Crypto analytics firm Santiment is investigating whether Ethereum (ETH) and XRP are prepared to rally further after turning in massive gains.
In the past few weeks, Ethereum has surged from a low of around $1,566 in March to a high of $2,544 this week. Santiment issued their latest ETH price analysis this Thursday, weighing the chances that the second-largest asset by market cap will soar all the way to $3,000 in one extended bullish move.
[adinserter block="1"]The firm shares that ETH is flashing some bullish technical signals, noting that Ethereum address activity is following a steady uptrend.
“Address activity shows a clear and beautiful rise in the past year.”
Santiment adds that Ethereum is the recipient of fresh capital.
“The average age of invested dollars in Ethereum clearly indicates new money has come in and dormant investments are moving.”
However, trading volume is not particularly high, reports Santiment, nor is development activity on the network enough to turn heads.
“Development activity rates, similarly, isn’t really showing overwhelming growth signs. Github submissions are still significantly higher than Ethereum’s 2015 debut, though.”
Santiment also notes that ETH is flashing some entirely bearish signals as well, noting that average-trader returns over the past thirty days are quite high, which could be a signal that the asset is topping out in the short-term.
Additionally, the firm cautions that sky-high Ethereum gas fees could discourage traders from continuing to use the platform. Median gas fees in the leading smart contract platform have risen from under $2 at the start of the year to their current value of about $7.40.
As for XRP, it is perhaps time for Ripple’s native token to cool off after mooning 240% in just thirty days, reports Santiment.
The firm cautions traders that although XRP’s chart against USD looks relatively bullish and is printing higher highs and higher lows, it will likely need to pause before it continues its upward trajectory.
[adinserter block="1"]Explains Santiment,
“XRP’s MVRV 30D (metric shows the average profit or loss of those holding XRP tokens which moved in the last 30 days, based on the price when each token last moved) has hit an all-time high for the past one year.
This signals that XRP’s currently in a way overvalued zone and there’s high incentive for people to take profits off the table. Anyone buying here is just asking to be rekt.”
The firm adds that when Ripple is officially in the clear in regards to its lawsuit with the U.S. Securities and Exchange Commission (SEC) which alleges that XRP has been trading as an unregistered security, that is when the asset may continue its bullish ascent.
“Once they are able to remove all uncertainty around XRP, it’ll provide the market another green light to keep moving it upwards. Until then, it’s time to chill.”
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