XRP has eclipsed Bitcoin as the most traded asset on the South Korean exchange Bithumb. Meanwhile, the altcoin is facing slight capitulation as most assets are trading for profit. However, Santiment reveals that this indicates that XRP is more likely to rally.
XRP is the most popular crypto on South Korea’s Bithumb
XRP, the sixth largest cryptocurrency by market capitalization, has eclipsed Bitcoin as the most traded asset on South Korean exchange Bithumb. XRP has surpassed Bitcoin in terms of trading volume on Bithumb, one of South Korea’s largest crypto exchanges. On the Bithumb exchange, the XRP/KRW trading pair made up 17.85% of all volumes, with a total of $30,818,226. Thus, it became the most traded asset, surpassing Bitcoin (BTC).
Kaiko, a crypto research firm, is trying to unravel the reason for XRP’s dominance and popularity on Korean crypto exchanges, which has surpassed Bitcoin. In an analysis published at the beginning of June, Kaiko stated that Korean crypto markets have a very unique market structure. This is because traders prefer altcoins over BTC and ETH as main assets. Kaiko went on to say that XRP is the most traded altcoin to date (YTD).
A signal showing the possibility of a price rally for the altcoin
The bears pushed XRP away from the $0.50 psychological zone as it failed to capitalize on the recent market rally. In the midst of this situation, some XRP investors resorted to capitulation, raising concerns among market participants. However, a recent report from behavioral analytics resource Santiment suggests that this trend indicates that XRP is more likely to stage a price rally than most assets.
The Santiment report considers the “On-Chain Transaction Volume Ratio in Profit/Loss” metric for this analysis. This indicator shows that trades involving most assets across the market are leaning towards the profit-taking zone. The metrics (ratio) of these assets show positive values. This indicates that most investors are making a profit. Specifically, Bitcoin (BTC) has a rate of 0.315, Ethereum (ETH) has a rate of 0.407, Litecoin (LTC) has a rate of 0.128 and Cardano (ADA) has a rate of 0.030.
In contrast, XRP witnesses a rate of -0.267. This shows that most investors are witnessing losses in their XRP transactions. Santiment says it’s a “slight bullish sign” despite the worries triggered. According to the behavioral analytics platform, historical data shows that when a crypto-asset faces a period of losses and there are more on-chain transactions that result in losses, it is usually followed by the next price rally.
What does XRP historical data show?
Researches of experts also historically confirm these claims of Santiment. A closer look at the “XRP Ratio On-Chain Trading Volume at Profit/Loss” metric shows an increase in trading at a loss before the price increases in January and March.
The metric fell as low as -0.700 on January 1. This drop came just before a price rally where XRP reclaimed $0.4330 on January 23. Similarly, the indicator dropped to -0.1743 on March 11. This drop started the XRP March rally. XRP finally rose to $0.5850 on March 29.
The rationale behind this trend is that when a crypto asset has a higher ratio of losses to profits, weak hands or less faithful investors surrender or sell their holdings due to market turbulence. When these weaker participants withdraw or exit the market, supply pressure is relieved. This creates an environment that potentially allows the price to recover.
Meanwhile, XRP is trading as low as $0.4734 at press time. XRP’s downtrend emerged after the drop from the $0.5272 high on June 22. cryptocoin.comAs you follow, altcoin continues to lose since then.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.