Bitcoin, Ethereum and XRP continued their sharp declines this week following a wave of retail selling. Historical data shows that such behavior sometimes precedes market recoveries. Data from Santiment shows that ‘small wallets’ in all three assets are reducing their holdings. It is a pattern that usually occurs before price rebounds.
Small Bitcoin wallets holding less than 0.01 BTC sold 0.36% of their supply in the last five days, while small holders of ETH and XRP sold 0.90% and 1.38% respectively over the past month. However, Glassnode estimates that small investors are still making gains overall, with BTC, ETH and XRP up around 104%, 43% and 61% respectively.
The market remains weak despite BTC and ETH posting modest rebounds after several days of deep declines. BTC was at $90,785 and has now surged to $91,643.01 while ETH is trading around $3,025, but sentiment remains very negative with the Fear and Greed Index falling to 15.
Technical indicators point to oversold conditions, which can sometimes lead to short-term recoveries. However, liquidity pressure is at $270 million in 24 hours with volatility still high and the market not yet fully stable.
CryptoRank warns that volatility will continue, with the market’s direction potentially dependent on upcoming U.S. economic data. While there are early signs of a rebound, a sustained recovery is far from certain.
