Ripple co-founder and former CEO Chris Larsen has continued to draw scrutiny from the crypto community after realizing more than $764 million in profits from XRP sales since 2018. Analysts warn that his recurring sell-offs near local highs could weigh on XRP’s price recovery as the token struggles to reclaim key technical levels.

Chris Larsen’s Growing XRP Profits

According to onchain data shared by CryptoQuant analyst J. A. Maartunn, Larsen’s realized profits from XRP have surged to $764,209,610.42 since January 2018. The figure represents a significant increase from under $200 million recorded seven years ago.

The pattern of Larsen selling XRP near price peaks has sparked debate among investors. Some argue that these transactions are simply strategic profit-taking, while others accuse the Ripple co-founder of deliberately selling into market strength, potentially dampening momentum for other holders.

In a recent post on X, Maartunn emphasized that Larsen “has a recurring habit of cashing out near local highs.” He highlighted that a recent 50 million XRP transfer from Larsen’s wallet coincided with price volatility. Larsen later clarified that the transaction was part of an investment into the Evernorth treasury.

Selling Pressure Still in Focus

XRP’s price has been struggling to maintain upward momentum, trading at around $2.38, roughly 34% below its July peak of $3.66. Analysts attribute part of this pullback to large outflows from wallets linked to Larsen.

Despite his substantial realized profits, Larsen reportedly holds a notional balance of up to $9 billion in XRP. The scale of his remaining holdings has fueled speculation that continued sales could exert persistent selling pressure, especially during fragile market phases.

While some market participants see these moves as rational financial management, others worry they could discourage long-term holders and limit XRP’s recovery potential in the short term.

Key Levels XRP Must Reclaim

Technically, XRP’s price faces multiple hurdles before confirming a sustained rebound. The first key level is the 200-day simple moving average (SMA) at $2.60, which the token must reclaim and hold as support to reverse its current downtrend. Historically, flipping this line has preceded strong bullish rallies, as seen during XRP’s recovery in July.

Above that, the $2.74–$2.80 zone is the next major resistance, where the 50-day SMA currently sits. A successful breakout could open the path toward $2.94, the level marked by the 100-day SMA. Closing above that would indicate the end of the current bearish phase and potentially reignite broader optimism among traders.

Early Signs of a Rebound

Despite recent weakness, several technical indicators hint that XRP’s selling pressure may be easing. A bullish divergence has emerged on the relative strength index (RSI), where prices have continued to fall while the RSI has risen. This divergence often signals seller exhaustion and growing investor interest at lower levels.

In addition, the moving average convergence divergence (MACD) indicator is nearing a bullish cross, suggesting momentum could shift in favor of buyers if price conditions stabilize.

For now, traders are watching whether XRP can climb above the 20-day exponential moving average (EMA) at $2.55, which would be the first sign of a near-term recovery. Sustaining that level could encourage short-term buyers to re-enter the market, setting the stage for a potential push toward the 200-day SMA.

Market Sentiment Divided

The broader market remains split on Larsen’s impact on XRP. While his consistent profit-taking is viewed by some as a natural outcome of holding a large early allocation, others believe such moves undermine confidence in XRP’s long-term price stability.

With crypto markets still reacting to broader macroeconomic uncertainty, the timing of Larsen’s transactions has only added to speculation. Whether these sales reflect strategic portfolio management or simply opportunistic timing, their recurring nature keeps XRP holders on edge.

As XRP attempts to stabilize above $2.30, the coming weeks will likely determine whether bullish technical signals can outweigh lingering concerns about insider selling. Until then, all eyes remain on Larsen’s wallets — and whether another round of “cashing out” might coincide with XRP’s next price swing.