Glassnode Releases XRP Report! What Do the Data Say for the Future? “Bear or Bull?”
Bitcoin (BTC) and altcoins experienced a major crash last week. Bitcoin fell to $60,000, while altcoins also suffered significant losses.
Ethereum (ETH) fell below $2,000, while Solana (SOL) dropped to around $70 and XRP to $1.1.
A recent analysis by Glassnode indicates that XRP holders have fallen below their average cost basis, stop-loss sales have spread, and actual losses have increased.
At this point, on-chain indicators reveal that the losses in XRP are widening and reinforcing the downtrend.
According to Glassnode’s latest analysis, XRP’s 7-day EMA for the ratio of profit to spent output (SOPR) has recently fallen to 0.96 from 1.16 in July of last year.
This doesn’t paint a positive picture for XRP. A SOPR value below 1 indicates that market participants are selling at a loss rather than taking profits.
At this point, Glassnode stated that this pattern resembles the early stages of past bear markets.
Glassnode also added that, according to the data, the SOPR fell below 1 during the correction between September 2021 and May 2022, followed by a prolonged decline.
Glassnode stated that the drop in XRP was not just a short-term pullback, but a significant one.
This decline is noteworthy because it represents a move towards a psychologically significant stop-loss zone, triggered by XRP falling below its average purchase price.
According to Glassnode, if the percentage of investors experiencing losses increases, the likelihood of further selling pressure also increases.
Glassnode concludes that on-chain data has yet to show a clear signal of large-scale accumulation. As a result, the outlook for XRP suggests a potential continuation of a volatile downtrend in the near term.
Whether the trend will reverse will depend on whether selling pressure eases while prices remain in the investors’ loss zone.
*This is not investment advice.
Continue Reading: Glassnode Releases XRP Report! What Do the Data Say for the Future? “Bear or Bull?”
You May Also Like
Crypto execs met with US lawmakers to discuss Bitcoin reserve, market structure bills
Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week. Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more
Messari and Warden Protocol have partnered to launch an AI research assistant to aid in real-time crypto market analysis.
