On-chain data shows that significant XRP liquidations happened within 24 hours, coinciding with a sharp decline in the token’s value.
XRP’s price has fallen by over 30% today, reaching a low of $1.95 before rebounding slightly. Just days ago, it had climbed to a high of $3.13. At the time of writing, XRP is trading at $2.26, reflecting a modest recovery.
Market analysts have attributed this decline to broader economic factors, including political developments in the United States. However, data also indicates that major XRP holders—often called whales—have played a crucial role in intensifying the price drop.
Whales Reduce Holdings by 130 Million XRP
Santiment’s latest data reveals that XRP whales, specifically those holding between 10 million and 100 million tokens, significantly reduced their positions during the downturn. Ali Martinez, a market analyst, shared data illustrating a steep drop in these holdings, which closely correlated with XRP’s price crash.
Whales have offloaded over 130 million $XRP in the past 24 hours! pic.twitter.com/s43x7Rviba
— Ali (@ali_charts) February 2, 2025
Over the past 24 hours, large investors collectively sold 130 million XRP, potentially as a strategy to mitigate risk or exit positions amid market volatility. The selling pressure from these entities likely contributed to the rapid price decline.
Limited Bullish Momentum in Derivatives Markets
Meanwhile, traders in the derivatives market have shown little interest in driving XRP’s price higher.
According to Coinglass, open interest (OI) in XRP derivatives has dropped by 36.01%, now at $3.81 billion. This suggests that many traders have closed their positions rather than initiating new ones, indicating cautious market sentiment.
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Additionally, XRP options trading activity has slowed. Options trading volume declined by over 21%, while options open interest increased by 7.91%, signaling hesitancy among market participants. The combination of falling open interest and reduced trading activity suggests that investors are taking a more defensive approach rather than positioning for a quick rebound.
High Liquidation Levels Reflect Market Stress
Further data highlights the extent of market turbulence surrounding XRP . Over the past 24 hours, XRP liquidations have surpassed $123 million. Long traders, who had bet on XRP’s price going up, took the biggest losses, with liquidations totaling $98.6 million.
A closer look at liquidation trends over shorter time frames reinforces this trend. In the past 12 hours alone, long liquidations amounted to $71.64 million, significantly outweighing short liquidations. This suggests that traders with leveraged long positions faced substantial losses as prices declined rapidly.
The recent downturn in XRP’s price appears to be driven by external market pressures and significant sell-offs by large holders. With derivatives traders showing limited interest in supporting a price recovery, and liquidation data indicating substantial losses among bullish investors, XRP’s market remains under notable stress.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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