- XRP has experienced a 5% correction to $0.57 following a significant $40 million sell-off by co-founder Chris Larsen, raising concerns among traders.
- The near-term outlook remains cautiously bearish, with critical support at $0.5575 and resistance at $0.6122, as the market reacts to recent developments.
Ripple (XRP) has faced a notable downturn, succumbing to a 5% correction from its recent peak of $0.61 over the weekend, dropping to $0.57 on the early morning of September 23. This decline has been attributed to a significant transaction involving Ripple’s co-founder, Chris Larsen, who transferred 50 million XRP from his personal wallet. This unexpected sell-off has stirred up considerable debate within the crypto community, leading many to question XRP’s near-term stability.
Ripple’s Recent Market Movement
After the U.S. Federal Reserve announced a 50bps rate cut on September 18, XRP experienced a surge, climbing 9.2% within 72 hours, peaking at $0.61 on September 21—the highest it had been in over 25 days. However, this upward trajectory was short-lived. By September 22, XRP had retraced to $0.57, raising concerns about the strength of its bullish momentum.
The Impact of Chris Larsen’s Transactions
The 50 million XRP sell-off by Larsen, valued at approximately $30 million, has not only raised eyebrows but also pointed to potential bearish signals in the market. Just days after the initial transfer, four additional transactions were made from the same wallet, totaling 20 million XRP. This marks a significant shift, as it’s the first time Larsen has executed such large transactions from this wallet since 2013. Speculations have arisen that these assets might be heading to exchanges like Binance for liquidation.
Adding to the intrigue, rumors of a potential security breach were ignited by a previous incident in February 2024, where 212 million XRP were stolen from one of Larsen’s wallets. However, most experts believe this transaction is not related to foul play.
What’s Next for XRP?
Currently, Larsen still holds over 450 million XRP, and if this selling trend continues, it could further diminish confidence among traders. The near-term outlook for XRP is cautiously bearish, with $0.5575 identified as a critical support level. Should sellers maintain pressure, the next support could drop to $0.5027.
On the technical side, the Fisher Transform indicator suggests that XRP is in mildly overbought territory. The crossover of the blue line below the orange line signals a potential short-term bearish momentum, hinting that buyers may be losing steam. Meanwhile, the Donchian Channels indicate a break below the mid-band of $0.61, suggesting a consolidation phase is underway.
Can XRP Rebound?
For XRP to stage a recovery, it must stabilize above $0.58. Resistance levels are noted at $0.6122 and $0.6200. However, the bearish crossover in the Fisher Transform indicates that a rally beyond $0.62 might encounter significant selling pressure, making a climb to $0.65 seem unlikely without a surge in bullish sentiment.
XRP is at a pivotal moment, and traders will be closely monitoring key support levels to gauge the next moves in this volatile market.
