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

Most cryptocurrencies, especially in the top 100, are trading down early Sunday session, including XRP.

At the time of writing, XRP was down 1.34% in the last 24 hours to $2.22. XRP is entering its sixth day of drop from the Nov. 11 high of $2.56 to reach a low of $2.18 early Sunday.

According to TradingView data, XRP closed the week down 5.97%, marking three straight weeks of drop. The drop has caused XRP to lose a crucial weekly support (the weekly MA 50 now at $2.543), which had held up its price since it started rising in November 2024.

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

According to Lookonchain, a crypto trader linked to Roobet and Stake was 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, whales sold nearly 200 million XRP in the last 48 hours, contributing to the price drop.

XRP whale activity surges

XRP is seeing increased whale activity following the successful launch of the Canary XRP ETF, which recorded $58 million in day-one volume, the most of any ETF launch so far.

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 over $101 million, moved between unknown wallets.