A prominent cryptocurrency trader has opened a $27 million short position in 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, and nearly 42% of the supply is now trading at a loss.
- Analysts see possible declines towards key Fibonacci support levels, but point to a possible long-term recovery with ETF interest.
The trader has also established short positions in Bitcoin and Zcoin (ZEC) with 40x and 10x leverage respectively, Lookonchain reported. The moves come as XRP continues to fall despite the recent launch of Canary Capital’s XRP exchange-traded fund.
Crypto analyst Ali Martinez stated that XRP (XRP) could fall below a key psychological support level if current market conditions persist. The digital asset has faced selling pressure in recent sessions, with concerns growing about broader weakness in the cryptocurrency market.
Large holders release 200 million XRP tokens
Data from Santiment indicates that large holders, or “whales,” who control between one million and ten million XRP tokens sold approximately 200 million coins in a 48-hour period, according to the analytics firm.
glass nodean on-chain analytics platform, reported that the XRP supply share of profits has decreased to 58.5 percent, the lowest level since November 2024. The firm noted that approximately 41.5 percent of the XRP supply, or approximately 26.5 billion tokens, is currently trading at a loss even though prices remain elevated from previous levels.
CasiTrades Crypto Analyst projected that XRP may decline to the 0.5 Fibonacci macro 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 0.382 macro level would invalidate the bearish scenario.
CasiTrades also pointed out the possibility of a drop 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, although he did not provide a timetable.
XRP has refused in the last 24 hours, according to market data. The token has faced headwinds despite growing institutional interest, with additional XRP ETF applications pending regulatory approval.
