On-chain data reveals a significant liquidation by XRP whales amid the sharp price drop in the token over the past 24 hours.
XRP has declined by over 33% today, plunging to a low of $1.95. The token had surged as high as $3.13 only days ago. At the time of writing, XRP is trading at $2.39, marking a slight recovery from the dip.
Meanwhile, analysts have linked the downturn to market-wide factors, including recent developments involving U.S. President Donald Trump. At the same time, the dip coincided with whales massively reducing their XRP holdings.
XRP Whales Dump 130M Tokens
Data from Santiment indicates that large XRP holders, or whales, have offloaded significant amounts of the token during this period. A visual shared by Ali Martinez tracks the activity of whales holding between 10 million and 100 million XRP.
When their holdings dropped sharply, XRP experienced steep price declines. Within 24 hours, whales collectively sold 130 million XRP, suggesting a potential strategy of de-risking or exiting positions amid market uncertainty.
Whales have offloaded over 130 million $XRP in the past 24 hours! pic.twitter.com/s43x7Rviba
— Ali (@ali_charts) February 2, 2025
Limited Bullish Interest
Notably, analysis from Coinglass shows that traders in the derivatives market have not displayed a strong interest in pushing XRP’s price back up.
Today, XRP open interest (OI) fell by 36.01% to $3.81 billion, showing that many traders closed their positions rather than opening new ones. Options trading activity also reflected cautious sentiment, with options volume declining by 21.50%, while options open interest rose by 7.91%.
These indicators suggest a wave of liquidations and position closures, likely linked to the whale sell-off and the recent price drop.
XRP Derivatives Data
Data Highlights XRP Market Stress
Liquidation data further underscores the volatility in XRP’s market. In the past 24 hours, total liquidations in XRP from speculators reached $123.23 million. Notably, those betting on XRP up, the long positions, accounted for the largest share at $98.61 million.
Over a 12-hour period, long liquidations amounted to $71.64 million, significantly outweighing short liquidations. Shorter time frames also saw considerable liquidations, indicating that overleveraged traders faced heavy losses.
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