In the world of cryptocurrencies, the market is constantly changing and recent events have led to shifts in the prices and sentiments of various coins. Ripple’s XRP, Ethereum and Compound experienced significant developments that are likely to affect their prices and investor behavior. Here is an overview of what is happening in the altcoin space.
Momentum drops in XRP as investors take profits
Ripple’s XRP was bullish, attempting to break above the $0.85 resistance. However, as the price lost momentum around $0.85, it seems that investors are now entering profit-taking mode. The Relative Strength Index (RSI) data shows that the rally has slowed as the RSI drops below the critical 70 mark. It also points to increased selling pressure and a potential price correction. Also, whale investors in the XRP market are selling off their assets. So it shows that there is a bearish trend among this critical set of investors. This selling frenzy has contributed to the altcoin project’s stagnation below $0.80 in recent days. If retail traders do the same, the price could decline further towards the $0.70 support level.
The cluster of XRP whales holding 10 million to 100 million XRP coins seems to be starting to make some profits. These individuals drained 320 million coins from their wallet balances between July 18 and July 22. Also, according to analyst Valdrin Tahiri, the MVRV ratio confirms that most holders who have purchased XRP in the past 30 days have watched their profits decrease towards 20%. Historical data shows that many will continue to sell until their profits drop to 10%, or around $0.71. However, if the bears break past this support level, XRP could drop towards $0.65 before the bulls rally again.
Leading altcoin Ethereum faces bearish metrics
Ethereum, the second largest cryptocurrency by market capitalization, has seen a decline in network activity and in the hands of major wallet investors. Daily active addresses on the Ethereum network have decreased over the past 48 hours. Supply on exchanges has increased, indicating an increase in selling pressure on the coin. Whale activity, represented by the number of large transactions, has also declined since its peak in mid-July. In particular, the fact that whales holding a significant amount of ETH tokens have lost their holdings over the past two days indicates a potential short-term drop in the price of Ethereum.
As can be seen in the chart below, the supply of ETH on exchanges increased between July 16 and the time of writing, after falling steadily for several months. Whale activity, represented by yellow and blue bars, has declined since its peak in mid-July. According to analyst Ekta Mourya, bearish measures likely fueled the increase in selling pressure on Ethereum.
Compound also has profit taking
Compound (COMP) had a successful rally, soaring on the charts and generating substantial profits for investors. However, the altcoin’s price rally is now coming to an end as some COMP holders have decided to cash in on their earnings after waiting patiently. The recent rise in price pushed COMP to a 14-month high, encouraging long-term owners to sell and lock in profits. As the supply of long-term holders dwindled, short-term holders began to accumulate some of the sold COMP. This profit taking halted the rally, but a significant drop in altcoin price is unlikely, according to analyst Aaryamann Shrivastava.
The cryptocurrency market is always dynamic; Prices and investor sentiment can change depending on a variety of factors. In the XRP example, investor profits have slowed its rise and raised concerns about future price action. Ethereum is facing bearish on-chain metrics that signal a potential drop in price in the short term. On the other hand, Compound’s rally ended with some investors deciding to take profits after a period of significant growth. As always, crypto investors should be cautious and do extensive research before making any investment decision.
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