XRP Plunges 67% from All-Time High...Retail Long Positions Face Chain Liquidation Emergency

▲ XRP, Bear Market / AI Generated Image

XRP has fallen 67% from its all-time high. The concentration of long positions and selling by large whales are increasing the downward pressure.

According to crypto media outlet BeInCrypto on July 29 (local time), XRP's decline was the largest among major cryptocurrencies. Bitcoin (BTC) is about 48% below its all-time high, Ethereum (ETH) is 60% lower, and BNB is 56% lower. XRP's recent 90-day return was negative 21%, making it the worst performer among the four assets. 355 days have passed since it recorded its all-time high, and it lagged behind the average return of major competing assets by more than 12 percentage points.

In the derivatives market, bullish bets from top investors and retail investors converged simultaneously. The net long bias index for top investors was recorded as +29, and for retail investors as +27. The difference between the two groups was only +2, classifying the market as an overcrowded long state where most market participants bet in the same direction.

When buy positions are concentrated on one side, new demand to push up prices decreases. The possibility of forced liquidation of leveraged long positions triggering a chain of sales when prices fall also increases. XRP investors lost $700 million in one chain liquidation during this up and down cycle. Bitcoin had weaker long position concentration than XRP, with top investors at +2 and retail investors at +15.

Whale wallets also reduced their XRP holdings. Santiment data showed that the supply share of wallets holding over 1 billion XRP decreased from 39.4% on April 30 to 38.65%. Although the decrease was 0.75 percentage points, market attention was focused on this 3-month continuous selling trend from large whale wallets moving billions of XRP.

BeInCrypto analyzed that XRP's vulnerable supply and demand structure can only be alleviated if excessive long positions are cleared or large whale buying resumes.

[Key Article Summary]

-XRP fell approximately 67% from its all-time high, recording the largest decline among major cryptocurrencies.

-Bullish bets from top investors and retail investors converged simultaneously, increasing the risk of chain liquidation.

-The supply share of whale wallets holding over 1 billion XRP decreased from 39.4% to 38.65%.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*