Whale Liquidation Shakes XRP Market | Short Position Backfires
Edited By
Tomislav Novak
A whale's decision to bet against XRP has led to significant financial losses, as the token surged back to the $3 price level. Operating under extreme leverage on the Hyperliquid platform, this trader—known as qwatio—suffered losses exceeding $650,000 after a major liquidation event.
Short Position Details
The whale's short position on XRP was set at 20x leverage, making it a particularly risky play given the volatility of the cryptocurrency market. Sources confirm that the trader was already familiar with these risks, having faced multiple liquidations before.
Interestingly, qwatio had been liquidated six times within a three-day span in June, resulting in a staggering total loss of $10 million. Such instances illustrate the often perilous nature of trading on margin in the crypto world.
Market Response
As XRP holds its $3 resistance, the battle between bearish and bullish whales intensifies. Retail investors are feeling the pressure, with many panic selling, leading to increasing volatility. One user noted, "We are the resistance Buy and Hold. We will squeeze out all the shorters."
While bearish whales are trying to manipulate prices through massive sell-offs, many retail investors remain steadfast. One comment echoed this sentiment: "Looks like the retail investors stood strong against all the BS!" With XRP now building a stronger support foundation, it seems bearish attempts to push the price down may be futile.
Implications for Investors
The ongoing conflict between whale factions has created a complex market environment:
Panic Selling: Retail investors caught in the crossfire are forced to sell at unfavorable prices.
Bearish Whale Strategies: Manipulative tactics to trigger sell-offs can create false market sentiments.
XRP Resilience: With support at the $3 level, many holders prefer to maintain their positions, resisting further price drops.
"This type of post is what I like to read!" commented one reader, emphasizing the intrigue surrounding market dynamics.
Key Observations
▽ Bearish whales lost out against retail investors this weekend
△ XRP has formed a new support level at $3
※ "Retail investors always get treated disparagingly… but we're here to stay!" - Popular comment
As trading continues, it remains to be seen how this battle unfolds. Will bullish positions continue to dominate, or will bearish whales regain control? The crypto market is anything but predictable.
What Lies Ahead for XRP Traders
With the XRP price firmly holding at $3, the short-term outlook suggests that bullish momentum may prevail, especially given the resilience shown by retail investors. Analysts predict about a 70% chance that XRP will test new highs in the next few weeks if bullish market sentiment continues. However, the lurking presence of bearish whales could spark further volatility, which has a 30% likelihood of prompting another wave of panic selling among retail traders. If XRP can break through the $3 resistance and establish a new support level, expect many traders to shift their strategies towards holding rather than selling, reinforcing upward price movements.
An Unexpected Echo from the Past
This situation mirrors the 1980s cautionary tale of the orange juice futures market, where extreme volatility led to a classic showdown between large short-sellers and passionate small-scale investors. Just like today’s XRP environment, a small but vocal group of retail traders began rallying against the big players, refusing to back down even as prices fluctuated wildly. Their collective stance not only stabilized the market but also transformed investor behavior for years, illustrating that sometimes, in the face of overwhelming odds, the unity of the smaller players can shift the tide dramatically.