According to data from the Coinbase cryptocurrency exchange, the majority of large investors (10% of platform’s traders with the largest coin funds) in Bitcoin (BTC) and Ripple (XRP) keep buying the digital currency.
Most users on Twitter noted that the actual owners of the XRP coins are in “hodl mode”, and not ready to “dump” the cryptocurrency.
The Fear & Greed Index Reached An Extreme Fear
The Fear & Greed Index released by the Alternative.me platform is in the “extreme fear” range. It has reached the lowest rate (11 out of 100) over the last 244 days. The same figure was recorded on December 13, 2018, when the BTC rate dropped to $3,000.
On August 6, the index reached 66, which means intense greed. A sharp decrease in the index corresponded with a drop in the Bitcoin value, which is now trading in the range above $10,000.
The greed indicator designates the danger of a bearish trend, and strong fear, on the contrary, indicates a correction in the upward direction. According to Alternative.me experts, the current market situation provides unique opportunities for the acquisition of digital currencies, and the whales use this one.
It is indicated on the Coinbase website that over the past day, 71% of Bitcoin owners keep purchasing amid high volatility. This figure reached 83% among investors in XRP. Thus, money-bags started to increase the amount in digital currencies again.
Therefore, there are two scenarios:
- The digital asset’s price will start increasing if the whales buy at a low rate on the principle of the outlook for the future;
- The digital asset’s price keeps dropping if investors buy coins before the upcoming dump.
However, the XRP trade volume almost bisected between August 15 and 16 (from $2.1 to $1.1 billion), so tokens are not purchased in great amounts. Nevertheless, in December last year, these figures before the pump fell by about 25%. Thus, the probability of a reversal is remaining at the moment. However, a bearish trend line formed on the chart over three months and indicators indicate a further price reduction for XRP.