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 the price action weakened, with nearly 42% of the supply now trading at a loss.
- Analysts see potential declines toward key Fibonacci support levels, but point to a possible long-term recovery with ETF yields.
The trader also took short positions on Bitcoin and Zcoin (ZEC) with leverage of 40x and 10x respectively, Lookonchain reported. The moves come as XRP continues to decline despite the recent launch of Canary Capital’s exchange-traded XRP 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 mounting over broader weakness in the cryptocurrency market.
Major holders release 200 million XRP tokens
Data from Santiment shows that large holders, or “whales,” who control between one million and 10 million XRP tokens, sold around 200 million coins in a 48-hour period, the analytics firm said.
Glass junctionan on-chain analytics platform, reported that the XRP supply’s share of profits has fallen to 58.5 percent, the lowest level since November 2024. The company noted that approximately 41.5 percent of the
Crypto analyst CasiTrades projected that XRP may fall to the macro 0.5 Fibonacci support level, which describes the current price action as consistent with Wave 2 correction patterns in Elliott Wave theory. The analyst stated that a decisive break above the macro level of 0.382 would negate the downside scenario.
CasiTrades also noted the possibility of a decline to the Fibonacci level of 0.618, stating that Wave 2 corrections usually reach that technical marker. The analyst added that such a move could precede a subsequent rally to new record highs, although no timeline was given.
According to market data, XRP has fallen over the past 24 hours. The token has faced headwinds despite increased institutional interest, with additional XRP ETF applications pending regulatory approval.
