2 - 3 minute read
XRP is showing “strong bullish cases,” according to crypto analytics firm Santiment, as whales rapidly accumulate the token. The firm’s analysis of the XRP Network on Binance, the largest crypto exchange in the world, shows “intriguing network divergences pointing to strong bullish cases,” including whale addresses accumulating rapidly, traders continuing to short, and a significant long/short position on the verge of being crossed. These factors could potentially lead to a short squeeze, which occurs when an unusual number of traders are trying to short-sell an asset and the price jumps, causing traders to buy back their positions and pushing the price even higher.
Santiment’s analysis also shows that Bitcoin (BTC) and Ethereum (ETH) are showing weakness based on their Network Value to Transactions Ratio (NVT). The NVT metric attempts to gauge the direction of the market by comparing token circulation to the asset’s market cap. A low circulation relative to market cap can indicate that the token is overvalued and positioned for a correction.
According to Santiment’s NVT price prediction model, “Bitcoin and Ethereum still require some increased network utility to justify current market caps. The circulation rate of both networks need to pick up in 2023, and this week will be telling as non-holiday days begin.”
At the time of writing, XRP is trading at $0.342, while Bitcoin is going for $1,645 and Ethereum is at $1,209. It remains to be seen whether these trends will continue as the new year progresses.
