Ripple’s native token XRP has garnered a lot of attention from crypto enthusiasts due to its impressive price surge over the past few days. On November 24, 2024, a whale transaction tracker, Whale Alert, posted on X (formerly Twitter), signaling to all investors and traders that the bull run may be coming to an end.

XRP Whale Moves 20 Million Tokens to Upbit

The X post notes that an XRP Whale sold 20 million tokens worth $27.24 million on Bybit, South Korea's largest cryptocurrency exchange. However, this massive sell-off occurred during a period when the overall cryptocurrency market was in a correction phase and XRP itself was struggling.

Following the sell-off on centralized exchanges (CEX), XRP’s daily chart looks bearish, suggesting that the coin’s price could face a significant correction.

XRP Technical Analysis and Upcoming Levels

According to technical analysis by experts, XRP appears to be forming a bearish evening star candlestick pattern near the breakout level of $1.40. Based on recent price action, if the altcoin successfully forms this candlestick pattern and closes the daily candle below $1.30, it could drop 20% to $1.05 in the coming days.

However, XRP has been on a parabolic move and to sustain this momentum in the coming days, the asset may need to undergo a correction or a period of price consolidation.

Currently, the altcoin is trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. However, its Relative Strength Index (RSI) suggests that further recovery is limited, as its value has been above 80 since November 11, 2024, indicating that the asset is in overbought territory.

Trader Psychology: Bullish or Bearish

Aside from whale activity, readers may be wondering what traders are doing right now. Data from on-chain analytics firm Coinglass shows that traders are using excessive leverage, with key levels at $1,325 on the bottom and $1,379 on the top.

Coinglass’s exchange liquidation map further indicates that traders held $10.76 million worth of long positions at the lower level, while $12.41 million worth of short positions were concentrated at the higher level.

This liquidation data shows that traders are selling at a higher rate, which could lead to a price drop in the coming days.

Current price momentum

At press time, XRP was trading at nearly $1.38 and had recorded a 7.10% price drop over the past 24 hours. During the same period, its trading volume dropped by 30%, indicating lower participation from traders and investors compared to the previous day.