- CryptoQuant analyst warns XRP buyers risk becoming exit liquidity targets
- Ripple Chairman Chris Larsen sold $200M worth of XRP in past 10 days
- Larsen’s wallet balance dropped 2.56% from 2.34B to 2.28B XRP tokens
CryptoQuant analyst Maartunn has issued a stark warning to potential XRP investors, cautioning them against purchasing the cryptocurrency at current levels. The market researcher suggests buyers may inadvertently provide exit liquidity for major stakeholders looking to reduce their positions.
The warning centers on recent selling activity from Ripple Chairman Chris Larsen, whose wallet movements have attracted scrutiny from blockchain analytics firms. Maartunn’s analysis reveals coordinated outflows totaling approximately $200 million over a compressed timeframe.
Larsen Executes Series of Large XRP Transfers
Blockchain data shows Larsen executed four separate transactions ranging from $20 million to $80 million in value during the 10-day period. The transfers occurred in escalating amounts, with the largest single movement reaching $80 million worth of XRP tokens.
The most recent transaction took place on July 23, when Larsen’s wallet transferred 12.5 million XRP valued at $42.12 million. This activity reduced his total holdings from roughly 2.34 billion tokens to approximately 2.28 billion XRP.
The systematic nature of these transfers suggests coordinated selling rather than random wallet movements. Each transaction moved substantial amounts that could impact market liquidity if executed through exchanges.
Analyst Labels Retail Buyers as Exit Liquidity
Maartunn’s analysis positions retail investors as unwitting participants in Larsen’s distribution strategy. The CryptoQuant researcher argues that continued buying interest enables large holders to liquidate positions without causing severe price disruption.
The warning comes as XRP maintains elevated price levels despite the selling pressure from Larsen’s wallet. This dynamic creates conditions where retail enthusiasm absorbs institutional selling without immediate price consequences.
Previous data indicates Larsen has maintained consistent selling throughout 2025, with approximately 106 million XRP worth $344 million distributed since January. Most transfers reportedly went to liquid exchanges like Coinbase, facilitating conversion to fiat currency.
Larsen’s current net worth sits around $9 billion, with approximately 2.8 billion XRP tokens remaining in his possession. The ongoing distribution represents a small fraction of his total holdings but could foreshadow additional selling activity.
The timing of these transfers coincides with XRP’s recent price strength, suggesting strategic liquidation during favorable market conditions. This pattern aligns with profit-taking behavior among early cryptocurrency adopters.
Source: https://thenewscrypto.com/buy-xrp-now-you-might-be-exit-liquidity-analyst-warns/