Sales have ravaged XRP digital asset for some time while the cryptography market has recovered. This is not surprising since the XRP price has been low since January, and the first increase presented an opportunity for the first sellers to leave the market. It is interesting to note that it plays in the bullish story of Altcoin while sales grow further in the territory of occurrence, creating the possibility of a bounce point from here.
XRP Netflows remains negative
A data researcher who passes by DOM on X shared an update on XRP outputs, showing that they remained negative for a while. In the position, DOM explains that XRP was in territory occurred for the 7 -day period, despite the increase in the price of Altcoin. The attached screenshot has shown that more than 88 million XRP tokens were sold, which amounted to $ 210.9 million.
Coinglass website data corroborate this because the XRP net flows have remained negative in the last seven days when writing this article. So far, May 9 has been the worst in terms of sale with net flows falling to $ 96.33 million in one day. The following days saw an average of $ 20 million in net flows.
However, it was not a cause of alarm. If anything, Dom explained that this could be optimistic for the XRP price. One of the reasons is that prices are increasing while sales dominate, which shows that the retail is not behind. He explains that whales and market manufacturers probably absorb parts thrown on the market, thus leading to the simultaneous increase in the price.
Dom explains that this is an “bullish imbalance of a microstructure lens with control flow”, which means that it could actually be good for the XRP price. A continuation of this trend should increase the price, especially since sellers lack tokens to sell.
Open interest shows show that investors are
While net flows continue to be negative, the interest open XRP tells a different story, according to Coinglass. He climbed in May, after increasing prices during this period. At the beginning of the month, the interest opened was $ 3.72 billion, but has since increased to $ 5.53 billion on May 14.
This increase in open interest shows that investors actively place betting on the XRP price. While the interest continues to increase, the price could jump in response to the new liquidity. This could give the price on a quick path at $ 3.
Dall.e star image, tradingView.com graphic
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