CryptoQuant CEO Advises Against Shorting XRP Due to Insider Whale Activity
Recently, XRP has seen an impressive surge in value, shooting up by 380% in just 23 days. Within the past four days alone, the price has spiked by 75%, hitting a peak of $2.87 on December 2nd. This sudden increase seems to be driven by significant buying activity from large investors, known as “whales.”
An expert in on-chain analysis, Ki Young Ju, the CEO of CryptoQuant, pointed out that these whales are mainly operating through the US-based exchange Coinbase. On December 2nd, he highlighted that “Coinbase whales are driving this XRP rally,” noting that Coinbase’s minute-level price premium ranged from 3% to 13% during the surge.
In contrast, the Korean exchange Upbit, which has more XRP investors than Binance, did not show a significant premium, indicating that the buying pressure is primarily coming from the United States.
Ki Young Ju also hinted at the possibility of insider activity affecting the market dynamics, suggesting, “Someone knew something.” He cautioned traders against shorting XRP, stating that it seems risky at the moment. With a $25 billion XRP deposit before the pump, he speculated that this insider whale might have information about something very bullish for XRP, such as spot ETF approval.
Furthermore, he shared a chart showing the retail trading activity for XRP, indicating that it has surpassed the highs of 2021 and is approaching levels last seen in January 2018 when XRP hit its all-time high of $3.92.
By observing the one-year cumulative volume delta (CVD) of taker buy/sell volume, Ki Young Ju noted a historic rebound. Whales are actively participating in the market, showing aggressive behavior in their trading activities.
