XRP price tests support as Ripple co-founder offloads $120M

XRP price hovers near a key support level as Ripple co-founder Chris Larsen’s $120 million token sale stirs short-term caution ahead of major market catalysts.

At the time of writing, XRP was trading at $2.43, down 0.1% over the previous day after testing the $2.40 support zone. The token has fallen 5.4% in the last week and 18% in the last 30 days, retracing about 33% from its peak of $3.85 in July.

Following weeks of intense selling, the 7-day range, which is between $2.21 and $2.56, shows tight consolidation. Meanwhile, 24-hour spot trading volume reached $4.12 billion, a daily increase of 19.9%, indicating increased buyer and seller participation.

Derivatives activity increased as well, according to CoinGlass data, with open interest rising 2.86% and futures volume up 14.56% to $5.97 billion. This uptick indicates that traders are re-entering positions instead of directional conviction, which is a sign of increasing volatility. 

Ripple co-founder XRP sale stirs sentiment

On Oct. 20, Ripple co-founder Chris Larsen sold 50 million XRP (XRP), worth about $120 million. This was his first major sale since July. Maartunn, a CryptoQuant analyst, flagged the move, which sparked fresh worries about insider selling because it occurred as XRP was hovering close to a crucial support zone.

On social media, the sale set off a wave of pessimism, with “insider exit liquidity” trending on X. Santiment’s on-chain data, however, revealed that the general market absorbed selling pressure despite the spike in FUD, indicating that short-term pessimism hasn’t turned into panic. Historically, such sentiment spikes have preceded short recoveries once retail fear peaks.

Still, Larsen’s move builds on an already cautious mood. XRP faced turbulence earlier in October when Trump tariff fears and over $130 million in liquidations drove a sharp correction. 

XRP ETF hopes offer cushion

The upcoming spot XRP exchange-traded fund rulings, which are pending review of filings from CoinShares, Bitwise, and Grayscale, may provide a counterbalance. Analysts project 95% approval odds, which could unlock $5–8 billion in inflows, Similar to ETH’s ETF-driven surge earlier this year, 

Ecosystem developments also add support. Evernorth’s $1 billion treasury raise, backed by SBI and Kraken, ties directly to XRP holdings, while Ripple’s RLUSD stablecoin nears the $1 billion mark, expanding XRP’s institutional use cases.

XRP price technical analysis

XRP is testing short-term support on the daily chart, hovering close to the lower Bollinger Band. There is potential for a rebound if buyers intervene, as indicated by the relative strength index at 39.9, which shows mild bearish momentum but not oversold conditions.

Although the short-term slope is flattening, all of the major moving averages (10–200-day) are above the current price and indicate a broad downward trend. A sustained hold above $2.40 could stabilize momentum and target the $2.60–$2.70 range, near the middle band.

On the downside, a clear break below $2.10 might speed up liquidations by exposing the next support level, which is close to $1.80. For bulls, reclaiming $2.70 remains critical for any return to the $3.00–$3.15 resistance area.