Bitcoin (BTC), Ethereum (ETH) and XRP prices struggled to move above their next key resistance levels despite short-term bullish momentum in play.
Bitcoin price action has been in a major downtrend while Ethereum and XRP prices are struggling to regain some bullish momentum. However, short-term bullish price action pushed the BTC price to $17,094 at press time. ETH is up only 1% on the day, while XRP is down 0.57% in price.
Price-wise, ETH and XRP followed the top cryptos. However, on-chain data presented some peculiar trends for these three coins.
Bitcoin Price Could See More Losses
BTC short-term on-chain participants continued to sell at a loss with the short-term Spent Output Profit Ratio (SOPR) below one. This indicated a lack of confidence among traders, which formed a strong resistance at $18,000 for BTC price. According to the CryptoQuant analyst, the $18,000 mark will be the average cost of entry for short-term participants.
Furthermore, the analyst highlighted that traders should be careful as yield curve inversions often precede recessions, and the current 10-year Treasury rate (3.75%) was lower than the three-month rate (4.22%).
Since investors who bought BTC after December 2020 are now at a loss, it will take some time for the SOPR of long holders to turn positive. Thus, the short-term SOPR is a better indicator of the current market trend.
A negative trend in the price of BTC was positive net inflow, presenting more exchange inflows than outflows on December 1st. The net inflow of bitcoin was $16.80 million.
Another recent analysis by CryptoQuant suggested that the Network Value to Transaction (NVT) sell zone was triggered when the price of BTC was rising. Due to this, the price of bitcoin may fall in the next ten days.
The NVT Golden Cross gives a warning signal when it moves above the 2.20 level. Currently, it is at 2.44, and it may still move up to 2.77 (last value), which may cause some short term downside in the price.
Ethereum outflows continue
At the time of writing, Ethereum price is only up 0.40% on the daily window as ETH is trading at $1,269.05.
The November losses were not as severe for ETH as for Bitcoin and some other altcoins since Ethereum traded above the psychological support of $1,000. Daily on-chain exchange flows suggested that net inflows were negative for ETH, with an outflow of approximately $6.7 million on December 1st.
ETH NVT was at a monthly high, meaning investors were pricing ETH at a premium as market cap growth outpaced the use of on-chain transactions. That said, futures market data showed some short-term bullishness for ETH, with Open Interest appreciating by 5.44%, to $4.80 billion at press time.
The ETH funding rate was also positive at +0.0099%, according to data from Coinage. Some bullish data came from Oxex, where short liquidations hit a one-month high, which could aid some short-term bullish momentum for ETH.
However, the ETH mean transaction volume (7d-MA) hit a one-month low, which meant that network vibrations were relatively low.
For ETH bulls, the next target could be the $1,350 resistance/support. However, a drop in the price of bitcoin could further magnify the losses for ETH and the rest of the market.
XRP whales on the rise
XRP price traded at $0.3971 at the time of writing, down 0.99% on the daily chart but over 2% on the weekly.
The age consumption metric for XRP showed that over 580 billion XRP were moved on December 1st.
A lot of old XRP coins have been circulating recently, which could point to a possible redistribution. However, there was a major increase in XRP whale holdings. Notably, the largest XRP whale cohort with 10 million to infinity coins added over a billion coins in the last day
While whales adding to XRP could push the price in a positive direction, the price of XRP still has a long way to go with the ongoing regulatory battle.
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