Crypto analytics firm Santiment says XRP is signaling bullishness as whales rapidly accumulate the token.
According to Santiment, XRP is setting the stage for a possible price surge to start off 2023, potentially triggered by a short squeeze.
A short squeeze happens when an unusual amount of traders are trying to short-sell an asset. The squeeze begins when the price jumps, causing many traders to buy back their positions and therefore pushing up the price even further in a volatile fashion.
Santiment shows the lopsided funding rate for XRP on Binance, the largest crypto exchange in the world by trading volume.
“The XRP Network has some intriguing network divergences pointing to strong bullish cases. Our community post discusses whale addresses accumulating rapidly, traders continuing to short, and a significant long/short on the verge of being crossed.”
Turning to the top two crypto assets, Santiment says Bitcoin (BTC) and Ethereum (ETH) are showing weakness based on their Network Value to Transactions Ratio (NVT). The metric attempts to gauge the direction of the market by looking at token circulation versus the asset’s market cap. A low circulation relative to market cap implies the token is overvalued and positioned for a correction.
“According to Santiment’s NVT price prediction model, Bitcoin and Ethereum still require some increased network utility to justify current market caps. The circulation rate of both networks need to pick up in 2023, and this week will be telling as non-holiday days begin.”
At time of writing, Bitcoin is trading hands at $1,645 and Ethereum at $1,209. XRP is currently going for $0.342.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.