Blockchain

The Shiba Inu community has again ramped up its SHIB burning efforts, causing a massive burn rate spike. Despite SHIB’s tumbling price in the past seven days, Shiba Inu’s burn rate has recorded a nearly 48,000% increase.

The SHIB community is determined to cut down the Shiba Inu circulating supply, a feat that many believe will positively impact the token’s price. 

SHIB Community Intensify Token Burn Efforts Following  Slight Decline

According to data from the Shiba Inu burn tracker, Shibburn, the SHIB burn rate has spiked 47,908% in the last 24 hours. The SHIB ecosystem swept 28.129 million SHIB tokens off circulation into the dead wallet on November 21. Over the past seven days, the SHIB burn rate has increased by 26.29%, with over 290 million tokens wiped off circulation.

According to Shibburn’s data, the most notable burn transaction was a whopping 28.15 million SHIB tokens transferred by an unknown address. The large number of SHIB tokens burned by the anonymous wallet attracted the attention of SHIB enthusiasts. Information on the SHIB burn tracking website shows that the burn transaction occurred 15 hours ago. 

In all these, the SHIB community has removed 410.66 trillion tokens from the initial SHIB token supply. As of writing, approximately 589.34 trillion coins remain as the total Shiba Inu token supply. Also, Shiba Inu’s circulating supply stands at ~580.4 million tokens.

The Shiba Inu community has long been working to reduce the meme coin’s enormous supply and introduce scarcity. Shiba Inu token burns are often sporadic, and some days may witness more token burns than others. Today’s massive increase comes after a 98.79% decline in the SHIB burn rate observed on November 20. 

According to Shibburn’s November 20 report, only 983,884 Shiba Inu tokens were burnt in three transactions. The highest burn transaction was one involving 42,850 SHIB tokens. This figure represented a significant decline from what was observed in the previous days.

Shiba Inu Price Outlook 

While members of the Shiba Inu community believe the token burn spree will positively impact SHIB’s price, the meme coin has followed an opposite trajectory. Its price has been in a downturn in the past week, with a seven-day decline of over 1%. As of the time of writing, Shiba Inu trades at $0.000008345, with a 4% 24-hour decline. 

SHIB candles in the past week are below the median band of the Donchian Channel (DC), suggesting a possible decline ahead for the asset. If it drops to the lower band, then the bears may take full control of its price action and could facilitate more downturns. 

But the good news is that SHIB still holds nearly 20% of its past month’s gains. This could mean there is hope for a rebound since the market shows some bullish activity.

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.

Solana has held its stance among altcoins, registering inflows more than any other cryptocurrency besides Bitcoin last week.  Institutional investment products have witnessed consecutive eight weeks of inflows, with some cryptocurrencies receiving a greater amount of inflows than others.

According to the new CoinShares report on digital asset funds, the majority of this money went into Bitcoin products as the crypto continues to attract investor interest in light of recent developments in the crypto industry. 

Solana Gains Momentum Among Institutional Investors

Solana has been on an incredible run this year, with its native SOL token up over 465% since the beginning of the year. At the same time, investment products tied to Solana have attracted major interest from institutional investors, with inflows now topping $135 million this year.

According to CoinShares, digital asset investment funds registered a total inflow of $176 million last week. Out of this total inflow, $155 million went into Bitcoin, with the last eight weeks of inflows now representing 3.4% of the total assets under management. As a result, the total inflow has now reached $1.32 billion this year, although well behind 2021 and 2020, which saw $10.7 billion and $6.6 billion respectively.

CoinShares’ latest report reveals that weekly inflow into Ethereum products dropped by an astounding 93.27% from $49.1 million to $3.3 million. Solana on the other hand, increased by almost 10% from $12.4 million to $13.6 million. 

Other altcoins also struggled to receive major inflows, with Litecoin and XRP only registering inflows of $0.4 million and $0.5 million respectively. Uniswap and Polygon saw minor outflows of $0.55 million and $0.86 million respectively. 

Factors Influencing The Inflow

Most cryptocurrencies went through a brief period of consolidation last week, but this didn’t roll over into investment products. The report from Coinshares attributes the inflows into Bitcoin in particular to a strong bullish sentiment related to the impending approval of a spot-based Bitcoin ETF in the US. This is particularly evident, as Short-Bitcoin outflows saw another outflow of $8.5 million last week.

Amid these influences and a 101% price surge last month, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors. For one, Solana has delivered one of the most impressive performances on TVL in the most recent months. 

Data from DeFiLlama puts the total TVL on the network at $576.44 million, a 77.62% increase in the past month. The platform also revealed a spike in SOL trading volume on decentralized exchanges in the past week.

According to the on-chain intelligence platform Messari, Solana is now the hub for Decentralized Physical Infrastructure Network (DePIN) projects.

What is in the value of a SOL?

Despite a tough market, @solana has outperformed major crypto assets, becoming the hub for DePIN projects and releasing major product announcements like Firedancer. pic.twitter.com/7ouHN089Wd

— Messari (@MessariCrypto) November 20, 2023

Solana (SOL) is currently trading at $56.27 with investors still anticipating a strong break above $60. 

Bitcoin (BTC) price reclaimed $37,000 on Monday as the crypto market started the week strongly and with investors regaining confidence in the market. On-chain analysis identifies the key reasons that could propel BTC prices higher this week.

Bitcoin was up 1.77% and was halfway to the vaunted $38,000 level at the time of writing, with its trading volume soaring 21% to a little over $14 billion. The recent gains in the crypto’s price have also helped it to erase some of its recent losses, as evidenced by a surge of around 0.55% in its price over the last seven days.

Anticipation Of Bitcoin ETF Nod

This increase is a reflection of the market’s rising hope for the US government to approve a spot Bitcoin exchange-traded fund. But the SEC is still on the fence, putting off judgments on many Bitcoin ETF proposals until 2024.

Bitcoin (BTC) continues to generate significant discussion on social media, despite the SEC failing to meet the designated eight-day timeframe for approving spot Bitcoin ETFs.

However, a recent explanation for the delays has emerged, suggesting that the financial regulator has shown a preference for cash-based creations of ETFs rather than cryptocurrency-based ones. It is also believed that the agency is actively communicating with exchanges over this matter.

Bitcoin Gets Price Lift From Milei Win

Bitcoin’s latest price ascent was in part driven by the election of Javier Milei, a politician who supports the adoption of bitcoin, as the President of Argentina.

Nevertheless, several traders caution about a potential market response subsequent to the disclosure of Federal Reserve meeting minutes on Tuesday, anticipating a period of reduced market liquidity towards the conclusion of the current business week.

Anticipations are high for a forthcoming week of notable activity within the cryptocurrency sphere, as discerned by market participants who foresee a series of events and announcements capable of influencing market trajectories.

Eminent eToro markets analyst, Simon Peters, underscored the imminent release of the Fed’s latest meeting notes, slated for tomorrow. Peters articulated the consequential nature of these minutes, portraying them as a conduit for acquiring profound insights into the prevailing perspectives of the central bank.

Against the backdrop of a decelerating inflationary trajectory, investors are particularly attuned to discerning further substantiation affirming the prospect that the present juncture may signify the culmination of peak interest rates.

What Lies Ahead For Bitcoin

This forthcoming week beckons vigilant attention as participants await the nuanced signals that may resonate throughout the broader landscape of the market.

Meanwhile, based on a deeper look at the daily chart, it is evident that there is currently a bullish sentiment surrounding the price of Bitcoin as it approaches a critical resistance level. If the closing bar lines up close to that threshold, the impending test of this resistance level points to a possible breakout situation.

The excitement that is building up in this situation might be the impetus for a significant spike that takes the top altcoin’s price up to $39,000.

There has been a lot of excitement among market watchers due to this suggestive bullish momentum, which is the approaching challenge to the resistance level.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

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.

CryptoFees data shows that Bitcoin daily fees averaged $10.65 million from November 16 to November 18, surpassing Ethereum’s average fee of nearly $7 million for the same period.

Until 2024, the US Securities and Exchange Commission (SEC) is deferring decisions on several Bitcoin ETF applications, despite the market’s increasing optimism about the approval of a spot Bitcoin exchange-traded fund (ETF) in the US.

This hesitation has coincided with a remarkable surge in the top crypto’s average transaction fees, soaring over 1,000% to reach a peak of $18.67 on November 16, according to BitInfoCharts data.

The average daily transaction fees for BTC, totaling $37,370, have seen a reversal with Ethereum. This change comes in the wake of heightened activity related to Ordinals on the Bitcoin network.

Bitcoin Fees Hit Highest Point In 6 Months

During the observed trend, it became evident that Bitcoin’s average daily trading fee experienced a noteworthy surge, reaching its highest point in the past six months on November 16, where it peaked at $18.67.

This spike in transaction fees within the Bitcoin network indicated a moment of heightened activity and demand. In contrast, over the same period, Ethereum’s transaction fees registered at $7.90, showcasing a relatively lower level compared to Bitcoin.

The divergence in fee dynamics between the two prominent cryptocurrencies underscores the distinct market forces and user behaviors influencing their respective blockchain networks.

This fluctuation underscores the dynamic nature of transaction fees in the cryptocurrency space, with Bitcoin experiencing notable shifts in its fee landscape.

Contrary to worries about the potential deterrent effect of elevated transaction fees on Bitcoin users, on-chain data suggests a contrasting trend.

Widespread Adoption And Growing Addresses

Recent data from IntoTheBlock reveals a notable surge in Bitcoin adoption, hitting a new yearly high at 67.62% this week.

This increase in adoption is reflected in the uptick of newly created active addresses, signaling a substantial influx of new participants into the market.

Ordinals Gathering Momentum

Additionally, the volume of Bitcoin held by long-term investors has reached an unprecedented high, with over 1 million addresses now possessing more than 1 unit of Bitcoin.

This data indicates a growing and robust interest in Bitcoin, despite concerns about transaction fees, as evidenced by both increased user participation and a rise in long-term holdings.

Since October 24, the network has redistributed approximately 800 BTC in fees, equivalent to $30 million, as a result of the production of nearly 6 million Ordinal assets.

Following ORDI’s (the second-largest BRC-20 token by market capitalization) debut on Binance on November 7, the increase in Ordinals inscription activities gathered momentum.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

BNB price gained momentum and climbed above the $250 resistance. It is up over 5% and the bulls could soon aim for a move toward the $300 level.

BNB price is moving higher above the $250 resistance.
The price is now trading above $255 and the 100 simple moving average (4 hours).
There is a major bullish trend line forming with support at $253.5 on the 4-hour chart of the BNB/USD pair (data source from Binance).
The pair might continue to move up if there is a clear move above $268.

BNB Price Jumps 8%

These past few days, BNB price remained stable above the $240 resistance. The bulls stepped in and were able to clear a major hurdle at $250. It opened the doors for more upsides above $255.

BNB gained traction and climbed above $260. It is up over 5% and outperforming both Bitcoin and Ethereum. A new multi-week high is formed near $267.9 and the price is now consolidating gains. It is above the 23.6% Fib retracement level of the upward move from the $238.9 swing low to the $267.9 high.

BNB is also trading above $255 and the 100 simple moving average (4 hours). Besides, there is a major bullish trend line forming with support at $253.5 on the 4-hour chart of the BNB/USD pair.

Source: BNBUSD on TradingView.com

If there is a fresh increase, the price could face resistance near the $265 level. The next resistance sits near the $268 level. A clear move above the $268 zone could send the price further higher. In the stated case, BNB price could test $280. A close above the $280 resistance might set the pace for a larger increase toward the $300 resistance.

Downside Correction?

If BNB fails to clear the $265 resistance, it could start a downside correction. Initial support on the downside is near the $260 level. The next major support is near the $255 level.

The main support sits at $253 or the trend line. It is close to the 50% Fib retracement level of the upward move from the $238.9 swing low to the $267.9 high. If there is a downside break below the $253 support, the price could drop toward the $245 support. Any more losses could initiate a larger decline toward the $238 level.

Technical Indicators

4-Hours MACD – The MACD for BNB/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for BNB/USD is currently above the 50 level.

Major Support Levels – $260, $255, and $253.

Major Resistance Levels – $265, $268, and $280.

Ethereum price started a fresh increase above the $1,950 resistance. ETH is consolidating and might aim for a move above the $2,070 resistance.

Ethereum remained stable and started a fresh increase above the $1,950 level.
The price is trading above $2,000 and the 100-hourly Simple Moving Average.
There was a break above a major bearish trend line with resistance near $2,010 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move up unless there is a break below the $1,985 support.

Ethereum Price Eyes More Gains

After forming a base above the $1,900 level, Ethereum price started a decent increase. ETH was able to surpass the $1,950 and $1,960 resistance levels, like Bitcoin.

The price even climbed above the $2,000 level and the 100-hourly Simple Moving Average. Besides, there was a break above a major bearish trend line with resistance near $2,010 on the hourly chart of ETH/USD. A high was formed near $2,068 and the price is now consolidating gains.

It traded below the 23.6% Fib retracement level of the recent increase from the $1,905 swing low to the $2,068 high. However, Ethereum is still above $2,000 and the 100-hourly Simple Moving Average.

Source: ETHUSD on TradingView.com

On the upside, the price is facing resistance near the $2,050 zone. The first key resistance is near the $2,070 level. A clear move above the $2,070 level could spark bullish moves. The next resistance is near $2,120, above which the price could aim for a move toward the $2,200 level. Any more gains could start a wave toward the $2,250 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $2,070 resistance, it could start a fresh decline. Initial support on the downside is near the $2,000 level and the 100-hourly Simple Moving Average.

The next key support is $1,985 or the 50% Fib retracement level of the recent increase from the $1,905 swing low to the $2,068 high. The main support is $1,965. A downside break below the $1,965 support might trigger more losses. In the stated case, Ether could drop toward the $1,905 support zone in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,985

Major Resistance Level – $2,070

Bitcoin price is showing positive signs above the $37,000 resistance zone. BTC seems to be eyeing an upside break above the $38,000 resistance zone.

Bitcoin started a fresh increase and climbed above the $37,000 zone.
The price is trading above $37,000 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support near $36,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could gain bullish momentum once it clears the $37,800 and $38,000 levels.

Bitcoin Price Extends Increase

Bitcoin price remained stable and started a fresh increase above the $36,000 level. BTC climbed above the $37,000 level to move into a positive zone and avoid more downsides.

The upward move was such that the price even cleared the $37,350 level. A high was formed near $37,777 and the price is now consolidating gains. It is trading near the 23.6% Fib retracement level of the upward move from the $36,715 swing low to the $37,777 high.

Bitcoin is now trading above $37,000 and the 100 hourly Simple moving average. There is also a major bullish trend line forming with support near $36,950 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $37,800 level. The main resistance is still near the $38,000 level. A close above the $38,000 resistance might start another strong increase.

Source: BTCUSD on TradingView.com

The next key resistance could be near $38,800. A clear move above the $38,800 resistance could send the price further higher toward the $39,200 level. In the stated case, it could even test the $40,000 level. Any more gains might send BTC toward the $41,200 level.

Another Downside Correction In BTC?

If Bitcoin fails to rise above the $37,800 resistance zone, it could start a downside correction. Immediate support on the downside is near the $37,120 level or the 61.8% Fib retracement level of the upward move from the $36,715 swing low to the $37,777 high.

The next major support is $37,000 and the trend line. If there is a move below $37,000, there is a risk of more downsides. In the stated case, the price could drop toward the $36,780 support in the near term. The next key support or target could be $36,200.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $37,120, followed by $37,000.

Major Resistance Levels – $37,800, $38,000, and $38,800.

The open interest for AVAX has been on a consistent rise over the last month, carrying the price of the altcoin along with it. The result of this continuous climb is the fact that the open interest has now surged to May 2022 levels, a development that could spell a massive rally for the price.

AVAX Open Interest Surge To $224 Million

According to data from Coinglass, the AVAX open interest has now climbed to $224 million. The website shows that there was an over 10% increase in the open interest in a 24-hour period which brought the total open interest above 10.04 million AVAX.

Binance actually commands almost half of the total of this open interest at 4.48 million AVAX worth a little over $100 million. This suggests that a good portion of the demand is coming from the crypto exchange. The total open interest also saw a 9.94% increase in the 24 hour period.

ByBit exchange accounts for the second-largest open interest at 2.04 million AVAX worth $46.09 million. BingX comes in third place with 1.24 million AVAX worth $27.59. But none of these exchanges account for the largest jump in the last day.

The largest jump in open interest was recorded on the Bitmex exchange as it rose 17.78% to bring the crypto exchange’s total open interest to 55,340 AVAX with $1.53 million. Altogether, the open interest in the altcoin has risen from $82.8 million on October 20 to $224 million on November 20, meaning that the open interest has grown 170% in one month.

Can Price Cross $30?

The last time that the AVAX open interest was this high, the price was trading much higher which opens the possibility of a rally above $30. As Coinglass data shows, the last time that the open interest crossed $220 million was in May 2022 when the price was still trading above $50.

Also, taking a look at AVAX’s historical performance, it shows that whenever the open interest has risen quickly, the price tends to follow suit. This was the case back in August 2021 when the open interest went from $14.53 million to $123.5 million, and the AVAX price rose accordingly from $19.15 to $55.

If the same trend were to take place here, then $30 may only be a starting point for the AVAX price. Following all historical performances, the current volume of open interest puts the AVAX fair price at around $40, meaning the altcoin could be trading well below its fair value.