Coinbase’s XRP Reduction: Manipulation or Market Dynamics?

Recent data reveals a significant decrease in Coinbase’s XRP holdings, sparking debate among crypto investors. Coinbase’s XRP stash has plummeted from over 780 million to under 200 million in a short period, a reduction exceeding 69% since the second quarter of 2025. This dramatic drop has fueled speculation of market manipulation, particularly given the timing coinciding with XRP price dips.

Accusations of Price Suppression

Some analysts, like the X user Stern Drew, suggest Coinbase strategically suppressed XRP prices through targeted OTC desk sales timed to periods of low liquidity. The theory posits that a substantial portion of the sell-offs, potentially linked to New York-based institutions, were deliberately fragmented to obscure their scale and impact.

A Lawyer’s Perspective

However, prominent pro-XRP lawyer Bill Morgan dismisses these claims as improbable. He argues that XRP’s price fluctuations have historically exhibited similar patterns, even during periods when Coinbase had no XRP listings. Morgan emphasizes that current price movements align with XRP’s established market behavior, rather than pointing to intentional manipulation by Coinbase. He highlights that the cryptocurrency has traded within a relatively stable range recently.

Market Analysis and Price Predictions

XRP has consolidated between $2.8 and $2.9 over the past week, holding above the $2.8 support level despite a recent dip below $3. While the $3.10 level presents a key resistance point, a decisive break above could signal a bullish shift. The current price, at the time of writing, is $2.82.

Conclusion

The sharp decrease in Coinbase’s XRP holdings raises questions, but whether it constitutes deliberate market manipulation remains a subject of ongoing debate. While accusations suggest strategic price suppression, counterarguments highlight XRP’s historical price volatility and overall market trends. Only time will fully reveal the market forces at play.