XRP is holding steady near a crucial support level around $2.40, even as Ripple co-founder Chris Larsen’s $120 million token sale stirs mild investor concern. Despite renewed chatter around insider selling, analysts say the market reaction remains controlled, with buyers showing resilience ahead of potential bullish catalysts like ETF approvals and expanding ecosystem utility.
XRP Consolidates After Sharp Monthly Drop
At press time, XRP traded at $2.43, down 0.1% over the past day after briefly testing the $2.40 support zone. The token has declined 5.4% this week and 18% over the past month, now sitting about 33% below its July peak of $3.85.
After several weeks of intense selling, XRP appears to be stabilizing. The 7-day trading range between $2.21 and $2.56 shows a tight consolidation pattern, while 24-hour spot trading volume climbed nearly 20% to $4.12 billion, indicating renewed participation from both buyers and sellers.
Derivatives activity also increased. CoinGlass data shows open interest rose 2.86%, while futures volume surged 14.56% to $5.97 billion. Analysts interpret this as a sign that traders are re-entering positions, though without strong directional conviction typically a precursor to higher volatility.
Chris Larsen’s XRP Sale Fuels Sentiment Shift
On October 20, Ripple co-founder Chris Larsen sold 50 million XRP, worth approximately $120 million, marking his first major sale since July. The move, flagged by on-chain analyst Maartunn of CryptoQuant, reignited discussions about insider activity particularly since the sale occurred as XRP tested a major support zone.
Social media buzzed with speculation, with “insider exit liquidity” trending on X (formerly Twitter). Yet, on-chain data from Santiment suggests that the market absorbed the selling pressure without triggering panic. Historically, such spikes in fear and uncertainty often precede short-term recoveries once retail sentiment bottoms out.
Still, Larsen’s sale added to an already cautious mood. Earlier this month, XRP faced turbulence amid broader market liquidations exceeding $130 million and renewed concerns over U.S. trade policy, both of which contributed to its sharp correction.
ETF Optimism and On-Chain Growth Offer Support
Despite near-term caution, optimism surrounding potential spot XRP exchange-traded funds (ETFs) is providing a supportive backdrop. Pending filings from CoinShares, Bitwise, and Grayscale are under regulatory review, with analysts projecting a 95% chance of approval.
If greenlit, these ETFs could unlock between $5 billion and $8 billion in institutional inflows similar to Ethereum’s ETF-driven surge earlier this year.
Meanwhile, XRP’s on-chain utility continues to expand. Evernorth, a digital finance firm backed by SBI Holdings and Kraken, recently raised $1 billion in a treasury fund linked to XRP holdings. Ripple’s RLUSD stablecoin, which has now reached nearly $1 billion in circulation, is further boosting XRP’s institutional use cases.
XRP Price Technical Outlook: Watching the $2.40 Level
Technically, XRP is hovering near its lower Bollinger Band, signaling possible exhaustion in selling pressure. The Relative Strength Index (RSI) sits at 39.9, suggesting mild bearish momentum but not oversold conditions leaving room for a rebound if buying volume strengthens.
While short-term momentum has flattened, all major moving averages (10-day through 200-day) remain above the current price, reinforcing a broadly bearish medium-term trend.
If XRP can hold above $2.40, traders may target the $2.60–$2.70 zone, near the middle Bollinger Band. A confirmed breakout above $2.70 could open the door to $3.00–$3.15 resistance, where sellers previously dominated.
On the downside, a break below $2.10 would likely trigger renewed liquidations, exposing XRP to the next key support near $1.80.
Bottom Line
Despite renewed insider-selling chatter, XRP’s price action remains stable as traders await major market catalysts. With ETF optimism building and on-chain fundamentals strengthening, the token’s ability to defend the $2.40 support could determine whether it enters a consolidation phase or gears up for a rebound toward the $2.70–$3.00 range in the weeks ahead.
