According to data provided by Lookonchain, a prominent trader recently reopened an XRP short position with 20X leverage.
The notional value of the reopened position stands at $17.6 million.
The trader’s current liquidation price is $2.91. Meanwhile, the Ripple-linked token is currently trading at $2.86, meaning that even a minor move could potentially result in liquidation.
The gutsy bet comes after the trader already took a $3.4 million loss with his Bitcoin (BTC) and XRP shorts.
CoinGlass data shows that roughly $3.76 million worth of XRP has been liquidated over the past 24 hours, with short positions accounting for roughly 75% of the wipeout.
Big week for ETFs
The timing of the bet appears to be rather confusing, given that the U.S. Securities and Exchange Commission (SEC) could approve spot ETFs in the near future.
As noted by analyst Nate Geraci, the next few weeks could be "enormous" since SEC deadlines are currently approaching on numerous filings.
The agency is set to make final decisions on XRP ETFs during October. The deadline for Franklin Templeton's proposal is set for Nov. 14.
The likely approval of the XRP ETF is likely to supercharge another rally. However, there is also a possibility that such decisions have already been priced in.
XRP is currently down 22% from the all-time high of $3.66 that was achieved on July 18.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team