The Crypto Market: Bitcoin and XRP as Buy-Low Opportunities

On-chain analytics firm Santiment reports that Bitcoin and XRP present potential buy-low opportunities. Retail traders are less excited about these compared to Ethereum as they focus on the latter’s price movements ahead of the weekend.

Santiment’s social data chart shared on X highlights a significant imbalance in retail discussions regarding the top three cryptocurrencies.

Ethereum has a sentiment index favoring bullish calls by a ratio of 2.53 to 1. This high optimism is interpreted as potential FOMO (fear of missing out), often preceding price corrections for Ether.

In contrast, Bitcoin and XRP exhibit lower sentiment readings at 1.33 to 1 and 1.11 to 1 bullish-to-bearish ratios, respectively. Analysts from Santiment suggest that these lower enthusiasm levels may present buying opportunities, as markets frequently move contrary to prevailing expectations.

Ethereum seems more prone to price reversals, while Bitcoin and XRP’s muted sentiment could allow for upward price movements.

Bitcoin Nears All-Time Highs

Despite neutral sentiment, Bitcoin remains near its all-time high of $123,000. Over the previous week, its price fluctuated narrowly between $123,120 and $123,471, building on earlier aggressive gains. The market’s activity suggests a transitional phase after closing Friday’s trading.

Funding rates across major exchanges, such as Binance and OKX, have been neutral to slightly positive. The absence of excessive long positions implies traders are in a “wait and see” mindset, anticipating clearer price cues.

CryptoQuant contributor Nino attributes this market stability to a seasonal slowdown termed “summer doldrums,” which often precedes heightened volatility later in Q3.

Increased Institutional Activity During Price Peaks

From July 22 to July 25, Bitcoin’s price fluctuated between $115,000 and $119,500, peaking on July 24 before dropping back to $115,000. Exchange inflow data from CryptoQuant shows increased activity from large holders during this peak, especially in the mid-to-large value categories. Wallets possessing between 10 and 100 BTC saw inflow spikes around the price apex.

Notably, wallets holding between 100 to 1,000 BTC and 1,000 to 10,000 BTC also exhibited high inflows at this time, suggesting large holders might have influenced the price through profit-taking or repositioning. Smaller transactions remained stable throughout, while inflows from wallets over 10,000 BTC were minimal with a slight increase at the peak.

XRP’s Low Social Interest Might Spark Short-Term Rally

Conversely, XRP shows minimal social media interest, ranking lowest among the three assets tracked. Its bullish-to-bearish commentary ratio stands at 1.11 to 1, indicating a lack of attention towards XRP’s potential.

Despite this, XRP’s price has not dipped below $2.99 over the last week, as both bulls and bears struggle to impact its direction significantly. According to Santiment’s analysis, this indifference may serve as a bullish signal, echoing previous occasions when XRP experienced price recoveries amid low engagement. Current conditions could be shaping a similar scenario for XRP.