- Crypto analytics tool Santiment explains the latest XRP and ADA price drop.
- It says the dip is due to a wave of profit-taking from small bag holders.
- Soon, it predicts a surge for the asset as large holders continue to accumulate.
Santiment, a leading cryptocurrency analytics tool, identifies what it claims to be the root cause behind the recent decline in XRP’s value. The price predicting tool also predicts a potential rebound in the near future.
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As we can se ein the tweet above, Santiment reveals that many major cryptos are currently experiencing a decrease in value. It states that this is due to the latest wave of profit-taking. This overall market trend has led to price drops for many cryptos.
Specifically, XRP and Cardano (ADA) are taking the biggest hits. However, Santiment suggests that this situation may create an opportunity for price recovery. Santiment’s analysis focuses on the Profit/Loss Transaction Ratio and provides insights into the profitability of on-chain transactions for different assets.
This ratio reflects the daily volume of on-chain transactions that result in either profit or loss for each cryptocurrency. According to this data, it indicates that four out of the top five cryptocurrencies are currently experiencing losses. This makes Ethereum (ETH) the only exception.
XRP stands out with a troubling ratio of -0.350046, indicating that the majority of XRP transactions on the blockchain have resulted in losses. This helps explain the recent decline in XRP’s value since reaching a peak of $0.5272 on June 22. This means the asset fell by 11.47% in the last two weeks. Similarly, the price of Cardano (ADA) also fell leading to a negative profit/loss ratio.
Despite these setbacks, Santiment’s analysis offers a ray of light. The increased selling pressure at lower price levels may create a favorable environment for a potential price rebound in the near future. In addition, on-chain data indicates that while smaller XRP holders have been selling their tokens, larger holders continue to accumulate them.
Crypto analysts from across the board are sharing their XRP price predictions. These range from over $1 to $10. What’s important to note here is that all predictions show a positive green rally for XRP. Thus, if XRP manages to break over a known bearish trendline on the daily chart, it could soar to new yearly highs, according to many.
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