As August draws to a close, investors have spent the week deciphering the true intentions of the cryptocurrency markets. Since the sharp decline last week, the market has been held within the congestion zone. Ordinary price action could be resolved with a sharp directional move that many analysts hope will be bullish. However, an additional risk of decline should not be ruled out.

Ethereum price is currently trading around $1,491. Ethereum has dominated the cryptocurrency space in terms of performance, providing several profitable opportunities for staking that will last for weeks. The decentralized smart contract token has been an investor chart. Still, textbook-like techniques may not last forever. Chain analysis shows that behind the scenes something very worrying is taking place. Santiments Daily Active Addresses shows the largest flow of active ETH contributors this year. The influx of exhibitors, currently $1.08 million, is one-third more than the 2021 annual high of 700,000.


Just after the 2021 stream took place, the ETH price dropped sharply from its all-time high of $4,500 to $2400 just weeks later. Historically, the indicator tells how high entries result in sharp selling. To be specific, the notorious crypto liquidations of both May and December of 2021 and 2018 all-time highs are close to $1,400. The upcoming Merge upgrade, ETH price, could generate a huge sell-off that goes unnoticed for traders who only use technical analysis.

XRP price has been one of the lowest performing cryptocurrencies over the summer. The popular altcoin, which saw a 30 percent increase in price over the summer, has already lost 50 percent of its accrued profits. Now XRP price is hovering above an ascending trendline and providing support throughout most of the summer. A closing candle below the ascending support line could do a full blow to Ripple price.


XRP price is currently trading at $0.3345. Unfortunately, no on-chain data from Santiment, IntoTheBlock or Glassnode. Therefore, traders can only use classical technical analysis. According to Bitstamp's exchange, an influx of volume came into the market near the rising border, the first warning signal of the day. Additionally, the bulls have lost support from the 8 and 21-day simple moving averages. Taken together, the XRP price shows that further declines are likely in the coming days. Therefore, being an early buyer is still not recommended.