Bitcoin, Ethereum, XRP Fall Sharply While Metrics Hint at a Potential Market Recovery

• Bitcoin leads retail selloff, with small holders offloading coins at levels that often precede market rebounds.
• On-chain data shows small investors selling across BTC, ETH, and XRP, signaling potential recovery despite volatility.
• Oversold RSIs and extreme fear readings hint at possible relief, though market conditions stay unstable.

Bitcoin (BTC) and major coins such as Ethereum (ETH) and Ripple (XRP) resumed their downtrend during the week as small-scale investors flocked to sell. However, some on-chain indicators are now showing that such substantial sales by retail participants have tended to happen before market rebounds in many instances in the past.

Retail Selling Signals Possible Rebound

According to the latest data from Santiment shows small-scale investors are selling their coins at an observable rate. Bitcoin wallets with less than 0.01 BTC have sold about 0.36% in just five days.

Source: X

Ethereum follows the same trend. Addresses holding less than 0.1 ETH have burned around 0.90% of their coins in the last thirty days. Conversely, XRP addresses with less than 100 coins have sold about 1.38% of their total in circulation from early November.

According to Santiment, prices have tended to move counter to retail activity in the past. If there’s panic selling on the part of small retail holders, there’s usually a recovery stage to follow.

A latest report by Glassnode shows that individual investors, in spite of selling pressure, are in profit on all three cryptos. “Their average cost base remains at ~ $92,000 for BTC, ~ $3,000 for ETH, and ~ $2.17 for XRP.” That means individual investors are overall 104% in profit on BTC, 43% on ETH, and 61% on XRP.

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Bitcoin, Ethereum Struggle Despite Oversold Signals

Although these indicators point towards reaching an encouraging point, the situation remains volatile. CryptoRank shows that, after several days of major pullback, Bitcoin and Ethereum could only manage to gain marginally, with Bitcoin increasing by 0.6% to $90,785, while Ethereum increased by 0.4% to $3,025.

Source: X

The RSIs on major cryptos have touched the oversold region, which could result in some relief, although CryptoRank indicated these moments of tranquility could be short-lived. Market sentiment is, however, extremely volatile, with Fear and Greed Indexes reaching 15.

The overall market capitalization for cryptocurrency now rests in the region of $3.29 trillion. Moreover, about 270 million in margin-sensitive trades have been wiped out in the last 24 hours due to extreme market volatility.

Ahead of several critical US economic indicators due out this week, what might be the next big move in the Crypto market remains to be seen, pending market reactions to upcoming statistical releases. For now, market indicators reveal elements of market distress coupled with indications for market recovery.

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