XRP Faces Downward Pressure as Prominent Trader Opens $27 Million Short Position
A well-known cryptocurrency trader has taken a significant short position on XRP, worth $27 million, with 20x leverage, according to data from blockchain analytics platform Lookonchain. This move comes as XRP continues to decline, despite the recent launch of Canary Capital’s XRP exchange-traded fund. The trader also established short positions on Bitcoin and Zcoin (ZEC) with 40x and 10x leverage, respectively.
Market Analysis and Trends
Crypto analyst Ali Martinez explained that XRP could fall below a key psychological support level if current market conditions persist. The digital asset has been under selling pressure in recent sessions, with concerns growing about overall weakness in the cryptocurrency market. Additionally, data from Santiment suggests that large holders, or “whales,” who control between one million and ten million XRP tokens, sold about 200 million coins in 48 hours.
XRP Supply and Price Action
Glassnode, an on-chain analytics platform, reported that XRP supply’s share of profits fell to 58.5 percent, its lowest level since November 2024. The company noted that about 41.5 percent of XRP supply, or about 26.5 billion tokens, are currently trading at a loss, although prices remain elevated from previous levels. Crypto analyst CasiTrades predicted that XRP could fall to the macro Fibonacci support level of 0.5, describing the current price action as consistent with wave 2 corrective patterns in Elliott Wave Theory.
CasiTrades also pointed out the possibility of a decline to the 0.618 Fibonacci level, explaining that wave 2 corrections usually reach this technical mark. The analyst added that such a move could precede a subsequent rally to new all-time highs, although no timeline was provided. According to market data, XRP has declined in the last 24 hours, facing headwinds despite increased institutional interest as additional XRP ETF applications still await regulatory approval.
Conclusion and Outlook
In conclusion, the recent short position opened by the prominent trader, combined with the selling pressure from large holders, has contributed to the downward trend in XRP’s price. While analysts predict possible declines towards key Fibonacci support levels, they also point to a possible long-term recovery with ETF interest. For more information on this developing story, please visit https://crypto.news/trader-bets-27-million-against-xrp-with-heavy-leverage/
