The most recent spike in large transactions has nothing to do with the underperformance of the coin
XRP moves in an uptrend against all oddsEthereum Recovery Potential EmergesAmid declining market volatility and the slow recovery of net flow in the market, we are seeing some signs of recovery on-chain. However, traders should not make premature assumptions and more importantly not take any action without receiving long-term signals.
XRP moves in an uptrend against all odds
XRP’s path in the market has been controversial as the coin has failed to break through at least twice despite a variety of new court information. However, XRP has not gone back globally. Since November 10, XRP has been rising, despite the correction in the market.
Unfortunately, there is a catch: the current uptrend exists in divergence with volume. While moving higher, investors and traders are mostly moving funds away from the marketwhich is a sign that an upcoming trend is fading.
The inability to break through the local resistance level is, for some traders, tied to the most recent surge of massive transactions on the XRP network. More than 4 billion XRP has been transferred from exchanges to unknown wallets.
However, the massive migration of funds was not linked to any selling activity. XRP it has been gradually moving lower due to a lack of fuel for growth and the depressed state of the cryptocurrency market which has been showing negative net flows since the beginning of November.
As liquidity recedes from the digital asset industry, assets like XRP, Ethereum, and others will continue to lose value as investors sell their assets in exchange for stablecoins and other cryptocurrencies that they can use to increase their liquidity and withdraw. funds from the troubled industry. .
Ethereum Recovery Potential Emerges
Ethereum hasn’t been going through its prime after network activity plunged to multi-month lows, triggering a drop in emissions offsetting, making the world’s second-largest cryptocurrency inflationary again. .
With network activity going down, issuance increases and pushes the value of the network up again. However, there is an indicator that shows the possibility of reversal.
? #ethereal $ETH Number of receiving addresses (7d MA) just hit a 1-month low of 8,010.369See metric:https://t.co/Vm6VJY2z37 pic.twitter.com/oXxANIDH85
— glassnode alerts (@glassnodealerts) December 8, 2022
In the past few days, Ethereum’s average gas usage hit a 1-month high, which is a preliminary sign of an upcoming recovery. As network gas consumption increases, more fees are burned, decreasing emission and making Ethereum more deflationary.
In terms of price performance, the recovery of the network should include an increase in activity and gas consumption and should positively affect the value of ETH in the market, but only in the case of a general recovery of the cryptocurrency market.
At press time, Ethereum is trading at $1,238 and has gained around 0.6% of its value in the last 24 hours.