchange alone, over 75 million XRP exchanged hands, intensifying bearish momentum on international exchanges.
