XRP (XRP) surged 26.50% in the last 24 hours, reaching $1.95 on November 30, its highest since April 2021. XRP’s rise was mainly driven by rumors that the New York Department of Financial Services (NYDFS) would grant approval for Ripple. RLUSD stablecoin in December.
However, at least three XRP indicators are expected to show strength over the next few days, which could lead to a 20% correction from current levels.
XRP price has hit resistance in the rising channel.
The first signs of an imminent XRP price correction come from the usual upward channel.
On November 30, XRP reached the resistance level of its rising channel, increasing the likelihood of a short-term correction. This is similar to the cryptocurrency’s previous corrections after reaching the same resistance level, as pictured below.
XRP/USD 4-hour price chart. Source: TradingView
Additionally, on the 4-hour chart, XRP’s Relative Strength Index (RSI) has entered overbought territory above 80, indicating that potential buyers are exhausted. Historically, these RSI levels have coincided with falling prices.
A downward move could test support levels near $1.75, which is consistent with the channel’s lower trendline, or could lead to a further decline near the 50-EMA at $1.48, about 20% down from current price levels.
XRP whales are selling at record highs
Whale addresses holding at least 100,000 XRP have seen their balances decline as the token approaches recent local highs.
According to on-chain data from Messari, the supply held by these large wallets peaked at 90.73 billion XRP on November 24 before falling by 30 million Pay it.
This address contains over 100,000 XRP. Source: Messari
This move is consistent with the price of
Excessively leveraged XRP risks long-term liquidation
The XRP derivatives market saw open interest (OI) increase 37% in the last 24 hours to a record high of $3.19 billion, indicating intensified speculative activity in the market.
JA Maartun, an analyst at on-chain data platform CryptoQuant, said the increase in I did it.
XRP price and OI 24-hour data. Source: CryptoQuant
A leveraged position has a liquidation price, which is a specific price level at which the trader’s collateral is insufficient to cover losses. At this point, the exchange automatically closes the position and liquidates the trader’s assets.
relevant: Will XRP price plummet again?
If the price of This causes traders’ collateral to sell into the market and accelerate the price decline.
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.