XRP Activity Surges While Whale Opens Leveraged Shorts

As the cryptocurrency market continues to show signs of strength, a notable divergence in sentiment has emerged. On one hand, XRP has seen over 720 million tokens transferred in a single day amid a sustained price rally above $2.5, with rising open interest and steady buying activity suggesting continued bullish momentum. On the other, a large trader has placed aggressive short positions on both XRP and Ethereum, deploying millions in capital on decentralized platforms with high leverage.

XRP Sees Over 720 Million Tokens Moved as Bullish Momentum Builds

Ripple’s XRP has witnessed a massive surge in on-chain transaction volume, with more than 720 million XRP tokens transferred across multiple accounts in just 24 hours, according to fresh data from CryptoQuant. This transfer spike, which translates to over $1.8 billion in value based on May 13 prices, signals a significant shift in sentiment across the crypto market as XRP positions itself as a leader in the ongoing bull run.

The transfer activity is the latest in a series of bullish developments for XRP, which has broken through the psychologically $2 barrier and now appears to be solidifying its position above $2.5. 

That’s as the broader crypto market has recently roared back to life, and XRP is among the clear beneficiaries. Renewed institutional interest, favorable macroeconomic indicators, and rising retail confidence have helped fuel significant momentum across the digital asset space. 

XRP’s price action has been particularly notable given its historical volatility and protracted legal battles with the US Securities and Exchange Commission (SEC), which have clouded its performance over the past few years.

Now, with many regulatory headwinds fading and utility-driven narratives gaining steam, XRP appears to be capitalizing on the broader resurgence. The current volume of token transfers—among the highest recorded in months—suggests whales and large holders are reorganizing portfolios, potentially in preparation for further rallies.

Resistance in Formation

Although XRP’s upward climb has momentarily slowed, technical analysts point to the token forming a new resistance level above $2.5, marking a potential setup for an even stronger bullish continuation. Historically, such large-scale token movements have preceded major price breakouts, especially when the overall market sentiment remains positive.

Daily chart for XRP/USDT (Source: TradingView)

This hypothesis is further bolstered by XRP’s ability to maintain its gains despite minor pullbacks in the overall crypto market. Analysts note that the market’s resilience to sell pressure near the $2.5 mark signals a strengthening support base, which may soon turn into the launchpad for the next leg up.

A Sustainable Rally?

While skeptics point to the minor daily decline as a sign of exhaustion, most technical and on-chain indicators continue to paint a bullish picture for XRP. With transfer volumes at a multi-month high and the price hovering resiliently above key support zones, XRP’s trajectory appears firmly pointed upward—provided broader market conditions remain supportive.

Still, caution remains essential. Rapid price surges can lead to increased volatility, and traders are advised to watch for potential retracements or resistance rejections. However, as of now, XRP continues to signal strength both in terms of price and market structure.

Whether the recent momentum will be enough to push XRP to the $3 mark—and beyond—remains to be seen. But one thing is clear: XRP is once again capturing the attention of both retail traders and institutional players, reigniting optimism that its long-awaited breakout may finally be materializing.

Whale Goes Short on XRP and ETH With Millions in Leverage as Liquidations Surge and Market Speculation Grows

Meanwhile, a cryptocurrency whale has opened highly leveraged short positions against XRP and Ethereum (ETH), two of the most-watched altcoins during the current bull run. According to data from blockchain analytics platform Onchain Lens, the trader deposited $4.4 million into decentralized derivatives platform HyperLiquid to initiate an 8x short position on XRP, the fourth-largest cryptocurrency by market capitalization.

Opening such large, leveraged short positions signals the whale’s conviction, or gamble, that both XRP and ETH are nearing local tops and are due for corrections. With 8x leverage on XRP, the $4.4 million deposit enables a $35.2 million short position. The ETH short is even more precarious, as the 20x leverage allows the trader to control a vastly larger notional value, with substantially less margin for error.

These moves are significant not just due to their size but also because they were placed on a decentralized platform, where transparency and real-time visibility into large trader behavior can influence market sentiment more directly than on traditional centralized exchanges.

According to insights from CryptoQuant, Tuesday saw a notable wave of selling activity on Binance for XRP. However, analysts observed that the selling pressure was being absorbed by buyers, suggesting resilience in the market and a potential setup for an upside breakout.

Despite this strength, the short positions taken on HyperLiquid could serve as a warning sign that at least one major player believes a reversal, or at minimum, a strong pullback, is imminent.

$8 Million in Liquidations Signal Rising Risk

Adding fuel to the fire, data from CoinGlass shows that $8 million in XRP positions were liquidated in 24 hours, with $5.8 million of that coming from long positions. This suggests that some traders who were chasing the bullish momentum may have been caught off-guard by sudden pullbacks or volatility spikes.

The whale’s bet against ETH is particularly striking given Ethereum’s performance this past week. As ETH soared 40%, many traders and analysts began revising their targets upward, anticipating continued bullish momentum. To short such a fast-moving asset at 20x leverage is a high-stakes gamble that could result in significant losses if the market moves even slightly against the position.

Given ETH’s recent correlation with broader market sentiment, any rapid move downward could also have spillover effects on other altcoins, potentially validating the bearish outlook if the short proves successful.

Battle of the Bulls and Bears

The current scenario paints a picture of a market at war: on one side are the bulls, emboldened by strong price action, bullish on-chain metrics, and high open interest; on the other, are large players making aggressive bearish bets using decentralized tools, likely in anticipation of an overheated market correction.

While short-term price action has shown strength, especially with XRP’s ability to hold above $2.50, the market is now walking a tightrope. Traders will be watching key support levels and liquidation zones closely as leveraged bets could trigger cascading liquidations in either direction.

The whale’s highly leveraged short positions have introduced an air of suspense to what was, until recently, a euphoric rally. With XRP and ETH sitting at multi-week highs and leveraged interest climbing, the market is poised for either a continuation of the bull run or a sharp correction that validates bearish bets.

In the short term, XRP must hold above $2.50 and ETH must maintain support above its breakout zones to avoid giving strength to the short positions. However, if buyers continue absorbing sell pressure as they did earlier this week, the whale’s positions could be squeezed—leading to a potential short-covering rally that sends prices even higher.