XRP Traders Are Leaning Long by Two to One, and Whales Have Stopped Sending Coins to Exchanges. One Analyst Says $1.38 Gets Tested Before Any Rally.
XRP's long-to-short ratio is 2.32, indicating traders expect price increases, but leveraged positions risk liquidation if prices drop. Whales have reduced exchange inflows, suggesting they are not selling. Bitrue analysts predict XRP may test $1.38 before a potential rebound, with risks from liquidation and inflation data.
How this was made
The 30-second read
Why it matters
A high long-to-short ratio suggests imminent liquidation risk, while low whale inflows reduce immediate sell pressure, creating a tug-of-war scenario.
Market read
XRP's price could be pressured by leveraged long liquidations despite quiet whale activity, with upcoming US inflation data adding macro volatility.
What to watch
ETF inflows and the recent listing of Evernorth (XRPN) may provide additional demand support not captured by on-chain metrics.
Background
The article analyzes on-chain data and exchange flows to assess short-term price risk for XRP.
Ticker impact
Bitrue reports a long-to-short ratio of 2.32 and whale inflows at the lowest level since 2021, indicating a crowded long position and reduced sell pressure from large holders.
likely pressure as forced liquidations could push XRP lower if it falls below $1.38
High long-to-short ratio combined with leveraged positions makes a small dip risky; whale inactivity reduces new supply but does not prevent liquidation cascades.
Market effects
Signals potential short-term volatility in the broader crypto market as leveraged positions unwind.
US crypto traders may see heightened activity ahead of inflation data, influencing spot and derivative flows.
XRP's price movement can affect cross-crypto sentiment, especially for assets with similar leverage exposure.
Counterpoint
If whales remain inactive, the lack of new supply could allow a bounce once the price stabilizes above $1.38.
Key entities
- Research FirmBitrue Research Institute
Provides the long-to-short ratio and whale flow data for XRP.
- Corporate TreasuryEvernorth
Holds XRP as a treasury asset and recently began trading on Nasdaq (ticker XRPN).
