It is no longer news that XRP has fallen in market worth in the last couple of weeks. Its latest lethargic growth is now a significant concern in the XRP community.
However, in what could be spewing renewed hopes for XRP enthusiasts, a top crypto analytical platform, Santiment, recently took to Twitter to expose the reasons behind XRP’s unprecedented fall in price.
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Santiment tweeted, “Top cap crypto assets are being traded at a loss after the high profit taking last week, lending to the price drop we’ve seen. XRP and ADA are seeing a particularly high amount of sales at lower prices, making the chances of bounces increase.“
📊 Top cap #crypto assets are being traded at a loss after the high profit taking last week, lending to the price drop we've seen. $XRP and $ADA are seeing a particularly high amount of sells at lower prices, making the chances of bounces increase. https://t.co/Ntt3HoC52S pic.twitter.com/z5BatBNlKe
— Santiment (@santimentfeed) July 7, 2023
Note that the phenomenon described in the tweet above is also responsible for the decline in the selling prices of Cardano (ADA). Also, the tweet noted that XRP and ADA are experiencing exceedingly high selling pressure at much lower costs, indicating potential imminent price spikes for both tokens.
Other Salient Facts Discussed In Santiment’s Tweet
The shared tweet exposed the ratio of Profit/Loss transactions that seeks to uncover the gains associated with on-chain trades for most digital investments by representing each cryptocurrency’s ratio of daily on-chain transaction volume in profit to loss.
With the Profit/Loss indicator, crypto traders and analysts would determine the extent of accumulating profits or losses in crypto dealings.
Cryptocurrencies Recording Loses Or Gains Based On Santiment’s Assessment
Intriguingly, based on Santiment’s analysis, only Ethereum seems to be recording gains; the other four evaluated cryptos appear poised to continue recording losses.
Bitcoin is passing through its lowest ratio of loss-inducing transactions, registering a value of -0.01006. On the other hand, Litecoin and Ethereum remain pegged at -0.108436 and 0.078415, respectively. ADA is down and also with a ratio of -0.106127.
On XRP’s part, Santiment pinpointed a poor run for the cross-border coin with -0.350046 lesser than every other crypto asset. After ascending to a price high worth about $0.5272 on June 22, XRP has continued to decline in price and has been down by 11.47% in the last two weeks.
Any Hope Of Recovery For These Declining Crypto Projects
Per Santiment, XRP and ADA stand chances of bouncing back despite increased selling pressure and at lesser prices. While crypto traders appear to leverage these tokens’ low costs to amass them, it could be breeding a favorable market condition that could precede the tokens’ respective price rallies.
Meanwhile, Coinskid, a prominent crypto analyst, has previously claimed that XRP possesses the potential to reclaim the $0.69 price level should the token succeed in breaking above an identified downward trendline on the daily chart.
Per CoinGecko, XRP and ADA prices today are $0.467414 and $0.286235, respectively. Finally, this should not serve as financial advice but a reflection of happenings in the crypto sphere. Therefore, due research is necessary before delving into any crypto project.
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