Elite trader Doctor Profit has explained why he sold XRP and other altcoins in his portfolio.
He believes the market has become too risky because of heavy leverage and high trading activity. In a post on X, he said altcoin trading volume is now four times higher than Bitcoin’s. He sees this as a sign that speculation has become excessive.
Doctor Profit said he sold his XRP and is waiting for a better time to buy again. He also sold ONDO with a 73% profit and closed his HBAR position with a smaller gain.
Now, he said he does not plan to buy altcoins because he believes the market is overheated and could see a correction.
Why Doctor Profit Sold XRP and Other Altcoins
In other words, Doctor Profit sold XRP and other altcoins because he believes the market has become too risky. He is also concerned about high leverage. When traders use too much borrowed money, they can face large losses or forced selling if prices fall.
Meanwhile, his decision to sell XRP does not mean he is done with it. He said he is waiting for a better price to buy again if market conditions improve.
He is choosing to take profits and reduce risk while expecting a possible market correction.
Betting on Bitcoin Falling to $79,000
Doctor Profit said he has opened a short position on Bitcoin at $86,200, with additional short orders between $86,500 and $89,500. He expects Bitcoin to fall toward $79,000. He said this matches his earlier prediction that Bitcoin would rise to around $88,000 before a correction.
While his current trades show that he expects Bitcoin to drop in the short term, he is still holding his long-term Bitcoin investments, as well as Ethereum (ETH), Circle (CRCL), and Coinbase (COIN), which he calls the “Galactic Three.”
He said these long-term holdings are separate from his short-term trades in altcoins.
Does Market Data Support the View?
While Doctor Profit’s decision to sell XRP suggests some traders worry the altcoin market may be due for a correction, his move does not mean XRP will definitely fall.
However, market data support this view to some extent. The Crypto Fear & Greed Index is currently at 70, down from 82 on August 27. Still, that is a significant improvement from the extremely low reading of 5 in February.
The Altcoin Season Index is also at 55/100, below the 75 level usually seen as the start of a broad altcoin season.
However, the index has risen from 40 in August, showing that altcoins have gained strength. Several tokens have also posted significant price increases recently.
For example, Quant (QNT) is up more than 244% in three months, while Ethena (ENA) has gained 217% and Zcash (ZEC) has risen 202% in recent weeks. Other strong performers include Uniswap (UNI), the meme coin PUMP, and Arbitrum (ARB).
While the market looks overheated, some market participants believe it is only just getting started. For instance, analyst Cryptollica recently argued that altcoin season is coming and that XRP will lead the charge.
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