In contrast to its top-cap rivals, XRP is seeing more transactions at a loss than at a profit, which data platform Santiment refers to as a sign of trader capitulation.
This creates the ideal environment for a price increase. The tweet went on to explain this pattern, saying “Historically, coins moving at a greater ratio at a loss compared to profit have a higher likelihood of rising in value.”
As crypto’s largest assets are ranging to start the week, XRP is showing a slight bullish sign due to mild trader capitulation. Historically, coins moving at a greater ratio at a loss compared to profit have a higher likelihood of rising in value.
The Ripple-backed cryptocurrency has been steadily increasing since the first few weeks of June. From June 5 to June 22, XRP price climbed above $0.50 to a brief high of $0.56.
On June 18, anonymous crypto analyst Mags a.k.a. thescalpingpro noted that the asset had “one of the cleanest setups so far” and that, given it could get past the crucial resistance level of $0.55, its “next stop would be $0.68 and higher.”
Well, that remains to be seen, July is expected to be a pivotal month for the token given that Ripple, the blockchain firm involved in a legal dispute with the SEC might reach a resolution by then.
Meanwhile, a well-known crypto analyst named Ali Martinez recently drew an intriguing correlation between the rise in the price of XRP and the quantity of active XRP addresses.
XRP: Top Analyst Presents Interesting Correlation
Martinez cited Santiment statistics to claim that the price of XRP has increased on three occasions in response to a rise in the number of active addresses.
Illustrating through a chart, Martinez noted that since the middle of the last week, on-chain activity related to the XRP cryptocurrency has significantly increased, surpassing 120,000 daily addresses.
Although this number is lower than the peaks seen in May and March, it is still close to the levels seen at the start of the year.
The price of the asset increased by nearly 25% throughout that time. This historical tendency would suggest a probable increase to $0.6 per XRP if it were to apply to the current situation.