Chris Larsen, the co-founder of Ripple Labs, has reportedly sold approximately $764 million worth of XRP over the past seven years. Blockchain data indicates that Larsen conducted these sales via a structured liquidation strategy, dispersing the transactions incrementally to mitigate market impact. These sales were conducted with full transparency and traceability on the blockchain, in accordance with customary practices among early token holders who manage significant holdings.
Analysts add that the strategy of gradual sales helped to avoid sharp market shocks. Nevertheless, the overall impact has reignited discussions within the XRP community concerning insider influence on the tokens' performance. Despite robust network fundamentals and well-established financial collaborations, certain market participants argue that consistent insider sales have persistently exerted selling pressure within the market.
The XRP community continues to show its concern over recurring profit-taking by Ripple executives. They believe the insider trading has limited the price increase of XRP in several bull cycles. Although such activity does not breach legal boundaries, its frequency and timing often coincide with peaks in the local market and can impact trader sentiment.
Furthermore, XRP continues to struggle to regain bullish momentum, despite winning its legal battle against the US Securities and Exchange Commission. While it stays among the top 10 cryptocurrencies by market cap, its growth has been slower compared to other major tokens. This is often linked to structural selling and Ripple's scheduled escrow releases.
XRP is currently trading close to $2.50 after consolidating, following failed efforts to break the resistance near $2.60-$2.70. Technical indicators reveal that the token remains below its 50-day and 100-day moving averages, indicating weak momentum. Nonetheless, XRP remains above the 200-day moving average, which is approximately $2.00 and has historically served as a strong support level.
If the price holds above this area, analysts suggest a possible rebound towards the $3 area, which may signal renewed strength and attract fresh liquidity. On the other hand, a drop below $2.30 may signal weak momentum. Market observers suggest that the next significant move in XRP will likely be dependent on the performance of Bitcoin, as there is usually a general recovery in altcoins following a surge in Bitcoin strength.