Key Takeaways
- XRP surged to a 3-year high of $1.26 on November 16th, driven by positive sentiment and regulatory hopes.
- The price subsequently corrected to $1.0026, sparking debate about the sustainability of the rally.
- Whales and retail investors took profits during the surge, while larger holders accumulated XRP.
- Significant liquidations occurred in the derivatives market due to the rapid price correction.
- Mixed sentiment persists, with some predicting further upside to $15-$20, while others remain cautious.
On November 16, XRP price crossed the $1 threshold for the first time in three years, climbing to $1.26 which is still 67.19% below its all-time high of $3.84 (Jan 4, 2018). The rally was fueled by optimism about regulatory developments in the cryptocurrency space and Ripple’s legal dispute with the SEC nearing resolution.
XRP Price Retreat Sparks Debate
After hitting its high, XRP’s price dropped significantly to $1.0026. Traders are now debating whether $1.26 marked a short-term top or if another surge could be on the horizon.
Whales Cash Out as Profits Pile Up
A major shift occurred in the market as whales moved substantial amounts of XRP into exchanges. Data from Whale Alert showed a transfer of 10 million tokens, valued at $11.3 million, into Bitstamp. These movements suggest some large investors were taking profits after the rally.
The timing of these transfers aligns with a broader change in XRP distribution. Exchange balances grew by 44 million XRP between November 13 and 16, a period that also saw prices jump 56%. This activity hints that whales may have fueled the 13% pullback in XRP price after the peak.
Retail Traders Sell, Whales Accumulate
Smaller investors weren’t holding on for long either. Sentiment reported that retail wallets dumped 75.7 million tokens, worth $87.9 million, over the week. Interestingly, larger holders—the so-called whales and sharks with 1 to 100 million XRP—scooped up 453.3 million tokens, adding $526.3 million worth to their wallets. This accumulation by major players could indicate confidence in XRP’s long-term potential.
Market Volatility Catches Traders Off-Guard
The XRP price reversal wasn’t without consequences. Data from CoinGlass revealed over $12.6 million in liquidated XRP derivatives on November 17, with $9.1 million coming from long positions. Leverage added to the sell-off as more traders were forced to close their positions, driving prices lower.
XRP Derivative Market Witnessed $16.4M Liquidation
Due to the pullback in XRP price, the XRP derivatives witnessed liquidation. As per CoinGlass data derivative market market suffered $16.4 million liquidation of which $5.2M short and $11.2M long liquidation.
Traders Remain Divided on XRP’s Future
Despite the pullback, some traders believe the rally has just begun. Chris McCrypto, an independent trader, argued that XRP could climb as high as $15–$20, saying the current XRP price action is only the start of the cycle. Supporting crypto enthusiasts’ optimism XRP price is bouncing back towards its recent high. Currently, XRP is trading at a price of $1.10 with a 3.92% drop in market capitalization within 24 hours. In the meantime, trading volume surged by a staggering 25.14% in the same period.
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