XRP Price Retraces 20% After Hitting More Than One Year Highs – Has The Core Arrived?

XRP (XRP) surpassed the $1 mark on November 16, hitting a three-year high of $1.26 on expectations of a favorable regulatory environment for cryptocurrencies and the possible resolution of Ripple's long-running legal battle with the US Securities and Exchange Commission. SEC)

Related: Ripple Labs and CEO under fire over Trump meeting rumors

The price of XRP, however, has since rebounded significantly, leading to questions about whether it is at least $1.26 high for now.

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XRP whales take profits

XRP's pullback on Nov. 17 coincided with tens of millions of high-volume gains on Bitstamp and other exchanges, according to data from Whale Alert.

This includes a whale transfer of 10 million XRP tokens worth $11.3 million to the Bitstamp crypto exchange. This move could be part of the investor's desire to capitalize on the profits that followed XRP's massive rally.

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

In particular, as evidenced by CryptoQuant data, there is a significant increase in the supply of XRP on exchanges. The chart below shows the exchange's XRP balance increased by 3% between November 6th and November 16th.

Note that between November 13th and November 16th XRP turnover increased by 44 million XRP.

That suggests whales' profit booking is set to retrace 13 percent from the Nov. 16 high.

Sentiment also explains that retail traders were selling into “any small XRP rally” and the post rally to $1.26 was no exception.

“Wallets with less than 1M XRP dropped 75.7M tokens (worth $87.9M) last week,” the onchain data provider said in a November 17 post on X.

Interestingly, the tokens dropped by retailers were stockpiled by whale and shark wallets containing between 1 million and 100 million tokens, which is a serious sign of the future.

Sentiment says so

“This group has collectively raised 453.3M additional tokens (worth $526.3M) in the last week alone.”

Volatility, meanwhile, caught long traders off guard as XRP rebounded sharply from its multi-year high of $1.26.

According to data from CoinGlass, the XRP derivatives market was More than $12.6 million worth of liquidations were witnessed on November 17, of which $9.1 million was long, the number continued at the time of publication.

More than $3.9 million worth of leveraged long positions were liquidated in the last four hours alone.

When long positions are released, they generally involve selling the property (either voluntarily or through the broker) to lower the price even further.

XRP Price “Overbought” On Multiple Time Frames

Data from CoinGlass shows that XRP's RSI heat map currently shows overbought conditions in four out of six time frames.

In comparison, Bitcoin's RSI is bearish in three out of six time frames.

Overbought conditions generally describe recent movements in asset prices and reflect the expectation that the price trend may soon be corrected.

But even if this popular measure shows an increase in temperature, traders believe that the XRP price rally is not over.

“It's too early in the cycle for such an XRP pump,” said independent trader Chris McKrypto in a post on X on November 16. The price of XRP could go up to $15-20.

Meanwhile, an anonymous analyst sees CryptoCharged's reversal testing key price levels “to perfection,” adding that a drop to the $0.65 and $0.75 zone would set the chart up for another move higher.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.