XRP Hits a Three-Year High, Followed by a Sharp Decline
According to TradingView, XRP reached $1.26 on November 16, marking its highest level since November 2021. This surge was driven by expectations of favorable regulatory changes and a potential resolution of the ongoing legal battle between Ripple and the US SEC.
However, just a few days later, on November 17, XRP saw a sharp decline of up to 20%, leading to significant token transfers and changes in market holdings.
Rising XRP Reserves on Exchanges Signal Selling Pressure
Increasing volumes on exchanges
Data from CryptoQuant revealed a 3% increase in XRP reserves on crypto exchanges over the 10 days leading up to November 16. This coincided with a 56% price surge between November 13 and November 16, during which 44 million XRP tokens were deposited into exchanges, signaling increased selling pressure from investors.
Whales transfer millions of tokens to exchanges
Whale Alert reported massive XRP transfers to the Bitstamp exchange, aligning with the subsequent price drop. For instance, a whale transferred 10 million XRP to the exchange, likely seeking to capitalize on the recent price pump.
Retail Investors Sell, While Large Wallets Accumulate XRP
Smaller investors cash out, larger players buy in
Santiment data showed that wallets holding between 1 and 100 million XRP accumulated a total of 453.3 million tokens worth approximately $526.3 million over the past week. These tokens were primarily acquired from retail investors, who sold 75.7 million XRP worth around $87.9 million.
Market capitalization benefits from accumulation
Despite increased selling activity by smaller investors, the accumulation by larger players supported positive growth in XRP's market capitalization.
Derivatives Market Sees Over $12 Million in Liquidations
Leverage positions hit by sudden drop
According to CoinGlass, XRP derivatives liquidations amounted to over $12.6 million on November 17. Long positions accounted for $9.1 million of the liquidations, with more than $3 million in leveraged trades being liquidated within just a few hours.
XRP's Long-Term Future: Bullish Predictions for 2030 and Beyond
Growth potential in the coming years
Analysts at Changelly forecast that XRP could reach a minimum price of $5.36 by 2030, with optimistic scenarios predicting a high of $6.36. The broad adoption of XRP is expected to drive its long-term growth.
Long-term XRP price targets
By 2040, some projections anticipate a minimum price of $255.67 and a maximum of $325.86. By 2050, XRP could reach as high as $482.87, according to these forecasts.
Short-term predictions
Margex analysts suggest that XRP could soon hit $2.21, depending on the outcome of the SEC lawsuit. CoinCDX predicts a price range of $1.8 to $3 for XRP in 2025.
2024 and beyond outlooks
Coin Price Forecast anticipates XRP reaching $1.9 by the end of 2024. Meanwhile, Telegaon predicts an average price of $12.34 for XRP by 2030, though these outcomes may vary based on market dynamics.
Conclusion: Room for Growth Despite Recent Challenges
While XRP has recently experienced a significant drop, long-term forecasts remain optimistic. Investors and analysts continue to believe in its future growth and its prominent role in the cryptocurrency market.
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