30s Summary

XRP saw a sharp drop of over 17% just days after hitting a nearly $1.63 high. Despite this, it is still performing well with a monthly increase of around 180% – its best rise since April 2021. Current trading prices closely align with Fibonacci retracement extensions, indicating XRP could drop to around $1 by December. Potential future events such as a Trump re-election and Ripple’s recent partnership with Archax could boost XRP’s adoption. However, long-term XRP metrics suggest a bullish momentum, hinting at a retesting of its 2018 peak, with projections even hinting at a level as high as $13.93.

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XRP has seen a significant drop of over 17% just four days after it hit a multi-year high of nearly $1.63. As of November 27, it’s trading at around $1.41. However, if we compare it to the profit from the start of the month, the digital currency is still faring well – up nearly 180%. This is the best monthly increase for XRP since April 2021.

The digital currency’s relative strength index (RSI) has been hovering above 70 throughout November. This could indicate that the surge we’ve been seeing is about to wind down, but let’s not get ahead of ourselves. Looking at past data, we can see that XRP tends to correct itself quite dramatically once it hits these high RSI levels.

For instance, in June 2023, the price of XRP dropped by 46.5% in less than two months following a rally where its daily RSI surpassed 85. Similarly, after an RSI surge above 70 in November 2023, the price fell by 33.6% in the weeks that followed.

The current trading price aligns pretty closely with Fibonacci retracement extensions. After a recent breakout surpassed the 2.618 Fibonacci extension near $1.09, it appears that XRP could potentially drop toward the $1 level by December. Any dips in price could have XRP dropping to the $1 level, which may act as a short-term floor. Any further drops could see it revisiting the 50-day exponential moving average (EMA) near $0.85.

Interestingly, a dip in XRP’s value has coincided with a slight reduction in holdings among its wealthiest investors. This may signal a shift from a period of accumulation to one of distribution, often seen when prices spike and large investors sell their holdings to retail buyers.

However, long-term metrics for XRP suggest a bullish momentum. Notably, it broke out of its major symmetrical triangle pattern for the first time in seven years sometime in late October. This mimics a breakout that happened before XRP’s historic 43,650% rally in 2017-2018. With this in mind, it wouldn’t be too wild to speculate that we could potentially see XRP retesting its 2018 peak near $3.41, with long-term projections even hinting at a level as high as $13.93.

This bull run might be helped along further by future events. For instance, Donald Trump’s reelection could potentially help conclude the lengthy SEC versus Ripple battle. Also, Ripple’s recent partnership with UK-based FCA-regulated digital asset exchange Archax could increase XRP adoption.

However, do keep in mind that investment moves can be risky and it is always best to do our own research when making decisions.