Why XRP (Ripple) Is Sinking Today

Key Points

• Tariffs are once again in focus as a key deadline set under President Donald Trump approaches.
• Yesterday, one of Ripple's co-founders transferred a large amount of XRP from a digital wallet to multiple exchanges, which many see as an intent to sell.
• Insiders selling a stock or asset is not necessarily bearish.
• 10 stocks we like better than XRP ›

Since yesterday afternoon, the price of XRP (CRYPTO: XRP) has traded 5.6% lower, as of 1:12 p.m. ET today. There's no obvious reason behind the move, but a few events likely explain it.

Ripple founder makes a big move

Many cryptocurrencies were under pressure today, as momentum across the sector seemed to fade a bit this week. It could have to do with renewed focus on tariffs, as President Donald Trump's key Aug. 1 deadline approaches.

While the U.S. has struck several trade deals, Trump also recently said that reciprocal tariffs are not likely to go below 15%, which is higher than I think what many assumed the end rate would be. This level is still quite high and could result in higher inflation or other economic struggles.

Image source: Getty Images. "A reversal to growth will be needed to stop the buildup of pessimism for the entire crypto market, where corrective sentiment is intensifying," FxPro Chief Market Analyst Alex Kuptsikevich wrote in a research note, according to Barron's.

XRP also seems to still be reeling from news yesterday that Ripple Co-Founder Chris Larsen moved roughly $140 million worth of XRP from a digital wallet to centralized exchanges, not long after XRP reached a new all-time high. XRP fell about 14% yesterday.

Selling isn't necessarily bearish

Investors should remember that insider selling isn't always bearish. People sell for a number of reasons. They could have a big expense coming up or perhaps they simply want to enjoy the money. After all, XRP struggled for several years until Trump got elected and the Securities and Exchange Commission dropped its appeal in a long-standing lawsuit against Ripple and Larsen.

My approach to XRP remains unchanged. I find the token interesting due to the strong technical network it runs on and its connection to Ripple. However, the token is still very volatile, which is why I would keep positions smaller and more speculative.

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Bram Berkowitz has positions in XRP. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.

Why XRP (Ripple) Is Sinking Today was originally published by The Motley Fool

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