Zerebro
Bitcoin
Quantus
Pearl
Starknet
ZKsync
NEAR Protocol
In the recent past, Ripple (XRP) has been experiencing bearish sentiment, with traders on Kalshi also betting against further price appreciation. These bearish sentiments have continued to grow, with Ripple co-founder Chris Larsen adding to this sell pressure.
The price action structure has also reflected this outlook, which continues to worsen as the US Dollar Index (DXY) bounces to the upside. This signal worsens the case for XRP and risk-on assets in general.
With those few remarks, we will delve into the exact details regarding XRP’s potential breakdown.
Ripple Co-Founder Chris Larsen Cashes Out Again
On-chain data from CryptoQuant author Maartunn showed that the co-founder of Ripple continued to offload his XRP holdings. Over the past three days, Chris Larsen sold more than 100 million XRP tokens, valued at approximately $240 million. The second offloading occurred within the past 24 hours, resulting in a $120 million profit.
Chris Larsen has been transferring these to EvernorthXRP, which is setting up a strategic reserve for XRP. Chris Larsen has been successfully profiting from XRP by cashing out at local tops, with his gains now exceeding $764 million.
The move has raised concerns among holders who continue to hold their tokens, with analysts being skeptical about the token’s trajectory.
Such a move could result in increased selling pressure, influenced by the founder’s presence in the XRP community. Even though he was funding a strategic reserve for XRP, the move eroded confidence in holding the token.
How Will XRP Price React?
In addition to the general market weakness, the co-founder’s profit-taking induced further sell pressure. XRP continues to trade below $3, with the structure forming lower highs and lows despite a recent bounce back after the $2.25 zone.
After reaching its highest point at $2.50, XRP dropped to $2.40, and the price action is heading down toward $2.30 or lower. Bears continued to dominate the price structure, with XRP needing to break above $2.65 to flip this outlook.
The selling pressure could take the price back to the low at the $2 zone, which was established during the recent crypto crash, as of press time.
Alternatively, if XRP held above $2.30 or $2.25 and made a higher high above $2.65, it would welcome a bullish forecast.
The selling of XRP by the co-founder ignited bearish sentiment, and the US Dollar Index chart indicated that a broader market weakness was looming.
US Dollar Index (DXY) Bounces Off Support: More Bearish Sentiment for Risk-On Assets?
The DXY is typically inversely correlated with risk-on assets, and its strength indicates weakness in these assets. The price chart showed the index was bouncing from a 13-year support trendline. DXY was trading around $98, with Ted Pillows noting that a reclaim of $100 would be detrimental to these assets, including XRP, which was currently weak.
Combining its findings with the activities of the co-founder, it was suggested that a breakdown for XRP was warranted, even though a closer look was advised. More bearish sentiments emerge as DXY rises, leading traders to become defensive.
Altogether, this coverage adds to a previous analysis by The Market Periodical team, which was bearish on the altcoin. Thus, XRP was more likely to decline than to increase based on the current market sentiment. However, if conditions improve, XRP crypto price can reverse to the upside.
