Blockchain

An analyst has pointed out how Chainlink might be breaking out of a bull flag right now, which could suggest a rally toward $20.

Chainlink Is Escaping Out Of A Bull Flag Pattern Currently

In a new post on X, analyst Ali pointed out a breakout that may be forming in the LINK price chart. The relevant technical pattern here is the “bull flag,” which, as its name implies, looks like a flag on a pole.

This pattern forms when the asset’s price goes through a pullback after seeing a sharp rally and consolidates inside a region. The initial trend acts as the “pole,” while the parallel trendlines of the consolidation region make up the “flag.”

The flag’s length (the distance between the parallel trendlines) is always at most half the length of the pole. If it’s not, then the pattern isn’t that of a bull flag.

Inside the flag, the price feels resistance at the upper line and support at the lower one. A successful break out of the resistance zone generally indicates that the asset is ready to continue the initial uptrend.

According to the analyst, the chart below shows that such a pattern is forming for Chainlink.

As displayed in the graph, Chainlink had earlier been consolidating inside what seems to have been a bull flag, but with the recent surge, the asset has seen a break out of the pattern.

When Ali shared the chart, LINK had been trading just under the $15 mark. The analyst had noted that a retest of the breakout zone could happen soon, around $14.

The cryptocurrency has indeed made such a retest since then, as its price has observed some retrace. Ali believes the price could rally towards the $20 mark, continuing the bullish momentum from earlier. From the current asset price, such a jump would imply profits of almost 42% for Chainlink.

It remains to be seen whether the bull flag pattern holds for the cryptocurrency this time and if a return to a bullish trend occurs.

LINK Has Seen A Rally Of 185% In The Past Month

Regardless of the recent pullback that the asset has seen from above the $16 mark, its returns for the last 30 days are still incredible, as they currently stand at a whopping 85%.

The below chart shows what the performance of the asset has looked like during this period.

With such large returns, Chainlink has naturally outperformed most of the other top assets recently, and it’s no wonder that the cryptocurrency has also significantly improved its standing in the market cap list.

The recent saga surrounding OpenAI and its co-founder Sam Altman has sparked a surge of interest in AI tokens, with total weekly trade volume surpassing $2 billion for the first time since March, fresh data from Kaiko, a blockchain analytics platform, shows.

According to statistics, WLD, the native token on Worldcoin, a project co-founded by Altman, and other tokens, including FET, the primary coin behind the AI-reliant blockchain, Fetch.ai, appear to be primary gainers. Even so, WLD prices remain below November 2023 lows when writing.

WLD Remains Volatile 

Even so, looking at market data, the spike in crypto AI trading volume seems driven mainly by WLD activity. Looking at the project’s share, trading volume comprises over 33% of all related crypto AI trading volume. 

While there is a noticeable spike in activity, it remains below the all-time high of above $4 billion in Q1 2023. Then, traders and investors were keen on AGIX, the SingularityNET token. However, over the months, Worldcoin has since taken over as investor interest shifted to WLD, evidenced by the gradual rise of trading volume.

Looking at WLD price action over the past three days, prices have been volatile, though trading volume has been mostly up from November 13. Following news of Altman’s removal as CEO of OpenAI, prices fell before slightly expanding with news of negotiations to return to the role, followed by his appointment to lead Microsoft’s AI team. 

All these events have contributed to the market’s heightened interest in WLD. Accordingly, trading volume across the broader crypto AI scene stands above the $2 billion level for the first time since March.  

The Sam Altman And OpenAI Drama Turns Attention To Worldcoin

Though there is no direct connection between OpenAI and Worldcoin, crypto participants focus on events at OpenAI and how the board handled Altman as a factor catalyzing WLD’s activity. 

The general lack of clarity on why the board ousted Altman as CEO worsens the situation, sparking speculation that this could also impact WLD’s prices and how Worldcoin is governed, considering the former CEO is also behind the crypto AI project.

Looking at the co-founder’s previous role as the team leading Worldcoin’s developments, Altman also holds significant sway, contributing to discussions on how the government should regulate AI at the end of the day. 

Altman’s influential role has impacted Worldcoin and its prices since the blockchain project aims to create a global identity system. Worldcoin’s operations would rely on AI, including fraud prevention, data analysis, verification, and more. 

Fetch AI (FET) has been riding the bullish artificial intelligence (AI) narrative following Sam Altman being ousted from OpenAI. Its native FET token has seen an impressive move upward since then, maintaining its bullish headwinds at the same time. But even after the altcoin has grown so much, crypto analysts are convinced that the coin is only at its starting level, and will continue to rise.

Analyst Who Called FET Initial Rise Is Back Again

Crypto analyst Tony The Bull, Founder of CoinChartist, was one of the most vocal voices for buying FET when the price fell to $0.09 back in 2022. The coin has since risen more than 5x from this level but even this has not deterred the analyst, who believes that there is more to come.

In a recent analysis, Tony presented the reasoning behind why he is still bullish on the FET price. The analyst had previously expected a retracement. But from the current level, expect the price to increase once more.

The chart shows an initial bounce above the $2.5 mark before a retracement that takes it back down to around $0.55. Then from here, there is another bounce upward to over $4 once more. If this plays out as expected, then the FET price could be looking toward multiple bounces of over 500% from here.

Updated plan pic.twitter.com/pkfhHBQxCC

— Tony “The Bull” (@tonythebullBTC) November 20, 2023

Fetch AI On Bulls’ Radar

In the same vein as Tony The Bull, another crypto analyst has predicted that the price of FET is headed for more rallies. The analyst who goes by TradingShot posted the analysis on TradingView where they revealed their target for the price.

Similar to Tony’s first target, TradingShot expects a rally that will bring the price above $2. The analyst identified a Golden Cross on the 1-day (1D) chart, noting that this is the fourth bullish pattern that has shown up in the FET long-term channel.

According to the crypto analyst, whenever such a bullish pattern emerged, the price had already started moving up. But actually, it is just the beginning as the main rally often happens after this 1D Golden Cross on the price chart is noted.

“The 1D RSI’s similarities of the November 2020 – February 2021 Bullish Megaphone are a testament that we are on a similar pattern, which then peaked just below the 1.5 Fibonacci extension. As a result, we remain buyers on FET, targeting 1.8000,” TradingShot said.

FET is currently in a downtrend after a tremendous run. According to data from CoinMarketCap, the altcoin’s price is sitting at $0.5 after falling 11.62% in the last 24 hours.

Ben Armstrong, a well-known crypto analyst and YouTuber has recently offered an intriguing perspective on XRP’s current trading value.

XRP, a token closely watched in the crypto community, particularly after its legal battle with the US Securities and Exchange Commission (SEC), currently trades at around $0.60. While this figure might not represent an all-time high, Armstrong highlights why this price point might be pivotal for XRP.

The Bigger Picture: Institutional Interest And Market Dynamics

Armstrong’s analysis begins with the “adamantium” support level of $0.60 for XRP. Drawing an analogy with the fictional character Wolverine, who famously recovers from severe damage, Armstrong sees XRP’s resilience at this price as a sign of robustness.

Each time XRP’s value dips, it seemingly rebounds from this critical support level, suggesting a strong market faith in the token.

Armstrong goes beyond price analysis to consider broader market dynamics in his video. He notes that XRP’s previously traded price level of $0.62 has become particularly attractive to institutional and corporate investors.

Whale transactions involving substantial quantities of XRP have increased significantly, indicating heightened interest from large-scale investors. This trend aligns with a broader global crypto market cap increase, suggesting ample liquidity for significant investments.

Armstrong also touches upon the strategic aspect of XRP’s price following Ripple’s legal victory over the SEC. He posits that a post-verdict price surge might have limited the token’s accessibility to a broader audience.

However, the current steadier price range, a retrace of the previously seen $0.72, allows for a more extensive accumulation of XRP, potentially setting the stage for a bigger bull run.

XRP Latest Price Action

XRP’s market performance has recently shown a notable decline, with its price falling by over 10% in the past two weeks. At the time of writing, XRP is trading at approximately $0.605, reflecting a 2.3% decrease in the past 24 hours.

Despite a significant bullish trend earlier this year, where it surged by 70.3% year to date, XRP remains substantially lower, down by 82.20%, from its all-time high of $3.40 in 2018.

This downward trend extends beyond just XRP’s price. The past two weeks have also decreased the asset’s daily trading volume, descending from highs of around $2.5 billion early last week to roughly $1.1 billion in the past 24 hours.

This decline in trading volume may signal a decrease in investor interest or market activity surrounding the asset, contributing to its reduced price.

Moreover, the broader crypto market has seen a mix of volatility and bearish trends, which might influence XRP’s performance. So far, Bitcoin has also declined by 2% in the past 24 hours, resulting in the drawdown of the global crypto market cap of 1.3% over the same period.

Featured image from Unsplash, Chart from TradingView

In a shocking turn of events, Binance CEO Changpeng Zhao has agreed to step down from the crypto exchange and has plead guilty to “violating US anti-money laundering requirements.”

The news is currently being priced into the crypto market, leading to extreme volatility in Bitcoin and altcoins, plus a lot of chatter on social media. Let’s take a closer look at how the market and speculators are reacting so far.

CZ To Step Down, Pleads Guilty, Company Charged $4B In Fines

Earlier today, the US Department of Justice revealed it would be announcing action against a cryptocurrency company. The most dominant cryptocurrency exchange, Binance, was the target of the enforcement action, and was ordered to pay $4.3 billion in fines.

Binance CEO Changpeng “CZ” Zhao stepped down as a result, and plead guilt to US anti-money laundering charges. The crypto market sank in the earlier hours today in anticipation of the news.

However, as soon as the Wall Street Journal revealed the information publicly, Bitcoin price bounced back and so did the altcoin market. Moments later, most of the upside price action was wiped out. Price as traded within roughly a 4% range today, but has traded across that several times since the news broke, highlighting powerful intraday volatility.

The Crypto Market Reacts To The Binance News

While the market tries to price in what just occurred, volatility will continue to ensue in the near term. On X (formerly Twitter), notable figures are speaking out in regards to CZ’s departure from Binance.

On-chain analyst and market commentator Will Clemente points out it is “just a matter of weeks until Bitcoin ETF approval now” with Binance out of the way. The company has long been cited as a key reason for the SEC remaining hesitant to pull the trigger on a spot BTC ETF application approval.

Messari Crypto CEO Ryan Selkis calls it one of the “biggest catalysts we could have in crypto” between ETFs, crypto-friendly legislation, and this $4 billion settlement helping crypto be viewed as a “real industry.”

Economist Alex Kruger reveals that the settlement is ranked the 7th in financial compliance history, next to names like JP Morgan, Bank of America, Goldman Sachs, Wells Fargo, and several others.

Bankrupt crypto lender Celsius Network has revealed that the company planning on switching to a Bitcoin mining-only company, following its bankruptcy court’s confirmation of the plan.

Celsius Transition To Mining NewCo

Celsius Network‘s transition into a mining company coincides with its bankruptcy proceedings. Over the past year, the digital assets company has experienced financial challenges, which led to its bankruptcy filing.

In September, Celsius filed for a reimbursement plan as its bankruptcy plan to resolve the financial challenges in the company. This saw over 95% of Celsius’ creditors voting in favor of this reimbursement plan.

According to the recent court filing, the cryptocurrency company intends to convert its services into Bitcoin mining operations exclusively and the new company will be known as Mining NewCo.

In addition, the company seems to have forsaken its initial plan for the company’s future with Fahrenheit Group. The firm asserted that the transition was the primary business of the new company to be formed with Fahrenheit, LLC. 

This was the core business of the new company that was proposed to be created with Fahrenheit, LLC that was described in the Plan (the “Fahrenheit NewCo”).

The new company which was supposed to be known as Fahrenheit NewCo was formed after it purchased Celsius this year after it purchased Celsius in a bidding war.

Celsius and the Fahrenheit Group initially came to a deal that the group would provide the firm with funds and operational expertise. Fahrenheit successfully acquired the firm’s assets this year. 

In the meantime, the firm is in touch with certain parties in order to organize the management of the Bitcoin mining company.

The SEC’s Imparted The Transition Move

The firm’s plan to switch to a Bitcoin mining company was triggered by the United States Securities and Exchange Commission’s (SEC) feedback after the court confirmed its plan. The company also highlighted that the new mining company will be owned by its customers.

The filing stated:

Celsius received feedback from the Securities and Exchange Commission (the “SEC”) on certain aspects of the Plan, which has resulted in Celsius now intending to begin the process to apply to register the shares in a new publicly traded Bitcoin mining company that will be owned by Celsius customers (the “Mining NewCo”).

Additionally, the feedback seems to have also imparted the initial plan of transferring the firm’s assets to the Fahrenheit Group. As noted in the filing, Celsius estates will retain certain of the assets in order to be monetized by the plan administrator. 

However, based on the SEC’s feedback, the Debtors, in consultation with the Official Committee of Unsecured Creditors (the “Committee”), have determined that certain of the assets that were to be transferred to the Fahrenheit NewCo must, for regulatory reasons, be retained by Celsius’s estates to be administered and monetized by the Plan Administrator and/or Litigation Administrator for the benefit of creditors.

Ethereum recently cleared the $2,000 price level again in the past 24 hours, as filings of Spot Ethereum ETFs in the US start to pile up. New on-chain data has shown a clearer sentiment among ETH investors, and it looks like many are getting ready for the long haul. 

Data shows that the amount of Ethereum held on exchanges has dropped since the middle of last week to the lowest levels since 2018. That means fewer people are selling their Ethereum, and more are holding onto it or staking it.

Ethereum Exchange Supply Plummeting

Although Ethereum is still down by 2.57% in the past seven days, the cryptocurrency is now trading above $2,000 after breaking the barrier on Monday, November 21. The recent surge would be the third time Ethereum crossed over the price level this month, as it’s still looking to maintain a sustained price increase. 

The recent spikes can be attributed to applications of Ethereum Spot ETFs piling up in front of the US SEC. BlackRock, in particular, joined the spot Ethereum ETF race on November 15th, igniting a price spike that pushed ETH past the $2,000 mark for the second time this month.

It would appear that investors reacted to BlackRock’s ETH filing with the same sentiment they had in response to the investment company’s spot Bitcoin filing. CryptoQuant’s Exchange Reserves metric indicates that investor sentiment started to change around this period, as investors started to pull their assets off of exchanges into cold storage immediately after the news. 

According to the metric, the number of ETH deposited across crypto exchanges amounted to 14.5 million as of November 15. However, this figure dropped by 152,583 ETH in the days after to reach 14.3 million on November 20th. 

Source: CryptoQuant

IntoTheBlock’s exchange netflow reveals a similar sentiment. The netflow calculates the number of tokens entering exchanges minus tokens leaving exchanges. According to the metric, exchanges have had around 228,450 ETH more in outflows than inflows since November 15.

Source: IntoTheBlock

What To Expect For ETH Price Action In The Coming Months

 Dropping exchange reserves reduces the amount of ETH available for trading, thereby increasing scarcity. The data from both Cryptoquant and IntoTheBlock indicates Ethereum might be gearing up for a price spike fueled by increasing scarcity.

Ethereum is trading at $2,013 at the time of writing. We’ve already seen the crypto increase by 67% from $1,200 at the beginning of the year, and many analysts expect this trend to continue if supply tightens. According to crypto analyst Tony The Bull, Ethereum could cross $10,000 very soon if a bullish scenario plays out.

The price of Bitcoin presses on towards the upside and, once again, touched a critical resistance close to $38,000. The cryptocurrency could trend sideways at its current levels in the short term, leading analysts to find the support level that could withstand a spike in selling pressure.

As of this writing, Bitcoin trades at $37,160 with sideways movement in the last 24 hours. BTC held a 2% profit the previous week, while Cardano (ADA) and Solana (SOL) took the lead in the current price action.

The History Of Bitcoin Reveals Mega Bottom For The Current Cycle?

On-chain analyst Willy Woo shared a prediction on his social media channels based on the Bitcoin Cost Basis Density. The analyst investigated the BTC supply dynamics to find where the cryptocurrency could hold off the bears.

Based on his findings, the analyst stated that Bitcoin is unlikely to revisit the $30,000. As seen in the chart below, each time in BTC’s history that the supply moved to long-term investors, the cryptocurrency trends to the upside without returning to this price point: $30,000 for the current cycle.

The analyst set 3 conditions to confirm this pattern: first, Bitcoin must be exiting a bear market; second, there must be signs of a “high agreed price;” finally, the cryptocurrency must be about to go through a “Halving Event.”

During the latter, the supply rewards for mining BTC are cut in half along with its production, which often leads to “supply shocks,” according to some analysts. Halving events coincide with the BTC bull run, but other analysts warned against corresponding Bitcoin bull runs with the reduction in its supply.

The Biggest Narrative Driving The Bull Run

However, Woo claims that the potential approval of a Bitcoin Exchange Traded Fund (ETF) might be the more significant catalyst for the cryptocurrency. If the US Securities and Exchange Commission (SEC) approves the product, billions of dollars flow into the cryptocurrency.

The analyst added:

Bitcoin is far from a commodity market at saturation. What we’re seeing across the 13 yrs of this chart is BTC’s widespread adoption. The network had 10,000 users in 2010, today there’s well over 300m people using it as a store of value technology. This is only going to climb with a spot ETF.

The majority of users replying to Woo’s forecast highlighted his 2021 prediction. At that time, the analyst also set some levels that were supposed to hold against a selloff but quickly folded against unprecedented selling pressure.

It remains to be seen if this prediction will suffer the same fate or if the Bitcoin price can hold above $30,000 for the next bull cycle.

Cover image from Unsplash, chart from Tradingview

Solana is forming a TD Sequential sell signal on the weekly chart right now and this analyst believes a decline to as low as $30 could happen for SOL.

Solana Weekly Chart Is In Process Of Forming A TD Sequential Sell Signal

The “Tom Demark (TD) Sequential” refers to a popular tool in technical analysis that’s used to pinpoint probable tops or bottoms in the price of any given asset or commodity.

This indicator is made up of two phases: the setup phase and the countdown phase. In the former, candles of the same polarity are counted up to 9. After this ninth candle, the metric signals that a likely reversal in the price is occurring now.

Naturally, if the setup occurs with green candles, the signal would be for a probable top, meaning that it could be the time to exit from the asset. On the other hand, the opposite type of candle would imply a reversal from the bearish trend may be taking place.

As explained by analyst Ali in a new post on X, the Solana 7-day chart has recently been finishing such a setup phase of the TD Sequential, suggesting the winds might be changing for the cryptocurrency.

The below chart shared by the analyst shows this signal forming in SOL’s price:

From the graph, it’s visible that this Solana signal could be a sell one, as the TD Sequential setup phase is forming with green candles. “With the week just beginning, the upcoming days could be crucial for traders eyeing profit-booking opportunities,” notes Ali.

As mentioned before, this phase isn’t the only one that the indicator has; there is also the “countdown phase.” This second phase lasts for 13 candles and starts right after the setup is finished.

Once these 13 candles are done, the asset’s price could once again be assumed to have reached a state of exhaustion in its trend and a reversal may be imminent.

“If the bearish formation gets confirmed, we might see a SOL downswing towards $45, potentially even dipping to $30,” explains the analyst. The former target would mean a decline of more than 21% from the current price of the coin, the latter 47%.

It now remains to be seen whether the bearish pattern will hold for the cryptocurrency after all. If it does, the TD Sequential may once again be the metric to watch, as the countdown phase’s end could lead to a reversal in the asset’s price once more.

SOL Price

Solana had gone as high as $68 last week, but the cryptocurrency has since seen a sizeable drop towards the $57 mark. Nonetheless, despite this decline, the asset is in profits of more than 100% in the past month, showcasing just how strong SOL’s recent bullish momentum has been.

Global banks have begun actively integrating crypto assets into their financial operations, and XRP has been one of their top preferences. This news signifies a shift in the skepticism surrounding cryptocurrencies, revealing how some of the world’s leading banks seek to leverage XRP’s fundamental strengths as a cross-border payments system. 

BCBS Highlights XRP Dominance In The Banking Sector

The Basel Committee on Bank Supervision (BCBS) has recently published its first data collection template report on banks’ holdings of crypto assets. This report gives detailed insight into the crypto exposure of global banks. 

According to the publication, 19 out of 182 world banks in the Basel III monitoring exercise have submitted their crypto asset data to the BCBS for review and analysis. Out of the 19 banks, seven banks submitted reports from Europe, 10 banks From the Americas, and two from other parts of the world. 

The data collection template revealed that the majority of banks submitted reports on crypto asset exposure, primarily featuring XRP, BTC, and ETH cryptocurrencies. 

The report stated that the total crypto asset exposures submitted by the global banks amounted to €9.4 billion (around $10 billion). Among these exposures, XRP emerged as the third-largest altcoin utilized for bank engagements. 

XRP investments comprised 2% equivalent to €188 million of the total crypto asset exposures. While Bitcoin and Ether were ranked 31% and 22% respectively. 

“Reported crypto-asset exposures are primarily composed of Bitcoin (31%), Ether (22%), and a multitude of instruments with either Bitcoin or Ether as the underlying crypto assets (25% and 10% respectively),” the report stated. 

This report underscores the growing interest of XRP in the financial banking sector. The Basel III monitoring exercise report also provides a valuable benchmark for gaining insight into the position of cryptocurrencies in the financial sector. 

BCBS Crypto Asset Reports

In the Basel III monitoring exercise template, a collective composition of crypto asset exposures by 19 of the world banks was disclosed. The report stated that the total crypto asset exposures stand at about €9.4 billion, representing a modest fraction of the cumulative crypto-asset exposures across the 182 banks covered by the BCBS. 

Overall, the crypto asset exposures of the 19 banks constitute 0.05% of the total financial commitments made by the institutions under the Basel III monitoring exercise. 

“Total crypto-asset exposures reported by banks amount to approximately €9.4 billion. In relative terms, these exposures make up only 0.05% of total exposures on a weighted average basis across the sample of banks reporting crypto-asset exposures,” the report stated. 

It added: 

“When considering the whole sample of banks included in the Basel III monitoring exercise (i.e. also those that do not report crypto-asset exposures), the amount shrinks to 0.01% of total exposures.”

The data collection template also revealed other crypto assets employed by these world banks such as Cardano (1%), Solana (1%) Litecoin (0.4%), and Stellar (0.4%).