- Glassnode data shows retail investors are dumping BTC, ETH, and XRP despite sitting on major profits.
- Santiment notes this “small wallet” capitulation is historically a bullish contrarian signal.
- Ethereum’s leverage ratio has hit an all-time high, signaling imminent price volatility.
Bitcoin, Ethereum, and XRP are ready for a massive rally as sentiment is shifting in favor of bulls. Glassnode’s latest data revealed that retail investors across BTC, ETH, and XRP are still sitting on sizable profits, despite the fear dominating social sentiment.
According to its estimated retail cost basis data, Bitcoin retail holders remain up by roughly 104% at a cost basis near $92,000, Ethereum retail wallets hold about 43% profit around $3,000, and XRP retail holders sit on approximately 61% profit at a $2.17 basis.
Related: ‘World’s Smartest Man’ Claims Bitcoin Will Hit $220,000 By January
Why Retail ‘Dumping’ Is a Bullish Contrarian Signal
Meanwhile, analytics firm Santiment stated that small‑wallet holders across all three assets have been aggressively dumping. Bitcoin wallets holding less than 0.01 BTC have sold off 0.36% of their supply in the past five days. Ethereum wallets with under 0.1 ETH dumped 0.90% in the past month. And XRP wallets holding under 100 tokens have let go of 1.38% since early November.
Historically, prices tend to move opposite to retail behavior. Santiment’s chart shows a clear acceleration in small‑wallet distribution even as price action remains disappointing.
Related: Bitcoin Price Rebound Prospects as BTC Mined Crosses 95% of 21 Million Cap
XRP Forming Multi-Year Pennant Targeting $20 – Analyst
Analyst Amonyx said that a multi‑year bullish pennant forming on XRP’s monthly chart. This structure, which spans from 2018 to 2024, is similar to the smaller pennant that preceded XRP’s 2017 breakout.
XRP remains above major supports and Amonyx predicts a potential long‑term move toward $20 if XRP breaks above the upper trend line.
Ethereum Leverage Hits All-Time High: Volatility Ahead
CryptoQuant said that Ethereum’s Estimated Leverage Ratio (ELR) on Binance has jumped to an all‑time high of 0.5617. The spike came alongside ETH prices crashing a massive 12% in the past week, current at $3K support.
Historical analysis shows that every major surge in leverage was followed by a massive violent price shock. Analysts believe that the leading digital asset is gearing up for a retest of higher price levels.
STHs Drive Action While LTHs Add Pressure
Analyst Darkfost said that long‑term holders own the majority of Bitcoin supply, but they do not generate most of the day‑to‑day selling. Short‑term holders dominate BTC flows, with STXO for STHs sitting near 750,000 on a 30‑day moving average.
On the other hand, LTH STXO activity sits around 25,000, roughly 30 times lower. But while STH flows remain balanced due to constant inflows, LTH spikes typically indicate real sell pressure and often appear at market tops or panic-driven lows.
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Source: https://coinedition.com/btc-eth-xrp-flash-rebound-signals-as-retail-panic-sells-in-profit/
