XRP Price in Danger: Ripple Co-Founder Spotted Selling $40M XRP

Ripple (XRP) Price Analysis:

XRP price succumbed to a 5% correction from its recent peak of $0.61 over the weekend, falling as low as $0.57 in the early hours Monday, Sept 23. On-chain data trends have linked the XRP price correction to an unusual transaction from a wallet linked to Ripple Co-Founder, Chris Larsen.

What are XRP’s chances at a $0.65 rebound in the week ahead?

XRP price retraces 5% on Ripple Founder’s Sell-Off

On Saturday, Sept 21, XRP price reached a new monthly time frame peak of $0.61, propelled by bullish tailwinds from the US Fed’s 50bps rate cut.

However, recent XRP’s upward momentum could be disrupted by recent internal events surrounding Ripple founder’s transactions and SEC’s ongoing efforts to file an appeal in the recently concluded lawsuit.

Once the US Fed announced the rate cut on Sept 18, XRP price rose rapidly by 9.2% within the next 72-hours. The green patch in the chart above depicts hows XRP price rose from $0.58 on Wednesday to hit $0.61 on Sept 21, its highest in over 25-days dating back to August 25.

But rather than advance towards the $0.65 level and many market indicators hand hinted, XRP price has slipped into a correction phase over the weekend. At the time of writing on Sept 22, XRP has dropped as low as $0.57 down 5.6% from the recent local top.

Ripple Co-Founder Spotted Selling XRP Worth $30M

When a high-impact asset like XRP experiences a sharp decline amidst a broader market rally, it often points to underlying bearish signals. Analyzing recent on-chain data, XRP’s current correction appears tied to an unusual transaction traced to a wallet associated with Ripple’s co-founder, Chris Larsen.

On September 17, prominent blockchain tracker WhaleAlert notified its 2.4 million followers of a cryptic movement of XRP linked to Larsen.

Raising eyebrows, Ripple Co-Founder,  Chris Larsen transferred 50 million XRP from his personal wallet, sparking widespread discussion within the crypto community. Days later, the same wallet initiated four additional transfers totaling 20 million XRP.

The cumulative 70 million XRP (~$41 million) movement marks Larsen’s first such transaction from this wallet since 2013, leading to speculation that the assets might be heading to Binance for liquidation.

Rumors of a potential security breach also circulated, referencing a February 2024 hack where 212 million XRP were stolen from another of Larsen’s wallets. However, experts largely remain unconvinced of foul play in this instance.

Currently, Larsen’s wallet still holds over 450 million XRP coins. If the sell-off continues in the week ahead, it could dampen confidence among XRP traders, potentially exacerbating the 5% price dip observed over the weekend.

XRP Price Forecast: Can Bulls Re-take $0.65?

Ripple (XRP) is facing a mildly bearish trend, following a 5.6% correction from its recent peak of $0.61. XRP’s Fisher Transform indicator and Donchian Channels are providing insights supporting this outlook.

The Fisher Transform, a momentum oscillator, is currently in mildly overbought territory, with the blue line at 1.76, crossing below the orange line at 2.18. This crossover suggests a potential short-term bearish momentum, indicating that buyers are losing steam.

Meanwhile, the Donchian Channels show XRP has broken below its mid-band of $0.61, pointing towards a period of price consolidation.

Immediate support sits at $0.5575, and a more critical support level at $0.5027 could come into play if sellers maintain pressure. On the upside, resistance can be observed first at $0.6122, followed by a more substantial hurdle at $0.6200.

If bulls can manage to stabilize the price above $0.58, XRP may attempt a rebound towards the $0.61 mark. However, the recent bearish crossover in the Fisher Transform implies that any rally above $0.62 might face strong selling pressure, making $0.65 unlikely without a surge in bullish momentum.

Thus, the near-term outlook for XRP remains cautiously bearish, with traders closely watching the $0.5575 support level to determine the next move.