ADA, XRP, LTC markets lack bullish momentum and so they can change
Bitcoin didn’t make any significant moves in the market towards the end of the year. It chose to limit itself to the $ 30-40,000 price range. Additionally, coins such as ADA, LTC and XRP, which once soared during the independent rallies, are now following in the crypto king’s footsteps.
Especially at the time of writing, these three altcoins (aside from ETH) have the same highest correlation with Bitcoin in the 0.8 range. Exactly 0.89 (LTC), 0.80 (ADA) and 0.86 (XRP). All three are trading in the red after falling no more than 2% in the past 24 hours, and Bitcoin is similar.
Aside from their correlation with BTC, it is important to keep an eye on the trends set by market participants to understand where the price is headed.
Volume: ADA (gold), LTC (white), XRP (pink) | Source: Santiment
The trading volume of all three alts has been falling for more than 4 weeks. Although there is a slight increase in the middle, it is unlikely to be permanent. On the 14th of last month, ADA, LTC and XRP traded at $ 2.38 billion, $ 2.35 billion and $ 3.29 billion, respectively, while July 14th was 1.64 It was $ 1.5 billion, and $ 1.94 billion.
As the graph shows, the last time such a low was in September last year. At the moment, the trading volume needs to be accelerated. Only if that happens can we expect a possible rally.
Developmental activity: ADA (pink), LTC (purple), XRP (red) | Source: Santiment
Over the same one month period, XRP development activity increased significantly, albeit with slight hesitation in various places. However, this has almost no effect on the price of the token. Although development activities in the Cardano and Litecoin ecosystem are currently unstable, their respective prices have not fallen.
At this point it would not be wrong to claim that the price development of these altcoins does not depend heavily on what is happening in their respective ecosystems. The index has been falling over the past few months, especially at a time when alts were following in BTC’s bearish footsteps.
Whale transactions (> 100k USD): LTC (gold), XRP (pink) | Source: Santiment
The big players cannot save these altcoins either. For example, on July 14th, only 408 large LTC transactions (> $ 100,000) were executed, while the final days of June slightly exceeded the average of 1500. Almost 527 whale trades were recorded for XRP on July 14th, which hit around 1000 by the end of June.
As for ADA, IntoTheBlock data has highlighted the concentration of large holders. This index takes into account the total circulating supply share of whales (addresses with a share of more than 1%) and investors (advertisements with a share between 0.1% -1%) and the sum of both underlines the total concentration of wholesalers.
The concentration of ADA in HODLer’s hands is up to 23.37%, but all for free.
In order for these coins to develop well overall, they urgently need an impulse, and perhaps only Bitcoin can offer that. Once the price of BTC starts to rise, the market will most likely see these alts follow the movement of BTC. But right now, big players need to jump in and volume needs to increase for ADA, XRP and LTC prices to gain momentum.
According to AMBCrypto