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 price at risk? Why XRP was one of the worst performers this week
cryptocurrency

price at risk? Why XRP was one of the worst performers this week

XRP dropped over 13% this week due to Ripple co-founder’s 75M XRP transfers and high profit-taking among holders.

July 30, 2025
5 min read
Yashu Gola

XRP dropped over 13% this week due to Ripple co-founder’s 75M XRP transfers and high profit-taking among holders.

$3 Price at Risk? Why XRP Was One of the Worst Performers This Week

Over the past week, XRP has experienced a significant downturn, dropping as much as 13.5%. This performance starkly contrasts with Bitcoin's modest 2.25% decline and Ethereum's 0.5% decrease over the same period. As of Wednesday, XRP was down approximately 10% over the last seven days, trailing only high-volatility memecoins like Dogecoin and Fartcoin, which saw even steeper drops of roughly 20% and 35%, respectively.

Ripple Co-founder Moves Over $140 Million in XRP

A key factor contributing to XRP's decline was the reported movement of nearly $175 million worth of XRP by Ripple co-founder Chris Larsen. These funds were transferred to four different addresses, with $140 million ultimately landing on various cryptocurrency exchanges. The timing of these transfers, beginning on July 17 and coinciding with XRP's peak above $3.60, appears to have spooked the market. Many traders interpreted Larsen's substantial XRP transfers as a potential signal of him offloading holdings at higher prices, which eroded confidence and likely prompted further selling pressure.

Over 90% of XRP Supply Sits in Profits

Another significant reason for XRP's steeper decline compared to other major cryptocurrencies is that a large majority of its supply—over 90%—was recently in profit. Glassnode data indicated that the percentage of XRP supply in profit surged to 93.24% after the price reached $3.60. This figure is notably higher than Ethereum's profit percentage, which stood around 84.7% and was not considered in the "overheated" zone. Historically, such high profit percentages have often preceded price tops, as a greater number of profitable holders are incentivized to take profits or reallocate capital to assets with stronger fundamentals.

XRP Drifts Toward Interim Realized Prices

The recent correction in XRP's price appears to follow a pattern where its value gravitates back towards short-term realized price levels. As of Tuesday, data from Glassnode showed that the realized price for the 1-week to 3-month holder cohort ranged between $2.30 and $2.80, while XRP was trading near $3.13, down from its recent peak of $3.66. This suggests that many short-term XRP holders, who entered the market within the last one to three months, had purchased at prices between $2.30 and $2.80. Before the peak, these holders were enjoying profits of 20–30%. As the price began to fall, a significant number of these traders likely entered a panic state, eager to secure their gains or mitigate losses as the market retraced towards their cost basis.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: Originally published at Cointelegraph on Wed, 30 Jul 2025 11:19:19 GMT.

Frequently Asked Questions (FAQ)

XRP Performance and Market Factors

Q: Why did XRP underperform compared to Bitcoin and Ethereum this week? A: XRP experienced a significant drop of up to 13.5% while Bitcoin and Ethereum saw smaller declines of 2.25% and 0.5%, respectively. This underperformance was attributed to large XRP transfers by a Ripple co-founder potentially signaling profit-taking and a high percentage of XRP supply being in profit, leading to widespread profit-taking among holders. Q: What was the impact of Chris Larsen's XRP transfers? A: Ripple co-founder Chris Larsen moved a substantial amount of XRP, with a significant portion ending up on exchanges. This event was interpreted by many traders as a signal of potential selling pressure from a major holder, which negatively impacted market confidence and contributed to the price drop. Q: How does the percentage of XRP supply in profit affect its price? A: When a high percentage of XRP supply is in profit (over 90%), it historically indicates that a large number of holders are likely to sell to realize their gains. This increased selling pressure can lead to price corrections, as observed with XRP's recent performance. Q: What are "interim realized prices" for XRP? A: Interim realized prices refer to the average cost basis for holders who have acquired XRP within specific, shorter timeframes (e.g., 1 week to 3 months). When the price drops towards these levels, it can trigger panic selling among these short-term holders as they see their profits diminish or approach their entry point.

Crypto Market AI's Take

The recent price action in XRP highlights a common pattern in the cryptocurrency market: profit-taking following significant price appreciation, especially when coupled with large holder movements. At Crypto Market AI, we leverage advanced AI analytics to help traders navigate such volatility. Our AI-powered insights can identify potential market shifts and provide data-driven strategies to manage risk and capitalize on opportunities. Understanding on-chain metrics, such as the percentage of supply in profit, is crucial, and our platform offers sophisticated tools for this analysis.

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