Ripple whales hoard XRP as Bitcoin and Ethereum battle it out

The price of Bitcoin (BTC), Ethereum (ETH) and XRP struggled to break the next major resistance levels despite the short-term bullish momentum.

Bitcoin price action is headed for a larger downtrend as Ethereum and XRP cryptocurrency prices struggle to gain bullish momentum. However, a short-term bullish move has pushed BTC to $17,094 at the time of writing. ETH only gained 1% on the day, while XRP was down 0.57%.

In terms of price, the leading cryptocurrency of the sector was followed by ETH and XRP. However, on-chain data showed specific trends for these three coins.

Bitcoin can lose more

Participants in the short-term BTC chain continued to sell at a loss below the short-term Spent Production Profit Ratio (SOPR) of 1.

This speaks to the lack of confidence on the part of traders, and the $18,000 mark is a strong resistance to the BTC price. According to analyst CryptoQuant, the $18,000 threshold will be the approximate average price of entry for short-term participants.

Additionally, the analyst advised traders to be cautious as yield curve inversions often precede recessions, and the current 10-year Treasury rate (3.75%) is proving to be lower than the three-month rate (4.22%).

Short-Term Owners SOPR Indicator | Source: CryptoQuant

With investors who bought BTC after December 2020 facing losses now, it will take some time for SOPR to turn positive for long-term holders. Hence, the short-term SOPR is a better indicator of the current market trend.

BTC’s negative price trend is seen in positive net flows, indicating more trading inflows than outbound as of December 1st. Thus, the movement of net assets amounted to 16.80 million dollars.

Another recent analysis from CryptoQuant shows that the sell zone of the Network Value to Transactions (NVT) indicator has given a signal while the Bitcoin price is rising. This may cause the price to drop in the next ten days.

NVT Indicator Red Cross | Source: CryptoQuant

NVT generates a warning signal when the golden cross indicator crosses the 2.20 level. It is currently sitting at 2.44 and may rise further to 2.77 (its last value), which may cause the asset to decline in the short term.

Ethereum mining remains stable

At the time of writing, the Ethereum price is up just 0.40% in the daily window, with the asset trading at $1,269.05.

The losses suffered in November were not as severe for ETH as for Bitcoin or other altcoins, as the asset was above the psychological support of $1,000. Daily on-chain trade flows show that net flows have been negative for ETH, with around $6.7 million in flows as of December 1st.

ETH’s NVT has hit monthly highs, meaning investors have increased their purchase price as market cap growth has outpaced on-chain transactions.

However, futures market data showed some near-term upside for ETH, with open interest rising 5.44% to $4.80 billion at the time of writing.

ETH funding rates were also positive, +0.0099%, according to data from Coinalyze. Some bullish indicators come from OKX, where short liquidation hit a 1-month high. This could support short-term bullish momentum for Ethereum.

OKX | short-term ETH liquidations for Source: Glassnode

However, ETH’s average trading volume (7d-MA, i.e. 7-day moving average) reached a 1-month low, meaning the network was relatively slow.

ETH Average Trading Volume (7d-MA) | Source: Glassnode

The next price target for Ethereum bulls could be $1350 resistance/support. However, a fall in the price of Bitcoin could extend the losses for ETH and the rest of the market.

XRP’s crypto whales are taking off

XRP price was trading at $0.3971 at the time of writing, down 0.99% on the daily chart, but up more than 2% on the weekly chart.

The Age Consumed indicator for XRP showed that 580 billion tokens were transferred on December 1st.

XRP Age Consumption Indicator | Source: Sanbase

Recently, many old XRP tokens have been moved, which may indicate a possible redistribution of funds. However, there has been a significant increase in XRP whale holdings. Most of the Ripples whales with 10 million have added 1 billion coins in the last day.

XRP Supply Distribution by Address Supply | Source: Sanbase

However, while whales hoarding XRP could push the price in a positive direction, the asset still has a long way to go with Ripple’s ongoing regulatory battle.

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