XRP News Today: Whale opens $16.6M XRP leveraged position at $3.20 amid 50% liquidation risk

A previously inactive wallet has initiated a $16.62 million leveraged long position on XRP at approximately $3.20 per token, utilizing 2x isolated leverage on the Hyperliquid platform. The whale wallet executed three consecutive orders at $3.2029, $3.2051, and $3.2061, acquiring over 5.17 million XRP tokens. This move reflects a significant bullish stance in the cryptocurrency market amid ongoing volatility [1]. The position is accompanied by a leveraged SOL holding, with combined unrealized profits exceeding $96,000, though funding costs have already surpassed $21,500 [1].

The whale’s strategy is characterized by high risk, as the position faces liquidation if XRP’s price falls to around $1.64—a 50% decline from the entry price. COINOTAG analysis highlights this threshold as a critical indicator of the trade’s vulnerability [1]. Despite the risk, the wallet’s actions suggest confidence in XRP’s near-term performance, particularly as the token’s price has stabilized just above $3.21, aligning closely with the whale’s average entry point [1].

Market dynamics are being influenced by the whale’s calculated execution method. By placing limit orders within a narrow price range ($3.2029–$3.2061) before transitioning to market orders, the wallet aims to capitalize on potential price fluctuations. XRP’s current position near the midpoint of its Bollinger Bands suggests room for upward momentum, provided the stabilization persists [1]. However, the leveraged approach amplifies exposure to market downturns, with liquidation risks underscoring the precarious balance between potential gains and losses [1].

For traders and investors, the whale’s actions signal renewed institutional or high-net-worth interest in XRP. The proximity of XRP’s price to the whale’s average entry price ($3.20) could reinforce $3.20 as a key support level. If the token holds above this threshold, the position remains profitable, potentially boosting broader market sentiment [1]. Conversely, a sharp decline toward $1.64 would trigger liquidation, which could exacerbate downward pressure on XRP’s price.

The whale’s strategy also highlights the trade-offs inherent in leveraged positions. While unrealized profits across XRP and SOL holdings are substantial, ongoing funding costs are eroding net gains. This dynamic underscores the importance of risk management in volatile markets, where even large positions can face rapid devaluation [1].

The move has generated cautious optimism among market analysts, who note that the whale’s confidence could influence broader market trends. However, COINOTAG cautions that the proximity to the liquidation price necessitates careful monitoring of price action, particularly around critical support levels [1].

Source: [1] [New Whale Wallet Opens $16.6M XRP Position With Leverage Amid Market Uncertainty] [https://en.coinotag.com/new-whale-wallet-opens-16-6m-xrp-position-with-leverage-amid-market-uncertainty/]