What to Know:
- XRP is currently trading down, facing its sixth consecutive day of declines.
- On-chain data indicates a major XRP short position has been opened, coinciding with increased whale activity.
- Despite the price drop, XRP is experiencing heightened whale activity, possibly influenced by the launch of the Canary XRP ETF.
XRP is currently experiencing a downturn, mirroring a broader trend among top cryptocurrencies. Over the last 24 hours, XRP has decreased by 1.34%, settling at $2.22, marking a six-day slide from its November 11 high of $2.56. This drop has led to the loss of a vital weekly support level, previously maintained since November 2024.
On-chain data reveals that a significant XRP short position has been initiated, adding downward pressure. A trader associated with Roobet and Stake has opened a 20x leveraged short position on XRP, totaling 12.34 million XRP, valued at approximately $27.4 million. This move aligns with increased whale activity, as data indicates that whales have sold nearly 200 million XRP in the past 48 hours, contributing to the recent price decline.
Despite the bearish sentiment reflected in the price and short positions, XRP is witnessing a surge in whale activity. Crypto analyst Ali notes that XRP recorded 716 whale transactions, each exceeding $1 million, marking a four-month high. Blockchain data also reveals two substantial transactions of 45 million XRP each, worth over $101 million, transferred between unknown wallets.
The increased whale activity may be linked to the successful launch of the Canary XRP ETF, which achieved $58 million in day-one volume, surpassing all previous ETF launches. The market will likely continue to monitor these large transactions for insights into potential price movements and overall market sentiment. The interplay between short positions, whale activity, and ETF performance suggests a complex dynamic influencing XRP’s immediate trajectory.
As traders and investors navigate the current market conditions, it remains crucial to monitor on-chain data and regulatory developments. The confluence of factors, including short positions and increased whale activity, underscores the importance of staying informed and making well-considered decisions in the evolving landscape of XRP and the broader cryptocurrency market.
Source: Original article
