Trader Places $27 Million Bet Against XRP Using High Leverage

A notable cryptocurrency trader has initiated a massive $27 million short position on XRP, employing 20x leverage. This strategy coincides with a general downturn in XRP’s value, even after the launch of a new XRP exchange-traded fund (ETF). Additional data reveals that large holders of XRP have sold significant amounts of their tokens recently. Analysts predict potential further declines for XRP, emphasizing key support levels to watch.

Key Takeaways

A trader has shorted $27 million in XRP with 20x leverage.
Short positions on Bitcoin and Zcoin were also established by the trader.
Market conditions are unfavorable for XRP, with predictions of further price drops.
Large XRP holders sold 200 million tokens recently, contributing to selling pressure.
Analysts are observing crucial Fibonacci levels that could indicate future price movements.

Trader bets $27 million against XRP with heavy leverage - 1

Heavy Leverage and Short Positions on XRP

According to data from the blockchain analytics platform Lookonchain, a prominent cryptocurrency trader has taken a significant short position of $27 million against XRP using 20x leverage. Additionally, this trader has opened short positions on Bitcoin and Zcoin (ZEC) with leverage ratios of 40x and 10x, respectively. This strategy comes as XRP's price continues to decline, despite the recent launch of Canary Capital's XRP exchange-traded fund (ETF).

Concerns Over XRP’s Future

Crypto analyst Ali Martinez has cautioned that XRP could fall below a critical psychological support level if current market trends continue. The digital asset has experienced increased selling pressure in recent trading sessions, raising concerns about the overall health of the cryptocurrency market.

Whale Activity: A Sell-off of 200 Million XRP

Recent data from Santiment indicates that major holders of XRP, often referred to as “whales,” have offloaded approximately 200 million coins within a 48-hour timeframe. These whales control between one million and ten million XRP tokens. Furthermore, Glassnode, an on-chain analytics firm, reported a drop in the percentage of XRP supply currently in profit to 58.5%, marking its lowest level since November 2024. This decline is significant as about 41.5% of XRP’s total supply, which equates to around 26.5 billion tokens, is now trading at a loss while the token had previously sustained higher prices.

Pricing Predictions and Technical Analysis

Analyst CasiTrades has projected that XRP might decrease to the macro 0.5 Fibonacci support level, aligning with Wave 2 corrective patterns from Elliott Wave theory. He highlighted that a strong breakthrough above the macro 0.382 level would negate this bearish outlook. Furthermore, CasiTrades pointed out the potential for a drop to the 0.618 Fibonacci level, which is a common target for Wave 2 corrections. However, he indicated that such a movement could set the stage for a surge to new all-time highs, though no specific timeline was included.

Market Headwinds for XRP

Recent market data reflects a decline in XRP's price over the last 24 hours, even as institutional interest in the asset has grown. This decline comes amidst pending regulatory approvals for additional XRP ETF applications, suggesting that the current market conditions are creating significant headwinds for the cryptocurrency despite positive institutional sentiment.