XRP 2-year High Faces Exhaustion
XRP has increased by 27%, on the last day of November reaching a $1.95 high, the highest since April 2021 however the altcoin faces key resistance at the $2 mark as shown by recent price action
Rumors that Ripple’s RLUSD stablecoin will be approved by the New York Department of Financial Services (NYDFS) in December have been the main driver of its rally. but in the upcoming days, at least three XRP indicators suggest bullish exhaustion, which could lead to a 20% correction from the current levels.
XRP traders became more active between Nov. 16 and 29, and Santiment noticed multiple spikes in the metric for active addresses. The spikes indicate a rise in activity and a corresponding increase in the volume of transactions on various exchange platforms.
The network realized profit/loss metric, which determines the net profit/loss of all tokens traded on a particular day, indicates that XRP traders have been making money. The possibility of increased selling pressure on XRP is usually linked to significant positive spikes; traders should keep a close eye on this indicator for indications of a trend reversal.
Whale addresses with at least 100,000 XRP have seen a drop in their holdings as the cryptocurrency gets closer to its most recent local highs. Messari on-chain data showed that XRP held by these sizable wallets peaked in November at 90.73 billion falling by 30 million XRP in November 24, indicating that some whales are offloading at these highs.
Open interest in the XRP derivatives market has increased by 37% in the last day, reaching a record high of $3.19 billion, indicating increased market speculation. The rise in XRP OI is comparable to one that preceded a 17 percent decline between November and December.
Many overly leveraged traders may simultaneously reach long liquidation thresholds if XRP prices decline quickly. This accelerates price drops by forcing the trader’s collateral to be sold into the market. Liquidation prices, or particular price points at which the trader’s collateral is insufficient to cover the losses, associated with leveraged positions. The trader’s assets are then liquidated when the exchange automatically closes the position.
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