A popular trader has opened a new $17.6 million short position on XRP, despite facing partial liquidation on XRP and Bitcoin during the recent rebound.
After several days in the red, the broader crypto market showed signs of recovery on Sunday, with XRP seeing slight gains. Over the past 24 hours, the price of XRP has increased by 2.69% and surpassed the $2.80 mark.
As the recent surge lifted sentiment across the broader XRP community, it dealt a significant blow to a prominent trader, known by the pseudonym “Falllling.”
$3.4M Loss on XRP and BTC Shorts
According to Lookonchain, the trader faced a partial liquidation due to the rally, forcing them to close their short positions on Bitcoin and XRP and incur losses of about $3.4 million.
For context, the trader had opened the short positions last week, which included a 1,366.67 BTC bet ($150 million) at 40x leverage and a 2.78 million XRP position ($7.7 million) at 20x leverage. The liquidation levels were set at $110,280 for Bitcoin and $3.0665 for XRP. Amid the recent rally, the trader closed both positions, resulting in a loss of $3.4 million.
Trader Doubles Down
Despite the setback, the trader doubled down on their short bet, reopening another 20x leveraged short position on 6.17 million XRP worth at $17.6 million.
This new XRP short position carries a liquidation target of $2.9155, which is slightly above the asset’s current price of $2.85. According to the data, the position is already incurring losses of approximately $34,000.
The aggressive strategy underscores the high-risk nature of leverage trading. If the price of XRP rallies to $2.9155, that would wipe out the entire position, while a pullback below the entry level could deliver massive gains.
Daily Liquidation Hits $348M Amid Latest Rally
Meanwhile, the latest relief rally in the crypto market triggered liquidations worth $348.51 million in the past 24 hours. Short positions made up the bulk at $280.82 million, while longs accounted for $87.69 million.
Of this, XRP contributed about $2.81 million to the short liquidations, whereas Bitcoin led the pack with $47.26 million. Notably, if XRP climbs to around $2.916, just above Falllling’s liquidation target of $2.9155, an estimated $43.92 million in short positions would be wiped out.
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