XRP could crash by 25% in the worst case scenario, particularly due to its overbought conditions that have preceded similar price crashes.
XRP (XRP) has dropped by over 17% four days after reaching a multi-year high of around $1.63, trading at around $1.41 as of Nov. 27. On a month-to-date basis, however, the cryptocurrency is maintaining its “Trump Trade” profits, up by almost 180% in its best month since April 2021.
XRP’ss relative strength index (RSI) levels has been above 70 on the daily chart throughout November, signaling potential exhaustion of its ongoing uptrend.
Historical data highlights XRP's tendency to correct sharply after reaching overbought RSI levels. For instance, in June 2023, XRP's daily RSI surpassed 85 during a rally to $0.82, after which the price dropped by 46.5% in less than two months, bottoming out at $0.43.
