U.Today - The crypto market appears relatively stagnant to start the week, Ripple-affiliated XRP is catching attention with signs of bullish momentum, according to by market analytics firm Santiment.
The firm suggests that is showing "a slight bullish sign due to mild trader capitulation." In simpler terms, a number of traders are selling their XRP, potentially at a loss, causing a drop in prices that historically precedes a rise in value. This phenomenon known as "capitulation" often precedes market bottoms, which then sets the stage for a price surge.
The tweet further explained this behavior stating that "historically, coins moving at a greater ratio at a loss compared to profit have a higher likelihood of rising in value."
This sentiment is based on a classic trading strategy where a major sell-off can often lead to a price increase. When a significant portion of investors capitulate, or sell their positions in anticipation of a downturn, this increased supply can drive the price down temporarily. But once the sell-off ends, the reduced selling pressure can allow the price to increase.
In the broader cryptocurrency market, data from CoinGecko shows a relatively flat performance. Bitcoin (BTC), the leading cryptocurrency, is trading at around $30,303 with a 7-day increase of 12.5%. Ethereum (ETH), the second-largest cryptocurrency, is valued at $1,867.41 with a 7-day increase of 7.9%. XRP, despite showing a 7-day decrease of 2.0%, has been identified by Santiment as showing potential for a value increase.