XRP's Record Long Bet Sparks Concerns of Impending Downside

XRP's recent price action has raised concerns among analysts, who point to a potentially risky long bet on the asset. According to Bitget, over $2.16 billion in fresh long positions have been opened recently, fueling frenzied speculation and making XRP highly vulnerable to a massive long liquidity sweep.

This is particularly concerning given XRP's weak technical performance, having fallen more than 6% this month and failing to reclaim gains from July. In contrast, Ethereum has gained a solid 1.7% this month, indicating that institutional flows are favoring ETH over XRP.

The chart below illustrates the significant long position buildup in XRP, which could quickly turn into a short-covering squeeze if bulls fail to reclaim $1. This would raise questions about Ripple's potential for a break below $0.98.