Crypto analytics firm Santiment says XRP is bullish as whales are accumulating tokens rapidly.
According to Santiment, XRP is setting A phase of price spikes that could start in 2023 and could be triggered by a short squeeze.
A short squeeze occurs when an abnormal amount of traders attempt to short an asset. A squeeze starts when the price spikes, and many traders buy back their positions, pushing the price even higher in a volatile fashion.
Santiment shows XRP’s disproportionate funding rate on Binance, the world’s largest cryptocurrency exchange by trading volume.
“The XRP network has some interesting network bifurcations that show a strong bullish case. are on the verge of crossing.”
Turning to the top two crypto assets, Santiment says Bitcoin (BTC) and Ethereum (ETH) are showing weakness based on their Network Value to Transaction Ratio (NVT). This indicator tries to gauge the direction of the market by comparing token circulation and asset market capitalization. Low circulation compared to market capitalization means the token is overvalued and has room for correction.
“According to Santiment’s NVT price prediction model, Bitcoin and Ethereum will need to increase their network utility somewhat to justify their current market capitalization. This week marks the beginning of non-holidays.”
At the time of writing, Bitcoin is trading at $1,645 and Ethereum at $1,209. XRP is currently at $0.342.
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