XRP Price Forecast: Ripple Co-Founder’s $120M Sell-Off Sparks Bearish Alarm

XRP (XRP) shed weekly gains on Tuesday as data researchers shared evidence of Ripple co-founder Chris Larsen dumping $120 million of his token holdings.

XRP Dumping Linked to Ripple’s GTreasury Acquisition?

On-chain data from CryptoQuant shows a massive $120 million outflow from Larsen-linked wallets, aligning with a 2.50% decline in XRP’s price on Tuesday.

The sell-off coincides with a visible cluster of red spikes on the chart, representing large address outflows.

These outflows have historically marked the beginning of bearish phases, including the 2018 market downturn when similar movements preceded a prolonged price decline.

CryptoQuant analyst Maartunn considered Larsen’s distribution of XRP tokens as a potential warning signal for retail traders chasing the hype.

“He’s cashing out. You’re holding the bag,” he said on X.

The token had recently bounced from $2 support following Ripple’s $1 billion fundraising announcement and the acquisition of treasury management company GTreasury, but renewed insider selling risks undermined market confidence.

Maartunn suggested that Larsen may have been selling XRP in recent weeks, as the red spikes show, to fund the GTreasury acquisition.

Can XRP Price Fall Further Amid Larsen FUD?

XRP’s losses today accompany a broader decline in risk assets, led by a stronger US dollar.

Michael Brown, a senior research strategist at Pepperstone Group Ltd., said that “the path of least resistance [for riskier assets] continues to lead to the upside,” adding that “dips remain buying opportunities.”

Whales are listening. As of Tuesday, XRP addresses holding over 100 tokens were rising in numbers. That is despite the Ripple-backed coin trading about 35% lower from its multiyear high, established in July.

Also, realized profits by both long-term (LTH) and short-term holders (STH) have declined even as XRP forms higher highs, a rare bullish divergence that signals profit-taking exhaustion rather than renewed selling pressure.

In past cycles, XRP peaked when realized profits surged; this time, they’re cooling, suggesting that most speculative sellers have already exited, while conviction among long-term holders is growing.

XRP Eyes $2.80 Retest as Technicals Align

From a technical standpoint, XRP is consolidating inside a descending parallel channel, with short-term upside potential toward the channel’s upper boundary near $2.80.

This level also coincides with the 0.618 Fibonacci retracement line, making it a key area to watch in late October.

A decisive breakout above this confluence zone could confirm a bullish reversal pattern, potentially opening the door toward $3.05 or even $3.40 in the weeks ahead.

However, sustaining such a move will depend on the broader risk appetite across crypto and equities. If global sentiment holds steady, XRP’s recovery could strengthen significantly into November.