• Bitcoin price prediction displays a lackluster retaliation after last week's sudden selloff, though on-chain metrics suggest a bottom may be near.
  • Ethereum price and the bullish narrative regarding the upcoming Merge flips as bears threaten to push prices lower.
  • XRP price witnesses a turn after a steep decline into the weekly trend. If a rally is to occur, it's now or never.

As August ends, retail traders have spent the week deciphering the cryptomarkets' true intentions. Since last week's sharp decline, the market has been confined within a congestive zone. The mundane price action is likely to resolve in a sharp directional move that many analysts hope will be bullish. Still, an additional decline should not be ruled off the table.

Bitcoin price is close to a bottom

Bitcoin price has traded sideways all week following last Friday's 16% liquidation. At most, the peer-to-peer digital currency has recovered 3% of the losses accrued. The lack of effort displayed post decline is the first anomaly that merits question in the underlining bullish strength. The VolumeProfile indicator confounds the reasonable doubt as transactions continue to taper.

Still, on-chain analysis tools suggest more optimism is taking place underneath the cryptocurrency hood. Specifically, Santiment's Daily Active Addresses Indicator shows that large-cap players have gone dormant this week. At 484,000 active wallets, the reading is a newfound low in terms of activity for the year 2022. The June 2021 low, with a reading at 505,000 active wallets, resulted in one more shallow move from $35,000 to $31,000. Bitcoin price then commenced a 100% increase in profit between July and November 2021.

tm/btc/8/26/22

Santiment’s Price & Active Address Indicator

In the following video, our analysts deep-dive into Bitcoin's price action, analyzing key levels of interest in the market - FXStreet Team

Ethereum price suggests otherwise

Ethereum price currently trades at $1,606. Ethereum has dominated the cryptocurrency sphere in terms of performance, providing several profitable opportunities to latch on to throughout the weeks. The decentralized smart contract token has been a trader's chart. Still, the textbook-like technicals are not subject to lasting forever. On-chain analysis suggests a very concerning occurrence has just taken place behind the scenes.

Santiments Daily Active Addresses shows the largest influx of active ETH participants this year. At currently $1.08 million, the influx of participants is a third more than 2021's yearly high reading of 700,000. Just after the 2021 influx occurred, the ETH price fell sharply from all-time highs at $4,500 to $2,400 just weeks later. Historically the indicator narrates that high influxes result in sharp sell-offs. Specifically, the infamous crypto liquidations in both May and December of 2021 and the 2018 all-time highs near $1,400.

When combined, ETH price could set up a catastrophic selloff unspottable for traders solely using technical analysis.

tm/11/26/22

Santiment Price & Daily Active Address Indicator

In the following video, our analysts deep dive into the price action of Ethereum, analyzing key levels of interest in the market - FXStreet Team

XRP price is losing hope already

XRP price has been the underperforming digital asset for most of the summer. The digital remittance token, which saw a 30% increase in price throughout the summer, has already lost 50% of the rallies accrued profit. Now the XRP price hovers above an ascending trend line, providing support throughout most of the summer. A closing candle below the ascending support line could wreak total havoc on the Ripple price.

XRP price currently auctions at $0.34. Unfortunately, there is no on-chain data from Santiment, IntoTheBlock, or Glassnode. Therefore, traders can only utilize classical technical analysis. According to Bitstamp's exchange, an influx of volume has come into the market near the ascending boundary, which is the first warning signal of mayday. Additionally, the bulls have lost support from the 8- & 21-day simple moving averages.

When put together, the XRP price suggests more decline could occur in the coming days. Therefore, being an early buyer is still ill-advised. 

tm/xrp/8/26/22

XRP/USDT 12-Hour Chart

In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market - FXStreet Team

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The Nonfarm Payrolls (NFP) data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

More Bitcoin News

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano (ADA) price has succeeded in breaking above key levels near $0.39 as the pivotal historical level at $0.388 and the 200-day Simple Moving Average (SMA) all got broken to the upside with the Federal Reserve meeting on Wednesday.

More Cardano News

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic (ETC) is set to book a very outright bullish intraday session just hours before the US session kicks in. As the dust is settling for global markets after all major central banks had their say on Wednesday.

More Ethereum Classic News

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings

More Bitcoin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP