- Capital flowed out of Bitcoin, suggesting the price could fall below $69,000.
- Despite the increasing profits for holders, the price of ETH could soon reach $4,500.
Top cryptocurrencies, including Bitcoin [BTC]Ethereum [ETH]and Ripple [XRP] have had a great start to March, despite previous predictions that the month could be bearish for the market.
For example, Bitcoin rose to a new All-Time High (ATH) when it shot past $72,000 on March 11.
Ethereum, once lagging behind, has been catching up. According to AMBCrypto’s assessment of the altcoin, the price of ETH has increased by 8.59% over the past seven days.
This performance pushed the value above $4,000. Then there’s XRP, which has been the subject of controversy following Ripple’s lengthy lawsuit with the US SEC.
But in the past 24 hours, XRP didn’t seem to care as its price rose 18% to reach nearly $0.74. But can cryptocurrencies maintain this momentum in the coming week?
Bitcoin price prediction
Bitcoin’s impressive performance since the beginning of the year is linked to the surge in institutional interest through ETFs.
But there has been a spike in retail interest in recent days, suggesting the bull run may already be underway.
However, take a look at the Hodler Net Position Change revealed that the high-flying prize could take a chill pill. Using Glassnode’s data, we noticed that the statistic had become negative.
If the Hodler Net Position Change had been positive, it would have meant that investors were accumulating BTC. But the value of -31,531 BTC means that the holders cashed out.
If investors continue to make gains, Bitcoin’s price could fall.
Source: Glassnode
A significant price reach in the coming week could be below $69,000, which has been a key resistance area. However, traders may need to watch out for institutional inflows.
Should inflows from the ETFs reach new highs, Bitcoin’s price could rise to a new ATH.
Ethereum price prediction
For Ethereum, AMBCrypto has taken into account the ratio between market value and realized value (MVRV).
At the time of writing, the 30-day MVRV ratio was 19.30%, meaning that if all ETH holders sold their tokens, they would make a profit average profit of 19.30% profit.
In a bull market, this value is significantly low and could imply that the altcoin was undervalued. For example, during the 2016-2017 bull market, the MVRV ratio rose to 81.6%.
In 2021, the metric also rose higher. In this situation, the price of ETH could move higher in the coming week, and a 10.22% increase to $4,500 could be plausible.
Source: Santiment
Another reason for this could be a decline in Bitcoin’s dominance. Should this be the case, ETH could receive a large portion of the redistribution, which could drive its price higher.
XRP Price Prediction
XRP appears to be benefiting from the capital rotation from Bitcoin to altcoins. Previously, AMBCrypto reported how the token struggled to get past the $0.62 resistance.
At the time of writing, the price had fallen to $0.69 after initially reaching $0.71. When we considered the 90-day Mean Dollar Invested Age (MDIA), we had noticed that the metric was sliding.
Realistic or not, here is the market cap of XRP in BTC terms
Drops like this indicate a sudden movement of previously inactive tokens. As for the price, this could indicate distribution. If this continues, the price of XRP could drop to $0.65.
Source: Santiment
However, the metric showed signs that a rising slope could be in the works. A confirmation of this slope could negate the bearish bias and send XRP to $0.75.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
