Summary: Ripple co-founder moves $175M in XRP – Market reaction explained!

XRP's Wild Ride: Co-Founder's Sale Fuels Market Correction! The crypto world recently witnessed a dramatic turn for XRP, the digital asset linked to Ripple. Just as XRP soared to an impressive all-time high of $3.65 on July 18th, reaching a staggering $215.2 billion market cap, controversy erupted. Ripple co-founder Chris Larsen, a significant figure in the ecosystem, was observed selling off millions of XRP. Crypto sleuth ZachXBT revealed an address linked to Larsen moved 50 million XRP, valued at $175 million, since July 17th, with $30 million specifically transferred to Coinbase, presumably for sale. This significant insider activity unfortunately "didn't reflect well publicly" and seemed to coincide with a broader market correction. XRP subsequently plummeted, experiencing a 15% setback from its peak and a sharp 10.3% dip on July 23rd. The sudden downturn triggered massive liquidations, wiping out nearly $7.3 million in long positions on Binance alone, and over $16 million across the market in 24 hours. Compounding concerns, XRP's exchange reserves have been steadily rising since May, typically signaling a distribution phase, further hinting at selling pressure. While the co-founder's actions and market-wide correction imposed a short-term retracement, all eyes are now on the $2.9-$3 mark. This zone is identified as a strong demand and psychological support level, suggesting XRP might consolidate around $3 for a few days. This period could offer the derivatives and spot markets a crucial opportunity to cool down before potentially resuming an upward climb. It's a stark reminder of the volatility inherent in crypto and the impact of large-scale insider movements.