Santiment, a cryptocurrency analytics tool, has discovered the root cause of the recent dip in XRP’s value and predicts a possible rebound in the near future.
Santiment, a reputable cryptocurrency market analysis tool, has shed light on the factors influencing XRP’s recent price decrease. In a tweet, Santiment stated that many leading cryptocurrencies are currently trading at a loss due to a large wave of profit-taking.
📊 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
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This general market trend has resulted in price decreases across the board, with XRP and Cardano (ADA) in particular experiencing strong sell-offs at lower prices. However, according to Santiment, this condition may soon pave the way for price recovery.
A Deep Dive into Loss-Incurring Trades
Santiment’s tweet emphasized the Profit/Loss Transaction Ratio, which provides insights into the profitability of on-chain transactions for various assets. This ratio represents the daily volume of on-chain transactions that result in profit or loss for each cryptocurrency. Traders and analysts use this indicator to determine if market participants are currently profiting or losing money.
Surprisingly, Santiment’s data suggests that four of the top five cryptocurrencies are experiencing losses, with Ethereum (ETH) being the sole exception.
While Bitcoin (BTC) investors are experiencing some losses, this trailblazing cryptocurrency has the lowest ratio of loss-inducing transactions, with a value of -0.01006. Litecoin has a ratio of -0.108436, while Ethereum has a ratio of 0.078415.
Santiment revealed a troubling figure of -0.350046 for XRP, which is lower than any other asset. This suggests that the vast majority of XRP transactions on the blockchain have resulted in losses rather than profits.
As a result, it is not unexpected that XRP has been declining since reaching a peak of $0.5272 on June 22. XRP has now fallen by 11.47% in the last two weeks.
Cardano (ADA), like XRP, is experiencing price decreases as well as a negative profit/loss ratio. ADA’s current ratio is -0.106127.
Read Also: SBI CEO States What Impact Victory Against SEC Could Have On XRP Price and Ripple IPO
Brighter Prospects for XRP and ADA
Despite recent difficulties for XRP and ADA, Santiment’s analysis provides a ray of hope. Increased selling pressure at lower levels may indicate a price rebound for these cryptocurrencies in the near future.
As market participants take advantage of the opportunity to accumulate XRP and ADA at lower prices, a favorable environment for a potential rise is created. According to on-chain data, while smaller XRP holders have been selling their tokens, larger holders have continued to accumulate.
CoinsKid, a well-known expert, has emphasized XRP’s potential to reclaim the $0.69 price level. He believes that if XRP breaks over a known bearish trendline on the daily chart, it will soar to new yearly highs.
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