- XRP price fell by 5%, trading at $2.61 after South Korea’s martial law declaration triggered panic selling.
- Increased profit-taking and significant token inflows to exchanges highlight selling pressure following XRP’s recent rally.
- Overbought RSI signals buyer exhaustion, with $2.50 identified as a potential short-term support level.
The price of XRP saw a sharp decline, falling by 5% in the last 24 hours to $2.61 on December 4, reflecting broader market uncertainty. The drop was largely attributed to South Korea’s recent declaration of martial law, sparking widespread panic selling in the crypto market.
South Korea, a significant hub for cryptocurrency trading, experienced drastic sell-offs as investors reacted to political instability. This led to flash crashes on local exchanges like Upbit, where XRP dropped over 50% to $1.30. Upbit, known for holding the largest reserve of XRP among centralized exchanges, amplified the market impact.
Profit-Taking Pressures XRP Price
Profit-taking by investors has further added to the downward pressure on XRP’s price. Data from Santiment revealed that XRP holders realized over $4 billion in profits over three days, marking the highest level of profit-taking since April 2021.
Additionally, the movement of tokens to exchanges has surged, with CryptoQuant reporting an increase from 46 million to 654 million XRP being deposited over the past week. Such inflows typically signal selling intentions, further contributing to the asset’s price correction.
Overbought RSI Points to Exhaustion
XRP’s recent rally has pushed the asset into “overbought” territory, as indicated by its Relative Strength Index (RSI), which reached levels of 74 and 84 on 12-hour and daily charts, respectively. An overbought RSI often suggests buyer fatigue and hints at a potential price correction.
Analysts have identified $2.50 as a key support level in the short term, presenting a possible re-entry point for late investors. While the long-term outlook remains optimistic, near-term risks include profit-taking and reduced buyer activity.
This analysis highlights the importance of closely monitoring key support levels and market developments as XRP navigates its current correction phase.
