30s Summary

Ripple’s cryptocurrency, XRP, recently hit an all-time high of $1.26 amid excitement about possible rule changes for cryptocurrencies and a pending legal case settlement with the US SEC. However, the price has since dipped, causing speculation on its trend. A significant amount of XRP was moved to Bitstamp and other exchanges just before the price drop. Furthermore, a rise in XRP reserves on exchanges and an increased sell-off from small-time traders were noticed. Surprisingly, the tokens sold by small-scale traders were mostly acquired by larger investors, hinting at potential future price increases. Ripple’s abrupt price fluctuation has led to over $12.6 million in liquidations in its derivatives market. Despite being deemed overvalued on multiple timeframes, some traders anticipate Ripple’s price hike to continue.

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XRP, also known as Ripple, recently surpassed $1 on November 16, reaching an all-time high of $1.26. There’s a lot of hype around potential rule changes for cryptocurrencies, plus Ripple is close to settling its ongoing legal fight with the U.S. Securities and Exchange Commission. Despite this high, Ripple’s price has dropped off a bit since then, leading folks to question whether $1.26 is the highest it’ll go for now.

This drop in price on November 17 happened around the same time that millions of dollars’ worth of Ripple was moved into Bitstamp and several other exchanges. For example, one big-time investor moved 10 million Ripple tokens (worth about $11.3 million) into Bitstamp, likely because they wanted to make some money from Ripple’s recent price increase.

Another point to note is that the amount of Ripple held across exchanges has seen quite an uptick. Between November 6 and 16, the amount of Ripple held in these places went up by 3%. There was also a big surge in Ripple reserved on exchanges, going up by 44 million Ripple between November 13 and 16 and leading to a 56% price increase during that period. This likely caused some Ripple power-players to sell off and led to a 13% drop in Ripple’s price.

Additionally, small-time traders have been selling off after each slight increase in Ripple’s price, and the same thing happened after the price hit $1.26. In just one week, traders with less than 1 million Ripple sold off a whopping 75.7 million tokens (worth about $87.9 million). But here’s the interesting part – those tokens were snapped up by big-time investors and wallets that hold between 1 and 100 million tokens. This could actually indicate future price increases.

Beyond this, Ripple’s sudden swing from its three-year high of $1.26 took a lot of traders by surprise. The Ripple derivatives market saw over $12.6 million in liquidations on November 17, mainly from long bets on the cryptocurrency.

In terms of Ripple’s current state, it’s considered overvalued on four out of six timeframes, according to CoinGlass data. In comparison, Bitcoin is considered overvalued on three out of six timeframes. Although this suggests recent price movements that could correct soon, traders seem to think Ripple’s price hike is just getting started. Independent trader Chris McCrypto even suggested that Ripple’s price could hit $15-$20. CryptoCharged, a pseudonymous analyst, also said that Ripple’s current pullback has retouched key levels perfectly and that a further drop to between $0.65 and $0.75 would set the stage for another upward move.

Remember, though, this isn’t investment advice and there’s always a risk with this stuff – always do your own research before making any decisions.