According to BlockBeats, Swyftx's Chief Analyst Pav Hundal highlighted on December 6 that XRP has experienced a nearly 18% decline since reaching its annual peak on December 3. Despite this downturn, traders remain hopeful for a robust price rebound. However, the real threat for highly leveraged XRP long traders lies in the resurgence of Bitcoin's dominance. The potential shift of funds from XRP to Bitcoin could lead to broader liquidations.
Pav Hundal noted that in recent weeks, there has been a rapid influx of retail investors buying large positions, with the current open interest nearing twice the levels seen in 2021. The market appears to have developed a "craving for leveraged long exposure to XRP." Despite the price drop, XRP longs continue to increase their positions, suggesting that the market might be approaching a FOMO (Fear of Missing Out) zone. This situation underscores the precarious balance in the cryptocurrency market, where shifts in investor sentiment and market dynamics can lead to significant volatility and potential risks for traders.
