Ripple News : Is a Big XRP Sell-Off Imminent? Chris Larsen’s $29M Transfer Raises Concerns

The post Ripple News : Is a Big XRP Sell-Off Imminent? Chris Larsen’s $29M Transfer Raises Concerns appeared first on Coinpedia Fintech News

In an eye-catching transaction that has left the XRP community buzzing, Chris Larsen, Ripple’s co-founder, recently transferred a whopping 50 million XRP tokens, valued at around $29.1 million, to an unknown wallet. Whale Alert, a wallet tracking service, detected the transaction, which sparked widespread curiosity and speculation. This transfer marks the first major activity from Larsen’s wallet since September 2020, making it a notable event in the crypto space.

Dormant Wallet Reawakens

Larsen’s wallet has largely been inactive for years. Funded with 500 million XRP in 2013 as part of his allocation, it only saw one minor transaction in December 2017, when a mere 1 XRP was transferred. Since then, the wallet has remained dormant—until now. The last time Larsen moved such a substantial amount of XRP was in September 2020, when he transferred $115 million worth of the token. So, the sudden transfer of 50 million XRP has attracted the community’s interest.

Community Speculation Takes Off

As anticipated, the massive XRP transfer has sparked widespread speculation within the community. Investors are voicing concerns about its potential market impact, fearing it could lead to a sell-off and push XRP’s price lower, currently at $0.58. Large transactions like this often raise questions about whether a significant market move, such as a dump, is on the horizon.

Additionally, the downturn in crypto market has added to the uncertainty. Many wonder why this move was made now and what might be behind it. Initially, some community members feared it could be a hack, as earlier this year, Larsen’s wallet was compromised, resulting in $112 million being stolen.

However, data suggests that this transfer was likely planned, as the sending wallet first activated the receiving address with 10 XRP before transferring the full amount. This points to a deliberate move, not an accident or security breach.

Is There a Political Angle?

Another theory being floated is that this transaction might be politically motivated. Larsen has recently expressed support for U.S. Vice President Kamala Harris, and some believe the transfer could be linked to political contributions. However, this remains speculation, and without confirmation from Larsen or Ripple, no one can say for sure.

What’s Next for XRP Price?

As with any major development in the crypto world, the market will be closely monitoring this situation. Big moves like this can have far-reaching implications, and the coming weeks may reveal more about the true motive behind the transaction. Until then, the XRP community will be watching with bated breath to see if this transfer leads to any major changes in the market.

Moreover, XRP has been trading between $0.41 and $0.64 for several weeks, with flat moving averages and a neutral RSI, indicating balanced supply and demand. Bulls need to push the price above $0.64 to regain control. If XRP breaks below the uptrend line, it could drop to $0.50 and eventually $0.46, signaling a bearish shift.