NAIROBI (CoinChapter.com)— Ripple’s XRP and Stellar Lumens (XLM) have both suffered sharp declines as profit-taking among investors reached record levels. Ripple’s recent $25 million donation to the pro-crypto Fairshake super PAC has also sparked discussions, while Stellar faces corrections following its sharp rise earlier this month.
XRP Slips 6% After Record Profits, $25M Donation Announcement
Ripple’s XRP dropped 6% on Nov. 27, hitting $1.35, as investors aggressively booked profits. According to Santiment, XRP holders realized $1.5 billion in profits last week, the highest figure since April 2021.
XRP network profit/loss spikes in volatility. Source: Santiment
Ripple Labs’ recent $25 million donation to the pro-crypto Fairshake Super PAC has also drawn attention. The company’s CEO, Brad Garlinghouse, highlighted its goal to support pro-crypto candidates in U.S. elections. Despite the positive political moves, the percentage of XRP’s total supply in profit reached 99%, creating selling pressure as long-term holders capitalized on gains.
Ripple donates $25M to pro-crypto PAC. Source: X
The elevated Market Value to Realized Value (MVRV) ratio, which reached 217%, further signals that most holders are in profit. Historically, such high levels have preceded sell-offs as traders seek to lock in gains.
XRP Total Supply in Profit & MVRV. Source: Santiment
Liquidations added to the bearish momentum. In the past day, XRP futures liquidations totaled $20.75 million, with $15.07 million coming from long positions, according to Coinglass.
11.1% Drop Following Overbought Rally
Stellar Lumens (XLM) plunged 11.1% to $0.4383 in the past 24 hours as investors cashed in on its recent parabolic rally. The token had surged 366.3% over the past month, far outpacing Bitcoin and Ethereum gains.
XLM/USD price chart. Source: CoinMarketCap
The rapid rise left XLM overbought, with its Relative Strength Index (RSI) repeatedly exceeding 70. As of Tuesday, XLM’s RSI has cooled to 36, indicating growing buying interest that could help stem further losses.
XRP/USD 1-day price chart. Source: TradingView
XLM reached a high of $0.60 on Nov. 24, a significant jump from $0.10 just two weeks prior. However, analysts predict its correction may deepen to $0.30 if Bitcoin’s broader downtrend continues.
While XRP battles to reclaim its 2021 high of $1.96, its $1.35 support will be critical. Similarly, XLM investors will watch for stabilization above $0.40 as the market adjusts to the recent volatility.
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