Lorenzo Stroe
Independent Analyst
- Bitcoin price is close to its all-time high, currently trading at $19,300.
- XRP had a massive 242% colossal rally in the past week.
- Ethereum price is also closely following Bitcoin's step.
The top three cryptocurrencies are seeing massive gains over the past few days. However, some on-chain metrics and technical indicators are showing that a potential pullback might be underway in the short-term.
Bitcoin price aims for the all-time high at $20,000 but could face intense selling pressure
Bitcoin reached a high of $19,418 in the past 24 hours, only a few hundred dollars away from its all-time high. The digital asset looks extremely strong but could be facing a lot of selling pressure as it approaches the critical level.
DAA vs. Price Divergence chart
It seems that the DAA divergence chart is showing a lot of red bars, which is usually an indication that an asset is reaching the top. In this case, the metric has more strength because of the lack of new addresses joining the Bitcoin network.
 [21.37.19, 24 Nov, 2020]-637418485527110605.png)
BTC Holders Distribution
It also seems that the number of whales holding between 100 and 1,000 Bitcoin has declined from a peak of 13,953 on November 8 to a current low of 13,787, despite the significant increase in Bitcoin price.
BTC IOMAP chart
This decline would suggest that many investors are taking profits and selling currently, increasing Bitcoin's selling pressure. The In/Out of the Money Around Price chart shows the next significant support level to be at $18,000, which would be the initial bearish price target in the event of a correction.
Ethereum lacks activity inside the network
Eth2 deposit contract received the required 524,288 ETH, and the digital asset spiked above $600 for the first time in two years. However, it seems that the number of new addresses joining the network is not increasing.
ETH new addresses chart
After two spikes on November 8 and 11, the number of new addresses has declined significantly since November 16, and it's only up by 2.7% in the past week. This metric could suggest that new investors are not yet convinced of the bullishness of Ethereum.
ETH IOMAP chart
The IOMAP chart shows no significant support until the area between $514, and $533, were 411,000 addresses purchased close to 8 million ETH. This would be the nearest bearish price target.
XRP social sentiment might be too optimistic
Although XRP has many on-chain and technical indicators in its favor, one critical metric indicates that a local top might be forming. The weighted social sentiment chart provided by Santiment shows a massive spike in the past three days.
Weighted Social Sentiment chart
The last time XRP saw similar spikes in the positivity of its holders on social media was in October. That last rise was followed by a steep 10% decline in the price of XRP, which indicates that the digital asset could be facing a similar situation now.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.