The online pundit’s report was based on the Exchange Supply Ratio indicator, which tracks the proportion of XRP tokens on exchanges relative to its total circulating supply.
This metric can be used to derive insights on potential selling pressure for a crypto asset (XRP, in this case), seeing as higher values would suggest increased availability of tokens on the exchange for sale.
The relevant indicator here is the Taker Buy Sell Ratio metric, which monitors the balance between aggressive buy and sell orders in the futures market. This metric is typically used to assess whether buyers or sellers are dominating the market in the short term.
CryptoOnchain explained that this situation could either mean that the market participants are booking profits or anticipating a price decline in the near future. However, the spike in XRP supply across major crypto exchanges, alongside the clear dominance of sellers in the perpetual futures market, strongly suggests the imminence of a price correction.
It is therefore advisable to watch the psychological $3 level closely before market decisions are made. As of this writing, XRP is hovering around the $3 mark, reflecting a nearly 2% decline in the past 24 hours.
