Can Ripple (XRP) Price Revisit $0.80 after $65 Million Profit-Taking?

Price Insights:

• Ripple (XRP) price dropped to $0.65 on Monday, November 13, retreating from its recent top of $0.72 recorded last week. 
• On-chain data reveals how large investors capitalized on last week’s rally to offload 90 million XRP coins at 3-month high prices.  
• The bears showed early signs of fatigue over the weekend according to daily time-frame Technical analysis indicators. 

Ripple (XRP) price tumbled toward $0.65 on Monday, November 13, retreating from its recent 3-month top of $0.72 recorded last week. On-chain analysis examines the major driver behind the retracement and the XRP price action to expect this week. 

Large Investors Capitalized on Last Week’s Rally to Book $65 Million Profits.

XRP price raced up the top gainer’s charts last week, soaring toward $0.72 after the Ripple team scored a number of legal victories and landmark partnerships. Rather than hold out for more gains, XRP large institutional investors capitalized on the rally to book profits. 

The whales (wallets holding 1 million to 100 million XRP) held a cumulative balance of 9 billion XRP as of November 5, according to on-chain data tracker Santiment.  

But interestingly, the chart below illustrates how they began to sell off their coins once the XRP price hit $0.72 on November 6.  After a week-long selling frenzy their balances have now reduced to 8.92 billion as of Monday November 13. This implies that the XRP corporate investors have rapidly sold 90 million coins since the price hit $0.72 on November 6. 

The Whales Wallet Balances metric tracks the real-time changes in the XRP balances held by large corporate entities and high-net worth investors. When it drops during a price rally, it means that the whales have taken advantage of the price increase to book profits. 

The chart above clearly illustrates how the whales began to sell just as prices hit the 3-month peak on November 6. When valued at $0.72, the 90 million XRP coins offloaded by the whales are worth approximately $65 million. 

However, considering the overall sentiment surrounding the crypto market is still largely bullish, the bulls may look out for re-entry opportunities. If this thesis holds, XRP investors can anticipate a price rebound from the $0.65 range in the week ahead. 

XRP Price Forecast: The Bulls Force a Rebound to $0.65 

Last week, XRP price retreated as it approached its 2023 peak of $0.72. However, the on-chain data analyzed above shows that the whale’s selling frenzy has lasted weeks. Hence, they could be on the lookout for opportunities to re-enter the market at a local bottom, especially if XRP receives a boost from another bullish news event. 

The 14-day Relative Strength Index chart also supports this narrative. Currently the RSI is trending at 64.29, signaling that XRP has moved from overbought into neutral territories. With the market no longer overheated, many strategic whales could look to re-enter the market any moment.  

If that happens the bulls will have to contend with the initial resistance wall at $0.68. A break above the area could open the doors for an ambitious move toward $0.82. 

But on the downside, the bears could seize control of the market if XRP price cannot hold the $0.65 territory. However, if the bulls lose that support level, they could mount another support buy-wall at the EMA-20 of $0.63.