A cryptocurrency trader turned $2,500 into $200,000 by leveraging 500x on XRP futures just before a 26% price gain following the NYDFS approval for Ripple stablecoin RLUSD.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
A cryptocurrency trader turned $2,500 into a staggering $200,000 yesterday by betting on XRP futures just before the 26% XRP price XRP $3.18 24h volatility: 0.6% Market cap: $182.87 B Vol. 24h: $21.14 B gain on Tuesday, December 10, Reportedly, the trader took a huge risk with 500x leverage on crypto exchange Rollbit.
On Tuesday, parent firm Ripple Labs announced that the company has secured regulatory approval from the New York State Department of Financial Services (NYDFS) to launch the much-awaited Ripple stablecoin RLUSD. This triggered a strong XRP price rally shooting from the lows of $1.92 to the highs of $2.40.
When the XRP price dropped to $1.9025 yesterday, a savvy crypto trader initiated a position worth $2,560, which would trigger liquidation if the price dropped below $1.9004. However, Ripple’s RLUSD approval news came just at the right time leading to a strong surge in XRP. The trader later gradually closed the position between $2.13 and $2.29 XRP price, thereby yielding a remarkable realized return of around 7,500%.
As of press time, the XRP price is trading at $2.36 with its market cap soaring to $134 billion while daily trading volume surged 14% to more than $24.25 billion. In the last 24 hours, the XRP open interest has surged 5% to more than $3.26 billion. Also, the 24-hour liquidations have shot up to $43 million, per the Coinglass data.
It’s important to note that trading with 500x leverage is highly risky, as the volatile nature of cryptocurrencies often leads to liquidation. Rollbit’s XRP market, which has seen $186 million in volume over the past 24 hours, offers up to 1000x leverage.
The approval of Ripple stablecoin RLUSD by NYDFS paves the way for it to go live on exchanges and other platforms. As a result, Ripple can pitch direct competition to existing players like Tether USDT $1.00 24h volatility: 0.0% Market cap: $138.25 B Vol. 24h: $192.36 B and Circle USDC $1.00 24h volatility: 0.0% Market cap: $48.10 B Vol. 24h: $44.93 B . RLUSD is currently undergoing beta testing on both the Ethereum network and the XRP Ledger (XRPL), with a circulating supply of $52 million.
Investors are turning extremely bullish for XRP price rally ahead expecting targets of $15 per the technical chart patterns. From a technical standpoint, XRP’s price action has created a bull flag pattern on the daily chart.
The pattern is expected to resolve when the price breaks above the flag’s upper trendline at $2.58, potentially rising by the same amount as the previous uptrend. This sets the upper target for XRP at $15, which would mark new all-time highs for the fourth-ranked cryptocurrency.
Courtesy: TradingView
On the other hand, XRP whales have chipped in at the right time buying the dips. Crypto analyst Ali Martinez has revealed that during the recent market dip, whale investors acquired over 100 million XRP tokens.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
