Although BTC has recovered slightly from the weekend slumber and sits above $64,000, Ripple’s native token has failed to join the rather modest ride and continues to fight for the $1.00 support; however, it’s from the downside now.
Fresh on-chain data shared by popular crypto analyst Ali Martinez showed that this hasn’t deterred large investors from growing louder amid these market struggles.
Fresh on-chain data cited by popular crypto analyst Ali Martinez indicated that whale activity on the XRP Ledger has exploded over the past 24 hours to new local peaks. More precisely, the number of XRP transactions worth over $1 million has surged by 280% to nearly 40. For reference, the number of such transactions during the previous two days stood at around 10.
This sudden activity spike comes only a few days after another significant whale development in which addresses holding between 10 million and 100 million XRP accumulated approximately 72 million tokens in a single day. At the time, this was worth roughly $72 million.
These are numerous signs that network activity has picked up the pace lately and strengthened considerably. Another signal for this came last week when the XRP Ledger recorded nearly 50,000 active addresses within 24 hours, which became a multi-month peak. At the same time, the social sentiment surrounding the native token deteriorated to a three-month low.
Simply put, activity among network users and some of Ripple’s biggest participants is moving in the right direction, while the price of the cross-border token is not.
XRP’s recent slumber is more concerning to investors as the asset slipped by 1% in the past 24 hours to trade just under the crucial psychological support at $1.00. The derivatives market paints another conflicting picture, as the token’s open interest recently approached levels last seen around the massive October 10 liquidation event. In addition, CryptoQuant flagged rising selling pressure on Binance.
The battle for $1.00 appears to be favoring the bears, as long traders have absorbed considerably larger liquidation losses during XRP’s repeated attempts to defend that level.
Consequently, the returning whale activity becomes even more intriguing, as this 280% surge in large transactions doesn’t reveal whether whales were buying or selling. It shouldn’t necessarily be interpreted as accumulation, but when combined with last week’s major purchases and overall rising XRPL activity, it shifts the broader perspective to a more promising one.
The post XRP Whale Activity Explodes 280% as Price Falls Below $1: What’s Going On? appeared first on CryptoPotato.
An anonymous trader on Polymarket holds a No position on the CLARITY Act worth about $414,895, roughly 2.6 times larger than the $160,200 in liquidity
Bitcoin (BTC) short liquidations hit their highest in almost one month as it hit $64,500 on Monday, new data reveals.Key points:Bitcoin passed $64,000 thanks to a short squeeze on derivatives markets, CryptoQuant says.An ongoing downward funding-rate reset from 0.006% to 0.003% over 24 hours could mean further short squeezes.The absence of spot demand raises doubts whether the upside is sustainable after a week of $267.2 million in net ETF outflows.Bitcoin short liquidations near one-month high BTC/USD rallied after Sunday’s weekly close, gaining up to 3% on Monday to top out at one-week highs of $64,550 on Bitstamp. BTC/USD one-hour chart. Source: Cointelegraph/TradingViewExamining the impetus behind the latest BTC price gains, onchain analytics platform CryptoQuant pointed to illiquid markets and funding-rate imbalances among exchanges.Before rebounding on Monday, BTC circled near $62,750. Around this level, funding rates between exchanges began to diverge. Shorts were dominant on major platforms such as Binance, Bybit, OKX and Deribit, while the funding rate on HTX briefly spiked to 0.05%.Funding rates refer to periodic payments exchanged by long and short traders on Bitcoin derivatives markets in order to maintain their positions. Positive aggregate funding rates show that long traders are actively paying shorts, with the reverse true for negative funding rates.“This crowded short positioning served as the primary catalyst, fueling a short squeeze that drove prices higher,” CryptoQuant continued.BTC/USD one-hour chart with exchange funding-rate data (screenshot). Source: CryptoQuantData puts total Bitcoin short liquidations at 637 BTC for Monday, the largest single-day tally since July 21.Describing the event as a “low-volume liquidity trap,” CryptoQuant nonetheless suggested that the market could see more short squeezes next, with funding rates already declining again as traders increase short exposure.Bitcoin short liquidations. Source: CryptoQuantCrucial spot demand remains absentPreviously, Cointelegraph reported that Bitcoin futures markets accounted for the majority of trading volume in the current range, with spot traders broadly uninterested. Related: BTC price loses 200-week trend line as 2022 repeats: Five things to know in Bitcoin this weekIn further analysis on Monday, CryptoQuant called the lack of spot demand the primary hurdle to sustained upside, alongside the lack of inflows to the US spot Bitcoin exchange-traded funds (ETFs).“A break below $60K alongside rising exchange inflows would weaken the structure and increase downside risk toward $50K. Selling pressure is cooling, but demand still needs to return,” it commented.Recent buyers who remain underwater on their BTC allocation have helped cement the current trading range. Short-term holders — wallets holding a UTXO for less than 155 days — have their cost basis at around $68,700, reinforcing that level as resistance.
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