Bitcoin and Ethereum slide as XRP whales accumulate
Bitcoin (BTC), Ethereum (ETH) and XRP prices struggled to move above their next key resistance levels despite short-term bullish momentum in play.
Bitcoin price action has been in a larger downtrend while Ethereum and XRP prices are struggling to gain any bullish momentum. However, short-term bullish price action pushed the BTC price to $17,094 at press time. ETH was up just 1% on the day, while the XRP price was down 0.57%.
In terms of price, ETH and XRP followed the top crypto. However, on-chain data presented some peculiar trends for these three coins.
Bitcoin price may witness more losses
The short-term BTC participants in the chain continued to sell at a loss with a short-term Spent Output Profit Ratio (SOPR) below one. This signaled a lack of faith among traders that made the $18,000 mark a strong resistance for the BTC price. The $18,000 mark would be the rough average entry cost for short-term entrants, according to a CryptoQuant analyst.
Furthermore, the analyst highlighted that traders should be cautious as yield curve inversions often precede recessions, and the current 10-year Treasury yield (3.75%) was below the three-month yield (4.22%).
Since the investors who bought BTC after December 2020 were now in losses, it will take some time for long-term holder SOPR to turn positive. Thus, short-term SOPR is a better indicator of the current market trend.
A negative trend that the BTC price had was positive net flows, which produced more currency inflows than outflows on December 1st. Bitcoin’s net flows were $16.80 million.
Another recent analysis by CryptoQuant suggested that while the BTC price was rising, the Network Value to Transactions (NVT) selling area was triggered. The same could cause the Bitcoin price to fall in the next ten days.
The golden NVT cross flashes a warning signal when it crosses above the 2.20 level. Currently it is at 2.44 and it could still go to 2.77 (last value) which could lead to some short-term price drops.
Ethereum outflows continue
At the time of writing, the Ethereum price was up just 0.40% on the daily window as ETH traded at $1,269.05.
The losses in November were not as severe for ETH as Bitcoin and some other altcoins since Ethereum held above $1000 psychological support. Daily exchange flow on the chain suggested that net flows were negative for ETH, with around $6.7 million in outflows on December 1st.
ETH NVT was at monthly highs, meaning investors were pricing ETH at a premium as market capitalization growth outpaced the utilization of on-chain transactions. That said, the futures market data presented some near-term bullishness for ETH, with open interest up 5.44%, standing at $4.80 billion at press time.
ETH funding rates were also positive at +0.0099%, according to data from Coinalyze. Some bullish statistics came from Okex, where short liquidations hit a one-month high, which could help with some short-term bullish momentum for ETH.
However, ETH median transaction volume (7d-MA) hit a one-month low, which meant the network was relatively low.
For ETH bulls, the next target could be the $1,350 resistance/support. However, the pullback in Bitcoin prices could further extend losses for ETH and the rest of the market.
XRP whales on the move
The XRP price was trading at $0.3971 at the time of writing, losing 0.99% on the daily chart but up over 2% on the weekly.
Age spent metrics for XRP showed that over 580 billion XRP were moved on December 1st.
Many old XRP coins have been on the move lately, which could point to possible redistribution. However, there was a big uptick in XRP holdings. In particular, the largest XRP whale cohort with 10 million to infinite coins added over one billion coins in the last day
While whales adding to XRP may push prices in a positive direction, the XRP price still has a long way to go with the ongoing regulatory battle.
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