Chris Larsen's XRP Profit-Taking Strategy: How Surging Profits Are Reshaping Market Expectations

In the evolving cryptocurrency market, every move by Ripple co-founder Chris Larsen attracts significant attention. Over the years, he has accumulated over $760 million through systematic XRP sales, and the correlation between his trading patterns and market performance has sparked widespread discussion. Especially since 2025, Larsen’s cash-out scale has increased markedly, and this large-scale liquidation activity has had a notable impact on XRP’s price trend.

Chris Larsen’s Trading Pattern and Market Response

According to on-chain analysis platform CryptoQuant, Chris Larsen has demonstrated a clear pattern of selling near local highs. Since 2018, his XRP sales have totaled approximately $764 million, with $764.2 million realized in 2025 alone, compared to less than $200 million seven years ago. This growth trajectory reflects an overall market valuation increase for XRP and highlights Larsen’s precision in timing market moves.

Analyst J. A. Maartunn pointed out that Larsen’s sell-offs often occur near local peaks. While some market participants see this as rational profit-taking, others criticize it as deliberate dumping to suppress prices. Recently, Larsen transferred 50 million XRP from his personal wallet to Evernorth’s treasury, further confirming his ongoing asset allocation adjustments.

Current Market Conditions and Fundamental Price Pressures

The current struggles of the XRP/USD trading pair are not solely due to macroeconomic factors; Larsen’s large outflows also play a significant role in suppressing the price. XRP is currently trading at around $1.45, down approximately 60% from its all-time high of $3.65. This level is well below the psychological expectations built over years, indicating that market participants are reassessing XRP’s fundamentals.

It’s noteworthy that Larsen still controls XRP reserves valued at around $900 million, representing a substantial potential supply that hangs over the market like a “Damocles sword.” Any news of further sales by Larsen could trigger intense market volatility, affecting XRP’s price discovery process.

Technical Outlook: Early Signs of Reversal

Despite XRP’s current low price, technical indicators reveal some optimistic signals. Bullish divergence in the Relative Strength Index (RSI) and a potential bullish crossover in the Moving Average Convergence Divergence (MACD) suggest that the downward trend may be weakening.

Key resistance levels for a price recovery include reclaiming the 200-day Simple Moving Average (SMA) at $2.60. Historically, this level has been a critical pivot point for rebounds. Breaking through this barrier would put the price in the range of $2.74 to $2.80, with further upside potential toward the 100-day SMA at $2.94. If XRP can surpass these key levels, especially breaking above the 20-day Exponential Moving Average (EMA) at $2.55, a broader technical reversal could be established.

Risks to Consider in Investment Decisions

Investors looking to trade XRP should be aware of multiple risks behind the opportunities. As a major token holder, Larsen’s selling decisions have a significant market impact, and this concentration risk is a structural issue within the XRP ecosystem. Although technical reversal signals are encouraging, caution remains until key resistance levels are convincingly broken.

Market participants should conduct thorough independent research and develop trading plans aligned with their risk tolerance. This analysis provides market observations and technical insights only and does not constitute investment advice or trading recommendations.