en.bitcoinsistemi.com
As the bear market continues for Bitcoin ($BTC) and altcoins, the $BTC price has fallen to $60,000, and altcoins have also experienced significant losses.
One of them was $XRP. After reaching its all-time high of $3.65 last July, $XRP entered a downward trend, falling to levels around $1.1.
However, the bottom for $XRP may be very near. Crypto analytics platform Glassnode states that on-chain indicators show that $XRP prices are approaching their bottom.
According to Glassnode data, there has been a significant decrease in the supply of $XRP held on exchanges over the past two years. As of yesterday, the $XRP balance on exchanges fell to 12.9 billion $XRP, reaching levels last seen in May 2021.
This means that $XRP holdings on CEXs have reached their lowest level in the last five years.
This is because a significant decrease in the number of assets held on exchanges is generally interpreted as a reduction in selling pressure and a strengthening of $XRP’s upside potential.
In addition, Glassnode noted that funding rates for $XRP have also decreased. According to the data, the $XRP funding rate fell to -0.028% on the 6th of this month, reaching its lowest level since April of last year.
This situation is being interpreted as “pointing to excessive short positions and a possible bottoming out.” According to analysts, historically, excessively negative funding rates generally indicate that the market has bottomed out and reached oversold conditions.
In $XRP, the 90-day cumulative volume difference (CVD) between spot buyers and sellers has turned positive. According to analysts, this indicates that demand is recovering and buyers are regaining control.
For $XRP, a positive CVD (Current Economic and Viable Demand) indicates that buyers are purchasing more at lower levels, which could lay the groundwork for a rebound, as seen in historical rallies.
*This is not investment advice.