Despite the bullish momentum into the cryptocurrency market, XRP prices over the past week have not been particularly impressive. According to the latest on-chain data, altcoins may be able to overcome a period of price volatility and have the potential for a breakout.
Taker purchase ratio points to intensive accumulation on Binance
In a recent Quicktake post on the CryptoQuant platform, market analyst CryptoOnchain hypothesized that there could be a major change in XRP price momentum in the near future. This optimistic forecast is based on changes in the XRP taker buy/sell ratio on the Binance exchange.
Taker Buy Ratio measures the amount of trading volume on an exchange (in this case Binance) that comes from buyers (sell orders) who are actively buying XRP at the market price. The taker-sell ratio, on the other hand, measures the percentage of trading volume that comes from sellers actively selling (placing buy orders) at the market price, and we use the buy/sell ratio to compare the two.
According to CryptoOnchain, the 100-day simple moving average of the taker buy/sell ratio has seen a significant increase and recently reached historic all-time highs. Particularly highlighting the 30-day SMA of the taker-buy ratio, crypto experts cited an impressive expansion to 0.495.
At the same time, the taker-sell ratio was in the opposite direction, with the index slowly declining until it reached 0.505. A lower taker-sell ratio means there are fewer sellers to diversify their holdings.
On the contrary, an increase in the taker-buy ratio indicates that more traders are actively buying the token (XRP in this scenario). Taken together, these two readings make it clear that active buyers in the XRP market are increasingly accumulating tokens distributed by sellers.
In particular, CryptoOnchain explained that this action often precedes short-term sustained bullish price momentum. Therefore, if it follows past patterns, XRP price could soon see another boost continuing last Tuesday’s move.
XRP market overview
As of this writing, XRP price is at a level of around $1.36 with no significant movement over the past day. While XRP is up 3.3% on a weekly basis, the cryptocurrency is down 0.9% over the past 30 days.
The U.S. XRP Spot ETF recorded net inflows totaling $11.5 million over the past week, according to SoSoValue data. Interestingly, however, there were two occasions on April 6th and April 8th when the XRP Spot ETF recorded daily net inflows of $0 during this period.
