XRP price falls 20% after reaching multi-year highs — has it reached its peak?

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relevant: Ripple Labs and its CEO came under fire over Trump meeting rumors.

However, the price of XRP has fallen significantly since then, raising questions about whether $1.26 is the best, at least for now.

XRP whales take profits

According to data from Whale Alert, the decline in XRP on November 17 coincided with significant inflows worth tens of millions of dollars into Bitstamp and other exchanges.

This includes Whale transferring 10 million XRP tokens worth $11.3 million to the Bitstamp cryptocurrency exchange. This transfer is likely part of investors’ intention to cash in on profits from XRP’s big rally.

The timing of this significant transfer of XRP to exchanges is noteworthy as it coincides with a significant shift in the distribution of XRP holdings.

In particular, as data from CryptoQuant shows, there has been a significant increase in XRP supply on exchanges. The chart below shows a 3% increase in XRP balances on exchanges from November 6th to November 16th.

Between November 13 and November 16, exchanges’ XRP holdings increased by 44 million XRP. This is accompanied by a 56% price increase over the same period.

This suggests potential whale profit booking that could drive a 13% decline since the November 16 high.

Santiment also explains that retail traders are also selling on “mini-XRP rallies,” and the scenario following the $1.26 rally is no different.

“In the past week, a total of 75.7 million tokens (worth $87.9 million) have flowed from wallets holding less than 1 million XRP,” the on-chain data provider wrote in a post to X on November 17.

Interestingly, the tokens dumped by retail traders were spread by whale and shark wallets holding between 1 and 100 million tokens. This is a potentially optimistic sign for the future.

Santiment notes:

“The group amassed a total of 453.3 million more tokens (worth $526.3 million) last week alone.”

Meanwhile, volatility caught long-term traders off guard as XRP moved sharply away from its multi-year high of $1.26.

According to data from CoinGlass, the XRP derivatives market recorded more than $12.6 million in liquidations on November 17, of which $9.1 million was liquidated, and counting at the time of publication.

Over $3.9 million in leveraged long positions were liquidated in the last four hours alone.

Once a long position is liquidated, the asset is typically sold (either voluntarily or by a broker) to further reduce the price.

The price of XRP has been “overbought” for several periods.

According to data from CoinGlass, XRP’s RSI heatmap currently shows overbought conditions in four out of six periods.

In comparison, Bitcoin’s RSI is overbought in three out of six periods.

Overbought conditions typically indicate recent movements in the price of an asset and reflect expectations that the price trend will correct soon.

However, despite this popular indicator showing possible overheating, traders believe the XRP price rally is far from over.

“We are in the early stages of this XRP pump cycle,” independent trader Chris McCrypto wrote on X on November 16, adding that the price of XRP could rise to $15-$20.

Meanwhile, anonymous analyst CryptoCharged said the ongoing decline had “perfectly” prompted a price retest key level, adding that a drop into the $0.65 and $0.75 areas would reset the charts for another advance.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.