Ripple’s XRP has had a remarkable performance in November and early December 2024, earning investors’ attention and deployed capital. However, different indicators suggest that XRPL’s native token could soon experience a corrective crash, raising alerts in the trading community. On December 3, XRP achieved an all-time high (ATH) market cap of $165.74 billion at $2.90 per token despite trading at a discount from its all-time high price of $3.40. Notably, this rally placed XRP as the third most valuable cryptocurrency by market cap, surpassing Solana ( SOL ) and Tether’s USDT. XRP daily market cap chart (1D). Source: TradingView / Finbold / Vini Barbosa The ATH capitalization suggests a peak demand over XRP’s significant circulating supply inflation through Ripple’s ongoing unlocks and selling activities. Ripple, which is, by far, XRP’s largest holder, has recently prepared what could be its last dump in 2024 . As demand peaks and retail turns its attention to the 2012-launched digital asset, technical indicators suggest greed and incoming fatigue. Technical indicators suggest XRP could crash soon In particular, XRP’s daily relative strength index ( RSI ) broadcasts a clear overbought condition above 75 points since November 11. During the all-time high market cap, the RSI peaked at 95 points, which is usually a relevant warning. The weekly RSI shows a similarly concerning signal that XRP could soon experience an overdue correction, now marking 91.17. Interestingly, the last time XRP’s weekly RSI marked such an overbought position, the token crashed nearly 80% from November to December 2020, reaching a local bottom at $0.1713 after topping at $0.788. XRP/USD weekly price chart (1W). Source: TradingView / Finbold / Vini Barbosa At the same time, the decentralized finance analyst Andrei urged traders to “calm down with the leverage slider.” Andrei shared CoinGlass ’s funding rate heatmap , which shows an overly leveraged crypto market that is highly unbalanced to long positions . Brothers? calm down with the leverage slider pic.twitter.com/5WqxFi3NL7 — Andrei ( ) (@AndreiMX_) December 4, 2024 On that note, XRP long position traders currently have to pay short-sellers a 66% APR funding rate. This opens doors for a potential long squeeze that could cause XRP’s price to crash, seeking support downwards. However, XRP could still find the strength to continue pushing upwards despite these signals, as it has done before. Cryptocurrencies are highly volatile and unpredictable assets, requiring extra caution from traders and investors navigating their turbulent waters. Featured image from Shutterstock. The post Here’s why XRP could crash soon appeared first on Finbold .
