Bitcoin, Ethereum, XRP On-Chain Analysis: Where Is Retail Demand?


Bitcoin took the lead in the market with a sharp recovery above the $20,000 mark. Ethereum and XRP, along with other top altcoins, made huge gains.

The global crypto market cap finally breached the $1 trillion mark, triggering a market rally. Bitcoin (BTC), Ether (ETH), and XRP noted higher daily gains as bears finally took a back seat.

After the crypto market turned green on Tuesday, more than $1.2 billion in short liquidations took place in about 24 hours. The crypto market was finally freed from the tight price range since September.

Despite notable gains and bullish sentiment across the market, BTC price stabilized at the $20,600 mark. On the other hand, ETH and XRP price also faced rejection at their upper resistance levels.

Bitcoin On-Chain Analysis: The Bulls Might Have to Wait

At the time of writing, the bitcoin price was trading at $20,598.99, representing a decrease of 1.17% on the daily time frame. Data from IntoTheBlock’s In/Out of Money Around Price Indicator suggested that $20,323 acted as the next important support for BTC price, with 843,000 addresses holding above 725,000 BTC.

Bitcoin in/out of money at price |  Source: IntoTheBlock
Source: IntoTheBlock

With BTC short-term price action weakening, a decline below $20,323 could induce selling pressure.

Many in the market thought a bitcoin bottom was in place; However, data from Cryptoquant highlights that there is still a lack of on-chain verification for the bottom half of the crypto market.

During the 2015 and 2018-2019 cycles, the bitcoin price moved in a similar range-bound motion, with price volatility falling to its lowest levels. When volatility drops to historical lows, it indicates that the downward trend is coming to an end. However, during the 2018 cycle, low price volatility saw a rapid 50% drop in bitcoin price from $6500 to $3,200 in just one month.

At the time of writing, MVRV and UTXO realized the 6-month and older age band was in the price range for bitcoin. 1-3 Months Ago UTXO Edge Band Realized Price needs to take a long time to outweigh the prolonged upward trend; For now, this level is at the $21,264 mark.

BTC UTXO Age Band |  Source: Cryptoquant
BTC UTXO Age Band | Source: Cryptoquant

As seen in the chart above for UTXO, the age bands are still away from the downside signals. Furthermore, the pull multiple was still not in a “strong buy zone” for the price of bitcoin as it dipped to 0.62.

Bitcoin Pull Multiple |  Source: Cryptoquant
Bitcoin Pull Multiple | Source: Cryptoquant

While BTC exchange reserves have depleted over the past few days, easing selling pressure, Net Unrealized Profit and Loss (NUPL) is still in the surrender phase. NUPL was below 0, indicating buying; However, it is not as attractive as it was during the low of 2020 when it was at -0.18.

Bitcoin NUPL |  Source: Cryptoquant
Bitcoin NUPL | Source: Cryptoquant

Ethereum On-Chain Analysis: Prices at the Crossroads

At press time, Ethereum price is trading at $1,552 with a daily loss of 1.41%. ETH price reversed most of the losses in mid-September, bringing its value below the $1,200 mark. However, there were still significant hurdles ahead of the ETH bulls.

Data from Glassnode highlights that the ETH number of active addresses (7d MA) has just hit a 3-month low of 28,431.935, despite recent gains.

ETH number of active addresses |  Source: Glassnode
ETH number of active addresses | Source: Glassnode

Furthermore, ETH 365-day and 30-day MVRVs noted healthy growth to recover from June and July lows. However, a slight drop in MVRV shows that gains may be limited, and ETH bulls may continue to struggle further.

Going forward, if the price of ETH falls below the $1531 mark, it could add to the selling pressure for the coin. Data from IntoTheBlock highlighted a significant resistance for ETH at the $1579 mark, where over 1 million addresses hold 2.46 million ETH.

Source: IntoTheBlock
Source: IntoTheBlock

XRP On-Chain Analysis: Where is the Catalyst?

As far as the price of XRP is concerned, the sixth-ranked cryptocurrency by market cap is up just 3% over the past three days. At press time, XRP was priced at $0.4698 on the daily and weekly charts, up 0.36% and 1.79%.

Despite Ripple’s victory in the ongoing regulatory battle, the price of XRP has been on a downtrend since October 10th.

Whales have accumulated around 300 million XRP over the past few months, but this hasn’t affected the XRP price much. At the same time, growth activity and the total supply of stablecoins held by more than $5 million whales saw a steady decline.

Source: Sentiment
Source: Sentiment

Furthermore, no bounce in active addresses was observed even though the price made some moves in an upward direction.

Source: Sentiment
Source: Sentiment

If retail volume can aid in the price momentum, XRP price could see some gains towards $0.488. However, if the price of XRP falls below the $0.38 mark, it could spell trouble for the coin.

Disclaimer: All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action taken by readers on information found on our website is strictly at their own risk.





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