The Chart is Turning Positive for XRP! “On-Chain Data Also Shows Signals!”

As the bear market continues for Bitcoin (BTC) and altcoins, the BTC price has fallen to $60,000, and altcoins have also experienced significant losses.

One of them was XRP. After reaching its all-time high of $3.65 last July, XRP entered a downward trend, falling to levels around $1.1.

However, the bottom for XRP may be very near. Crypto analytics platform Glassnode states that on-chain indicators show that XRP prices are approaching their bottom.

According to Glassnode data, there has been a significant decrease in the supply of XRP held on exchanges over the past two years. As of yesterday, the XRP balance on exchanges fell to 12.9 billion XRP, reaching levels last seen in May 2021.

This means that XRP holdings on CEXs have reached their lowest level in the last five years.

This is because a significant decrease in the number of assets held on exchanges is generally interpreted as a reduction in selling pressure and a strengthening of XRP’s upside potential.

In addition, Glassnode noted that funding rates for XRP have also decreased. According to the data, the XRP funding rate fell to -0.028% on the 6th of this month, reaching its lowest level since April of last year.

This situation is being interpreted as “pointing to excessive short positions and a possible bottoming out.” According to analysts, historically, excessively negative funding rates generally indicate that the market has bottomed out and reached oversold conditions.

In XRP, the 90-day cumulative volume difference (CVD) between spot buyers and sellers has turned positive. According to analysts, this indicates that demand is recovering and buyers are regaining control.

For XRP, a positive CVD (Current Economic and Viable Demand) indicates that buyers are purchasing more at lower levels, which could lay the groundwork for a rebound, as seen in historical rallies.

*This is not investment advice.

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