A prominent cryptocurrency trader has opened a $27 million short position on XRP with 20x leverage, according to data from blockchain analytics platform Lookonchain.
Summary
- A prominent trader opened a $27 million short on XRP with 20x leverage and additional shorts on BTC and ZEC.
- Whale holders dumped 200 million XRP as price action weakened, with nearly 42% of supply now trading at a loss.
- Analysts see potential declines toward key Fibonacci support levels but note possible long-term recovery with ETF interest.
The trader has also established short positions on Bitcoin and Zcoin (ZEC) with 40x and 10x leverage respectively, Lookonchain reported. The moves come as XRP continues to decline despite the recent launch of Canary Capital’s XRP exchange-traded fund.
Crypto analyst Ali Martinez stated that XRP (XRP) could drop below a key psychological support level if current market conditions persist. The digital asset has faced selling pressure in recent sessions, with concerns mounting about broader cryptocurrency market weakness.
Large holders release 200m XRP tokens
Data from Santiment indicates that large holders, or “whales,” controlling between one million and ten million XRP tokens sold approximately 200 million coins over a 48-hour period, according to the analytics firm.
Glassnode, an on-chain analytics platform, reported that the share of XRP supply in profit has declined to 58.5 percent, the lowest level since November 2024. The firm noted that approximately 41.5 percent of XRP’s supply, or roughly 26.5 billion tokens, currently trades at a loss despite prices remaining elevated from earlier levels.
Crypto analyst CasiTrades projected that XRP may decline to the macro 0.5 Fibonacci support level, describing the current price action as consistent with Wave 2 corrective patterns in Elliott Wave theory. The analyst stated that a decisive break above the macro 0.382 level would invalidate the downside scenario.
CasiTrades also noted the possibility of a decline to the 0.618 Fibonacci level, stating that Wave 2 corrections commonly reach that technical marker. The analyst added that such a move could precede a subsequent rally to new all-time highs, though no timeline was provided.
XRP has declined over the past 24 hours, according to market data. The token has faced headwinds despite increased institutional interest, with additional XRP ETF applications pending regulatory approval.
