A large crypto whale has opened a massive XRP short trade worth over $20 million on Hyperliquid despite the improving market conditions.
Market surveillance resource Lookonchain firstcalled attentionto the trade, which began after the whale created a new wallet and moved $7 million worth of USDC tothe leadingdecentralized exchange (DEX) platform Hyperliquid today.
The move comes at a time when XRP and the broader market have met resistance to the ongoing recovery push.
For context, after collapsing over 13% to a low of $2.06 on Nov.
4, XRP rebounded the next day, gaining 6.27% and extending the uptick, as it hit a high of $2.41 earlier today.
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However, XRP faced resistance atthis$2.41level,withBitcoin alsoseeinga similar roadblockaround$104,187.Now, both tokens have seenconsiderabledeclines,andthe Hyperliquid whale believes the downtrend could continue, opening short positionsforBTC and XRP worth a combined $136.35 million.
Onchain data shows that he opened theXRP position($20.35 million) when XRP changed hands at $2.30, with the BTC position ($116 million) having an entry price of $103,012.Both positions holda20x leverage, with the whale usinga cross-margintechnique to offset losses from any tradewithprofits from the other.
As of press time, he is seeing gains on his XRP position, but losses on the BTC position.
Specifically, with Bitcoin currently changing hands at $103,055, the whale is nursing mild losses of $47,566.
Meanwhile, as XRP trades for $2.28, he is observing a profit of $129,838.
Short XRP Position Appears Safe
Notably, the liquidation price for the XRP position rests at $2.845, nearly a 25% increase.
The last timeXRPsaw this price was on Oct.
9, putting the trade in a relatively safe position unless market conditions flip quickly.Meanwhile, the liquidation price for the BTC positionsits at$107,490,just a4.3%rise.Bitcoin last saw this price as early as three days ago.
Lookonchain found that the individual behind that trade has a knack for gambling, with persistent transfers to gambling platforms such as Stake.
While his BTC trade may be in a critical position,theXRP trade appears safe at the current price.This aligns with recentcommentaries from market analysts,who have suggestedthat XRP could correct further from here before recovering.For instance,Income Sharksclaimed that those who missed the chance to buy XRP below $2 could soon get another opportunity.
Notably, XRP has been a subject of multiple short trades in the past,especiallyduring market uncertainties.In one instance, a trader opened short positionsforXRP and BTCwortha combined$157 million on Sept.
26, only to face partial liquidation three days later.Interestingly,the trader doubled downwith another $17.6 million worth of short XRP position, using 20x leverage.
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