- Investors continued to accumulate more ETH as its supply outside of exchanges increased.
- XRP was up by more than 4% in the last 24 hours, and a few metrics were bullish.
Over the last few days, the crypto market has witnessed a massive downfall. This caused most cryptos to shed their values by nearly double digits, including Ripple [XRP] and Ethereum [ETH]. While the market remained under bears’ influence, it has opened the right opportunity for investors to increase their accumulation.
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Interestingly, the latest data suggested that most altcoins were in the underbought zone, which can cause an uptick in buying pressure, in turn, changing the market condition around.
A massive price correction
Though there might have been multiple factors at play that caused the entire market to turn red, a major reason might have been SpaceX’s dump of Bitcoin [BTC] worth millions of dollars. Thanks to this, Ethereum went under the $1,600 mark for a short while.
However, Santiment’s latest tweet revealed that several altcoins went into the underbought zone over the last few days. Not only were altcoins underbought, but the overall trading sentiment remained low.
📊 Market caps have fallen considerably over the past week, and traders are very polarized. Many believe a quick recovery is coming, while others see this as just the beginning of the dump. But undeniably, average #crypto returns are in a mathematically historic opportunity zone. pic.twitter.com/oVlLQ6ZuB1
— Santiment (@santimentfeed) August 19, 2023
As per CoinMarketCap, the 24-hour trading volume dropped by more than 30%, reflecting investors’ reluctance to actively trade. However, while the market remains sluggish, it might be the right opportunity for investors to accumulate more before the market turns bullish. In fact, investors were already accumulating the king of altcoins.
As per Santiment, ETH’s supply on exchanges dropped substantially while its supply outside of exchanges increased. Additionally, whales’ confidence in the king of altcoins was high as the supply held by top addresses went up.
Source: Santiment
Are Altcoins entering a bull rally?
Surprisingly, while ETH’s price was still slow-moving, XRP, on the other hand, showed high volatility. According to CoinMarketCap, the altcoin was up by more than 4% in the last 24 hours, which was remarkable, considering the current market condition.
At press time, it was trading at $0.5288 with a market cap of over $27.9 billion. The recent price uptick helped XRP increase its MVRV Ratio slightly. Additionally, positive sentiment around the token was relatively high.
Source: Santiment
Not only that, but ETH’s Relative Strength Index (RSI) was in an oversold zone, which is a bullish development. Moreover, CryptoQuant’s data revealed that ETH’s exchange reserve was declining, suggesting that buying pressure was increasing.
How much are 1,10,100 XRPs worth today
This happened while the market’s Fear and Greed index had a value of 34. When the metric’s value remains low, the chances of a price uptick increase. Therefore, investors might consider this a good opportunity to increase their accumulation to enjoy profits during the next bull run.
However, taking into account the unpredictable nature of the crypto market, the possibility of a further downtrend can’t be ruled out.
Source: CoinMarketCap
