Recent data from various blockchain tracking platforms reveals a significant reduction in Coinbase’s XRP holdings, a development that has sparked discussion among cryptocurrency investors. Some analysts interpret this substantial decrease as indicative of large-scale withdrawals by institutional players. However, others have suggested the possibility of market manipulation. Bill Morgan, a legal expert known for his pro-XRP stance, has dismissed these claims.
Coinbase XRP Holdings Spark Manipulation Speculation on Social Media
Over a period of several weeks, the U.S.-based cryptocurrency exchange, Coinbase, reduced its XRP reserves from over 780 million to just under 200 million. This equates to a 69% reduction in the exchange’s holdings since the second quarter of 2025, including a sharp 57% decrease in the last month alone. This considerable drawdown has also impacted Coinbase’s position among exchanges holding XRP, dropping it from the fifth-largest to outside the top 10.
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On X, the social media platform, an account known as Stern Drew proposed that Coinbase’s sell-offs might be part of a deliberate strategy to influence XRP’s price downward. In a detailed analysis, the commentator stated that nearly 40% of the XRP outflows were processed through over-the-counter (OTC) desks affiliated with New York-based financial institutions and that these sales coincided with dips in XRP’s price during August.
The X thread further alleged that more than 70% of the XRP volume was traded during periods of low market liquidity, and the scale of the sales was obscured by distributing the trades across multiple wallets. The thread even implied that some of the XRP ended up in custodial wallets associated with BlackRock, fueling theories about institutional involvement.
Bill Morgan Challenges Claims of XRP Price Manipulation
Bill Morgan quickly disputed the notion that Coinbase is actively trying to manipulate XRP’s price. He argued that this theory ignores the fact that XRP has historically exhibited similar price movements, even during the period when Coinbase had delisted the asset and seemingly had no bearing on its market performance. Coinbase halted XRP trading in January 2021 and resumed it in July 2023.
“An interesting theory about Coinbase being against XRP,” he stated, before suggesting that XRP’s current behavior is consistent with its established price patterns. The assertion of manipulation by Coinbase appears unsubstantiated, as XRP’s price action seems to reflect broader trends within the cryptocurrency market rather than deliberate suppression by the exchange.
Over the past week, XRP has traded in a relatively narrow range between $2.80 and $2.90. While it fell below the $3.00 support level at the end of August, XRP has since remained above $2.80, a level that has provided some degree of support against further price declines.
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To the upside, the $3.10 mark represents a key resistance level to watch. A confirmed break above this level could signal a renewed bullish trend. Until then, XRP’s price will likely continue to consolidate between $3.10 and $2.80.
As of this writing, XRP is trading at $2.82.
Featured image from Unsplash, chart from TradingView