Ripple's XRP recently surged past the $1 mark, reaching a three-year high of $1.26, fueled by optimism around favorable crypto regulations and potential resolution of its prolonged legal battle with the SEC. However, the price has since corrected sharply, raising questions about whether $1.26 marks the peak—at least for now.
Key Factors Behind XRP's Price Movement
Whale Profit-Taking Sparks Sell-Off
On November 11, Whale Alert reported 17 transactions moving tens of millions of dollars' worth of XRP to exchanges like Bitstamp. Notable among these was a transfer of 10M XRP ($11.3M), likely signaling profit-taking after the rally.
Exchange reserves increased by 3% between November 6–16 (per CryptoQuant), with 44M XRP added to exchanges from November 13–16 alone—coinciding with a 56% price surge. This inflow suggests profit-taking pressure contributed to the subsequent 13% drop.
Retail Traders Join the Exodus
Santiment data reveals:
- Wallets holding <1M XRP sold 75.7M tokens ($87.9M) last week.
- Meanwhile, whales (holding 1M–100M XRP) accumulated 453.3M tokens ($526.3M)—a bullish counter-signal.
Leveraged Longs Liquidated
On November 17, **$12.6M in XRP derivatives were liquidated**, including $9.1M in long positions. Ongoing sell-offs from forced liquidations exacerbated downward pressure.
Technical Indicators: Overbought Signals
CoinGlass’s RSI heatmap shows XRP as overbought in 4 out of 6 timeframes, compared to Bitcoin’s 3/6. While this hints at short-term overheating, traders remain optimistic:
- Chris McCrypto (Independent Trader):
"It’s still early in the cycle for XRP—price could reach $15–20." - CryptoCharged (Analyst):
"A retest of $0.65–$0.75 would reset the chart for another leg up."
FAQ: XRP Price Dynamics
Q: Why did XRP drop after hitting $1.26?
A: Profit-taking by whales and retail traders, combined with leveraged long liquidations, triggered the correction.
Q: Is XRP still overbought?
A: Yes, RSI signals suggest short-term caution, but long-term holders are accumulating.
Q: What’s the next key support level?
A: Watch $0.65–$0.75; a bounce here could confirm renewed bullish momentum.
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Despite volatility, XRP’s fundamentals and whale accumulation point to potential upside. Monitor exchange flows and RSI for turnaround signals.