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The Ripple price went parabolic in November, making it one of the best-performing cryptocurrencies.
Ripple ($XRP) surged to a high of $2.50, climbing over 400% from its monthly low. This rally pushed its market cap beyond $130 billion, allowing it to overtake popular coins like Solana (SOL), $BNB, and Dogecoin (DOGE).
The primary catalyst for $XRP’s surge was Donald Trump’s election victory, which is expected to pave the way for more favorable crypto regulations. This development is significant as Ripple Labs has been embroiled in a legal battle with the Securities and Exchange Commission since 2020.
The election also raised the possibility of a spot $XRP exchange-traded fund by 2025. Earlier this week, asset manager WisdomTree, overseeing $111 billion in assets, filed for a spot Ripple ETF.
Crypto analysts suggest that $XRP’s recent rally was largely driven by whale activity, triggering a fear of missing out among retail investors.
In an X post, CryptoQuant CEO Ki Young Ju highlighted that whale activity on Coinbase played a significant role, as exchange premiums surged to 3%-13%. Conversely, South Korea’s Upbit exchange, which has a substantial $XRP trading base, showed no such premium.
Coinbase whales are driving this $XRP rally.
— Ki Young Ju (@ki_young_ju) December 2, 2024
Over the past 30 days, Coinbase's minute-level price premium has ranged from 3% to 13% during the surge.
Meanwhile, Upbit—a Korean exchange with more $XRP investors than Binance—has shown no significant premium so far. pic.twitter.com/ENESB2Zrkv
Santiment, a leading analytics firm, reported that wallets holding between 1 million and 10 million $XRP added 671 million coins in three weeks. This marked the first increase in non-empty wallets in eight years, driven by FOMO.
🚀 $XRP has skyrocketed to an astounding $2.49 market value for the first time since January 8, 2018. The 6-year (nearly 7-year) high comes as wallets with 1M-10M $XRP have accumulated 679.1M tokens (currently worth $1.66B) in just 3 weeks. Also, total non-empty $XRP wallets have… pic.twitter.com/bIsfOqdCQX
— Santiment (@santimentfeed) December 2, 2024
$XRP price could suffer a mean reversion
Ripple’s price may face a potential pullback in the coming weeks. First, the coin could experience mean reversion, as it currently trades significantly above its short- and long-term moving averages. Mean reversion suggests that assets often return to their average price over time.
Additionally, $XRP’s Relative Strength Index and Stochastic Oscillator indicate overbought conditions, signaling potential weakness. Furthermore, $XRP may be in the markup phase of the Wyckoff Method, characterized by high demand outpacing supply.
This phase is often followed by the distribution phase, which typically leads to a sell-off. Ripple’s price could retreat to retest support at $1.9697, a key level last seen in April 2021.