Is XRP Going Down? Huge 20x Short Position Sparks Concerns

Most of them cryptocurrenciesespecially in the top 100, are traded in the first session on Sunday, including XRP.

At the time of writing, XRP was down 1.34% in the last 24 hours to $2.22. XRP enters its sixth day of decline since a November 11 high of $2.56 to reach a low of $2.18 early Sunday.

According to TradingView date, XRP closed the week in 5.97%, marking three straight weeks of drop. The fall caused XRP to lose a crucial weekly support (the weekly MA 50 now at $2,543), which had maintained its price since it started to rise in November 2024.

As traders see a potential reversal in the market, on-chain data reveals a massive XRP short position has been opened.

According to Lookonchaina crypto trader linked to Roobet and Stake has been shorting again, opening massive shorts with maximum leverage on Bitcoin, XRP and Zcash (ZEC) for a total position size of $196 million.

The trader opened a 20x XRP position of 12.34 million XRP worth $27.4 million. The opening of the long position coincides with increased whale activity for XRP. According to Ali, the whales sold almost 200 million XRP in the last 48 hours, contributing to the price drop.

XRP whale activity increases

XRP see the surge in whale activity following the successful launch of the XRP Canary ETF, which recorded $58 million in daily volume, the most of any ETF launch to date.

According to Ali, a crypto analyst, XRP recorded 716 whale transactions, each worth more than $1 million, which is the highest count in four months.

Blockchain data tracker Whale Alert reports two transactions of 45 million XRP each, worth more than $101 million, moved between unknown wallets.