A prominent trader has challenged XRP investors, asking if they are prepared to be “left holding the bag again” as XRP retraces some of its December gains.
Notably, this bearish stance came from Elon Trades, a market analyst who insists that the latest XRP run is over. His recent commentary comes as XRP has dropped by over 17% over the past three days following its spike to the $2.9 resistance level.
XRP Previous Run
For context, XRP faced minimal opposition when it resumed its uptrend on Nov. 26. The altcoin soared from $1.41 to a peak of $2.90 on Dec. 3 in one fell swoop. This seven-year top was the product of six consecutive intraday gains, which saw XRP increase 105%.
While euphoria grew, some market watchers argued that the run was not sustainable, as a healthy rally would typically face certain roadblocks along the way. Interestingly, Bitcoin maximalists predicted an imminent crash, and certain trades like Elon opened short positions.
The Crypto Basic called attention to this trend in a previous report. For instance, Elon confirmed he had opened a $500,000 short position on XRP when the asset traded at $2.7. Midjet, another trader, confirmed shorting XRP at $2.71, while analyst Gordon opened a $250,000 short position at the same price level.
Short XRP Positions in Profit
In today’s XRP price news, XRP is trading much lower than its price when these trades opened; most of the short positions are now in profit. Elon’s latest update confirmed that he had witnessed a profit of over $83K on his short trade, as XRP dropped to the $2.3 region.
Notably, market data shows that the trade was observing a massive 400% gain when XRP dropped to $2.31 earlier today. At press time, XRP’s price has collapsed further, with the bears attempting to breach below the $2.3 support. XRP slumped to $2.16 earlier this morning but has now recovered, currently trading for $2.3031.
Amid the current bearishness, Elon has taunted the XRP community, questioning if they still wish to be left holding the bag as their gains erode away. For context, the market analyst was referencing the previous market cycles, where XRP holders experienced extensive losses.
Following its spike to the all-time high of $3.31 in January 2018, XRP witnessed a massive collapse, dropping to as low as $0.1140 in March 2020. Despite a recovery from this level, XRP failed even to breach $2 during the 2021 bull run, leaving those who bought at the top in 2018 stranded.
Elon believes something similar could occur. However, the prevalent sentiment is bullish. As confirmed by The Crypto Basic today, most analysts believe the ongoing correction is healthy for the market, as it represents the pullback before the second leg up.
Interestingly, market analyst Dom, who spotlighted some massive sell walls for XRP across major exchanges, previously stressed that a pullback to the lower end of $2 was possible.
Many asking for an update, but keep in mind I will only update if something drastic changes
Orders still look the same
We are doing exactly as expected, chop / consolidate to hopefully create a range
Wouldn't be surprised to get a swoop into low $2s pic.twitter.com/J4pf6w0JYc
— Dom (@traderview2) December 4, 2024
However, he argued that this was beneficial for XRP, expecting an imminent rebound. Despite the drop, XRP is still up 17% in December, outperforming Bitcoin, which recently claimed $100,000.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
