In a striking move reflecting skepticism about the current trajectory of XRP, a well-known trader has wagered a $27.4 million short position against the cryptocurrency, leveraging a 20x trade amid intensifying market volatility. This high-stakes bet comes in the wake of XRP’s persistent struggles, despite renewed institutional interest including the recent debut of Canary’s XRP ETF.
The bold trade, surfaced by the analytics platform Lookonchain, is just one of several aggressive positions taken by the trader—who also opened 40x and 10x shorts on Bitcoin and ZEC, respectively. These moves coincide with sustained selling pressure on XRP, as significant holders (“whales”) offloaded 200 million tokens in only 48 hours, compounding the downside risk already present in the market.
The technical outlook for XRP remains precarious. Leading analysts, including Ali Martinez, highlight a potential breakdown below the pivotal $2.15 support level, which could see prices tumble to $1.73. Meanwhile, on-chain data from Glassnode reveals that the share of XRP supply in profit has dwindled to 58.5%—the lowest since November 2024—while over 41% of circulation sits at a loss. These metrics paint a picture of a structurally fragile market, where bullish momentum appears muted in the face of mounting headwinds.
Source: @ali_charts on X
Macro-level technical analysis reinforces the likelihood of further volatility. Industry strategist CasiTrades points to downward waves typical of broader corrective cycles, indicating a probable descent to the macro .5 Fibonacci support at $2.03, with risks extending toward $1.65 if XRP fails to break resistance at $2.41. While such moves could seem bearish in the short term, some experts believe they lay the groundwork for the next rally, with speculation around a potential new all-time high for XRP up to $10.
Currently, XRP trades near $2.15, navigating a landscape shaped by institutional expansion, aggressive trading strategies, and heightened selling pressure. Whether these bearish bets signal an impending crash or set the stage for a reversal will be a focal point for fintech investors and crypto enthusiasts alike in the coming weeks.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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