Polygon (MATIC) is one of Ethereum’s premier scaling solutions. This article addresses critical questions such as “What is Polygon?”, “What is Polygon crypto?” and the specifics of “What is MATIC crypto?”. We look at Polygon’s unique blockchain architecture and its role in the evolution of the Ethereum blockchain. In addition, we take an in-depth look at MATIC, the blockchains’ native token, and its transformation into Polygon 2.0. Last but not least, we also examine key partnerships and try to make a MATIC price prediction. What Is Polygon MATIC? Polygon, birthed as the Matic Network in 2017, stands as a revolutionary “Layer 2” scaling solution for Ethereum’s blockchain. It’s designed to provide a faster, more efficient parallel to Ethereum’s main blockchain, addressing critical issues like high gas fees and network congestion. MATIC, the network’s native cryptocurrency, is pivotal for network operations, serving multiple functions including transaction fees, staking, and governance decisions. The rebranding to Polygon in early 2021 marked a significant evolution, broadening its scope from just a scaling solution to a multi-layered ecosystem. Polygon Explained: A Comprehensive Overview Polygon operates akin to an express lane, paralleling Ethereum’s main blockchain. It’s a complex system utilizing a variety of technologies to establish this high-speed blockchain. By “bridging” assets onto the layer-2, users can interact with popular crypto applications with greater speed and lower costs compared to Ethereum’s mainnet. The network’s construction is particularly ingenious, featuring: Proof-of-Stake (PoS) Consensus Mechanism: Validators on the network verify transactions and maintain the blockchain’s integrity. They receive rewards in the form of transaction fees and newly created MATIC. Delegators, who stake their MATIC indirectly, also play a critical role, albeit with less commitment than validators. Layered Architecture: This includes the Ethereum layer for executing critical components, a security layer offering validator services, a network layer of sovereign blockchains, and an execution layer for processing transactions. Definition And Core Concepts Of Polygon At its core, Polygon is not just about enhancing transaction speeds but about creating an interconnected ecosystem of Layer 2 sidechains, which it ambitiously names the “Internet of Ethereum Blockchains.” This ecosystem is realized through: Scalability Solutions: Technologies like Plasma, zkRollups, and Optimistic Rollups are employed, each tailored for different scalability requirements. Plasma focuses on off-chain transaction processing, while zkRollups and Optimistic Rollups offer solutions for bundling numerous transactions into single Ethereum blocks, thus enhancing throughput. Software Development Kit (SDK): A crucial element in Polygon’s infrastructure, the SDK facilitates the development of compatible decentralized applications. It enables the creation of varied sidechains, each customizable to specific project needs. Interoperable Protocol: This framework allows seamless interaction among Ethereum-compatible blockchains, leveraging Ethereum’s robust ecosystem while overcoming its inherent limitations. The networks approach is holistic, targeting not just individual transaction efficiency but a comprehensive upgrade to Ethereum’s network capabilities. It’s a bid to create a unified, interoperable blockchain environment, a leap forward in the blockchain and cryptocurrency landscape. What Is MATIC? MATIC, the native cryptocurrency of Polygon, serves as the linchpin in the network’s functioning. Originating from Polygon’s earlier incarnation as the Matic Network, MATIC has evolved beyond a mere transactional currency. It’s utilized for paying transaction fees on the network, for staking, and significantly, in the governance of Polygon, granting MATIC holders a say in the network’s future developments. MATIC’s Proof-of-Stake (PoS) consensus mechanism is central to its operation. Validators and delegators, who stake their MATIC, are crucial to the network’s security and integrity. They verify transactions, add them to the blockchain, and in return, earn MATIC rewards. This staking mechanism not only ensures network security but also incentivizes participation and investment in the ecosystem. How Polygon Stands Out In The Crypto Space Polygon distinguishes itself in the crowded crypto space through its unique multi-layered architecture and a comprehensive suite of scaling solutions. Unlike many blockchain solutions that focus on a single aspect of performance enhancement, Polygon provides a modular framework. This framework allows developers to create Ethereum-compatible networks with varied features, including but not limited to: Scalability: Polygon effectively addresses Ethereum’s scalability issues, offering faster transaction speeds and lower fees through its Layer 2 solutions. Interoperability: By promoting the interconnection of Ethereum-compatible blockchains, Polygon facilitates a more integrated and efficient network. Developer-Friendly Platform: The Polygon SDK empowers developers to build diverse decentralized applications with ease, without needing to depart from Ethereum’s well-established environment. FlexibilityAnd Customization: Projects can choose from different scaling solutions like Plasma, zkRollups, and Optimistic Rollups, tailoring their blockchain to their specific needs. Security: Polygon’s optional ‘security as a service’ layer provides added protection, enhancing the trustworthiness of the network. Polygon Partnerships Polygon’s vast array of partnerships across diverse industries highlights its significant impact and utility in the real world. These collaborations showcase how Polygon is integrating blockchain technology into various sectors, ranging from finance and social media to fashion and sports. Finance Mastercard: Launched an Artist Accelerator Program to mentor emerging musical talents using Web3 technologies. Bank of Italy: Partnered with Polygon and Fireblocks to experiment with tokenized assets, as part of an initiative to explore this technology. Nubank: Brazil-based Nubank has partnered with Polygon to expand its Nucoin loyalty program, benefiting approximately 70 million customers. Social Media Instagram: Empowering users to mint, showcase, and sell NFTs directly on Instagram. Reddit: Launched a limited edition NFT collection called CryptoSnoos, minted on the Polygon blockchain. Polygon Partnerships in Automobile Bentley Motors: Collaborated for Bentley’s Genesis NFT collection, minted on Polygon’s blockchain. Mercedes: Developed Acentrik, a blockchain-based data-sharing platform, facilitating data tokenization on Polygon. Food And Beverages Starbucks: Partnered for the Starbucks Odessey Web3 initiative, introducing NFT offerings on the network. 7-Eleven: The American convenience store chain partnered with the network to introduce Slurpee NFTs, which are digital collectibles. Coca-Cola: Launched an NFT collection on International Friendship Day, minted on the network. Fashion And Beauty Nike, Adidas, And Prada: Supported various Web3-focused initiatives and digital fashion projects. Casio: Another notable partnership was with Casio electronics manufacturer to launch a G-Shock watch-related initiative, contributing to Polygon’s growth. E-commerce Flipkart: Established the Blockchain eCommerce Centre of Excellence for integrating blockchain in commerce. Venly & Shopify: Enabled minting and selling of NFTs for Shopify merchants on the network. Sports DraftKings: Developed the DraftKings NFT Marketplace, built on Polygon. SPORTFIVE: Collaborated to create Web3 experiences in sports, including Metaverse and NFT initiatives. Partnerships In Technology Nothing: Launched an NFT loyalty program with tech company Nothing. Stripe: Integrated with Stripe for cryptocurrency payouts using Polygon’s blockchain. Deutsche Telekom: The telecommunications giant partnered with the project to enhance its blockchain infrastructure and capabilities. Exploring MATIC Crypto: The Building Block of Polygon MATIC crypto, the native token of the network, is a fundamental component that fuels and stabilizes the Polygon ecosystem. It plays a multifaceted role, encapsulating both utility and governance aspects. As project evolves and expands its reach, the significance of MATIC continues to grow, underpinning the network’s operational efficacy and user engagement. What Is MATIC Crypto? MATIC token, originally central to the Matic Network and now integral to Polygon, serves several key functions within the ecosystem. It is an ERC-20 token, compatible with the Ethereum blockchain, which facilitates seamless integration and interoperability. Key characteristics and uses of MATIC include: Transaction Fees: MATIC is used to pay for transaction fees on the network, compensating validators for their computational resources. Staking: As part of Polygon’s Proof of Stake (PoS) consensus mechanism, MATIC tokens are staked by validators and delegators. This staking process secures the network and ensures its integrity. Governance: Holding MATIC tokens grants users governance rights within the ecosystem, allowing them to participate in decision-making processes and vote on proposals regarding network upgrades and changes. Role Of MATIC MATIC’s role extends beyond its utility as a cryptocurrency. It is the cornerstone of the network, with its functions intricately woven into the network’s architecture: Network Security: Through staking, MATIC plays a crucial role in maintaining the security and stability of the network. Validators, who stake MATIC tokens, are responsible for processing transactions and adding them to the blockchain. Their commitment is incentivized through rewards paid in MATIC. User Incentivization: The staking mechanism also serves to incentivize users to participate in the network. By staking MATIC, users can earn rewards, contributing to the network’s health and fostering a robust user community. Scalability And Efficiency: The use of MATIC for transaction fees underpins Polygon’s ability to offer low transaction costs and high throughput, crucial for scaling the Ethereum network effectively. Empowering Decentralized Applications (dApps): MATIC’s compatibility with Ethereum and its role in transaction fee management make it an attractive option for dApp developers seeking an efficient, scalable platform. Facilitating Governance: As a governance token, MATIC empowers its holders to shape the future of the network, ensuring a decentralized and user-centric development approach. Polygon 2.0: What The Future Will Look Like Polygon 2.0 marks a transformative phase in the evolution of the network, aiming to scale Ethereum to the size of the internet using advanced Zero-Knowledge (ZK) technology. History Of Polygon Polygon, initially launched as Matic Network in 2017, was developed to address critical blockchain scaling and usability issues. In May 2020, the Matic Network debuted its mainnet on Ethereum. During this phase, the network was predominantly managed by the Matic Foundation, which gradually began to onboard third-party validators for decentralized control. The network underwent a significant transformation in February 2021, rebranding to Polygon. This change marked an expansion of its capabilities, including the integration of ZK-rollup technologies and various other scalability solutions. Following this, the project continued its momentum by acquiring technologies like Hermez and Mir Protocol, and launching initiatives such as Polygon ID in June 2022 and Polygon Supernets in October 2022. The introduction of Polygon zkEVM in March 2023 further cemented its commitment to enhancing scalability and privacy. What Is Polygon 2.0? Polygon 2.0, announced on June 12, 2023, represents a series of proposed upgrades aimed at unifying all Polygon protocols under the Zero-Knowledge (ZK) technology umbrella. This ambitious plan includes upgrading the PoS network to a zkEVM Validium network, which uniquely stores transaction data off-chain, maintained by the network’s validators. The initiation of Polygon 2.0’s “Phase 0” on September 14, 2023, marked the beginning of implementing these upgrades. This phase was driven by the release of several critical Polygon Improvement Proposals (PIPs) that laid out the foundational changes for the network’s transformation. These proposals aimed to ensure that existing users and developers on the network would not be immediately affected, ensuring a smooth transition. MATIC Becomes POL A cornerstone of the Polygon 2.0 upgrade is the transition from the existing MATIC token to the new POL token. This transition was officially set in motion with the POL token contract going live on the Goerli testnet on October 4, 2023. The POL token is designed to serve as the native token of the upgraded ecosystem, supporting a variety of roles across the ZK-based L2 chains. The POL token starts with a supply of 10 billion, allowing for a one-to-one migration from MATIC, and features an annual emission rate of 2%. This emission is strategically planned to support validator staking rewards and contribute to a community treasury, emphasizing a balanced and sustainable network growth. Market Insights: What Is The Price Of MATIC? The price of MATIC, Polygon’s native cryptocurrency, is subject to fluctuations driven by various factors in the cryptocurrency market. The token’s value is influenced by general market trends, investor sentiment, network upgrades, and broader economic conditions. Factors Influencing MATIC’s Price Several key factors can impact the price of MATIC: Network Upgrades: Significant developments such as the transition to Polygon 2.0 and the change from MATIC to POL can have a profound effect on the token’s price as they reflect the network’s growth and scalability prospects. Adoption And Partnerships: As Polygon forms partnerships with major brands and companies, the increased usage and visibility can positively influence MATIC’s value. Market Sentiment: Investor perceptions and sentiment, often swayed by news and social media, can lead to price volatility. Regulatory Environment: Changes in the regulatory landscape for cryptocurrencies in key markets can affect the price as they alter the operational framework for crypto assets like MATIC. Technical Developments: Innovations in blockchain technology and integrations with other platforms can affect the perceived value of MATIC. Economic Indicators: Broader economic factors, such as inflation rates, interest rates, and the performance of major fiat currencies like the US dollar (DXY), can also play a role. Polygon Price Prediction The 1-week chart of MATIC/USD depicts the most crucial levels in the medium to long term. For the analysis of these price levels, we use Fibonacci retracement levels and Exponential Moving Averages (EMAs) to identify potential support and resistance levels. Fibonacci Retracement Levels: 0.236 Level (Approximately $0.92): This level, derived from the Fibonacci retracement, is a potential resistance zone. If the price of MATIC approaches this level, traders might expect some selling pressure, as it’s a common retracement level where price reversals can occur. 0.382 Level (Approximately $1.29): This is another key resistance level. A break above this could signal strong bullish momentum, possibly leading to higher price levels. 0.5 Level (Approximately $1.59): The halfway point of the Fibonacci retracement levels is considered a psychological level of market sentiment. It may serve as a strong resistance level where the price could face considerable challenges. 0.618 Level (Approximately $1.89): Often referred to as the ‘golden ratio,’ this level is crucial. If the price were to move past this point, it might indicate a potential trend reversal from previous declines. 0.786 Level (Approximately $2.32): Approaching this higher retracement level typically indicates a substantial recovery from past downtrends, signifying that the price is nearing the previous highs from which it retraced. Exponential Moving Averages: 20-Week EMA: MATIC has recently breached the 20-week EMA at $0.65, which it had been trailing below since mid-April 2023. This move indicates a potential shift in short-term sentiment from bearish to bullish. 50-Week EMA: The price is currently approaching the 50-week EMA at $0.77, a crucial resistance level that traders often watch. If MATIC can sustain above this level, it might confirm a stronger bullish trend over the medium term. 100 and 200-Week EMAs: These longer-term EMAs represent more substantial levels of support and resistance and could indicate the overall health of the market. A breach above the 100-week EMA (approximately $0.95) would be a strong bullish signal, while the 200-week EMA would be indicative of a long-term bullish reversal. Current Status As of November 7, MATIC is trading around $0.7087, having recently conquered the 20-week EMA. The next critical level for MATIC to test is the 50-week EMA. If it successfully breaks and holds above this level, the next significant resistance would be at the 0.236 Fibonacci level of $0.92. These levels, coupled with market sentiment and fundamental developments within the ecosystem, will be pivotal in determining MATIC’s price trajectory in the coming weeks and months. FAQ What Is Polygon? Polygon is a layer two blockchain scaling solution and framework to the Ethereum blockchain, enabling fast transactions with reduced costs. What Is Polygon Crypto? “Polygon crypto” refers to the cryptocurrency ecosystem that is built on the network, including its native token, MATIC (soon to be POL), and the various decentralized applications (dApps) it supports. What is MATIC Crypto? “MATIC crypto” is the native utility token of the Polygon network, used for transaction fees, staking, and participating in network governance. What Is Polygon Matic? Polygon (MATIC) refers to the ecosystem and the suite of solutions provided by the Polygon network, which was initially known as the Matic Network before rebranding. What Is The Price Of MATIC? You can check the varying price of MATIC on any major cryptocurrency exchange or financial market data provider. What Is MATIC Polygon? MATIC Polygon refers to the native token (MATIC) and the underlying network (Polygon) on which it operates. What Is Polygon Blockchain? The Polygon blockchain is a scalable network that provides a framework for building and connecting Ethereum-compatible blockchain networks. What Is The Polygon Network? The Polygon network is the overarching ecosystem that includes the Polygon blockchain, its native MATIC token, and all connected services and dApps. What Can You Do With Polygon MATIC? With Polygon Matic, you can engage in a variety of blockchain-related activities such as trading, staking, governance, and interacting with dApps for gaming, finance, and other services. What Does Polygon MATIC Do? Polygon Matic provides a platform for creating scalable and interconnected blockchain networks with lower transaction fees and faster speeds compared to Ethereum. What Is Going On With Polygon Matic? Polygon MATIC is continuously evolving, with upgrades like Polygon 2.0 aimed at expanding its capabilities and improving its infrastructure for better scalability and interoperability. What Is MATIC Coin Used For? Users can employ the MATIC coin to pay transaction fees on the Polygon network, stake for network security, and participate in governance voting. What Is The MATIC Network? The MATIC network refers to the initial name of the Polygon network (rebranded in February 2021). What Is The MATIC Token? The MATIC token is the native cryptocurrency of the Polygon network, used to facilitate transactions, secure the network through staking, and enable community governance through voting. What Is Polygon Chain? The Polygon chain is a blockchain that operates in parallel to the Ethereum main chain. It aims to provide faster and cheaper transactions while still maintaining a high degree of security and interoperability with Ethereum. What Is Polygon Coin Used For? Users utilize the Polygon coin, or MATIC, to pay transaction fees on the network, participate in the proof-of-stake consensus mechanism, and engage in governance through voting on network upgrades and proposals. What is Polygon Web3? Polygon Web3 refers to the third generation of internet services for websites and applications built on the Polygon blockchain, focusing on decentralized protocols and providing a distributed environment for Web3 applications. What Is Polygon Worth? The worth of Polygon, in the context of market capitalization, is the total value of all the MATIC tokens in circulation. This value fluctuates based on the current market price of MATIC. What Is The Current Price Of MATIC? You can check the current price of MATIC, which varies, in real-time on various cryptocurrency exchanges or financial data platforms. What Network Does MATIC Use? What Network Is Polygon On? MATIC operates on the Polygon network, a layer two scaling solution built atop the Ethereum blockchain. This network aims to support scalable blockchain infrastructure and operates in tandem with Ethereum. What Type Of Coin Is MATIC? MATIC, a type of digital currency known as a cryptocurrency, serves as a utility token specifically designed for the Polygon network. Within its ecosystem, it facilitates transactions, staking, and governance. Featured image from Moonstats, chart from TradingView.com
Few names have sparked as much intrigue and controversy as Do Kwon (sometimes called Kwon Do). From the meteoric rise of Terra Luna to its sudden and tumultuous downfall, Do Kwon has become a figure of significant interest and speculation. In this comprehensive exploration, we delve into the journey of Terra Luna’s Do Kwon, the mastermind behind one of the most talked-about projects in the crypto world. We’ll uncover the latest Do Kwon news that has kept the crypto community on its toes, analyze the Do Kwon net worth, and shed light into the future of Terra Luna without its founder. Who is Do Kwon? Do Kwon, whose full name is Kwon Do-hyung, is a South Korean crypto entrepreneur renowned as the co-founder and CEO of Terraform Labs. Born on September 6, 1991, in Seoul, South Korea, he has become a prominent figure in the cryptocurrency industry. Kwon Do-hyung’s early education took place at Daewon Foreign Language High School in Seoul, one of South Korea’s most prestigious private schools. Furthermore, his academic journey led him to Stanford University in the United States, where he pursued a degree in computer science, laying the groundwork for his future endeavors in the tech and crypto industries. Tracing The Origins: The Path To Crypto Fame After graduating from Stanford in 2015, Kwon Do-hyung returned to South Korea in 2016 and founded Anyfi, a connectivity solutions startup. Anyfi, which focused on a peer-to-peer Wi-Fi mesh network, was Do.Kwon’s initial foray into the tech startup world. However, his interest soon pivoted to the then-nascent crypto market. After identifying a lack of robust crypto payment networks, he co-authored a white paper with Nicholas Platias, advocating for a decentralized payment system powered by a stablecoin to facilitate cryptocurrency payments and provide a medium of exchange with reduced volatility. The Beginnings Of Terra Luna This white paper caught the attention of Daniel Shin (whose full name is Shin Hyun-seung), a seasoned South Korean tech entrepreneur experienced in online payment systems. Afterwards, in 2018, Kwon Do-hyung and Hyun-seung co-founded Terraform Labs, leading to the development of the Terra (LUNA) cryptocurrency. Terraform Labs introduced TerraUSD (UST), an algorithmic stablecoin pegged to the US dollar, in September 2020. The stability mechanism of UST, backed by the LUNA token, was a novel approach in the crypto world but ultimately led to the collapse of both cryptocurrencies in May 2022. But more on that later. The Rise And Fall Of Terra Luna And Do Kwon The story of Terra Luna and its co-founder Kwon Do-hyung is a tale of rapid ascension and dramatic downfall in the volatile world of cryptocurrency. It’s a narrative that encapsulates the inherent risks and potential of innovative financial technologies, and the fine line between genius and overreach. Do Kwon Crypto Achievements Do Kwon, as the co-founder of Terraform Labs, significantly impacted the cryptocurrency sector with the introduction of Terra Luna. Terraform Labs, under Kwon Do-hyung’s leadership, innovated in the realm of stablecoins, aiming to solve the problem of volatility in the crypto market. Terra Luna’s unique selling point was its dual-token system: the native LUNA token and the TerraUSD (UST) stablecoin. UST was designed as an algorithmic stablecoin, an ambitious attempt to maintain a stable value relative to the US dollar without the need for traditional fiat collateral. Do Kwon Luna: Triumphs And Trials Terra Luna’s ecosystem experienced rapid growth and success, particularly with the popularity of its Anchor Protocol, which promised high yields on UST deposits. This contributed to a significant increase in LUNA’s value, as the protocol’s design required LUNA to be burned to mint UST, thereby reducing LUNA’s supply and increasing its price. However, the success of Terra Luna and its algorithmic stablecoin also brought increased scrutiny and challenges, especially concerning the sustainability and resilience of its stabilization mechanism. Do Kwon Terra’s Downfall The downfall of Terra Luna began with the destabilization of UST. Unlike traditional stablecoins backed by fiat or physical assets, UST’s stability was algorithmically linked to LUNA. To bolster confidence and add an additional layer of stability to UST, Terraform Labs amassed a significant reserve of Bitcoin. The idea was that these Bitcoin reserves could be liquidated to defend the UST peg in times of stress. At its peak, the Luna Foundation Guard (LFG), established to manage these reserves, held over $3 billion in Bitcoin. However, when UST began to lose its peg due to massive sell-offs in May 2022, this triggered a series of events that led to the liquidation of these Bitcoin reserves. The sale of such a large amount of Bitcoin in a short period contributed to a crash in the crypto market. This strategy of using Bitcoin as a reserve asset for an algorithmic stablecoin was unprecedented and, in this instance, ultimately proved ineffective. The rapid devaluation of UST and LUNA, coupled with the liquidation of Bitcoin reserves, not only led to the collapse of Terra Luna’s ecosystem but also sent shockwaves through the entire cryptocurrency market, eroding billions in market capitalization and investor confidence. The Terra Luna crisis highlighted the risks of algorithmic stablecoins and the complexities of using volatile assets like Bitcoin as a backing mechanism in times of market stress. Do Kwon Net Worth The financial trajectory of Kwon Do-hyung, marked by both remarkable successes and significant setbacks, paints a complex picture of his net worth. The Wealth Rollercoaster: Do Kwon Net Worth The Do Kwon net worth has been a subject of intense interest, especially in the wake of the Terra Luna collapse. At the peak of Terra Luna’s success, Do Kwon’s net worth was speculated to be in the billions, given the high valuation of the LUNA token and the Terra ecosystem. In April 2022, LUNA’s value soared, and the Terra ecosystem reached a staggering $60 billion valuation, significantly boosting the Do Kwon net worth. However, this fortune was short-lived. Following the dramatic collapse of Terra Luna in May 2022, the Do Kwon net worth plummeted alongside the value of LUNA and UST. By July 2023, estimates placed his net worth at around $135 million, a substantial decrease from his peak wealth. Accordingly, this decline was primarily due to the obliteration of the Terra ecosystem, which significantly eroded the value of his holdings in LUNA and related crypto assets. However, it’s important to note that the exact extent of Kwon’s current wealth, especially in liquid assets, remains somewhat opaque. His involvement in other blockchain projects and potential holdings in various cryptocurrencies may contribute to his overall financial portfolio. Do Kwon News: The Latest Developments Do Kwon’s situation has evolved rapidly, with significant developments unfolding after the Terra Luna collapse. As of the latest updates, Kwon Do-hyung faced legal challenges from multiple jurisdictions, including the United States and South Korea. In September 2022, a South Korean court issued an arrest warrant for Do Kwon, along with other individuals associated with Terra, on charges related to the collapse of the cryptocurrency. Following the issuance of an Interpol Red Notice, Kwon Do-hyung was reported to have moved from Singapore and was believed to be in Serbia, before fleeing to Balkan state Montenegro. South Korean and US authorities continued their pursuit, seeking his extradition to face various charges, including securities fraud. Do Kwon News In 2023 In February 2023, the US Securities and Exchange Commission (SEC) charged Kwon and Terraform Labs with securities fraud, alleging the creation of a fraudulent scheme that led to substantial investor losses. Afterwards, Do Kwon’s legal representatives contested these charges, challenging the SEC’s claims and its characterization of LUNA and other tokens as securities. Authorities arrested Kwon in Montenegro on March 23, 2023, as he prepared to board a private jet to Dubai with falsified documents. Subsequently, a Montenegrin court sentenced him to four months in jail for document forgery, involving multiple passports and identity cards. This Do Kwon news followed an international search initiated by South Korean authorities, with both South Korea and the US seeking extradition related to Terra Luna’s collapse. In June 2023, the High Court in Podgorica confirmed that the Terra Luna founder would be held in “extradition custody” for a six-month period pending the review of South Korea’s extradition request. The Future Outlook For Do Kwon And Terra Luna Uncertainty and complexity shroud the future outlook for Do Kwon and the Terra Luna project. For Kwon, the immediate focus is on the legal challenges he faces. Furthermore, his extradition and the outcomes of the trials will significantly influence his personal and professional future. As for Terra Luna, its future hinges on restoring investor confidence and demonstrating the viability of its revamped ecosystem, Terra 2.0. Furthermore, the effectiveness of Terra 2.0 and its ability to attract new users and developers will be critical in determining the project’s long-term viability. However, as of November 7, the Terra Luna Classic (LUNC) price was on the verge of a breakout from a multi-month downtrend channel. FAQ What Is The Current Do Kwon Net Worth? As of July 2023, estimates place the Do Kwon net worth at around $135 million, marking a significant decrease from its peak during the height of Terra Luna’s success. Who Is Do Kwon? Do Kwon (whose full name is Kwon Do-hyung) is a South Korean entrepreneur, the co-founder, and CEO of Terraform Labs, known for creating the Terra Luna cryptocurrency ecosystem. How Has Do Kwon News Affected Terra Luna’s Stability? The Do Kwon news, especially regarding legal challenges and his arrest, has negatively impacted Terra Luna’s stability, eroding investor confidence and raising concerns about the project’s future. What Was Do Kwon Luna’s Strategy For Crypto? Kwon’s strategy involved creating a stablecoin ecosystem with an algorithmic approach, aiming to reduce crypto market volatility and promote wider adoption of digital currencies. What Are the Implications Of Do Kwon Stanford Education On His Career? Kwon’s Stanford education provided a strong foundation in computer science and a network of peers and mentors, instrumental in his foray into the tech and crypto industries. What’s The Latest Do Kwon News And Terra Luna? The latest Do Kwon news include his arrest in Montenegro in March 2023 for document forgery and ongoing legal proceedings involving his extradition to face charges related to the Terra Luna collapse. What Was Do Kwon’s Vision For Terra Luna? Kwon envisioned Terra Luna as a blockchain platform that would revolutionize digital finance by offering a stable and scalable cryptocurrency, thereby addressing the limitations of traditional cryptocurrencies. Featured image from Blog Tiền Ảo
Altcoins, or alternative cryptocurrencies, have become a buzzword in the digital currency landscape, offering a world beyond Bitcoin (BTC). This guide explores the essence of altcoins, answering the pivotal question: What are altcoins? From the historical rise of altcoins to the exciting phenomenon of altcoin season, we delve into the intricacies that define this dynamic market. What Are Altcoins? Understanding The Basics Altcoins, short for “alternative coins,” encompass a diverse range of cryptocurrencies that have emerged following the success of Bitcoin. They are not simply imitations of Bitcoin but represent a broad spectrum of digital currencies with unique attributes, purposes, and technological innovations. Characteristics Of Altcoins Each altcoin is distinguished by its unique blockchain technology and consensus mechanism. For instance, Ethereum, one of the most prominent altcoins, utilizes a Proof-of-Stake (PoS) consensus mechanism, which is less energy-intensive compared to Bitcoin’s Proof-of-Work (PoW) system. XRP operates on a consensus protocol known as the Ripple Protocol Consensus Algorithm, designed for high-speed and energy-efficient transactions. Cardano employs the Ouroboros PoS algorithm, acclaimed for its security and scalability. These varying consensus mechanisms reflect the diverse goals and technological advancements of altcoins, ranging from enhancing transaction efficiency to ensuring greater security and sustainability. Altcoins also vary significantly in their market capitalization, liquidity, community support, and real-world applications. For example, Litecoin, often referred to as the silver to Bitcoin’s gold, offers faster transaction confirmation times, making it suitable for smaller, everyday transactions. Meanwhile, Binance Coin (BNB) is intricately linked to the Binance exchange ecosystem, providing utility within that specific platform. Differences Between Altcoins And Bitcoin One of the stark contrasts between Bitcoin and many altcoins is their development and governance structure. Bitcoin, created by the pseudonymous Satoshi Nakamoto, who has since left the project in December 2010, operates in a decentralized and open-source manner without a central authority. In contrast, many altcoins have identifiable founding teams or organizations overseeing their development. For example, Ethereum is backed by the Ethereum Foundation, Solana is developed by Solana Labs, and Cardano is spearheaded by IOG (Input Output Global). Another key difference lies in their transaction speeds and capabilities. Bitcoin, primarily designed as a digital store of value and medium of exchange, processes transactions approximately every 10 minutes. In contrast, altcoins like Ripple’s XRP have a much-shorter block time and can process transactions in seconds, making it a preferred choice for cross-border money transfers. Ethereum, with its smart contract functionality, enables a wide range of decentralized applications (dapps) beyond simple monetary transactions. Furthermore, while Bitcoin’s maximum supply is capped at 21 million coins, altcoins have varied approaches to supply. For example, Ethereum initially had no cap. With the introduction of EIP-1559, Ethereum developers have introduced a mechanism that burns a portion of the supply with each transaction, potentially making its supply deflationary over time. XRP – like many other altcoins – was premined and has a capped total supply of 100 billion XRP. The Rise Of Altcoins: A History The history of altcoins is a captivating narrative of innovation, market dynamics, and the continuous pursuit of refining digital currency technology. Since the inception of Bitcoin, the first decentralized cryptocurrency, there has been a surge in the creation of alternative cryptocurrencies, each seeking to address perceived limitations of Bitcoin or to introduce new features and use cases. The First Altcoins Gaining Traction The journey of altcoins began soon after the establishment of Bitcoin, with the creation of Namecoin in April 2011. Namecoin aimed to decentralize domain-name registration, making internet censorship more difficult. Following Namecoin, Litecoin was launched in October 2011, envisioned as the “silver” to Bitcoin’s “gold.” Litecoin offered faster transaction confirmation times and a different hashing algorithm (Scrypt). Following these, another notable early altcoin included Peercoin, introduced in 2012, which was the first to implement a Proof-of-Stake/Proof-of-Work hybrid system. Another significant early player was XRP which was created in 2012. The XRP Ledger was launched in June 2012 by the founders of Ripple Labs, including Chris Larsen and Jed McCaleb. Shortly after that, Dogecoin was launched in December 2013, initially created as a light-hearted take on cryptocurrency. Remarkably, not all early altcoins sustained their momentum. Many, like Feathercoin and Terracoin, which gained attention initially, saw their influence wane over the years. These coins, while innovative in their time, couldn’t keep up with the rapidly evolving cryptocurrency market or build a lasting community and development ecosystem. Evolution Of The Altcoin Market The altcoin market has evolved significantly over the years, expanding beyond simple variations of Bitcoin’s technology. The introduction of Ethereum in 2015 was a watershed moment. Ethereum’s innovation was not just in creating a new cryptocurrency but in introducing a platform for decentralized applications (dApps) through smart contracts. This breakthrough opened the doors for a new era of blockchain technology, where altcoins could serve various purposes beyond mere currency, from powering decentralized finance (DeFi) to non-fungible tokens (NFTs). The market saw an influx of diverse altcoins based on Ethereum, each catering to specific niches and use cases. Key Milestones In Altcoin History Several key milestones mark the history of altcoins. The Initial Coin Offering (ICO) boom in 2017 was one such significant event. ICOs became a popular method for new cryptocurrency projects to raise funds, leading to the launch of thousands of new altcoins. However, this period also saw increased regulatory scrutiny and instances of fraud, leading to a more cautious market approach. Another major development was the rise of DeFi in 2020, where altcoins played a central role in enabling decentralized lending, borrowing, and trading, independent of traditional financial institutions. This era also witnessed the surge in popularity of NFTs, with altcoins like Ethereum being at the forefront of this new digital asset class. These milestones highlight the dynamic nature of the altcoin market, continuously shaped by technological advancements and shifting market sentiments. Top Altcoins To Watch As the crypto market continues to evolve, a number of altcoins have risen to prominence, each offering unique advantages and innovations. This section highlights some of the top altcoins that have captured the market’s attention due to their technological advancements, community support, and potential for future growth. Overview of Top Altcoins Ethereum (ETH): Often regarded as the leading altcoin, Ethereum is renowned for its smart contract functionality, which has paved the way for decentralized applications (dApps) and decentralized finance (DeFi) ecosystems. Solana (SOL): Solana has gained popularity for its incredibly fast and low-cost transactions, leveraging a unique combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms. XRP: Despite legal challenges in the United States, Ripple has established itself and the XRP token as a significant player, primarily for its use in fast and efficient cross-border money transfers. Binance Coin (BNB): Originally created as a utility token for the Binance cryptocurrency exchange, BNB has expanded its use cases to include transaction fee discounts, token sales, and more within the Binance ecosystem. Cardano (ADA): Known for its strong focus on sustainability and scientific philosophy, Cardano offers a third-generation blockchain that promises more scalability and security through its unique Ouroboros proof-of-stake algorithm. Polkadot (DOT): Polkadot stands out for its interoperability, enabling different blockchains to transfer messages and value in a trust-free fashion; it’s also scalable and customizable. These are just a few examples of the numerous altcoins in the market, each contributing to the diverse landscape of cryptocurrency in their unique ways. Features That Make Altcoins Stand Out Altcoins distinguish themselves through various features that cater to specific needs and use cases: Smart Contract Capabilities: Ethereum’s introduction of smart contracts revolutionized the blockchain space, enabling the creation of complex, programmable transactions and applications. Scalability And Speed: Altcoins like Solana and Cardano have focused on solving scalability issues, offering faster transaction speeds and lower fees compared to older blockchain networks like Bitcoin and Ethereum. Interoperability: Projects like Polkadot and Cosmos address the issue of blockchain interoperability, allowing different networks to communicate and exchange information seamlessly. Niche Applications: Some altcoins target specific sectors or use cases, such as Chainlink’s focus on providing real-world data to blockchain networks through oracles, or Monero’s emphasis on privacy and anonymity. What Is Altcoin Season? Altcoin season or “altseason” is a term that describes a period in the crypto market when altcoins significantly outperform Bitcoin. It’s a phase where investors’ appetite for riskier assets grows, and capital flows from Bitcoin into altcoins, often resulting in substantial price surges for these alternative coins. Understanding when an altcoin season is on the horizon can be crucial for cryptocurrency traders and investors looking to capitalize on market trends. Indicators Of An Upcoming Altcoin Season A key indicator of an impending altcoin season can be the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total cryptocurrency market capitalization contributed by Bitcoin. Technical analysts scrutinize this chart for signs of decreasing dominance, which may suggest that altcoins are starting to take up a larger share of the market. Support and resistance levels on this chart can indicate potential shifts in market dynamics. For instance, a sustained fall below a major support level could signal the beginning of altcoin season. Remarkably, the market often moves in cycles which can be broken down into four distinct phases, as illustrated in the image provided by crypto analyst Ted (@tedtalksmacro): Phase 1: Bitcoin – The cycle often starts with Bitcoin’s price surging as money flows into Bitcoin, causing significant price increases. Phase 2: Ethereum – Money begins to flow into Ethereum, which might struggle to keep up initially but then starts to outperform Bitcoin, leading to discussions about ‘the flippening’ (where Ethereum’s market cap could surpass Bitcoin’s). Phase 3: Large Caps – As Ethereum starts outperforming Bitcoin, investors begin to venture into large-cap altcoins, which then start to see large buy-ups and price increases. Phase 4: “Altseason” – In this final phase, enthusiasm spreads across the market; large caps have gone full vertical, and attention turns to mid and small-cap altcoins. All categories, regardless of fundamentals, tend to pump around the same time, leading to a parabolic increase in altcoin prices. This phase is marked by high levels of excitement and media attention. How to Buy Altcoins: A Step-by-Step Guide Purchasing altcoins can seem daunting for newcomers to the cryptocurrency space, but by following a clear step-by-step process, it can be straightforward and secure. Here’s a simplified guide to help you through the process: Research: Before anything else, conduct thorough research to determine which altcoins align with your investment goals and risk tolerance. Choose A Wallet: Select a digital wallet that supports the altcoin you wish to purchase. Wallets can be software-based (like mobile or desktop applications) or hardware-based for added security. Select A Cryptocurrency Exchange: Choose an altcoin exchange that lists the altcoin you’re interested in and is known for its reliability, security, and ease of use. Register And Secure Your Account: Create an account on the chosen exchange and set up strong authentication measures, including two-factor authentication (2FA). Fund Your Account: Deposit funds into your exchange account. This can often be done via bank transfer, credit card, or by depositing other cryptocurrencies. Place An Order: Navigate to the market or trading pair for your chosen altcoin and place a buy order. You can opt for a market order for an immediate purchase at current prices or a limit order to specify a price at which you’re willing to buy. Store Your Altcoins Securely: After the purchase, transfer your altcoins to your personal wallet for safekeeping, especially if you’re planning on holding them for the long term. Where to Buy Altcoins You can purchase altcoins on a variety of platforms, each offering its own set of features, fees, and security measures. Here are some of the most common places where you can buy altcoins: Centralized Exchanges: These are the most common platforms for buying altcoins and include well-known exchanges like Binance, Coinbase, and Kraken. They offer a wide range of altcoins and are typically user-friendly. Decentralized Exchanges (DEXs): DEXs like Uniswap and SushiSwap allow for peer-to-peer transactions without the need for an intermediary. They offer a higher degree of privacy and direct wallet-to-wallet trades. Cryptocurrency Brokers: Platforms like eToro and Robinhood act as brokers, offering an easy entry point for buying cryptocurrencies. However, they may have a more limited selection of altcoins compared to dedicated exchanges. Peer-to-Peer (P2P) Platforms: Websites like OKX P2P or Remitano connect buyers and sellers directly. While they offer flexibility in payment methods, they require a higher degree of trust between parties. When choosing where to buy altcoins, consider factors such as security, fees, the variety of available altcoins, and the user experience of the platform. Always ensure that the platform you choose complies with the regulatory standards in your jurisdiction. Are Altcoins A Good Investment? The question of whether altcoins are a good investment depends on various factors, including market conditions, the specific altcoin’s potential for growth, and the investor’s risk tolerance and investment strategy. Pros Of Investing In Altcoins: High Growth Potential: Some altcoins have shown the capacity for high returns on investment, outperforming traditional assets in their best periods. Diversification: Altcoins can diversify an investment portfolio, potentially reducing risk by spreading exposure across different asset classes. Innovation: Investing in altcoins can be a way to support and be part of innovative blockchain projects that may transform various industries. Cons Of Investing In Altcoins: Volatility: Altcoins can be highly volatile, with the potential for significant price swings that can lead to substantial gains or losses. Market Maturity: Compared to more established markets, the cryptocurrency market is relatively young and can be unpredictable. Regulatory Uncertainty: Altcoins face regulatory challenges that can impact their value and legality. Investors considering altcoins should conduct thorough research, understand the risks involved, and consider speaking with a financial advisor. Investment decisions should be based on an individual’s financial situation, investment objectives, and risk tolerance. Are Altcoins Dead Or Thriving? The altcoin market is a diverse ecosystem with a wide range of projects boasting various levels of innovation, utility, and community support. Similar to the early days of the internet which led to the Dot-Com bubble, the cryptocurrency space is experiencing its own form of natural selection where not all projects will survive in the long term. The Reality Of Altcoin Longevity: Oversaturation: The market has seen an explosion of altcoins, with thousands currently in existence. Many of these coins serve similar functions or aim to solve the same problems, leading to an oversaturated market where only the strongest or most unique can survive. User And Company Adoption: For an altcoin to thrive, it must gain widespread adoption among users and businesses. However, with so many options available, not every altcoin will achieve the necessary adoption rate to sustain its network. Innovation And Continuous Development: The technology underlying altcoins is rapidly evolving. Projects that fail to innovate or adapt to new advancements are likely to fall behind and eventually become obsolete. Survival Of The Fittest: The ‘Amazon’ Of Altcoins: There will be altcoins that manage to carve out a niche for themselves and become integral to the crypto economy, much like Amazon did for e-commerce. These projects typically have strong fundamentals, clear use cases, active development teams, and robust community support. The ‘Pets.com’ Of Altcoins: Conversely, some altcoins will fade into obscurity, similar to the fate of Pets.com and other failed Dot-Com ventures. Reasons for this include poor management, lack of clear use cases, failure to deliver on promises, or simply the inability to compete with more successful projects. Market Dynamics And Speculation: Speculative Bubbles: The altcoin market is not immune to hype and speculation, which can lead to bubbles. Projects that rise rapidly on speculation rather than solid fundamentals are at risk of crashing just as quickly. Regulatory Challenges: Authorities are still defining the regulatory landscape for cryptocurrencies. Altcoins that fall foul of future regulations or fail to navigate the complex legal environment may face challenges that could impede their growth or lead to their demise. In conclusion, while the altcoin market as a whole shows signs of thriving, with continuous innovation and increasing integration into the broader financial system, it’s clear that not every altcoin will survive the test of time. Investors should be discerning, focusing on projects with solid fundamentals, active development, and real-world utility to identify those with the potential to succeed in the long term. FAQ What Are Altcoins? Altcoins, short for “alternative coins,” are cryptocurrencies other than Bitcoin. Who Is Altcoin Daily? Twin brothers Aaron and Austin Arnold founded Altcoin Daily, a prominent cryptocurrency YouTube channel. With over 1.34 million followers, it covers daily updates on Bitcoin, altcoins, NFTs, and more. What Is Altcoin Alert? Altcoin Alert refers to a software and service that tracks and analyzes sentiment on a large scale in the cryptocurrency market. It predicts coin prices based on extensive data. How Many Altcoins Are There? The number of altcoins constantly changes with the creation of new ones and the obsolescence of others. As of the last known count, there are ten thousands of altcoins, each with its own value proposition and community, but also a lot of scam projects. Are Altcoins Worth Investing In? Altcoins can be worth investing in, but they carry their own sets of risks and potential rewards. Their worth as an investment will depend on individual risk tolerance, market research, and investment goals. Can You Short Altcoins? Yes, it is possible to short altcoins on many cryptocurrency exchanges. In short selling, an investor borrows a cryptocurrency and sells it on the market, anticipating a decrease in its price. How Do Altcoins Work? Altcoins work using blockchain technology, which is a decentralized ledger that records all transactions across a network of computers. Many alternative cryptocurrencies have different features and operate on various consensus mechanisms, such as Proof of Work, Proof of Stake, or others. How Are Altcoins Created? Creating altcoins often involves forking from an existing blockchain or developing a new blockchain and its underlying technology from scratch. The process includes designing the coin’s protocol, creating its blockchain, and launching it for public use. What Is An Altcoin? An altcoin is any cryptocurrency other than Bitcoin. The term “altcoin” encompasses a broad range of cryptocurrencies with various functions and underlying technologies. Featured image from Shutterstock
Two AI-focused projects have recently garnered significant attention: Render Network (RNDR) and Bittensor (TAO). These projects, while distinct in their objectives and execution, are at the forefront of integrating artificial intelligence with blockchain technology. Analyst Crypto Stream has analyzed the two most hyped AI projects in this cycle and tried to answer the question: “Which one is the true king of AI coins?” Render Network (RNDR): A Leap In GPU Rendering Crypto Stream highlights that Render Network addresses a critical need in the current digital era: the demand for GPU computing power. Industries ranging from filmmaking to AI research are constantly seeking more computational resources, a need that even major tech giants struggle to meet. Render Network ingeniously tackles this issue by enabling individuals with GPU resources to monetize their idle computing power. As Crypto Stream puts it, “Render Network is not just optimizing resource utilization but is fundamentally changing the dynamics of GPU computing power accessibility.” Related Reading: Crypto Analyst Who Sold The Bitcoin Top Reveals How To Buy And Sell At The Perfect Time The economic model of RNDR has evolved since its inception as an ERC-20 token in 2017. Migrating to the Solana blockchain, the project introduced a burn mechanism, where RNDR tokens equivalent to the fiat value of GPU power purchased are burnt, potentially reducing the token supply over time. “This burn mechanism,” Crypto Stream notes, “is a fascinating aspect of RNDR, adding a deflationary characteristic to its tokenomics.” Discussing RNDR’s market performance, Crypto Stream observes that the token’s peak at over $7 in 2022 and its current price at $3.49 reflect its substantial growth. With a market capitalization of $1.3 billion and a fully diluted valuation of $1.8 billion, RNDR has already experienced a significant 10x increase this year. “We’re not early in the game with RNDR, but its potential in the AI space still makes it a project worth watching,” advises Crypto Stream. At press time, RDNR was trading at $3.56, slightly below the 0.382 Fibonacci retracement level at $3.60. Bittensor (TAO): Democratizing AI Model Deployment Bittensor’s aim to decentralize the deployment of machine learning algorithms stands in contrast to RNDR. It aims to challenge the dominance of tech giants in AI, such as OpenAI and Meta, which control the best AI models, by creating a platform for trading specialized AI models. “Bittensor is opening doors for smaller research teams globally, allowing them to contribute and monetize their specialized AI models,” states Crypto Stream. This specialized focus actively caters to a variety of needs, including non-English languages and niche industries, often overlooked by larger players. Related Reading: 3 Bitcoin-Like Proof Of Work Altcoins That Could Make You A Millionaire In 2024 Crypto Stream is particularly impressed by Bittensor’s tokenomics, which are inspired by Bitcoin’s model. “With a total supply mirroring Bitcoin’s, no premine or ICO, and a halving cycle every four years, TAO’s economic design is both robust and promising,” he comments. Approximately 6 million TAO tokens are currently in circulation, with the token trading near its all-time high of $304. “TAO’s current market cap of $1.8 billion and an FDV exceeding $6 billion signify its growing prominence, though much of its supply is yet to be released into the market,” Crypto Stream added. Which One Is The Best AI Altcoin? Crypto Stream concludes that both RNDR and TAO offer unique and complementary solutions to the AI and crypto sector. RNDR’s focus is on solving the hardware problem by leveraging unused GPU power, while TAO addresses the software side by enabling a marketplace for AI models. “It’s hard to declare a definitive leader in the AI token space,” Crypto Stream reflects, “as both RNDR and TAO bring innovative solutions to the table. RNDR’s burn feature and TAO’s Bitcoin-like tokenomics each have their own appeal, targeting different needs within the AI and crypto markets.” Featured image from iStock, chart from TradingView.com
The Bitcoin price has risen above $38,000 in the last few hours, and for the first time this year closed a 4-hour candle above this crucial price level – a very bullish sign that BTC could rise further. These are reasons behind BTC’s latest price surge: #1 Anticipation Of Spot Bitcoin ETF Approval The recent uptick in the Bitcoin price can probably be attributed in part to developments around the potential approval of a spot Bitcoin ETF. Bloomberg ETF analyst James Seyffart stated on X, “Okay the window for potential spot Bitcoin ETF approval is looking like it’s gonna be between Jan 5 & Jan 10 2024.” This observation follows the SEC’s announcement about publishing the Franklin/Hashdex delays today, December 1. Scott Johnsson, a lawyer at Davis Polk, agreed with Seyffart, “This puts the comment period ending at January 5. Ark/21 Shares deadline on January 10.” Related Reading: 3 Bitcoin-Like Proof Of Work Altcoins That Could Make You A Millionaire In 2024 Moreover, Nate Geraci of ETF Store brought further optimism with his comments yesterday, “Another meeting yesterday between Grayscale & SEC. Absolutely fascinated to see how this all plays out, especially timing of GBTC uplisting vs launch of competing spot BTC ETFs. Btw, if you’re tired of me tweeting about this, good news is I think we’re approaching the finish line.” These developments suggest that a spot Bitcoin ETF is only a question of when, not if. They also show a growing consensus between ETF applicants and the SEC, which only wants to fine-tune all proposals before approving a batch or all 12 applicants (besides Pando Asset) at once. #2 MicroStrategy Will Buy More BTC Another driving force could be MicroStrategy’s unwavering commitment to Bitcoin. The company’s latest filing revealed an additional purchase of 16,130 BTC, amounting to roughly $608 million. This acquisition, at an average price of about $36,785 per Bitcoin, takes MicroStrategy’s total holdings to 174,530 BTC. However, what was even more important was the news that MicroStrategy is already planning its next Bitcoin buys. The company has entered into an agreement to offer up to $750 million worth of class A common stock, a move interpreted by many as a preparation for further Bitcoin purchases. This means that Saylor will buy even more BTC in the coming weeks or months, definitely making a positive impact on BTC price. The news is definitely bullish for the price, while some traders might want to front run it. #3 Market Dynamics The current market dynamics surrounding Bitcoin’s price surge have been closely scrutinized by leading crypto analysts, revealing nuanced insights into the behavior of market participants. Crypto analyst Skew highlighted a specific pattern in the buying behavior, indicating a strategic approach by market players. Related Reading: Bitcoin Spot ETF In January 2024: A New Player Just Joined The Game He stated “Fairly obvious taker twap bidding on the corn here. Open Interest & Delta: Looking like both longs & shorts are chasing this move.” This comment suggests that both bullish and bearish traders are actively participating, leading to heightened market volatility and price movement. Additionally, Skew pointed out specific activity on the Binance spot market: “Still persistent spot supply around mid $38K area. Bid driven by spot takers & limit asks were filled. If takers can sustain bid momentum & clear that supply then could be looking for limit chasing on the bid for higher prices.” Byzantine General, another crypto analyst, found another major driver for the recent price action. He stated, “Spot markets are still trading at a premium, not just Coinbase. And the fact that USD markets are consistently trading a lot higher than USDT markets makes me think that perhaps new money is flowing in.” #4 Breakout Move On Lower Time Frames From a technical standpoint, crypto pundit Scott Melker observed a breakout move on the lower time frames. He noted, “Bitcoin breaking out on low time frame. “ In the 15-minute chart, Bitcoin has been trading within a descending channel, a pattern marked by sequential lower highs and lower lows. This typically reflects a bearish trend. However, a few hours ago, the Bitcoin price has managed to break above the upper boundary of this channel, a movement that is often interpreted as a potential reversal signal. The low time frame breakout is significant for traders because it indicates a shift in short-term sentiment, possibly setting the stage for a continued upward trajectory in the higher time frames. At press time, BTC traded at $38,326. Featured image from Unsplash / Kanchanara, chart from TradingView.com
The XRP price has been treading water in recent days. After XRP rose by more than 52% in just 18 days from mid-October to early November, the price is currently in a clear consolidation phase in the shorter time frames. However, a look at the 1-month chart of the XRP/USD trading pair shows that the XRP price has exhibited strong bullish months. In this sense, Crypto analyst Egrag has drawn attention to an extremely rare phenomenon in the XRP monthly price chart. The pattern in question is a series of three consecutive monthly green candles, which have only been documented twice in the history of the cryptocurrency. As the market approaches the monthly close today, a confirmation by a close above $0.5987 could mean the third monthly green candle for XRP. “Get ready—within the next [few] hours, we’re poised to seal another trio of consecutive green candles,” Egrag noted. Here’s What This Could Mean For XRP Price Delving into the specifics, Egrag elucidates two distinct historical precedents post such formations. In the first scenario, a 5-month consolidation phase was observed after XRP recorded three consecutive green candles from March to May 2017. Related Reading: XRP Price Prediction: Analyst Identifies 3 Key Factors That Will Trigger Parabolic Move However, the consolidation phase had an extremely bullish effect. After it ended, the XRP price experienced a staggering 1,500% surge within just two months. Egrag suggests that if XRP’s price action were to emulate this historical pattern, investors can anticipate a potential surge to $10, starting from the 1st of April 2024. The second instance Egrag refers to the period from December 2015 to February 2016. During this time, the price rose by approximately 102% in three consecutive green months. What followed was a lengthier 12-month consolidation phase. But the wait was worth it again. In March 2018, the XRP price started an extraordinary 8,000% rally. A replication of this scenario would imply a potential skyrocketing of XRP’s price to $50, beginning on the 1st of November 2024. Notably, Egrag offers an average price target standing at $30. He stated, “XRP army stay steady, the average of these two targets lands at $30, you know that I always whisper to you my secret target of $27. Hallelujah, the anticipation is palpable!” Price Analysis: 1-Day Chart At press time, XRP was trading at $0.60333. A week ago, the price managed to break out of a downtrend channel. However, the bullish momentum quickly fizzled out after the price was rejected at the 0.382 Fibonacci retracement level at $0.627. Related Reading: Bitcoin Decouples with XRP, BNB But Correlates With Dogecoin and Cardano For four days now, the XRP price has been squeezed into a tight range between the 20-day and 50-day EMA (Exponential Moving Average), with a breakout to the downside or upside getting closer and closer. In the event of an upside breakout, the price level at $0.627 would be decisive. Then, the price could tackle the 0.5 Fibonacci retracement level at $0.688. However, if a breakout to the downside happens, a 100-day EMA at $0.575 would be the first support. This must hold to prevent the price from falling towards the 0.236 Fibonacci retracement level at $0.552, which is also close to the 200-day EMA. The convergence of both indicators signifies a price level that the bulls must defend at all costs. Featured image from iStock, chart from TradingView.com
The Bitcoin price rose to $38.475 yesterday, marking a marginally higher high for the year. Nevertheless, the price did not manage to close the day above the important $38,000 mark. Shortly before the end of the day, the bears managed to push the price down again. As crypto analyst Daan Crypto Trades remarked, “Market does its best to shake out everyone trying to pre-position for a possible Bitcoin ETF approval. It’s just free liquidity for the MMs/Whales. Sweep highs, trap longs, squeeze out longs, bait shorts, front run lows and repeat the whole process.” BlackRock Argues With SEC Over Details Of Spot Bitcoin ETF In a notable development, BlackRock, the world’s largest asset manager, has been again actively engaged in discussions with the US Securities and Exchange Commission (SEC) concerning the structure of its spot ETF yesterday. Eric Balchunas, senior ETF analyst at Bloomberg, revealed, “BlackRock met with the SEC’s Trading & Markets division again yesterday and presented them with a ‘revised’ in-kind model design based on Staff’s comments at their 11/20 meeting.” This revised model includes a notable change in the process, specifically at ‘Step 4’, which is the offshore entity market maker acquiring Bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer who is not allowed to touch BTC. Related Reading: Bitcoin Eyes New Highs As Bloomberg Analyst Reiterates 90% Chance Of January ETF Approval James Seyffart, another Bloomberg analyst, highlighted the ongoing negotiations, adding, “More confirmation that Issuers are still meeting with the SEC. BlackRock/Nasdaq still pushing for In-Kind creation & redemption. Seems like SEC hasn’t budged on cash creates demands if this was the primary focus of the meeting. At least not before yesterday, Interesting days ahead!” The original “In-Kind Redemption” flow had Market Maker’s Broker/Dealer entity (MM-BD) placing an order for redemption through the Authorized Participant (AP), who approves the order, allowing MM-crypto to borrow Bitcoin (or cash) to sell short. This redemption flow had potential balance sheet impacts and risks that the SEC was concerned about. BlackRock has now proposed a “Revised In-Kind (‘Prepay Model’)” Redemption flow. This new model involves MM-crypto delivering cash to MM-BD instead of Bitcoin, and MM-BD then delivers ETF shares to the Transfer Agent via API. The Bitcoin custodian is instructed by the issuer to transfer Bitcoin to MM-crypto, who then closes the short position in BTC. Related Reading: The Other Side Of The Bitcoin: Analyst Highlights What Happens If Bulls Fail The benefits of this revised model are manifold. It aims to lower transaction costs and shifts the execution risks from investors to crypto market makers. It also claims to provide superior resistance to market manipulation and remove the need for issuers to finance or pre-fund sell trades. The reduction in risks of operating events and the simplification across the ecosystem could mean lower variance on how In-kind models can be executed versus cash models. 90% Odds Of Approval Remain Should the SEC approve this revised model, it could herald the introduction of the first US-based spot Bitcoin ETF, a significant milestone that would allow investors to gain direct exposure to Bitcoin rather than through derivative instruments like futures. Despite these developments, there remains a level of uncertainty surrounding the SEC’s stance on the matter, particularly regarding the implications of spot Bitcoin exposure for retail investors through an ETF. Recent leaks suggested the SEC might prefer cash creation processes over in-kind Bitcoin transfers, a move that could significantly alter the landscape for ETF issuers and broker-dealers dealing with Bitcoin. Nonetheless, Bloomberg’s ETF analysts have reiterated their 90% odds for a spot ETF approval by January 10 yesterday. At press time, BTC traded at $37,728. Featured image from Shutterstock, chart from TradingView.com
In his latest analysis, legendary trader John Bollinger has expressed concerns over Litecoin’s performance, particularly in comparison to Bitcoin. Bollinger, known for developing the popular technical analysis tool Bollinger Bands, highlighted a worrying pattern in the Litecoin market. He remarked, “I was asked for an analysis of LTCBTC. The thing that concerns me the most is its underperformance vs Bitcoin. From a price perspective the controlling LTCUSD feature is the 2 bar reversal at the lower Bollinger Band which is typically considered a bearish signal by traders.” Bollinger’s Bearish Litecoin Prediction Explained The chart of the LTC/USD pair provided by Bollinger on November 28, 2023, shows Litecoin’s price action in relation to its Bollinger Bands on both a daily and weekly scale. The price is currently hovering around $69.566, which is significantly lower than the upper Bollinger Band, suggesting a lack of bullish momentum. Related Reading: Litecoin Sustains 4-Month Run With 37% Gain, Beating Most Of Its Peers – Details The Bands form by plotting a range of standard deviations above and below a simple moving average, commonly enveloping the price action. In this chart, the daily vs. weekly candles chart shows that the LTC/USD price is struggling beneath the midpoint of these bands, which is a bearish indication. The price currently near $69.566 is substantially below the upper band level of around $90, which represents a potential resistance level. The Bollinger Bands (BB) on the chart are set with a 20-period moving average with a 2 standard deviation range. Bollinger’s analysis points to a ‘2 bar reversal’ pattern at the lower band. This pattern emerges when a bar reaches a high above the preceding bar but then closes below the close of that same previous bar, hinting at a possible reversal from the uptrend. Such a pattern took place near the lower band, indicating that any effort to drive the price higher meets with resistance, and the prevailing selling pressure is taking hold. Related Reading: Litecoin Whales Are Back In The Game, Can Price Reach $100? The Bollinger %B indicator is also crucial here as it compares the price of Litecoin to the range defined by the Bollinger Bands. A %B value below 0.5 indicates that Litecoin’s price sits nearer to the lower band than to the upper band, potentially signaling weakness. The chart shows the indicator failing to cross the 0.5 level after a plunge toward 0, signifying that the price frequently touches or falls below the lower band. LTC Price Under Pressure The Bollinger Band Width (BBW) serves as another indicator, measuring volatility by assessing the Bollinger Bands’ width. A narrowing of the Bands, as seen in the latter part of the chart, suggests a decrease in volatility and often precedes a significant price movement. In this context, the BBW’s narrowing on the Litecoin chart might indicate that the market is tensing, possibly gearing up for an impending breakout or breakdown. When Bollinger mentions Litecoin’s underperformance relative to Bitcoin, it’s important to note that Bitcoin often leads the crypto market trend. If Litecoin is not keeping up with Bitcoin’s movements, it could suggest a lack of confidence or interest from traders in altcoins (as the current rise in Bitcoin dominance shows) and Litecoin specifically. In summary, Bollinger’s technical analysis indicates that Litecoin is in a precarious position. The price action at the lower Bollinger Band, the bearish ‘2 bar reversal’ pattern, the sub-0.5 Bollinger %B values, and the narrowing BBW all suggest that Litecoin may continue to see downward pressure in the near term. At press time, Litecoin traded at $70.05. The 1-day chart of LTC/USD shows that the altcoin fell below the key support of the 0.236 Fibonacci retracement level at $69.98 two days ago. A retest is currently taking place, a daily close above this is of utmost importance for the Litecoin price. Featured image from Unsplash / Kanchanara, chart from TradingView.com
In a recent technical analysis published by crypto analyst Egrag, an inverse head and shoulders (H&S) formation has been identified on the XRP/USD chart, indicating a potential bullish reversal in the near term. The pattern, which has been forming over the last two weeks, suggests that XRP could be setting up for a significant price jump. XRP Price Poised For Imminent 20% Jump? The chart by Egrag showcases the XRP price action in a 4-hour time frame, where it has been trading within a descending channel (blue) since the beginning of November. A descending channel is typically considered a bearish pattern. However, last Wednesday, the XRP price broke out of the descending channel. While the breakout didn’t hold up and ended up being a fake-out, it paved the way for the emergence of the inverse H&S pattern which is now changing the momentum in favor of the bulls. Related Reading: XRP, BNB Among Altcoins Losing Correlation With Bitcoin: Data Technically, the inverse H&S pattern is distinguished by two smaller peaks (shoulders) on either side of a larger trough (head), which is evident from the chart’s annotations. The left shoulder formed around the $0.586 support level, with the head dipping as low as $0.574, before rising to form the right shoulder at $0.593. This pattern is indicative of a bearish trend losing momentum and a potential bullish reversal if the pattern completes. Egrag’s analysis points to key price levels to watch, with the neckline of the inverse H&S pattern sitting at approximately $0.6289. A decisive breakout above this resistance level could see XRP prices rally towards the $0.7000 mark, which aligns with the pattern’s predicted breakout target. Beyond this, the analyst’s target sits at $0.7311, which marked the beginning of the descending channel. A rally to this price level would represent a 20% increase from the current XRP price. Related Reading: Analyst Uses 5200% Impulse Against Bitcoin To Predict XRP Price Surge To $9.6 It is crucial to note that while the inverse H&S pattern suggests a bullish outcome, the validity of the pattern will only be confirmed upon a clear break and closure above the neckline. As always, while the technical setup is constructive for XRP bulls, market participants should consider various factors, including market sentiment, news flow, and broader market trends. In a bearish scenario where the inverse head and shoulders pattern is invalidated, the XRP price could move towards the trend line of the descending channel. In his chart, Egrag marks $0.5564 and $0.53 as crucial support levels for the XRP price where a reversal could take place. At press time, XRP traded at $0.61348. On the 1-day time frame, the 0.382 Fibonacci retracement level at $0.628 remains the key resistance level in the short-term. Featured image from Forbes, chart from TradingView.com
A recent analysis by crypto expert CryptoCon, focusing on the Ichimoku Cloud indicator, suggests a bullish outlook for Bitcoin, with a potential rally to $48,000 by early January. CryptoCon, in his latest analysis, highlighted the reliability of the Weekly Ichimoku Cloud, stating, “The Weekly Ichimoku cloud called our last Bitcoin rise to $38,000 2 months in advance with the cross projected in the future.” The analyst’s confidence stems from the indicator’s historical performance, which has reportedly signaled previous price movements with considerable accuracy – 11 weeks, 7 weeks, and 13 weeks in advance. Bitcoin Rally To $48,000 Ahead? The chart by CryptoCon’s statement delineates four distinct cycles, each marked by significant price events and the Ichimoku Cloud’s predictive crosses. The current cycle, referred to as Cycle 4 spanning from 2023 to 2026, shows a Leading Span Cross – a crucial signal within the Ichimoku Cloud methodology – pointing towards an upward trajectory. CryptoCon explains, “Now we wait for it to fill its next calls, the completion of our rise and the first target of 43k.” This anticipation is based on the observed durations from the Leading Span Cross to the respective local tops, ranging from 7 to 11 weeks, with an average of 10 weeks. If the pattern holds, the suggested timeline places the completion of this rise in early January. The analysis further emphasizes the potential for Bitcoin to reach the upper limits of the red section of the Ichimoku Cloud, also known as the “Leading Span B.” According to CryptoCon, “The most conservative level here is 43.2k, but the true top of the red cloud could be labeled as high as 48k.” Related Reading: Bitcoin Sees Influx Of Over $1.5 Billion In 2023: Price Surge Aims For $43,000 It’s worth noting that the Ichimoku Cloud is a comprehensive indicator that provides insights into market momentum, trend direction, and support and resistance levels. The tool is highly regarded for its forward-looking capabilities, especially the “clouds,” which are projected 26 periods ahead of the current price to suggest future potential support or resistance zones. BTC Price Floor Could Be $41.200 Post Halving On a related note, Charles Edwards, the founder of Capriole Investments, provided a data-driven perspective on the future of Bitcoin’s price floor. With the next Bitcoin Halving event scheduled in April 2024, Edwards projects significant changes in the mining economics of the leading cryptocurrency. Related Reading: Santiment Reveals Trigger Behind Bitcoin Rally: Will This Signal Reignite? “In April 2024, Bitcoin’s Electrical Cost, the raw energy cost of mining Bitcoin, will double overnight. This is a certainty,” Edwards declared, drawing attention to the predictable nature of the Halving event which slashes the reward for mining Bitcoin transactions in half. This systemic shift will likely push inefficient mining operations out of the market, as they grapple with suddenly halved revenue against a backdrop of static expenses. Edwards’ analysis of past Halving events reveals a trend where the Electrical Cost—essentially the floor for Bitcoin’s price—settles at a significantly higher level post-Halving. “In the last two Halvings, Electrical Cost bottomed at +65% and +50% of the pre-Halving values,” he notes. If this pattern holds true, and the Electrical Cost bottoms at +50% this time around, it is estimated that “the historic price floor of Bitcoin will be $41.2K in just 5 months’ time.” At press time, BTC was trading in the middle of the range at $37,146. Even though BTC has broken out of the trend channel to the downside, the price is making further higher lows. Featured image from Shutterstock, chart from TradingView.com
Miles Deutscher, a crypto analyst, recently shared insights on altcoins that are catching his attention for the upcoming week. In a post on X, he starts by noting the market’s recent cool-off, suggesting this phase is creating new opportunities for savvy investors. Deutscher also emphasizes the importance of staying informed and ready to capitalize on these shifts. Top Altcoins To Watch This Week Injective (INJ) According to Deutscher, Injective (INJ) is experiencing a lull in hype, but this should not undermine its strong performance throughout the year. He believes that if the bullish momentum continues, INJ could reach its local highs in the $19’s. “Monitoring closely, as it runs hard when it runs,” Deutscher states, highlighting the potential for rapid gains. At press time, INJ was trading at $15.88 after being rejected at the 0.618 Fibonacci retracement level of $17.13. Pyth Network (PYTH) Deutscher points out that PYTH is in an interesting position with attributes favored by the market: it’s a new, shiny coin with a low float and perpetual contracts. However, competition from other Solana tokens, like Jupiter and JITO, may temporarily divert attention. For those already holding PYTH, Deutscher advises to hold but not to add more unless the price drops. Related Reading: Whale Alert: Big Players Scoop Up These 4 Altcoins, On-Chain Data Indicates SuperFarm (SUPER) SUPER is part of the trending gaming narrative and has been gaining attention from significant creators and influencers. Despite its volatile funding, Deutscher sees potential for a FOMO-driven price increase. “It could be one of those ‘it’s already up too much, I’m not buying’ plays,” he speculates, suggesting that late buyers might drive the price even higher. Cosmos (ATOM) The recent approval of the ATOM Halving proposal is a significant development for Cosmos. This change will halve the maximum inflation rate from 20% to 10%, potentially impacting ATOM’s price action (PA). Deutscher is watching this closely for signs of a developing trend. Related Reading: Market Watch: These 5 Altcoins Are Poised For Breakouts, Says Crypto Expert dYdX (DYDX) The unlocking of $524 million worth of DYDX on November 28th is a crucial event, especially since these tokens will be released on the DYDX chain, not supported by centralized exchanges (CEXs). Deutscher anticipates a complex interplay of market psychology around this event. “Watching to see if the head and shoulders pattern continues to play out,” he comments, suggesting possible price movements following the unlock. Solana (SOL) And BONK SOL’s struggle to break past $58 is noted by Deutscher, placing it in a “no trade zone” for now. However, a breakthrough could lead to significant gains. BONK, a Solana-based meme coin, is also on his radar due to its higher volatility and correlation with Solana’s movements. Vertex (VRTX) Finally, Deutscher highlights the significant volume increase on Vertex, surpassing DYDX and Uniswap. Despite suspicions of wash trading due to low open interest (OI) compared to volume, he sees potential in Vertex and perceives a resurgence in the popularity of perpetual decentralized exchanges (DEXs). Featured image from iStock, chart from TradingView.com
The XRP community is abuzz with discussions of potential price manipulation. This debate is fueled by observations from key figures from the XRP army, who are raising concerns over unusual price patterns despite significant developments. XRP Price Manipulation: The Initial Spark Edward Farina, XRP Healthcare’s Head of Social Adoption, first brought this issue to light. He pointed out that despite Ripple’s consistent flow of positive news and developments over the past year, the price of XRP has remained relatively unmoved. Farina compared this stagnancy to the price behaviors of other cryptocurrencies, which he notes often experience price surges on the back of less impactful news. His statement via X was unequivocal: “So Ripple has [had] major excellent news for the past 12 months and the price of XRP hasn’t budged an inch. Any useless coin as soon as it has a crappy partnership goes up in price. And you still believe the price of XRP isn’t manipulated?” Related Reading: Whales Move $30 Million Worth Of XRP To Exchanges – Time To Sell? The influencer known as WallStreetBulls added to the debate by highlighting recent abrupt changes in the XRP price. He specifically referred to a rapid increase and subsequent decline yesterday, which he alleges was a manipulative pump-and-dump scheme, leading to significant profits for certain players. He stated, “[Yesterday’s] rapid pump and dump of XRP, which resulted in a minimum profit of around $5 million for some, highlights the effectiveness of quick market movements and manipulation for substantial gains.” The crypto pundit further alleges a systematic suppression of XRP’s price. He pointed to an incident where a rumor about a Blackrock ETP correlated with a sudden rise in the XRP price to $0.75, followed by a drop to $0.58, and then a stabilization at $0.60 to $0.62, NewsBTC reported. He interprets this as evidence of deliberate market manipulation by entities with significant financial resources. Related Reading: XRP Price Could Hit $10,000 If It Overtakes SWIFT, Pundit Suggests Previously, in an October 9 post, WallStreetBulls had raised similar concerns, suggesting that a small fraction of “wealthy elites” and “major bankers” were manipulating the market. He claimed that these groups, known for manipulating markets like gold, are now targeting XRP. “There’s a significant market manipulation underway, and it appears that the 0.01% wealthy elite and major bankers are at the helm of it!” the analyst claimed. Despite XRP’s regulatory clarity, especially following a court victory against the SEC, he believes it’s facing undue negative pressure in the market. He also accused several media outlets of launching attacks on XRP, presumably to diminish its value and credibility. Dissenting Voices And The Need For Proof It is important to note that not everyone in the XRP community is agreeing with this view. Crypto analyst Jaydee offered a different perspective in October, suggesting that recent price movements were part of a predictable short-term technical correction rather than evidence of manipulation. “Manipulation? Brotha, we knew this short term correction was coming weeks ago? how does he have all these followers,” he remarked. Moreover, it is crucial to underline that, to date, there is no concrete evidence to substantiate these claims of market manipulation. The inherent volatility of the crypto market leads to price fluctuations, which various factors such as investor sentiment, market trends, and global economic conditions directly influence. As the debate continues, it’s imperative for investors and observers to critically evaluate these claims. At press time, XRP traded at $0.6024. Featured image from Shutterstock, chart from TradingView.com
CardanoGPT has officially announced the beta launch of its AI-powered chatbot, Girolamo. This initiative marks a substantial advancement in the integration of artificial intelligence (AI) technologies with the Cardano blockchain ecosystem. Named after the influential Italian mathematician Girolamo Cardano, the chatbot intends to symbolize the fusion of historical intellectual legacy with contemporary technological innovation. Girolamo is engineered to provide a range of functionalities, including content generation, image generation, and image interpretation, which are tailored to accommodate diverse user inquiries. This suite of capabilities enables the chatbot to offer real-time, contextually aware responses, extending its utility beyond standard blockchain applications. The inclusion of image-related functionalities represents a significant technological stride, enhancing the interactive experience and broadening the scope of its applicability. To participate in the beta testing phase of Girolamo, users are required to hold a minimum of 5000 CGI tokens, as outlined by CardanoGPT. Access to the chatbot is facilitated through the CardanoGPT Discord server, where users undergo a wallet verification process. Upon successful verification, users are granted the @cyborg role, enabling them to interact directly with Girolamo in the designated chat channel. Related Reading: Cardano Phoenix Moment: Price Breakout In The Face Of Recent Setbacks CardanoGPT’s announcement emphasizes that Girolamo is still in its beta phase, suggesting ongoing development and potential enhancements. This phase is critical for assessing the chatbot’s performance, user experience, and overall functionality within the Cardano ecosystem. The company has highlighted its commitment to continuous innovation and development, aiming to maintain a leading position in the convergence of AI and blockchain technology. Cardano Price Poised For 22% Surge? ADA has seen a strong upward trend since breaking out of the downward trend (black line) on October 21, which has caused the price to rise by over 60%. For the past two weeks, however, the rally has come to a standstill. The price is in a consolidation after the ADA was rejected at the 0.786 Fibonacci retracement level at $0.411. Related Reading: Cardano Forecast: Crypto Analyst Identifies The Event That Could Send ADA Price To $11 However, the AI narrative and potential hype in this market segment could be significantly bullish for the Cardano price once the launch of Girolamo is on the horizon. AI tokens have seen some sharp price movements over the past few months, driven by news around the progress of OpenAI and other companies. In the short term, the ADA price may need a retest of support at the 0.618 Fibonacci retracement level at $0.37 to herald the next upward move. Remarkably, the price level is of double importance as the 20-day exponential moving average is also at this price level. If this price level is defended in the next few days, it could be the precursor to the next move higher. The obvious target would be the yearly high at $0.463. Reaching this price would mean a 22% rally from the current price. Featured image from Shutterstock, chart from TradingView.com
Edward Farina, Head of Social Adoption at XRP Healthcare, recently proposed a scenario where the price of XRP could potentially surge to $10,000. His projection is based on the possibility of the token as a bridge currency and RippleNet replacing SWIFT (Society for Worldwide Interbank Financial Telecommunication) in the global cross-border payment systems. Could XRP Price Reach $10,000? Farina’s commentary dives into the principles of market dynamics. He argues against common misconceptions about the cryptocurrency’s potential growth. “Few people seem to understand the principle of supply and demand. I always see people being shocked when they see someone saying that XRP can reach $10k. (Not saying it necessarily will.),” Farina remarked. Related Reading: Pro-XRP Lawyer Deaton Picks His Top 10 Cryptos For The Year Ahead He emphasizes that the global financial sector’s movement of hundreds of trillions of dollars annually means even a small market share could lead to a significant surge in its valuation. Farina also elaborates on the current capabilities of the SWIFT system, handling billions of transactions per hour, and the impact of RippleNet potentially replacing it. “The problem with the way most people view XRP’s potential to grow exponentially, is that they think it can’t reach that high of a market cap. They’re failing to realize that Financial Institutions move hundreds of trillions worldwide. If XRP captures a tiny fraction of that, it will catapult XRP to unprecedented levels,” he explains. This highlights the vast, untapped market that XRP could penetrate. However, Farina does not provide exact figures, nor does he explain how much capital would have to flow into the cryptocurrency to reach the price of $10,000. Related Reading: XRP On The Verge Of A Surge: Analyst Pinpoints Next Bullish Targets Besides that, Farina underscores XRP’s supposed technological superiority, particularly in terms of transaction speed and finality. “XRP settles value in real time (an average of 3 seconds) and with finality. BTC cannot do that, neither ETH nor SWIFT. Period,” he asserts, making a case for the tokens’ efficiency and reliability over existing systems. Can Ripple Replace SWIFT? The discussion about whether XRP can reach a four- or five-digit price if Ripple replaces SWIFT or only a part of it is almost as old as the token itself. It was only recently that influencer Crypto Eri unearthed a five-year-old statement from Ripple CTO David Schwartz. Schwartz outlined the positive correlation between an asset’s price and its liquidity. “Higher prices tend to correlate with higher liquidity, which means cheaper payments,” he noted, explaining that as the tokens’ value increases, it becomes a more viable medium for large-scale financial transfers. This ties back to Farina’s vision of the cryptocurrency disrupting the current financial systems. Grayscale has also recently confirmed XRP’s potential to compete with SWIFT. In its latest “Currencies Crypto Sector” report, the company writes, “Beyond Bitcoin, XRP is the second largest asset. Designed as an alternative to SWIFT, XRP aims to offer fast cross-border payments at lower transaction costs than competitors.” At press time, XRP traded at $0.6208. Featured image from Shutterstock/ FinanzBusiness, chart from TradingView.com
In a new analysis, JPMorgan has raised concerns about the potential outflow of funds following the possible conversion of Grayscale Bitcoin Trust (GBTC) into an ETF. The banking giant estimates that the conversion could prompt investors to withdraw at least $2.7 billion. The Grayscale Bitcoin Trust, a pivotal force in the previous bull market, has seen its discount to Bitcoin’s current market price shrink from -46% at the beginning of the year to -9.77% by November 22, the lowest level since mid-August 2021. Notably, this reduction in discount is important because it indicates that investors are expecting the US Securities and Exchange Commission (SEC) to approve Grayscale’s conversion to a spot Bitcoin ETF. However, JP Morgan has cautioned that this conversion might lead to some instability in the market. $2.7 Billion Exodus Following Bitcoin ETF Approval? JPMorgan analysts, including Nikolaos Panigirtzoglou, have scrutinized the inflows into GBTC since the beginning of 2023, revealing a calculated strategy by traders to exploit the discount for profit upon ETF conversion. The bank’s methodology considered the cumulative signed dollar volume, accounting for both the volume of shares traded and the direction of the price movement. Related Reading: Trader: Bitcoin Will Inevitably Breeze Past $70,000—Here’s Why The analysts posit that this influx, primarily driven by speculation over GBTC’s conversion to an ETF, will likely reverse as investors seek to capitalize on the arbitrage opportunity presented by the narrowing of the discount to net asset value. The minimum anticipated outflow, upon conversion to an ETF, stands at $2.7 billion. However, this could escalate if GBTC’s current fee structure, standing at 200 basis points, isn’t significantly reduced post-conversion. The competitive landscape, as suggested by the ARK 21Shares Bitcoin ETF’s 80 basis points fee, necessitates such a reduction for GBTC to maintain its market dominance. The impact on the market could be profound. A full withdrawal of the $2.7 billion could exert substantial downward pressure on Bitcoin prices. However, JPMorgan analysts believe that much of this capital will likely be reallocated to other Bitcoin-related instruments, mitigating any drastic market disturbance. Related Reading: Grayscale Files Updated Spot ETF As Bitcoin Barrels Past $37,000 They predict a reconfiguration of assets, shifting from $23 billion in GBTC and $5 billion in other funds to $20 billion in the trust and $8 billion in other vehicles. Nonetheless, they caution that a portion of the funds may exit the Bitcoin space entirely, which would pose a risk of a downturn in Bitcoin prices. Remarkably, JP Morgan analysts led by Panigirtzoglou have predicted in early September that the SEC will be forced to approve spot Bitcoin ETFs after losing the case against Grayscale. Moreover, JP Morgan’s forecast hinges on the assumption that the approval of a batch of ETFs will ignite more intense competition among Bitcoin investment products, likely resulting in a fee structure more aligned with those of Gold ETFs, typically around 50 basis points. As the market awaits the SEC’s decision, the primary concern remains: Whether the anticipated GBTC outflows will find a new home within the Bitcoin space or if they will signify a broader withdrawal from BTC investments. At press time, BTC traded at $37,560. Featured image from Veri-Media, chart from TradingView.com
Evernode, a layer-2 network developed on the XRP Ledger (XRPL), has recently provided crucial updates concerning its airdrop for XRP holders. The project, which integrates smart contract capabilities with XRPL, has revised its launch to December 18, 2023, following technical challenges. On the same day, the airdrop is expected to take place. Evernode Launch Date Announced The revised launch date of December 18, 2023, is primarily due to delays with the XUMM wallet’s integration in supporting account cloning on the Xahau network. This network is a recent addition as a sidechain to the XRPL. Situated within this new framework is Evernode, a pioneering project on Xahau. Evernode is the first major project built on Xahau, marking the first major initiative developed using the Hooks feature that Xahau introduces to the broader XRP Ecosystem. Regarding the launch, Evernode stated, “We’re now targeting launch on 18 December 2023… XUMM has been unexpectedly delayed in supporting the cloning of XRPL Accounts on Xahau. We can’t finalize our airdrop until this happens. We believe this will be ready by 18 December, but it is obviously beyond our control and may still change.” Related Reading: Ripple Integration With ISDA Ushers In $1.2 Quadrillion Market, Can XRP Breach $100? Besides that, Evernode informed the community about a notable achievement. The project’s three Hooks have been successfully audited, an important milestone in ensuring the network’s security and functionality. Additionally, the project has established the Xahau address for issuing Evers tokens: rEvernodee8dJLaFsujS6q1EiXvZYmHXr8. For users and airdrop participants, it is crucial to verify this address to avoid scams. Snapshot Details And Eligibility For XRP Holders The airdrop’s eligibility was determined by a snapshot taken on September 1, 2023, at Ledger #82237135. This snapshot recorded the XRP balances on the mainnet at 6:00 PM AEST (8:00 AM UTC). Eligibility for the airdrop includes XRP holders who held up to 50,000 XRP in a non-custodial wallet or used Bitrue or Uphold at the snapshot time. Related Reading: Pro-XRP Lawyer Deaton Picks His Top 10 Cryptos For The Year Ahead Evers tokens will be airdropped into the Xahau account based on XRP holdings in the corresponding XRPL account on the snapshot date. Moreover, the projects’ update further mentioned the commencement of the “formal process” of airdrop preparation on November 27, along with the promise of a tool to assist users in registering and calculating their Evers token allocation based on XRP holdings at the time of the snapshot. The Evers token (EVRS) has a maximum supply of 72,253,440. The airdrop will distribute 20,643,840 Evers among various stakeholders, including 5,160,960 to XRP holders, 5,160,960 to founders, 5,160,960 to beta testers, and 5,160,960 to the Evernode project itself. The remaining 51,609,600 EVRS tokens will be held inside the Evernode Registry Hook. They will be distributed as rewards to hosts in 10 epochs of 5,160,960 Evers over 118 years. Evernode’s launch is anticipated to be a major addition to the XRPL ecosystem. The introduction of a layer-2 network and sidechain could expand development possibilities, leading to more advanced dApps and potentially increasing user engagement with XRPL. At press time, the XRP price has posted a bullish breakout from its downtrend channel in the shorter timeframe, trading at $0.6185. Featured image from Shutterstock, chart from TradingView.com
In an audacious financial play, Carl Erik Rinsch, the director of Netflix’s sci-fi series “Conquest,” reportedly magnified a $4 million investment in Dogecoin to a whopping $27 million. This unexpected windfall is part of a larger, dramatic narrative involving Rinsch’s handling of the series’ budget. Dogecoin Windfall And Extravagant Expenditure Rinsch’s journey into the crypto realm began after he faced significant losses in the stock market. Financial records show that after receiving an additional $11 million from Netflix to support “Conquest,” Rinsch allocated $10.5 million to stock market ventures, primarily in pharmaceutical companies and the S&P 500. These risky options trades resulted in a loss of nearly $6 million in just a few weeks, leaving him with a little over $4 million. Related Reading: Dogecoin Jumps 10%, But This Signal Could Bring Rally To A Stop In a bold pivot, Rinsch transferred the remaining funds to the cryptocurrency exchange Kraken, where he invested heavily in Dogecoin, a then-emerging digital currency inspired by an internet meme. His investment coincided with an extraordinary surge in Dogecoin’s value, culminating in him cashing out around $27 million in May 2021, as evidenced by an account statement seen by the Times. Following this success, Rinsch reportedly expressed his gratitude in an online chat with a Kraken representative, saying, “Thank you and god bless crypto.” However, Rinsch’s windfall quickly translated into extravagant spending. He embarked on a lavish spree, purchasing five Rolls-Royces, a Ferrari, a high-priced Vacheron Constantin watch valued at $387,630, and an assortment of luxury furniture and designer clothing. The total expenditure amounted to $8.7 million, as determined by a forensic accountant hired by Ms. Rosés, Rinsch’s then-wife. Related Reading: Dogecoin Metrics Signal Impending Breakout, How High Can The Price Go? The spending raised suspicions during Rinsch’s acrimonious divorce from Ms. Rosés. Her legal team speculated that these purchases might be an attempt to conceal his cryptocurrency profits. In response, Rinsch claimed in a deposition that these items were props for “Conquest,” funded by Netflix’s production money. “Conquest” Is Written Off Remarkably, Rinsch’s financial upswing stands in sharp contrast to the fate of “Conquest.” Netflix, having invested over $55 million in the series, has yet to receive a single completed episode. Rinsch’s unconventional financial maneuvers and erratic behavior during the production have led to a standoff with Netflix. The streaming giant is now embroiled in a confidential arbitration process with Rinsch, who claims a breach of contract and seeks at least $14 million in damages. Netflix, contesting these claims, views Rinsch’s demands as unfounded. Thomas Cherian, a spokesman for Netflix, highlighted the company’s extensive support for Rinsch’s series, noting the eventual decision to write off the project due to the realization that Rinsch was not on track to complete it. At press time, DOGE traded at $0.0755. Featured image from iStock, chart from TradingtView.com
In a recent post on X (formerly Twitter), noted XRP advocate and lawyer John Deaton shared his top 10 cryptocurrency picks for the next 12 months. His selection includes a mix of well-established and emerging digital currencies.
He stated, “If you had to pick only 10 tokens to own for the next 12 months (as a trade) what are they? Here’s mine: BTC, XRP, ETH, QNT, RNDR, SOL, KAS, AVAX, HBAR, CSPR. What am I missing?”
Analysis Of The Pro-XRP Lawyer’s Picks
Bitcoin (BTC): Deaton likely selected Bitcoin due to the potential imminent approval of a spot Bitcoin ETF in the United States. Bloomberg Intelligence analysts anticipate that the US Securities and Exchange Commission (SEC) might approve multiple spot Bitcoin ETF by January 10, 2024, a move that could significantly impact Bitcoin’s value
XRP: Deaton’s choice of XRP is consistent with his role as a strong supporter and legal advocate for the XRP community. XRP’s status as a regulatory-defined token in the United States with high utility adds to its appeal. Currently, XRP is consolidating after being rejected at the 0.618 Fibonacci retracement level at $0.7492.
Ethereum (ETH): Despite the harsh criticism of Ethereum’s founder, Deaton has included ETH in his list. This might be due to its position as the second-largest cryptocurrency by market cap. Also, BlackRock and several other financial giants have recently applied for a Spot Ethereum ETF, adding to the potential bullish trajectory of ETH in the next 12 months.
Quant (QNT): The QNT token of Quant Network has found itself in a downtrend channel since late January this year, down approximately 35% from its year-to-date high. With the current price of $98.74, QNT is 78% below its all-time high of $428.38 on November 21, 2023. Nevertheless, Quant can boast partnerships with major financial institutions, including the Bank for International Settlements (BIS), Bank of England, Bank of Canada, MasterCard, Amazon, and Barclays, to develop and test use cases for central bank digital currencies (CBDCs).
Render Network (RNDR): The RDNR token is currently up 725% since the beginning of the year. Render Network provides a decentralized GPU rendering platform, allowing artists to scale GPU rendering work on-demand to high-performance GPU nodes. Notably, the RDNR price has also profited from the AI narrative.
Solana: SOL has been one of the other big winners this year, up nearly 600% at the current price since it went below $8 at the end of last year. Solana is currently seen as the potential biggest challenger to Ethereum as a layer-1 blockchain, which is why Deaton may have ranked SOL on his list.
Kaspa (KAS): Kaspa has gained attention due to its positioning as a highly scalable Layer-1 blockchain, with a focus on fast confirmations and high throughput. Its underlying technology, GhostDAG/PHANTOM protocol, aims to balance security, scalability, and decentralization. The KAS token’s impressive performance, with an over 2,600 % increase year-to-date, makes it a notable inclusion.
Avalanche (AVAX): Avalanche’s AVAX token might be included due to its recent gains of almost 130% since mid-October. Deaton may have chosen AVAX because of Avalanche’s involvement in the Monetary Authority of Singapore’s tokenization initiative, Project Guardian, as well as its partnership with Amazon Web Services and Deloitte, all of which are potential catalysts for price appreciation.
Hedera (HBAR): Hedera Hashgraph has gained prominence by becoming part of FedNow, the US Federal Reserve’s instant payments platform. This development led to a significant surge in the price of Hedera’s HBAR token.
Casper (CSPR): Casper’s inclusion may be due to its position as one of the fastest-growing blockchain projects, with a focus on solving the blockchain trilemma of scalability, security, and decentralization.
Remarkably, Deaton’s selections reflect a balance between established market leaders like Bitcoin and Ethereum, and emerging, high-potential projects like Kaspa and Casper. This blend indicates a strategic approach to cryptocurrency investment, recognizing both stability and innovation within the digital asset space.
Matrixport, a leading digital finance platform, today, November 22, released a comprehensive research note focusing on the significant implications of yesterday’s developments in the crypto industry, particularly regarding the prospects of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.
Following the guilty plea of Binance CEO Changpeng Zhao (CZ) and the substantial financial settlements involved, Matrixport suggests that the path for approving a spot Bitcoin ETF might have become significantly clearer. The note highlights the regulatory crackdowns and compliance upgrades in the crypto sector, indicating a shift towards greater regulatory alignment with traditional financial (TradFi) systems.
“Some would argue that the US agencies have cleaned up the industry this year by dismantling the US crypto-related banks, as two of them were running an internal ledger that crypto companies could use 24/7 to transfer fiat. Arguably, few (perceived) major actors are left, and with Bitcoin only declining -3.4% during the last 24 hours, the market is stomaching a major risk-off event,” Matrixport remarks.
Spot Bitcoin ETF Approval Odds At 100% Now?
The company points out that with stringent enforcement actions and enhanced compliance programs becoming the norm among crypto exchanges, the differentiation between regulated and non-regulated cryptocurrency exchanges may become a key metric in 2024. This shift is seen as instrumental in the potential approval of a spot Bitcoin ETF in the US, a development long anticipated by the industry.
“The result will likely be that more exchanges will enhance their compliance programs and become part of a surveillance-sharing agreement, which will be instrumental in approving a spot Bitcoin ETF in the US,” the firm stated, adding, “With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow.”
The firm believes that this “whitewashing” of the industry will not only enhance Bitcoin’s adoption by institutional players but also position it as a safe-haven asset in investment portfolios. “More importantly, this industry’s whitewashing will strengthen the Bitcoin adoption case for institutional players and will likely become a safe-haven asset in investors’ portfolios,” Matrixport predicts.
The note also touches on the anticipated sale of the FTX exchange and its potential relaunch under a US securities law-compliant management team by Q3 2024. Matrixport speculates that this could lead to significant inflows, estimated between $24-50 billion, into any US-listed Bitcoin ETF. They also note the increasing trend of crypto firms making markets on CME-listed crypto derivatives, indicating a shift from retail-focused, unregulated exchanges to those that are fully regulated and cater to institutional clients.
‘Dark Cloud Has Been Removed’ As ETF Makes Progress
Analysts and industry experts have echoed Matrixport’s sentiments. Will Clemente, a noted analyst, stated, “With resolution on Binance, just a matter of weeks until Bitcoin ETF approval now.” Tony “The Bull” Severino, head of research at NewsBTC, commented, “A dark cloud has just been removed from the crypto market.” Conversely, Scott Johnsson, a finance lawyer at Davis Polk, offered a more cautious view, suggesting that “It’s far more likely an ETF decision led the Binance resolution than the other way around imo. And I’m not convinced either is that likely.”
Remarkably, there has been some movement in the spot ETF approval process in the last few days. Ark Invest has kicked off the third round of amendments to the S-1 filings, Grayscale had a meeting with the US Securities and Exchange Commission yesterday regarding its “uplisting.”
At press time, BTC traded at $36,483.
In a new technical analysis, crypto analyst Dark Defender has identified a bullish ‘Cup and Handle’ pattern on the XRP daily chart, signaling the potential for substantial gains. The pattern, which is characterized by a ‘cup’ resembling a rounding bottom and a ‘handle’ indicating a slight downward drift, suggests a continuation of an upward trend.
Dark Defender notes, “XRP formed a cup & handle pattern in the daily time frame. We set targets for $1.05 & $1.88 with the Elliott Waves, and now the Cup-Handle pattern is also blinking XRP to reach the targets.”
Cup & Handle Pattern Hints At 208% Rally In The Short-Term
The cup formation, which began in July and extended through October, saw its peak around $1.05, a critical resistance level. The XRP price then dropped by approximately 52%, perfectly aligning with the classical setup. The correction from the top of the cup to the bottom should ideally be a maximum of 50%.
The subsequent handle has formed a resistance zone between $0.75 and $0.6649, which is approximately a 20% retracement from the cup’s peak. Notably, the pattern suggests a bullish continuation, where the ‘cup’ represents a period of consolidation followed by a breakout, while the ‘handle’ forms a smaller pullback before the price continues to ascend.
Within the chart, Dark Defender showcases key support and resistance levels crucial for this pattern to remain valid. The handle part of the pattern has potential support at $0.5286, which Dark Defender has indicated should not be broken by a close under the primary support of $0.6044 for two consecutive days to maintain the bullish outlook.
Currently, the chart indicates that XRP is trading above these support levels, with resistance looming overhead. The next significant resistance is noted within the handle formation, marked at $0.6649. A decisive break above this level could confirm the pattern’s predicted outcome and set XRP on its upward trajectory toward the mentioned price targets.
The analyst elaborates on the handle’s potential movements, stating, “Can the handle be extended towards $0.5286 Support? We still need to close under the primary support of $0.6044 for 2 days in a row. So the answer at the moment is No.” However, he also added, “The main structure is still in place, and XRP is expected to hit $1.05 & $1.88 in the short term.”
XRP Price Faces Stiff Resistance
The XRP price is currently facing another crucial resistance when performing a Fibonacci retracement level analysis on the 1-day chart. Last Thursday, the XRP price fell below the 0.382 Fibonacci level at $0.6275 and has not been able to close above this key resistance since then on a daily basis.
Moreover, the XRP price is sandwiched between the 20-day and 50-day Exponential Moving Average (EMA), between $0.6234 and $0.5919. For the bullish scenario to play out, the price needs to overcome the 20-day EMA as well as the 0.382 Fibonacci level. If this happens, Dark Defender’s bullish prediction could come a little closer.
The potential approval of a spot Bitcoin ETF in the United States has stirred considerable attention in recent weeks. Dan Morehead, CEO and founder of Pantera Capital, has now shared valuable insights on this matter in his latest “Blockchain Letter”, emphasizing the unique circumstances surrounding this event.
Morehead challenges the traditional Wall Street mantra, “Buy the rumor, sell the news,” questioning its relevance in the current spot ETF context. He reflects on how this adage played out historically, specifically citing the CME Futures launch and Coinbase’s public listing. Both instances exhibited significant price surges in the BTC market before their respective events, followed by steep downturns, aligning with the adage’s prediction.
Spot Bitcoin ETF Is A “Buy The Rumor, Buy The News” Event
In his detailed analysis, Morehead recounts how the Bitcoin market rallied dramatically, up to 2,448%, leading up to the CME futures launch. However, this bullish trend abruptly reversed on the very day the futures were listed, marking the start of an 84% decline into a bear market. He parallels this with the Coinbase public listing scenario, where the market again surged, this time by 848%, reaching its peak on the day of Coinbase’s listing, only to be succeeded by a 76% drop.
Morehead, with a touch of humor, notes in his letter, “Will someone please remind me the day before the Bitcoin ETF officially launches? I might want to take some chips off the table.”
However, “this time is different,” states Morehead. Further delving into the potential impact of a spot ETF, he posits that such an ETF would represent a significant step in the adoption. Unlike futures, which he argues were a “step backwards,” the spot ETF could fundamentally change access to BTC, opening up new investor pools and potentially altering the demand function for Bitcoin permanently.
Unlike the previous events of the CME futures and Coinbase listing, which had little real-world impact on Bitcoin accessibility, Morehead believes the spot ETF scenario is fundamentally different. He asserts, “A BlackRock ETF fundamentally changes access to Bitcoin. It will have a huge (positive) impact.” His view is that the ETF will introduce BTC to broader investor classes, significantly altering the investment landscape.
Drawing a parallel with the history of gold ETFs, Morehead suggests that Bitcoin ETFs could similarly revolutionize Bitcoin investment, expanding its appeal and legitimacy. He predicts a substantial shift in the demand dynamics for Bitcoin, akin to how gold ETFs altered the gold market.
In his concluding remarks, Morehead revisits the initial question about the ETF launch being a “sell the news” event. He argues, “Buy the rumor, buy the news.” This phrase encapsulates his belief that, unlike past events, the introduction of a Bitcoin ETF will not lead to a sell-off but will mark the beginning of a new era in Bitcoin investment.
At press time, BTC traded at $37,341.
In a recent analysis shared on X (formerly Twitter), crypto analyst Michaël van de Poppe offered an insightful perspective on the current state of the altcoin market. His analysis draws parallels with historical trends, suggesting that the current corrections in altcoins may present strong buying opportunities for investors.
Buy The Altcoin Dips Now?
Van de Poppe’s analysis began by noting the ongoing corrections in the altcoin sector, which he interprets as part of a sustained uptrend. “Altcoins have multiple days/weeks correction while still in an uptrend,” he stated, indicating that these periods are not only natural but also beneficial for the market’s overall health.
He further explained the dynamics of these corrections, emphasizing their historical significance. “This [current] period is very heavily comparable to the period we experienced at the end of 2015, or at the end of 2019,” van de Poppe mentioned. He drew specific attention to Ethereum’s remarkable run from $1 to $14 in late 2015, which eventually led to a peak of $1,400 in 2017, demonstrating the potential for massive returns.
Van de Poppe’s analysis also touched upon the concept of higher timeframe support zones. He elucidated that during initial upward runs, corrections to these support zones offer ideal re-entry points for investors. “During the run in 2020, we’ve seen the DeFi summer taking place, which has a high chance of coming back to the surface in 2024,” he added, hinting at a potential bull run in the coming months.
A significant part of his analysis involved a detailed comparison between Ethereum’s price action and that of other altcoins like Chainlink and Arbitrum. He noted, “If you compare the price action of Ethereum with the current price action of Chainlink, you’ll see that it’s just barely having a correction of 20%.” He suggested that further corrections could provide even clearer trends and entry points for investors.
Van de Poppe also emphasized the importance of time frames in analyzing these trends. “If you start to zoom in on the 1h, or 4h, or 15m timeframe, you’ll spot those trends as well. It’s just a matter of time frame,” he explained.
Chainlink And Arbitrum Entry Zones
Looking at the LINK/USD 1-day chart, van der Poppe remarked, “Arguments can be made that we’re barely at the start of this first upwards wave of the cycle as this rally of Chainlink lasted less than 5 weeks.”
As the crypto analyst shows, Chainlink has already undergone a correction of -21.7%. According to him, there are two points of interest for a possible entry, in the range from $12.54 to $13.18 and around $11.62.
“Another example is Arbitrum, which is currently resting on support and, just like the rest of the markets, is providing a corrective move,” stated van der Poppe. The analyst identifies a “clear range support” at $0.98 in the 1-day chart of ARB/USD.
In conclusion, Michaël van de Poppe’s analysis presents a compelling case for considering altcoin corrections as potential opportunities for investment. His concluding advice to investors is “Don’t be afraid, if an altcoin drops between 30-50% at this stage of the cycle, time to look for your entries.”
At press time, the total altcoin market cap stood at $169.264 billion, just below the crucial 0.236 Fibonacci retracement level of $169.928 billion. A break above this resistance could be a major bullish signal.
The XRP price has risen by around 6% in the past three days, triggering renewed optimism among investors and analysts. The two analysts Dark Defender and Egrag see the current trend as a turning point.
XRP Price Correction Over?
Dark Defender has highlighted a key development in the 4-hour time frame, observing the end of a corrective structure and identifying that XRP has reached an oversold area. “We can expect a move to $0.6649 first,” Dark Defender stated, referencing the Fibonacci retracement levels and a 5 Wave Elliott structure that remains intact, suggesting upward potential.
This is supported by the chart that shows XRP has managed to close above a critical level at $0.6131, which aligns with the Elliott Wave Theory’s rules for wave structures. The analyst further emphasized that the $0.87-$1.05 price target is still achievable in the near term if weekly closes maintain above the $0.6131 threshold.
Egrag’s analysis focuses on the gaussian channel and a symmetrical triangle pattern (in the 5-day chart), which are indicative of consolidating markets leading to a potential breakout. According to Egrag, “XRP Gaussian Channel & Symmetrical Triangle Unveil (Strong Support and Resistance Patterns): Within the framework of the Gaussian Channel, the alignment of support and resistance price targets mirrors other charts, adding weight to their significance.”
The provided chart by Egrag points to a “robust support” at $0.50, with additional support levels at $0.54-$0.55 (“support range”) and $0.60 (“support threshold”). The resistance levels are identified by Egrag at a macro resistance point and a symmetrical triangle trend line between $0.83 and $0.85. Egrag advises the XRP community to remain steadfast, saying, “XRP Army STAY STEADY, anticipate the forthcoming mega pump, yet exercise caution by strategically allocating portions of your holdings.”
Combining these technical analyses, it’s clear that both analysts are pinpointing a convergence of technical indicators suggesting a bullish reversal for XRP. Dark Defender’s chart analysis, with its emphasis on Elliott Wave continuation, and Egrag’s identification of Gaussian Channel patterns, both point to a potential increase in the price, provided it remains above certain support levels.
Price Analysis: 1-Day Chart
The analysis of the 1-day chart of XRP using the Fibonacci retracement level shows that the price is facing strong resistance in the short term.
At the current price of $0.6194, XRP is just below the 0.382 Fibonacci retracement level at $0.627 and below the 20-day Exponential Moving Average (EMA) at $0.625. The confluence of these two indicators represents significant resistance in the short term. Remarkably, XRP has received important support at the 50-day EMA at $0.591, which could allow the bulls to regain the upper hand.
For this to happen, however, resistance at $0.625 needs to be broken. The next price targets could then be the 0.5 Fibonacci retracement level at $0.688 and the 0.618 Fibonacci retracement level at $0.759, which abruptly halted the upward movement that began in early October and ushered in the current consolidation.
The XRP price has entered what is regarded as the Dollar Cost Averaging (DCA) ranging zone, according to crypto analyst Egrag. While the digital asset’s price oscillates within a critical zone, the analyst maintains a bullish stance on its future trajectory.
XRP Price Enters DCA Zone
Egrag stated via a post on X, “XRP Color Code (Update): My Stance Forged in the Fires of Conviction: Let me say it 1 million times that I’m still bullish AF, so ease up on the DMs assuming I’ve switched my stance. Remember, markets move in waves, and I’m here to present the short-term moves because, let’s face it, 80% want to reach Valhalla without dying.”
The analyst’s latest technical analysis reveals that the previous support level at $0.66 proved to be weaker than anticipated, leading to a shift in the XRP price’s movement into a ranging zone. “$0.66 wasn’t a solid support, as I’ve mentioned before. XRP is in the ‘ranging’ zone, so the DCA opportunity is open,” Egrag stated.
The analyst’s chart exhibits a descending triangle pattern breaking downwards, indicating potential bearishness in the short term. However, Egrag highlights the importance of the $0.50 mark as a “robust support.” He asserts that the price “won’t dip below $0.50—it’s a pivotal price point.”
The above 1-hour chart shows that the price has now been rejected several times at the falling (red) trend line. If this momentum is maintained, XRP could drop further and could find first support near $0.57. If this support also breaks, the $0.51 mark could be the most crucial turning point.
For Egrag, the zone between $0.5738 and $0.5119 is the “wicking” zone, meaning that the price could swiftly dip into this zone. However, if the price drops below $0.5119, it would enter the “red flag” zone of Egrag’s chart, potentially invalidating the entire prediction.
The Fibonacci retracement levels on Egrag’s 3-day chart suggest significant resistance and support zones. The 0.236 level at approximately $0.7409 and the 0.382 level at about $0.6432 may act as resistance in a bullish scenario, while the 0.5 level at $0.5738 and the 0.618 level at $0.5119 could provide support if bearish momentum continues.
Notably, Egrag’s commentary doesn’t shy away from conviction, “XRP is transforming the way value moves in this digital age. So, it’s crucial to understand what you hodl. Otherwise, I might have to break out the block button for those not willing to learn on how markets move and what XRP or XRPL is achieving. I’m staying true to my beliefs, and if that’s not your vibe, it’s cool to step away from following me.”
Criticism For ‘Stubborn View’
Despite facing criticism from a user comparing the XRP price performance to that of other cryptocurrencies like Solana (SOL) and Chainlink (LINK), Egrag defended the long-term vision for XRP, highlighting its value proposition. He responded, “Appreciate your input, but I’m not pursuing 300% or 500% gains in projects I lack conviction in. My focus is on generational wealth. Imagine understanding gold will reach $2000, and having the chance to acquire it at $0.5.”
The critic replied, “XRP holders are not diamond hands.. Just very stubborn people hoping to be able to sell it at the price they bought. Be happy if it reaches 1$ again.” Undeterred, Egrag concluded, “Indeed, TESLA investors weren’t stubborn; they envisioned the future. The same principle applies to FANGMAN companies. Bookmark this: XRP, the first digital asset with regulatory clarity, and anticipate Ripple, as a company, surpassing the collective value of the FANGMAN entities.”
At press time, XRP traded at $0.6118.
Wall Street financial expert Linda Jones recently offered a detailed forecast regarding the potential Initial Public Offering (IPO) of Ripple. Speaking at a Fireside chat with Linqto, a pre-IPO investment platform, Jones outlined her insights into the expected timeline and factors influencing Ripple’s decision to go public.
Jones stated via X, “Here is my interview with Linqto today. We talked about when Ripple might go public, my back of the envelope calculation for what the stock might be worth and potential acquisition targets.”
Ripple IPO In May 2024?
Despite Ripple’s apparent lack of immediate need for IPO-related funds, Jones suggested that investor pressure might compel the company’s executives towards this path. She elaborated, “Well like I said, Ripple was founded in 2012, and I think their investors want the exit and Brad [Garlinghouse] will get pressure to do that even though they don’t need the money from the IPO.”
Her forecast hinges on a broader economic outlook, predicting a bull market spurred by decreasing inflation and interest rates, thereby creating a conducive environment for public offerings. “I do think we will go into this incredible bull market that will happen from the drop of inflation and interest rates that will lead to a very strong rise in stocks that will allow the IPO market to get very hot next year,” Jones added.
Jones pinpointed mid-May 2024, specifically around May 15, as the ideal window for Ripple’s IPO, contingent on favorable market conditions and company readiness. “I think there is an opportunity if Ripple wants to go public next year that mid-May would be an ideal time, right around May 15 would be an ideal time – that’s my first target that they might go public if everything – the stars, the Sun, and the Moon – lined up, and they wanted to go public,” she explained.
However, she also cautioned about the uncertainty of this timeline, indicating that if Ripple misses this window, the next viable opportunity might not arise until 2025. “If it doesn’t happen, then I think it probably won’t happen until 2025,” Jones remarked.
One Roadblock Remains To Be Removed
Further complicating Ripple’s path to an IPO is the ongoing legal conflict with the US Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse has acknowledged this challenge, noting that SEC approval for Ripple’s Form S-1 Registration Statement is necessary for an IPO. As long as the legal battle persists, this approval remains uncertain.
At press time, the XRP price traded at $0.6165 after dropping below the 0.382 Fibonacci retracement level.
According to crypto analyst Ali Martinez, Cardano (ADA) is exhibiting a price consolidation pattern that is highly bullish. Drawing parallels to the consolidation phase of 2018-2020, Martinez points out that ADA’s current trend is a mirror image, albeit without the disastrous COVID-19 crash.
“Cardano’s current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash! If so, ADA could break through the $0.45 resistance around the first week of December. The upswing could send ADA to $0.75 by late December,” Martinez shared in a recent post on X.
The one-week chart for ADA/USD indicates a prolonged consolidation phase spanning 665 days until July 2020, after which ADA experienced a 2,984% rally, peaking at $3.058. A significant aspect of this ascent was the retest of the upper consolidation box line, which took several months from summer 2020 to early 2021. Interestingly, after dipping back into the consolidation box, ADA initiated a second breakout that led to the massive bull run.
Cardano Poised For 650% Rally Till July?
Martinez’s analysis suggests that ADA could be on the brink of its first breakout from its current consolidation range of sub-$0.25 to $0.45, which has lasted for 434 days. He outlines two possible trajectories for ADA’s price in the forthcoming period, using a gray and a blue line in his chart.
The more bullish scenario (gray line) anticipates a breakout above the consolidation zone that could catapult ADA to $0.75 by the end of December, assuming it surpasses the crucial resistance at $0.45. Following the historic pattern, a retest of the breakout mark could occur over several months.
This could potentially set the stage for an explosive rally beginning in early summer 2024, leading ADA to climb approximately 650% from its present value and surge past the $3 mark. However, Martinez does not see this as the zenith of ADA’s potential growth. The gray line suggests a continued upward movement, with ADA possibly reaching $6.50 before the closure of 2024.
The second, more conservative scenario (blue line) posits that the Cardano price consolidation may extend until July 2024, with potential dips below $0.25 if a market crash akin to the COVID-19 downturn occurs. In this case, a breakout towards $0.75 would be expected around July, followed by a retest at $0.45 by the end of 2024, eventually propelling ADA towards the $3 threshold by mid-2025.
Short-Term Price Analysis
On the lower time frames, ADA is currently making strong moves. The price has successfully retested the 0.5 Fibonacci retracement level ($0.341) and soared above the 0.618 Fibonacci retracement level ($0.37). In the first attempt, ADA failed at the 0.786 Fibonacci retracement level ($0.0.411). However, if this resistance is broken, the door to the yearly high at $0.463 is clearly open.
The Bitcoin price has risen as high as $38,012 (on Binance), recording a marginally higher high. Here are the main reasons for the latest surge in BTC price.
#1 Euphoria Over Potential ETF Approvals
The crypto market has been electrified by the possibility of the US Securities and Exchange Commission (SEC) approving several spot Bitcoin ETFs. With the approval window having opened on November 9 until Friday (November 17), experts like James Seyffart and Eric Balchunas from Bloomberg estimate a 90% chance of approval for multiple filings by January 10, 2024, the final deadline for Ark Invest’s filing.
Remarkably, the SEC is facing a significant deadline cluster, with three applications for spot ETFs from Franklin Templeton and Hashdex (due November 17), and GlobalX (due November 21) awaiting decisions. Amidst this tense backdrop, Hashdex emerged as the first to encounter a delay, as the SEC postponed their decision on the conversion from a futures ETF to an ETF that holds both futures and spot.
This news momentarily jolted the market, resulting in a sharp but brief decline in BTC’s price, which plummeted from $37,400 to $36,780 in a swift five-minute span. However, the market’s resilience was quickly demonstrated as Bitcoin not only recovered but exceeded its pre-announcement price within 25 minutes.
#2 Unprecedented Institutional Interest In Bitcoin
Institutional demand for Bitcoin has reached new heights, particularly through exchange-traded products (ETPs). The recent BlackRock Bitcoin spot ETF filing significantly contributed to this surge. “The Assets Under Management via ETPs have increased by 27,095 BTC, bringing the total to a record 204,170 BTC, equivalent to roughly 7.4 billion dollars,” reports K33 research. This trend indicates a growing institutional embrace of Bitcoin as a viable investment asset.
#3 Supply And Demand Dynamics
Data from LookIntoBitcoin highlights a remarkable trend: over 70% of Bitcoin has not been moved for at least one year. “This is a historic moment that underscores the strength of Bitcoin’s tokenomics,” the data provider shared. They further elaborated, “As long as this HODL Wave continues to climb, it suggests a bullish market outlook with long-term investors showing no signs of selling their holdings. This is particularly significant considering the upcoming Bitcoin Halving event and the growing institutional interest.”
#4 Liquidity Injections By The Fed
Arthur Hayes, co-founder of BitMEX, commented on the significant liquidity being injected into the market and its impact on cryptocurrencies. “Keep your eye on the prize. Almost $200 billion in liquidity has been added since November’s start, impacting assets like Bitcoin. This indicates a potential ongoing rise for cryptocurrencies,” Hayes stated. He emphasizes the importance of understanding the RRP and TGA dynamics in predicting market movements.
#5 Inverse Correlation With The DXY
The inverse correlation between Bitcoin and the U.S. Dollar Index (DXY) has been a notable factor in Bitcoin’s recent price increase. As the DXY faced resistance and began to fall, Bitcoin’s value conversely increased. Crypto analyst Josh stated, “Bitcoin PUMPS while the DXY DUMPS!”
At press time, BTC traded at $37,467 after failing to break out of the ascending trend channel.
In the wake of Ripple’s announcement regarding the integration of an Automated Market Maker (AMM) into the XRP Ledger (XRPL), the community has been abuzz with speculation and debate. Central to this discourse is the potential transformation of XRP in light of this update, particularly in regard to its classification and function as a digital asset.
Ripple’s Chief Technology Officer, David Schwartz, previously hailed this update as the most significant for XRPL, raising expectations among stakeholders. Additionally, at the recent Swell conference, Ripple revealed plans to integrate its rebranded Ripple Payments product with the XRPL’s native decentralized exchange (DEX), further stirring discussions among community members.
The community’s response has been a mix of euphoria and confusion. Digital Perspectives, a key community influencer with over 150,000 followers on X, expressed concerns over the potential implications of this update: “Are we watching XRP become a stablecoin with the introduction of AMMs and the Prudential Treatment requirements from the Bank of International Settlement [BIS]? Cat 1 vs Cat 2, where would you classify XRP?”
He further questioned, “When XLS-30D passes and AMMs become an integral part of the XRPL, will it change the characteristics of XRP and qualify as a group 1b asset for BIS and other banks?”
XRP Price Volatility Is Necessary
Panos Mekras, the co-founder of crypto-focused company Anodos, quickly intervened to dispel the rumors and speculation about XRP morphing into a stablecoin to fit into the 1b asset class of the BIS with the advent of the AMM. Mekras, who has previously clashed with Digital Perspectives over misinformation, laid out a detailed refutation of the idea that XRP could become a stablecoin.
He emphasized, “The fundamental nature of XRP as the native coin of the XRP Ledger, a decentralized digital asset traded freely, is unchangeable. It’s technically impossible for XRP to transform into a stablecoin, a concept that completely contradicts its inherent design.”
He further delved into the dynamics of AMMs, noting that they are most effective in environments with high volatility. This volatility benefits liquidity providers (LPs) by attracting more traders and, consequently, increasing trading volume and fees. According to Mekras, the AMM is tailored to take advantage of such market conditions.
Mekras also highlighted the potential impact of the AMM on XRP’s market dynamics. He suggested that the AMM’s implementation might lead to an increase in buying pressure on XRP. A significant portion of the token is expected to be locked in the AMM, which would enhance its liquidity and attract more traders. This, in turn, would make the crypto token more versatile and efficient for various use cases.
In his concluding remarks, Mekras called for a more informed understanding within the community. He stressed the need to focus on the technical aspects of XRPL and the AMM, advising against following individuals who propagate misinformation.
“The community should stop following and paying attention to enablers of misinformation such as Digital Perspectives and learn more about the technicals of the XRPL and the AMM,” Mekras said.
At press time, the XRP price found support at the 0.382 Fibonacci retracement level in the 1-day chart and traded at $0.6333.
In a detailed market update, Charles Edwards, founder of Capriole Investment, has provided an in-depth analysis of Bitcoin’s current market position, highlighting a pivotal shift to an ‘expansion’ phase in the Bitcoin Macro Index. This transition is particularly noteworthy as it parallels conditions observed prior to historical price surges in Bitcoin’s valuation.
Bitcoin has recently experienced a sharp uptick, ascending from $34,000 to an interim high of $38,000. After a brief period of resistance, the price corrected to approximately $36,500. Edwards highlights this movement as a critical technical victory, with Bitcoin overcoming and holding above the major resistance benchmarks of $35,000 on both the weekly and monthly timeframes.
This consolidation above key resistance levels sets a bullish context in the high timeframe technical analysis, positioning Bitcoin in a strong technical stance according to traditional market indicators. “The recent breakout into the 2021 range offers the best high timeframe technical setup we have seen in years. Provided $35K holds on a weekly and monthly basis in November, the next significant resistance is range high ($58-65K).”
Bitcoin Macro Index Enters Expansion
The crux of Edwards’ update is the shift in the Bitcoin Macro Index, a complex model synthesizing over 40 metrics encompassing Bitcoin’s on-chain data, macro market indicators, and equity market influences. The index does not take price as an input, thus providing a ‘pure fundamentals’ perspective.
The current expansion is the first since November 2020, and only the third instance since the index’s inception, with the two previous occasions leading to substantial price rallies in the following periods. Edwards elucidates this with a direct quote: “The transition from recovery to expansion is simply the optimal time to allocate to Bitcoin from a risk-reward opportunity for this model.”
A look at the Bitcoin chart reveals that the Bitcoin price rose by a whopping 400% during the last bull run from early November 2020 to November 2021, after the Macro Index entered the expansion phase. The first historical signal was provided by the Macro Index on November 9, 2016, which was followed by a massive bull run of almost 2,600% until Bitcoin reached its then all-time high of $20,000 in February 2018.
Short-Term Technicals And Derivatives Market Analysis
In the short term, the technical outlook presents a mixed picture, according to Edwards. The derivative markets are indicating an overheated state, with low timeframe analysis suggesting a retracement could be imminent. Edwards introduces the ‘Bitcoin Heater’ metric, recently launched on Capriole Charts, which aggregate various derivatives market data and quantify the level of market risk based on the open interest and heating level of perpetuals, futures, and options markets.
The below chart shows that most of the time when the Bitcoin Heater is above 0.8, the market corrects or consolidates. “But there are large exceptions to the rule: such as the primary bull market rally from November 2020 through to Q1 2021. […] We should expect this metric to be high more frequently in 2024 (much like Q4 2020 – 2021),” Edwards stated.
The analyst concluded that the overall trend for Bitcoin remains positive, with major data points indicating a strong bullish scenario. However, he also cautioned about potential short-term risks in the low timeframe technicals and derivatives market. These, according to him, are common in the development of a bull run and could offer valuable opportunities if dips occur.
At press time, BTC traded at $35,626.
The Midnight team, a subsidiary of Input Output Global (IOG) – the brains behind the Cardano blockchain, made a major announcement yesterday on X (formerly known as Twitter. The statement read: “Here’s the news you’ve all been waiting for – the Midnight Network devnet is now LIVE. We can’t wait to hear your feedback and see what the community will build on. Let’s go!”
This announcement heralds the beginning of a new era for the Cardano ecosystem, introducing the Midnight Network, a privacy-centric blockchain designed to address growing concerns over digital privacy. The devnet’s launch is a strategic move, emphasizing IOG’s commitment to enhancing data protection in blockchain technology.
A key highlight of this initiative is the selection of 100 ‘Midnight Pioneers,’ chosen to access the early alpha release of the blockchain. These pioneers are tasked with developing data protection applications on a private network, thereby playing a pivotal role in refining Midnight’s capabilities.
In their announcement, the Midnight team also emphasized community engagement, promising future events like live webinars, Q&A sessions, and additional opportunities for developers to access the devnet. They also highlighted future opportunities for a broader spectrum of developers to access the devnet, hinting at an expansion of the devnet once initial progress is made.
Alongside the Midnight blockchain, a new token named DUST will be introduced. DUST is integral to the functioning of the Midnight network, and its role and utility are emerging as key topics of discussion in the cryptocurrency community. Several high-ranked Cardano community members recently teased the possibility of a DUST airdrop to ADA holders.
Impact On Cardano (ADA) Price
The crypto market often witnesses significant price movements in response to major developments such as new project launches or airdrops. For Cardano, the launch of the Midnight Network and the introduction of the DUST token could have a potential impact on ADA’s price.
Historically, announcing airdrops has led to a substantial increase in demand for the original cryptocurrency. This is primarily because token holders receive new tokens for free, incentivizing investors to buy e.g., ADA, in hopes of qualifying for the airdrop. Additionally, such announcements generate substantial media buzz and attract new investors, temporarily boosting the cryptocurrency price.
This phenomenon was observed in several instances, for example, with the Flare Network’s airdrop to XRP holders, which led to a spike in XRP’s price as investors bought in to qualify for the free Spark tokens. Similarly, Uniswap’s UNI airdrop in September 2020 led to a significant surge in both the trading volume and price of UNI, as it garnered considerable attention and value in the market.
In light of these precedents, the launch of the Midnight Network and the introduction of DUST could potentially trigger a similar effect on the Cardano price. While an official announcement on the airdrop and a snapshot date is still open, it could catalyze a new rally in Cardano’s price.
At press time, ADA traded at $0.3665.