- Santiment identifies a “slight bullish sign” in XRP, noting mild trader capitulation in contrast to other digital assets where profit-taking prevails.
- The beginning of the week experienced a bearish sentiment amongst crypto traders, a historical indicator for market bullishness.
Cryptocurrency analytics powerhouse, Santiment, has highlighted a budding bullish inclination in XRP, even as widespread trader capitulation continues to dominate the digital asset market. According to Santiment, the trend of trader capitulation is less pronounced in XRP as compared to other cryptocurrencies, where the tendency leans more towards profit realization.
In Santiment’s own words,
“Historically, coins moving at a greater ratio at a loss compared to profit have a higher likelihood of rising in value.”
This observation signals that XRP, currently trading at $0.483, may be set to see an upward shift in its price trajectory. Despite its modest 0.81% growth in the last 24 hours, XRP has seen an overall decline of around 1.36% over the past week.
In addition to these observations, Santiment points out that the start of the current week was marked by a pronounced bearish sentiment among cryptocurrency traders. It’s worth noting that traditionally, periods of heightened bearish sentiment have often led to bullish trends in the cryptocurrency market.
“After crypto markets topped out last Friday, traders came into the start of the week expecting that prices would continue to retrace and provide opportunities to buy in the $27,000-$29,000 level. High bearish sentiment increases further rise probability.”
In parallel, Santiment also draws attention to the behavior of large non-exchange Ethereum (ETH) holders, who appear to be accumulating more of the second-largest cryptocurrency by market cap, actively withdrawing it from exchanges.
According to the firm,
“The largest non-exchange addresses, in the meantime, continue getting richer while the top exchange addresses are near genesis levels. ETH supply on exchanges is down to 9.2%.”
These observations suggest a potential trend where prominent non-exchange ETH holders are possibly betting on the future appreciation of Ethereum by hoarding the asset. This trend, coupled with XRP’s mild trader capitulation, paints a fascinating picture of the current state of the crypto market.