Crypto analytics firm Santiment; He explored whether XRP and Ethereum (ETH) are ready for further recovery after making big gains. Over the past few weeks, Ethereum has surged to $ 2,544 this week, after about $ 1,566 in March. Santiment posted its latest ETH price analysis this Thursday, assessing the likelihood that the second-largest asset by market capitalization could hit $ 3,000 in a single long bullish move.
Noting that Ethereum address activity is following a steady uptrend, the firm shared that ETH gave some technical signals for the bullishness:
“Address activity is increasing clearly and beautifully.”
Santiment added that Ethereum is a fresh capital buyer:
“The average age of dollars invested in Ethereum clearly shows that new money is coming and investments that are not moving are moving.”
However, Santiment noted that the trade volume is not particularly high and the development activity on the network is not very lively either:
“Development activity rates, similarly, do not show very strong signs of growth. Still, Github output is significantly higher than Ethereum’s debut in 2015.
Santiment also noted that ETH gave signs of full bearishness; He stated that the average trader returns over the past thirty days have been quite high, which could be a sign that the asset will peak in the short term.
Additionally, the firm warned that very high Ethereum gas fees could deter investors from continuing to use the platform. Average gas fees on the leading smart contract platform have increased from under $ 2 at the beginning of the year to about $ 7.40 now.
Will the XRP rally continue?
As for XRP, Santiment said it was time to cool down after Ripple’s native token rose 240% in just thirty days.
The firm said its traders that although XRP’s chart against the USD looks relatively bullish and the lows are gradually rising; He warned that it would likely have to pause before continuing its upward trajectory:
“XRP’s MVRV 30D metric (the ratio of the average profit or loss of those holding XRP tokens moving in the last 30 days relative to the last price of each token) reached an all-time high in the past year. This indicates that XRP is currently in an overvalued territory and there is a high incentive for people to take their profits off the table.
The firm adds that once Ripple’s lawsuit with the SEC becomes officially clear, the asset could continue its rise:
“Once they can clear all the uncertainty about XRP, it will give the market another green light to keep rising.”
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