Trader Weighs XRP “Wash Trade” Tactic As He Sits 75% In Cash

Speaking informally from an outdoor setting, the analyst walked viewers through his prior XRP strategy and the dilemma he faces now, with XRP well off its highs and broader crypto sentiment still weak. His framing matters for investors trying to balance fear of missing the next rally with the risk of buying too early.

The analyst first began flagging XRP to his audience when it traded around $0.18, telling viewers he would accumulate between roughly $0.18 and $0.60 and then stop buying. He says his dollar-cost average landed in “the thirty-something cents” range before he drew a line under new purchases.

That tranche, he explains, was his active trading stack, separate from a smaller long-term holding in cold storage that he says amounted to about 10% of his trading amount. As XRP rallied into the last bull market, he began exiting around $2.20–$2.30, ultimately selling his entire trading allocation at an average price of about $2.40.

He notes that XRP later spiked above $3.00 before collapsing, leaving late buyers “bag holders.” By his calculation, the realized gains on that $0.18–$0.60 accumulation and $2.40 exit were “life-changing” relative to traditional markets and even silver, which he also trades.

Today, Economic News Ninja says he is roughly 75% in cash, having recently taken profits on a short-term XRP trade that followed a sharp daily drop of about 18% in XRP and 11% in bitcoin. That rebound trade, closed the next day, produced what he describes as a roughly 28% gain and a prompt call from his accountant about tax planning.

Despite believing XRP is likely to fall further — potentially under $1 — he is now considering buying a substantial XRP position anyway, specifically to hedge against the scenario in which he is wrong and the market has already bottomed. If prices rise on regulatory clarity or a broader crypto recovery, he doesn’t want to be left on the sidelines.

The key twist: if he buys now and XRP later slides meaningfully, he says he may execute a wash trade, selling the XRP at a loss and immediately rebuying it. Because current U.S. wash-sale rules have not yet been formally extended to crypto, he argues that investors can still realize capital losses while re-entering the same asset without waiting 30 days.

Moreover, Economic News Ninja stresses that XRP’s liquidity makes this feasible even for “seven or eight digits” of capital without moving the market much, assuming the drop is macro-driven and not a project-specific collapse.

The strategy he outlines is less about calling the exact bottom and more about managing probabilities: acting even when only “80–85% sure” of a directional move, while planning for the 15–20% of cases where the thesis fails.

For active traders, his thinking highlights the growing use of tax-aware tactics — especially in volatile names like XRP — as part of overall risk management.

For the broader market, this kind of approach suggests that some sidelined capital may re-enter major altcoins earlier than pure price-based models would predict, driven not just by conviction on direction, but by optionality around tax treatment and the fear of missing a sudden regulatory or sentiment shift.

Investors considering similar tactics will need to watch both evolving U.S. tax guidance on digital assets and the timing of any legislative “clarity” around crypto, which the analyst sees as a potential catalyst for a sharp XRP and bitcoin rebound.

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