A well-known trader is placing a massive bet on XRP’s price falling sharply during the current market slump. Despite the recent introduction of Canary’s XRP ETF, the cryptocurrency continues to face challenges, with analyst Ali Martinez warning it might soon dip below the key $2 mark.
Lookonchain, an on-chain analytics platform, reported that this trader has taken a $27.4 million short position on XRP with 20x leverage. They’ve also opened leveraged short positions of $148.5 million on Bitcoin and $20.4 million on ZEC.
XRP’s price remains under pressure, raising fears of further losses, especially as Bitcoin shows signs of entering a bear market. Martinez has indicated that if XRP fails to hold the $2.15 support, it could slide to $1.73.
Institutional interest, including the launch of Canary’s XRP fund and upcoming ETFs, hasn’t eased the selling pressure. Data from Santiment reveals that large holders sold nearly 200 million XRP within 48 hours.
This could be the beginning of a larger sell-off. Glassnode reports that the percentage of XRP supply in profit has dropped to 58.5%, the lowest since November 2024 when the price was around $0.53. Despite XRP trading four times higher now, 41.5% of its supply—about 26.5 billion coins—is at a loss, indicating a market that is top-heavy and structurally weak.
Analyst CasiTrades suggests XRP is likely heading toward the macro Fibonacci support at $2.03. She notes that the current choppy movement aligns with typical corrective patterns and that only a clear break above $2.41 would negate this downward target.
She also considers a drop to $1.65 possible, which is the .618 Fibonacci level, and views such a move as constructive rather than bearish. It could build the momentum needed for a strong rally toward new all-time highs, potentially reaching $10.
Currently, XRP is trading around $2.15, showing a decline over the past day, according to CoinMarketCap.
Frequently Asked Questions
Of course Here is a list of FAQs about a wellknown trader placing a 27 million bet against XRP designed to be clear and helpful for all levels of understanding
Basic Understanding The News
1 What exactly happened
A prominent and wealthy trader has used a financial instrument to place a 27 million bet that the price of the cryptocurrency XRP will fall significantly
2 Who is this trader
While the term wellknown trader is often used it frequently refers to a large hedge fund or an institutional investor using complex trading strategies rather than a single individual like a celebrity investor
3 What does it mean to bet against XRP
Its a trading strategy called short selling In simple terms the trader is borrowing XRP they dont own selling it at the current price and hoping to buy it back later at a much lower price to return it The profit is the difference between the high selling price and the low buying price
4 Why would someone do this
Traders bet against assets when they believe they are overvalued or that bad news will cause the price to drop Its a way to profit from a declining market
Impact and Implications
5 Does this mean XRPs price will definitely crash
Not necessarily While a large bet like this can influence market sentiment and create fear it is not a guarantee The price is determined by the overall marketif more people buy than sell the price can still go up
6 How does this bet affect the average XRP holder
It can create volatility and uncertainty Seeing a large bearish bet might cause some holders to panic and sell which could temporarily push the price down Its a signal to pay closer attention to the market and your investment strategy
7 Is this kind of bet legal
Yes short selling is a legal and common practice in both traditional stock markets and cryptocurrency markets
8 What happens if the trader is wrong
If the price of XRP goes up instead of down the trader will face significant losses They will have to buy back the XRP at a higher price than they sold it for potentially losing their entire 27 million bet or more
Advanced Concepts Strategy