📉 Why Is $XRP Down Today? Signs of Exhaustion and Whale Activity
After a massive rally, XRP has seen a 5.5% decline, dropping to $1.85 on Dec. 1. Here’s why:
📊 Overbought Signals Trigger Profit-Taking
XRP's relative strength index (RSI) shows severe overbought conditions, with daily RSI at 90.75 and weekly RSI at 88.42.
🔹 RSI readings above 70 indicate that the asset may be overvalued in the short term.
🔹 Historically, such levels often precede pullbacks or periods of price consolidation.
🔹 XRP also faces resistance near its April 2021 peak, a critical historical level.
If XRP fails to break through, analysts predict a potential downside target of $1.625—a 15% drop from current levels.
🐋 Whales Taking Profits at the Top
Large XRP holders, or “whales,” are reportedly offloading their holdings:
🔹 Data shows whales holding at least 100,000 XRP have sold 30 million XRP since Nov. 24.
🔹 Selling at local tops creates downward pressure, making it harder for XRP to sustain its gains.
Such activity aligns with XRP approaching key resistance zones, reinforcing bearish momentum.
📉 XRP Hits Resistance in Ascending Channel
XRP’s price correction aligns with its ascending channel pattern.
🔹 Historically, XRP retraces 16% to 21% after touching the channel's upper trendline.
🔹 Early signs suggest this trend may repeat, with potential support near the channel's lower boundary or at the 50-EMA near $1.58.