XRP Under Pressure: Hidden Token Dump by Cofounder Sparks Sell-Off Fears

The XRP ecosystem is reeling from fresh revelations of a major token offload by Ripple cofounder Chris Larsen, whose $120 million sale of 50 million XRP has ignited fears of intensified insider selling and short-term price erosion. On-chain sleuths at CryptoQuant flagged the transfers on October 20, linking them to Larsen’s wallets amid a broader pattern of $764 million in XRP dumps since 2018—despite his remaining $9 billion stash. With XRP trading at $2.51 after a 4.86% daily surge but down 15% monthly from a $3.30 high, the move has amplified bearish pressures in the altcoin arena.

These outflows, executed in a single hour to exchange-linked addresses, echo past controversies, including Larsen’s $450 million sales cited in the 2020 SEC lawsuit. Analyst J.A. Maartunn warned on X: “Still buying the hype? He’s cashing out. You’re holding the bag.” The timing, post-Ripple’s $1 billion Evernorth treasury raise and RLUSD stablecoin milestone, has sparked speculation of profit-taking amid regulatory wins and institutional tie-ups like those with SBI and Kraken.

Community backlash is palpable on Reddit and X, where users decry “exit liquidity” from early holders, eroding trust in XRP’s decentralization. One r/CryptoCurrency thread lamented: “Every time momentum builds, insiders dump—hard to stay bullish.” Trading volumes spiked 20% post-transfer, with liquidations topping $130 million earlier in October, tied to Trump tariff jitters.

Ripple, which maintains Larsen’s actions are personal and independent, reports its own XRP sales transparently in quarterly filings. Yet, with 4.5% of supply still in cofounder wallets, critics argue it hampers price discovery.

Technically, XRP tests $2.30–$2.35 support near the 200-day EMA, with RSI at 41.5 flirting with oversold. A drop below $2.10 could eye $1.85, per CoinDCX forecasts, while a rebound above $2.70 might target $3.00. EGRAG Crypto, defiant amid the noise, challenges bearish takes: “Tell me, what’s bearish in this XRP chart?”—pointing to bull flag formations and a $15–$26 upside if $3.40 breaks.

As cross-border partnerships expand, short-term pain from dumps may yield to long-term utility. For XRP holders, it’s a test of patience: insider sales sting, but fundamentals like ETF buzz could flip the script by Q4 2025.