The XRP market has experienced a significant asset sell-off, pushing its price down to $1.95 before slightly recovering to $2.40. This is due to large-scale sales by major holders and significant liquidations.
Massive XRP Sale by Whales
The crypto market has been volatile in recent days, with XRP surging to $3.13 before facing a sharp decline. This extreme price swing has been linked to large-scale sales by whale investors holding between 10 million and 100 million XRP. According to Santiment, an on-chain analytics firm, these large holders have sold off 130 million XRP in just 24 hours. Crypto analyst Ali Martinez confirmed the liquidation on the social media platform X/Twitter, noting that such a massive dump can create significant selling pressure and increase market uncertainty.
XRP Market Liquidation Wave
Whale activity has not only impacted the spot market but also the derivatives market. Data from Coinglass reveals that XRP’s open interest has dropped by 36.01%, falling to $3.81 billion. This decline indicates that traders are closing positions rather than opening new ones, highlighting an uncertain outlook for XRP. Moreover, a staggering $123.23 million in XRP positions has been liquidated in the past day, with most losses from long positions — investors betting on an XRP price increase faced losses amounting to $98.61 million.
What's Next for XRP?
Moving forward, investors should closely monitor whether whales re-enter the market, the trading volume in derivatives, and key support levels for XRP. If the market starts showing strong buy signals, a fresh bullish trend could emerge. However, given the ongoing uncertainty, caution is advised, and traders should be prepared for further price swings.
The XRP market remains under significant pressure due to whale activity and subsequent liquidations. Investors are advised to keep an eye on further developments and exercise caution amid current uncertainties.
