David Schwartz Reveals Massive XRP Sell-Off—Transparency or Warning?

His disclosure has sparked discussion across the XRP community, particularly as the token trades near $1.05 amid an extended market downturn. However, Schwartz attributes his decision to personal risk aversion rather than concerns about XRP’s fundamentals or long-term prospects.

Schwartz, who posts under the username JoelKatz on X, disclosed that his XRP holdings have fallen from approximately 26 million tokens to just 2–3 million. The reduction represents a substantial change in his personal exposure to the cryptocurrency he helped develop.

David Schwartz reiterated that he has never concealed his crypto sell-off, responding to a Chainlink advocate who referenced his earlier disclosure of selling most of his digital assets. Source: @JoelKatz/X

His sales extended beyond XRP. Schwartz also reduced his Bitcoin holdings from approximately 1,500 BTC to just one Bitcoin, while his Ethereum position declined from around 40,000 ETH to only six.

The former Ripple CTO explained that he has not purchased XRP in a long time because of his discomfort with investment risk. He has previously indicated that his remaining exposure to Ripple stock is already greater than what he considers comfortable.

Schwartz also revealed that he sold approximately 2.5 million XRP in 2025, resulting in a capital gains tax bill of around $1.7 million. The transaction illustrates the scale of his previous holdings and the financial implications of reducing his cryptocurrency exposure.

Despite the extensive sales, Schwartz has retained millions of XRP tokens. His decision therefore represents a significant reduction rather than a complete departure from the digital asset.

Schwartz has consistently pointed to personal risk tolerance as the primary reason behind his decisions. His explanation suggests that the reduction reflects his approach to managing wealth rather than a specific judgment about XRP’s future performance.

David Schwartz said he has not purchased XRP in years due to his strong aversion to financial risk, following the sale of nearly all his cryptocurrency holdings. Source: @JoelKatz/X

His remaining Ripple stock exposure is another important factor. Although he has sold most of his digital assets, his continued ownership of Ripple shares leaves him with substantial exposure to the company’s business.

Holding both Ripple equity and XRP could concentrate his financial exposure within the same broader ecosystem. Reducing his cryptocurrency holdings allows him to limit that concentration while maintaining an ownership interest in the company.

His comments also highlight a distinction between technological involvement and investment strategy. Being one of the architects of the XRP Ledger does not necessarily mean that Schwartz wants to maintain a large personal position in XRP.

Importantly, he has not presented his sales as a warning about the cryptocurrency’s fundamentals, payment utility, or long-term development. His explanation has centered on his own financial comfort level.

Schwartz’s disclosure has drawn questions from community members who believe XRP’s potential utility could justify maintaining greater exposure to the asset.

One commenter, @kevin_myles, challenged the emphasis on risk by pointing to XRP’s expected role in financial transactions and cross-border payments.

XRP supporters challenged Schwartz’s risk concerns, arguing that the token’s anticipated utility and higher prices could improve liquidity and reduce transaction slippage. Source: Kevin Myles/X

The discussion also raised an argument about the relationship between XRP’s market price and its payment efficiency. Higher XRP prices can support greater liquidity and potentially reduce slippage costs when large transactions are executed.

This argument reflects an important aspect of XRP’s intended use within the Ripple ecosystem. The digital asset is designed to facilitate value transfers, with on-demand liquidity allowing financial institutions and payment providers to move funds without maintaining pre-funded accounts in multiple currencies.

However, potential utility does not eliminate investment risk. XRP remains a publicly traded digital asset whose market price can fluctuate considerably, regardless of its underlying payment applications.

The exchange highlights two different ways of evaluating the cryptocurrency. Supporters often focus on its potential role in financial infrastructure, while investors must also consider volatility, liquidity conditions, market demand, and portfolio concentration.

Schwartz’s decision illustrates that distinction. Even someone closely associated with XRP’s development can choose to limit personal exposure despite remaining involved with Ripple.

Schwartz’s disclosure comes as XRP struggles to recover from a prolonged decline. As of November 12, 2026, XRP/USD is trading near $1.05, with recent sessions largely confined to a narrow range between approximately $1.04 and $1.08.

The cryptocurrency has lost roughly 13% to 20% over the past week, depending on the reference point, while its monthly decline stands near 23% to 25%. XRP is also down more than 55% compared with levels around $2.39 a year earlier.

Its market capitalization currently stands near $66 billion to $67 billion, with approximately 63.5 billion tokens in circulation. Daily trading volume remains substantial at around $1.5 billion, indicating continued market activity despite the downward price trend.

The broader technical picture remains bearish. Aggregated daily indicators lean toward Sell, with moving averages showing particularly strong downward momentum. Shorter timeframes, including the hourly and four-hour charts, also indicate continued selling pressure.

These market conditions provide additional context for the discussion surrounding Schwartz’s disclosure. However, there is no direct evidence that his personal decision to sell cryptocurrency is connected to XRP’s recent price decline.

XRP’s daily moving averages indicate that the prevailing downtrend remains intact. The token is trading below several important averages, suggesting that sellers continue to control the broader market structure.

The 10-day simple moving average (SMA) is positioned around $1.15–$1.17, while the 20-day SMA sits near $1.21–$1.23. The 50-day SMA is approximately $1.34–$1.35.

XRP price chart. Source: Brave New Coin

Longer-term moving averages also remain above the current price. This positioning reinforces the bearish outlook and indicates that XRP would need a sustained recovery to begin reversing its downward trend.

Momentum indicators, however, present a different picture.

The Relative Strength Index (RSI) is hovering around 23.4–23.7 on the daily chart, placing XRP deep in oversold territory. The Stochastic %K is also near 6–7, while the Williams Percent Range is around -94.

These readings suggest that selling pressure has become particularly intense. Historically, deeply oversold conditions can precede short-term relief rallies as bearish momentum begins to weaken.

Nevertheless, oversold conditions do not guarantee an immediate recovery. The Moving Average Convergence Divergence (MACD) remains negative, while other momentum indicators continue to reflect weakness.

The Average Directional Index (ADX), around 24–25, also suggests a moderately established trend, with directional indicators favoring the downside.

The $1.03–$1.05 region represents an important immediate support area. XRP has recently traded around this zone, making it a key level to watch during the ongoing correction.

A sustained break below this support could expose the psychological $1.00 level, potentially opening the door to further losses if selling pressure accelerates.

On the upside, the first resistance cluster lies between $1.07 and $1.09. A recovery above this region could bring the $1.12–$1.15 range into focus.

However, a stronger reversal would require XRP to reclaim its shorter-term moving averages and establish sustained buying pressure.

For now, the technical structure remains bearish despite the possibility of a temporary bounce from oversold conditions.

Schwartz’s decision to reduce his XRP holdings raises questions about how even prominent figures in the cryptocurrency industry approach personal investment risk. His sales are particularly notable given his role in creating the XRP Ledger and his continued financial connection to Ripple.

However, interpreting the disclosure as a bearish signal for XRP would go beyond what he has actually stated. Schwartz has attributed his decisions to extreme risk aversion and his existing exposure to Ripple stock, not to a loss of confidence in the cryptocurrency’s underlying technology.

The community debate also highlights the difference between XRP’s potential utility and its performance as an investment. Greater adoption of cross-border payment infrastructure could support demand for the asset, but it does not guarantee price appreciation or protect holders from market volatility.

Meanwhile, XRP’s technical indicators point to continued weakness, although deeply oversold readings leave room for a short-term recovery.

Ultimately, Schwartz’s disclosure offers a rare look into how one of XRP’s key architects manages his personal wealth. Whether investors view it as transparency or a reason to reassess their own exposure, his explanation remains clear: the sell-off reflects his personal tolerance for risk rather than an explicit warning about XRP’s future.