XRP Plunges 48% After Ripple Co-founder’s $200M Sell-Off – And That’s Just the Start

Founder cashes out, token crashes down. The market's reaction to a $200 million sell-off by a Ripple co-founder was swift and brutal, sending XRP into a tailspin.

Decoding the Domino Effect

When a major insider moves that much capital, it's never just a simple transaction. It triggers a cascade of algorithmic selling, shakes retail confidence, and invites a wave of speculative shorts. The 48% drop isn't just a number—it's a liquidity event that resets the playing field.

The Unseen Pressure Points

Look beyond the headline figure. The real story is in the order book depth that vanished, the leveraged positions that got liquidated, and the silent panic among bag-holders who bought the 'digital asset for institutions' narrative—a classic case of the 'greater fool' theory meeting cold, hard exit liquidity. It's the finance sector's oldest playbook: build a narrative, attract capital, and the founders get rich. Everyone else gets a lesson in market structure.

This sell-off didn't just move the price; it exposed the fragile scaffolding holding up speculative asset valuations. The next move depends on whether anyone's left to catch the knife.

A CryptoQuant author points out that XRP has dropped nearly 50% since Ripple co-founder Chris Larsen sold millions, but there's more to the story. This disclosure came from JA Maartunn, CryptoQuant's community analyst, amid XRP's current struggles, as the crypto asset finally relinquishes the pivotal $2 support level.

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