XRP bulls look to maintain positions amid recent price falls that have shocked the market. On-chain analysts point to a tricky situation of a reversal, but this has little impact on retail investors looking to avoid short-term losses. The dynamics of bulls and retail investors are evident in recent XRP holdings across centralized exchanges. It should be noted that several assets also traded similarly in the last 24 hours.
XRP Tanks 3% Today
On-chain charts show XRP on a path to a slight correction as sentiment shakes. On Nov 19, XRP declined 3%, threatening weekly numbers amid staggering monthly inflows. While the status quo can be linked to institutional growth after the United States elections, macro factors and industry developments also led to the price surge.
The XRP price is $1.09, and its market cap is hovering at $62 billion amid a 41% drop in daily trading volumes. Weekly gains for the asset are above 51%, while monthly numbers are over 100%. Bulls that recorded large transactions have relatively held positions, while some retail traders seek to make gains.
The Ripple v. SEC case negatively impacted its price for years, keeping it below the $1 mark. Ripple CEO Brad Garlinghouse stated that the SEC’s involvement in crypto negatively impacted its price.
“Before the SEC got involved in the crypto markets, XRP was the second most valuable digital asset ahead of ETH. And then the SEC got involved and said we think ETH is probably okay and it went up. And they sued Ripple, and XRP went down.”
Retail Traders Take Profits
The drop in the market today is due to pressure from retail traders. XRP’s relative strength index (RSI) is above 70, signaling bullish exhaustion. An overbought RSI points to an imminent sale to make profits or consolidate new positions. In the case of XRP, this was seen in smaller wallets compared to whales. Several analysts opine that whales can still drive huge gains, which will see retail investors jump into XRP.
Furthermore, crypto executives raised eyebrows at Ripple’s regulatory policy influence in the United States. Some crypto policy watchers view the company as pro-centralization, having a central bank digital currency (CBDC) agenda. Ripple has partnered with countries and financial institutions to develop CBDCs, a currency opposed in most crypto circles.
