Santiment Analysis Insists XRP, BTC Is Showing Good Signs of Rebound Amid Retail Dump, Here’s Why

• Santiment reports heavy retail dumping of BTC, ETH, and XRP, historically a contrarian signal that often precedes market rebounds.
• Small holders are selling aggressively even as prices remain stable or strengthen.
• Analysts view this panic selling as bullish, noting that large players typically accumulate when retail capitulates.

Crypto analytics platform Santiment has released new on-chain data suggesting that Bitcoin (BTC), Ethereum (ETH), and XRP may be preparing for a rebound, even as retail holders aggressively dump their coins.

According to the firm, selling activity from small holders, often the most reactive and emotional market segment, is historically a contrarian indicator that precedes market recoveries. The accompanying chart visualizes a sharp unwind in holdings among retail-sized wallets across all three major assets, contrasting heavily with a stabilizing or slightly rising price trend.

Retail Selling Intensifies Across BTC, ETH, and XRP

Santiment measures “retail wallets” as addresses holding less than 0.01 BTC, 0.1 ETH, or 100 XRP. These small wallets, typically associated with inexperienced or panic-driven traders, have been selling aggressively:

• BTC retail wallets (<0.01 BTC) dumped 0.36% of their total holdings in the past five days.
• ETH retail wallets (<0.1 ETH) dumped 0.90% of their holdings over the past month, marking the most aggressive selling of the three assets.
• XRP retail wallets (<100 XRP) dumped 1.38% of their holdings since the start of November, followed by a noticeable shift back toward slight accumulation after each sell-off.

According to Santiment, these sell-offs often signal exhaustion among retail traders, clearing the path for larger players to accumulate.

Also Read: Anonymous 49,999,990 XRP Transferred Ahead of Franklin Templeton ETF Launch, Who’s Moving?

Chart Shows BTC Dumping at Fastest Rate in Two Months

The included chart depicts a striking trend: Bitcoin retail wallets are dumping at their highest rate in two months, even as BTC’s price trades in the mid-$90,000 range. Historically, such divergence, retail selling into strength, has aligned with early-stage bullish reversals.

ETH, meanwhile, continues its consistent downward trajectory in retail holdings, with Santiment noting that Ethereum’s small investors are selling “the most aggressively” compared to BTC and XRP.

XRP Displays a Familiar Accumulation Pattern

XRP’s chart behavior stands out from its peers. While small wallets have reduced holdings since early November, the Santiment graph shows a return to gradual accumulation shortly after selling events. This typical XRP retail pattern, dumping during fear, followed by quiet re-entry, has preceded several historical XRP rebounds.

Notably, XRP’s price line on the chart remains steadier than both BTC and ETH during these retail fluctuations, indicating resilience amid small-holder volatility.

Why Retail Selling Often Signals a Market Bottom

Santiment emphasized a core principle of behavioral on-chain analysis: “Prices move in the opposite direction of small wallets’ behavior.” This inverse relationship is why the analytics firm views current retail panic selling as a bullish indicator.

When smaller investors capitulate, it often reflects emotional or fear-driven trading rather than informed positioning, conditions that precede accumulation by larger or more strategic market participants. “We’re keeping an eye on retail traders continuing to panic sell as a positive sign for crypto’s recovery,” Santiment stated.

With retail wallets offloading assets at accelerated rates and price charts showing stabilization, Santiment’s analysis suggests that BTC, ETH, and XRP may be entering a recovery zone. If historical patterns hold, the current wave of panic selling could set the stage for the next upward move.

Also Read: Ondo Global Markets Gains Approval To Offer Tokenized US Stocks Across Europe

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