XRP and XLM Suffer Sharp Declines as Profit-Taking Reaches Record Levels

Ripple's XRP and Stellar Lumens (XLM) have both suffered sharp declines as profit-taking among investors reached record levels.

output: NAIROBI (CoinChapter.com) — XRP and Stellar Lumens (XLM) prices dropped sharply on Monday as traders realized record profits. XRP fell 6% to $1.35, while XLM plunged 11.1% to $0.4383 in 24 hours.

XRP Slips 6% After Record Profits, $25M Donation Announcement

XRP prices dropped on Monday as investors cashed out with enthusiasm. According to Santiment, XRP holders realized $1.5 billion in profits last week, marking the highest levels since April 2021.

The recent announcement by Ripple Labs of a $25 million donation to the pro-crypto Fairshake Super PAC also gained attention. According to the company’s CEO Brad Garlinghouse, the goal was to support pro-crypto candidates in U.S. elections.

However, despite the positive political moves, the percentage of XRP’s total supply in profit reached 99%, putting pressure on XRP prices as long-term holders cashed out on gains. Also, XRP’s market capitalization now stood at about $61.2 billion, outpacing Dogecoin’s $60.8 billion.

Moreover, the elevated Market Value to Realized Value (MVRV) ratio, which stood at 217%, signaled that the majority of XRP holders were in profit. Historically, such high levels preceded sell-offs as traders sought to lock in gains.

To worsen matters, liquidations added to the bearish XRP momentum. According to Coinglass, XRP futures liquidations amounted to $20.75 million in the past day, with long positions accounting for $15.07 million.

11.1% Drop Following Overbought Rally

Stellar Lumens (XLM) prices plunged by 11.1% to $0.4383 in the past 24 hours as investors cashed out on the token’s recent parabolic rally. The token had surged by 366.3% over the past month, outpacing Bitcoin and Ethereum gains by a wide margin.

The rapid rise left XLM overbought, with its Relative Strength Index (RSI) repeatedly crossing above 70. As of Tuesday, XLM’s RSI had dropped to 36, indicating growing buying interest that could help stem further losses.

Moreover, XLM prices encountered resistance at a high of $0.60 on Nov.24, up from about $0.10 two weeks earlier. However, analysts warned that its correction might deepen to $0.30 if Bitcoin’s broader downtrend continued.

Meanwhile, XRP prices battled to reclaim their 2021 high of $1.96, with critical support at $1.35. Similarly, XLM investors watched for stabilization above $0.40 as the market adjusted to the recent volatility.