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XRP Gains 36 Percent as Ripple Sees Rise in Active Addresses

Data analytics firm Santiment posted this week about the steady increase in wallet addresses for Ripple. The insight proves bullish for the firm’s native token, which has risen 36 percent since March 2020.

Rushing into Ripple

XRP’s performance throughout most of 2019 left investors disappointed. The cryptocurrency hovered in the $0.18-$0.33 range (per token) despite numerous projects, partnerships, and products launched by parent firm Ripple Labs.

But 2020 is proving better for the payments-centric digital asset. Along with Bitcoin, XRP saw a drop only in March 2020 but gave investors a return of 22 percent and 36 percent in February and April respectively.

On-chain data provider Santiment marked the increase in price with a proportional increase in Ripple’s wallets, indicating investors were, once again, rushing to acquire XRP ahead of the Bitcoin halving on March 12.

A few other popular crypto traders even believe XRP may eclipse $10 per token, with predictions as high as $20 per token.

Coin Metrics, another analytics firm, noted in a recent update the actual circulating XRP supply is 30 billion, instead of the earlier presumed 45 billion. They stated:

“Applying the Coin Metrics Free Float Supply Methodology to XRP indicates that there are 30B of a total 100B XRP that are available for trading within the market.”

Critics Voice Concerns

Which the lower-than-expected circulating supply is a bullish indicator from a technical standpoint, some seasoned analysts think most cryptocurrencies may never see their all-time-high values.

Cantering Clark, who posts on Twitter and enjoys a significant following, recently stated many tokens touted with “promising tech” face a tough time after the multi-year bear market that cryptocurrencies have endured. He singles out XRP as one of the unfortunate victims.

He further added most traders are subject to “cognitive biases,” and continue to hold XRP based on hopes of a future rally.

Image via Shutterstock

The Crypto Market is Experiencing a Healthy Price Correction Needed Before Surging Higher, says Spartan Group Partner

The crypto market has been riddled with activities after its market capitalization surpassed the $1 trillion mark. Nevertheless, a looming correction was bound to happen as it lost nearly $170 billion in a span of 24 hours, and its value diminished to $943.57 billion.

This price action in the crypto market has been depicted as a healthy correction, triggering more good than harm, by a partner at The Spartan Group, an advisory firm and crypto fund. He noted:

“This healthy correction is good for crypto markets. It affirms the trend of past cycles. It washes out the leverage that has been building in the past few weeks and sets the foundation for the next move higher. Make sure you take advantage of this correction.”

The partner, tweeting under the pseudonym SpartanBlack, believes that the current price retracement will be instrumental in triggering an uptrend as past leverage will be washed out. He advises investors to take advantage of the correction and to buy the dip.

The crypto market looks set for a bounce-back

The present correction saw leading cryptocurrency Bitcoin (BTC) tumble to a low of $32,829 from a high of $41,500, and greed may be a factor explaining the price plunge, as the market is seen as overleveraged at the moment and investors have bought the dips below the $39K mark in fear of missing out (FOMO). By selling their funds shortly after BTC hit its record high however, this has caused the mainstream cryptocurrency’s price to plunge.

Nevertheless, BTC has gained 17.07% in the last one week to push its price upwards to $36,121 at the time of writing, according to CoinMarketCap.

Ethereum (ETH) and Ripple (XRP) have also experienced a price surge by gaining 9.85% and 14.53%, respectively, in the last 24 hours. The market capitalization of the crypto sector may be a stone’s throw away from recovering and hitting the highs of more than $1 trillion that it experienced previously, as it is now hovering around $989.42 billion.

The crypto market, therefore, looks like it will be back to winning again. These sentiments are echoed by Alex Saunders, the CEO of NuggetNews. He acknowledged:

“Retail has arrived. PayPal cleared $242M in crypto sales yesterday. That’s nearly double the previous record.”

Time will tell what the crypto market has in store moving forward.

Bitcoin Needs to Flip $56.5K to Support Level to Retest $60,000, says Market Analyst

KAfter falling to lows of $48.5K based on speculations that the American administration would increase capital gains taxes, Bitcoin (BTC) has been trying in vain to soar back to the $60K level.

The leading cryptocurrency scaled to new heights above $64,500 last month, but it has found itself in a consolidation market ever since. BTC has been down by 6.55% in the last 24 hours to trade at $54,251 at the time of writing, according to CoinMarketCap.

Market analyst Michael van de Poppe believes that Bitcoin will have to flip the $56.5k resistance level to support if it has to retest the $60,000 area. He explained:

“Tricky for Bitcoin at this stage, which would also suit a corrective move on Ethereum. Lost a critical level, if we flip back above $56,500, I think a test of the $60K area seems likely. Equity markets showing a bit of weakness, might suit a correction on $BTC.”

Ethereum (ETH) has enjoyed a remarkable bull run, which has seen the second-largest cryptocurrency breach the psychological mark of $3,000 and touched highs of $3,500. High transaction volumes have boosted ETH’s price rally.

Nevertheless, this bullish momentum by Ethereum and other altcoins is causing Bitcoin’s dominance to fall.

Bitcoin’s mean hash rate recovers

According to crypto data provider Documenting Bitcoin:

“Bitcoin’s mean hash rate has already recovered, and is now approaching new all-time highs. That’s bullish.”

The hashrate is used to measure the processing power of the BTC network. It, therefore, allows computers to process and solve problems that would enable transactions to be approved and confirmed across the network.

When more miners join the Bitcoin network, more computational guesses per second are needed in order to find the solution. As a result, the hash power will increase, and Bitcoin’s network difficulty will go up.

Bitcoin Needs to Hold Above $34k For Bullish Divergences

Bitcoin (BTC) slipped to $31,111 on Sunday, and this price was almost half of the all-time high (ATH) of $68,854 hit in mid-April.

BTC, however, has regained some momentum to trade at $36,453 at the time of writing, according to CoinMarketCap.

Nevertheless, market analyst tweeting as the pseudonym “CryptoHamster” believed that Bitcoin needs to hold above the $34k area for the present correction to end in the short-term. The analyst explained:

“There is a fair chance for the correction to be over (at least short-term): bullish divergences on a daily time frame are about to be formed. Bitcoin price has to hold above $34k. Otherwise, divergences will be invalid.”

A bullish divergence happens whenever the price falls to a new low, but a technical indicator moves higher or shows bullish signals.

It, therefore, shows that bears are losing power and bulls are ready to control the market again. Furthermore, a bullish divergence illustrates the end of a downtrend.

Current market meltdown caused by panicked retail investors

According to crypto analyst Lark Davis:

“The current Bitcoin meltdown has been mostly driven by panicked retail investors. News story after news story, most of them inaccurate, have shaken the new money. Meanwhile, whales have been feasting.”

Davis also pointed out that Bitcoin miners are taking advantage of the present downtrend to build more stock as they are not selling their BTC holdings. Therefore, it is showing a bullish sign.

Market analyst Carl Martin revealed that the latest correction is strongly correlated with the 2017 bull run. He explained:

“Compared to the 2017 bull market, this correction looks surprisingly similar. Especially if we compare the days after the halving, it is almost identical. This would mean that Bitcoin could get an incredible bull run in the coming weeks.”

It, therefore, needs to observe whether Bitcoin will hold above the $34,000 area for the current downtrend to be terminated at least for the short-term as alluded to by CryptoHamster.

Bitcoin Lost Over $500 Billion in Market Capitalization With the Latest Correction

The price of Bitcoin (BTC) has driven to the lowest point near $30k due to sharp corrections after hitting highs above $64.5k in mid-April.

On May 19, BTC fell to around $30K, resulting in the biggest single-day drop of price, up to 30%. The price level of $30K was close to the beginning of 2021, which indicated that the year-to-date (YTD) return of long-term investors by holding BTC was almost zero.

Furthermore, this price drop became the first time BTC had dropped to the 200-MA, a key strategic indicator, since May last year as the Covid-19 pandemic continued to wreak havoc globally.

The downtrend witnessed in the Bitcoin market has caused the top cryptocurrency to shed more than $500 billion in market cap, as acknowledged by crypto analyst Holger Zschaepitz.

Bitcoin balances on OTC desks were shrinking.

The latest correction has also affected BTC trading on OTC desks, as stated by Dilution-proof. The crypto data provider explained:

“Since the January local top, Bitcoin balances on OTC desks are in a downtrend. OTC desks facilitate ‘over the counter’ trading for wealthy entities that are looking to buy or sell Bitcoin without moving markets.”

Yann & Jan, Glassnode co-founders, attributed the recent BTC selling to investors who bought the leading cryptocurrency in the last couple of months.

Nevertheless, Bitcoin miners consider the recent price drop as an ideal opportunity to accumulate more coins. They are not selling their holdings, as alluded to by data analyst Jan Wuestenfeld.

Meanwhile, Bill Miller, an American investor and fund manager, recently revealed his confidence in BTC as a safe investment despite the market crash as well.

Bitcoin was still below the psychological mark of $40k at the time of writing. The top cryptocurrency was trading at $38.2k with a market capitalization of $716 billion.

The market remains to be observed whether Bitcoin will regain momentum to continue with its bull run for the remaining days in 2021 or if it has come to an abrupt end.

Bitcoin Edges Close to Hit the 200-Day Moving Average

After hitting lows of $30k, Bitcoin (BTC) was once up 5.45% on Wednesday, trading at $40,278, according to CoinMarketCap.

BTC suffered a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of price, up to 30%. Furthermore, this price drop became the first time BTC had dropped below the 200-day moving average (MA).

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis disclosed that the regained momentum has pushed Bitcoin closer to the 200-day MA.

A move above this indicator signifies an uptrend.

An analysis from CryptoHamster revealed that BTC ought to trade above $34,000 for an upward move to be triggered.

Africa leads in peer-to-peer Bitcoin trading.

According to crypto data provider Documenting Bitcoin:

“Africa is leading the world in peer-to-peer Bitcoin trading volume growth, with 22% in the last three months.”

In July last year, it was reported that African nations like Kenya, South Africa, Nigeria, and Ghana had traded Bitcoin worth more than $1 million in a single week.

It, therefore, shows that Africa is still a hub of BTC trading undertaken in peer-to-peer platforms.

Bitcoin open interest starts to gain momentum.

Crypto research analyst Nick Mancini disclosed that Bitcoin open interest had bottomed, but it seems it is starting to lift higher as the big gamblers are flipping bullish.

Market trader Joseph Young also pointed out:

“There are a lot of Bitcoin wallets at a loss now compared to a few weeks back. Historically, when this capitulation-esqe trend happened, a sustainable gradual uptrend followed. Let’s observe several FUD points/variables at play, but looking better than not.”

As a result, that needs to observe if Bitcoin will surge past the 200-day MA later.

Ethereum Might Experience a Period of Consolidation, says Market Analyst

Ethereum (ETH) was hovering around the $2,584 price during intraday trading after regaining momentum in the last 24-hours.

The second-leading cryptocurrency by market capitalisation was on the receiving end from the recent crypto market crash, given that its price nosedived to lows of $2,000 from an all-time high (ATH) of $4,350.

Crypto analyst Michaël van de Poppe acknowledged that ETH held a crucial support level, which may enter into a period of consolidation. He explained:

“Ethereum is still holding a critical level of support here, through which a period of consolidation is likely going to happen. This happened in 2016 & 2017 as well, after which a new impulse wave happened.”

On-chain metrics provider Glassnode also noted that the last active Ethereum supply over the previous three to six months reached a 2-year high of 18.55 million ETH, suggesting that a considerable amount of Ethereum was being transferred from cold storage to exchanges.

Ethereum’s transaction volume dries up

According to Glassnode:

“Ethereum’s transaction volume (7d MA) just reached a 1-month low of $230,006,909.69.”

Moreover, the number of ETH transfers recently hit a monthly low of 24,471.607.

Nevertheless, the total fees paid on the Ethereum network reached an 11-month low of 105.547 ETH. Its cost has become a significant challenge that ETH had faced, given that at one time, it hit a record high which was out of reach for the average trader.

The decentralised finance (DeFi) sector aided Ethereum’s recent bull run. As a result, this area experienced an exponential expansion over the past few months as the number of users increased by 1,300% to hit 2.1 million. The total value locked (TVL) in smart contracts shot up by 9,000% and stood at $113 billion.

It, however, remains to be observed whether Ethereum will regain momentum to continue scaling new heights before the year closes.

Bitcoin Needs to Sustain the Level Around $32.2-33K as Support to Strengthen an Upward Momentum, says Market Analyst

Bitcoin (BTC) was down by 1.48% over the last 24 hours after hitting the $36K level, with a price of $34,615 during intraday trading, according to CoinMarketCap.

BTC has been consolidating between the $30K and $40K range for more than two months, although it nosedived from an all-time high of $64.8K recorded in mid-April. Furthermore, the leading cryptocurrency recently dropped to lows of $28K as China’s crypto mining crackdown intensified.

Market analyst Michael van de Poppe believes that the renewed upward momentum in the BTC market will be sustained if the area between $32.2 and $33K is strong enough to support. He explained:

“I find the level around $32.2-33K extremely important to sustain as support. That would generate a higher low & strength towards further upwards momentum.”

Higher-highs and higher-lows are usually generated in an uptrend, whereas lower-highs and lower-lows are noted in a downtrend.

Michael van de Poppe had previously stated that if this area holds, the next level to be hit will be $38K.

His sentiments were recently echoed by another trader, who noted:

“If Bitcoin doesn’t fall below 32K within the next 48 hours, We are probably to rise sharply to 39K and 42K Zone.”

Strong hands have reduced selling pressure from weak hands

According to on-chain analyst William Clemente III:

“Imo this chart is the easiest way to visualize what’s taken place over the last month under the hood. Strong hands have added increasingly through the recent price decline, now offsetting selling from weak hands. Now we wait for reaccumulation to complete – seller exhaustion.”

Strong hands are investors who hold Bitcoin for the long term, whereas weak hands hold it for the short term.

Clemente III had previously pointed out that the deadlock stuck on the BTC network was being caused by long and short-term holders. He acknowledged that long-term holders had bought an additional 579,940 BTC in the past month, whereas their short-term counterparts had sold 521,983 BTC in the same period.

Bears Dominate Market as Bitcoin Trading Below Key Daily Moving Averages

Bitcoin (BTC) has experienced headwinds, driving its price to lows of $28K after enjoying a remarkable bull run that saw a record-high of $64.8K hit in mid-April.

BTC was hovering around $33,438 during intraday trading, according to CoinMarketCap.

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis believes that bears are still in charge because Bitcoin is still trading below key daily moving averages, such as 50 MA, 200 EMA, and 200 MA. He explained:

“Bitcoin is still trading under the key daily moving averages. The bears are still in the driver’s seat of this market. That doesn’t mean I am a bear, just the facts of the market right now.”

Crypto analyst Joseph Young echoed these sentiments. He noted:

“Bitcoin funding rate is negative across all major exchanges. Means (that) many in the futures market are shorting (selling). Be careful today, volatility could surge.”

Bitcoin whales hold 48.37% of the circulating supply

According to on-chain metrics provider Santiment:

“Bitcoin’s whale addresses holding between 100 to 10k BTC are finally showing a turning point in accumulating again. In the past 2 weeks, these large addresses shed 60,000 BTC. They hold 48.37% of the supply after holding 49.09% near the All Time High.”

Santiment acknowledged that Bitcoin whales were buying again after selling off 60,000 BTC in the last 2 weeks.

On the other hand, on-chain analyst William Clemente III trusts that retail investors (entities with 0.001 BTC to 1BTC) are not to blame for Bitcoin’s price drop because they have been aggressively adding their holdings.

It, however, remains to be observed whether bears will continue being in the driver’s seat in the Bitcoin market.

Bitcoin on Exchanges Experience a Sharp 50-Day Drop, Suggesting Diminishing Sell-Side Pressure

Bitcoin was reclaiming the $34K level after falling to $32,000 before the weekend. The top cryptocurrency was hovering around $34,233 during intraday trading, according to CoinMarketCap.

Bitcoin on crypto exchanges has plunged to a 50-day low, as acknowledged by Santiment. The on-chain metrics provider explained:

“The amount of daily inflow of Bitcoin to known exchange wallets, as well as the total supply of BTC on exchanges, have experienced a sharp 50-day drop, which may point to diminishing sell-side pressure.”

Bitcoin leaving exchanges is bullish because it implies less selloff.

BTC positions in an accumulation phase

According to on-chain analyst Dylan LeClair:

“Bitcoin is back in an accumulation phase. Liveliness decreasing means coins are being hodled. Bitcoin Liveliness = (ΣCoin Days Destroyed)/(ΣCoin Days Created).”

These statistics are echoed by the fact that BTC addresses holding between 100 and 10,000 BTC recently hit 9.13 million coins.

As a result, long-term BTC holders have been in an accumulation mode, whereas their short-term counterparts have been selling. Therefore, these contradicting actions have caused indecisiveness in the Bitcoin market.

Meanwhile, John Bollinger, a veteran trader and the inventor of the popular Bollinger Band indicator, recently stated that trading patterns in the crypto space had become quite unusual. He wondered if the crypto market was entering a new regime.

Furthermore, the Bitcoin market has been ranging for quite some time despite witnessing the highest level of on-chain volume since its $10.3K, as disclosed by William Clemente III.

It, therefore, remains to be seen how the top cryptocurrency will play out going forward.