Well-known crypto trader Qwatio has once again faced major losses after a leveraged short bet against XRP went against him. Data from Lookonchain shows that his cumulative losses on XRP and Bitcoin trades have now surpassed $3.6 million, following the most recent liquidation of part of his XRP position.
Qwatio originally entered a short trade involving 6.17 million XRP, valued at around $17.6 million, with 20× leverage. His entry price was $2.8519, and the position was set to be liquidated if XRP reached $2.9155. He was essentially wagering on a decline in XRP’s price below his entry point.
Instead, XRP climbed to $2.92 during the previous trading session, surpassing its liquidation threshold. This move partially closed his position at $2.9154, resulting in a realized loss of approximately $83,223.
Remaining Exposure and Unrealized Losses
Although part of his position was liquidated, Qwatio still holds a significant exposure of about 4.98 million XRP, worth $14.34 million at current prices. The open position has a liquidation level at $2.932 and is already showing an unrealized loss of roughly $145,000. If XRP approaches this liquidation price, the trader could face much larger losses.
This setback is not an isolated event. Before this liquidation, Qwatio had already accumulated more than $3.4 million in losses from earlier short trades on XRP and Bitcoin. Adding the new $83,223 realized loss brings his total losses across these trades to over $3.6 million.
XRP Price Action and Market Impact
At the time of writing, XRP has retreated slightly from its recent peak of $2.92, trading near $2.82. The token has declined 0.42% over the last 24 hours but remains modestly higher on a weekly and monthly basis, up 0.35% and 1.51%, respectively.
Leveraged trading activity around XRP has been significant. In the past day alone, more than $7 million in positions have been liquidated. Of this amount, $5.3 million came from long traders, while $2.02 million came from shorts.
Potential Liquidation Scenarios
Market data suggests that XRP approaching $2.93, the same level tied to Qwatio’s liquidation threshold, could trigger an additional $41.39 million in short liquidations across the market. On the other hand, if the price retraces to $2.80, an estimated $86 million in long positions could be wiped out.
Compared to the overall crypto market, XRP’s $7.2 million in daily liquidations represents a smaller share. Across the broader market, liquidations have totaled approximately $338 million in the past 24 hours, with $158.46 million from long positions and $179 million from shorts.
Qwatio’s situation highlights the risks of highly leveraged trading in volatile assets such as XRP. With nearly $15 million still tied up in an active short and the token trading close to his liquidation point, the trader’s exposure remains significant.
The broader market also shows elevated liquidation levels, underscoring the hazards faced by both long and short participants during periods of sharp price fluctuations.
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