According to a tweet from market analytics company Santiment, the cryptocurrency market looks to be pretty stable to start the week, although Ripple-affiliated XRP is grabbing attention with hints of positive momentum.
According to the company, XRP is exhibiting “a slight bullish sign due to mild trader capitulation.” To put it another way, many traders are selling their XRP, maybe at a loss, which is producing a decline in prices, which usually comes before a gain in value. Market bottoms frequently precede this “capitulation” occurrence, which subsequently creates the conditions for a price increase.
In the tweet, this behaviour was further clarified by the statement that “historically, coins moving at a greater ratio at a loss compared to profit have a higher likelihood of rising in value.”
This belief is supported by a traditional trading approach that holds that a significant sell-off frequently results in a rise in price. This additional supply might temporarily lower the price when a sizable fraction of investors give up or sell their holdings in expectation of a slump. However, the lessened selling pressure when the sell-off is over may allow the price to rise.
According to statistics from CoinGecko, performance in the larger cryptocurrency market has been somewhat stable. The most popular cryptocurrency, Bitcoin (BTC), is currently selling at roughly $30,303, up 12.5% over the past week. The value of Ethereum (ETH), the second-largest cryptocurrency, has increased 7.9% over the past week to $1,867.31. Santiment has determined that XRP has the ability to improve in value despite a 7-day decline of 2.0%.
