Ripple co-founder keeps ‘cashing out’ at the highs: Will it hurt XRP price?

Ripple co-founder Chris Larsen has sold significant amounts of XRP, realizing $764 million in profits since 2018. This trend raises concerns about its impact on XRP's price recovery. Analysts suggest that Larsen has a pattern of cashing out near local highs, which may contribute to downward pressure on XRP prices. Currently, XRP trades 34% below its peak of $2.60, which is crucial for reversing the ongoing downtrend. Analysts highlight the necessity for XRP to reclaim the 200-day simple moving average (SMA) to signal potential recovery. They note recent transfers from Larsen's wallet, indicating ongoing profit-taking. Key price levels to watch include the $2.60 SMA, with further resistance at $2.74-$2.80 and $2.94. Market participants are observing a bullish divergence in the relative strength index, which may indicate weakening selling momentum and encourage buying interest. As of now, Larsen is estimated to have around $9 billion worth of XRP, adding to the potential selling pressure while the market seeks a turnaround.

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