Blockchain

Solana (SOL) has been soaring, looking at the performance in the daily chart. At spot rates, the coin is trading above $50, up 520% in the past year when it slipped below $8 following the collapse of FTX, a now-defunct crypto exchange, and Alameda Research, a trading wing linked with FTX and one of the leading crypto market makers.

Solana Blistering Rally At The Back Of Dropping Liquidity?

Though Solana is “blistering” and at new 2023 highs, Kaiko, a crypto analytics platform, is concerned about the disparity in liquidity in USD and “native unit” terms. Typically, the “native unit” refers to the base unit of account of any currency, in this case, SOL. 

Native units can be used to measure market depth since it provides easier access for gauging the relative liquidity of the coin without the need to convert it to other denominations, like USD or BTC, for example.

As Kaiko notes on November 14, at a 1% market depth, Solana’s liquidity in USD terms is at the highest level since the collapse of FTX. However, looking at SOL’s liquidity through another lens, the coin is struggling. Using “native units” as a liquidity gauge, it is at the lowest point since the FTX collapse.

SOL Still Reeling From FTX Collapse, What Happens Next?

The collapse of FTX was critical not only for SOL and its native tokens but also for the broader crypto markets. Following the bankruptcy of the Sam Bankman Fried exchange in November 2022, SOL prices cratered as fear of contagion across the board also saw Bitcoin (BTC) prices shrink, failing at its perceived role as a safe haven.

By November 2022, Bitcoin had flash crashed below $16,000, with Solana dumping from highs of $220 to as low as $8. This contraction also saw crypto’s liquidity, which was more adverse in Solana.

Looking at how liquid SOL is in its native units, it is apparent that liquidity is yet to recover and might require more time despite the general optimism across Solana communities. According to Kaiko, it suggests that market makers are opting to maintain stable liquidity for SOL even with soaring prices in USD terms.

Presently, SOL prices are steady above $50 but maintain an uptrend versus the USD. There are a series of lower lows in lower time frames, early indicators that the upside momentum might be cooling off, and SOL traders possibly exiting their long positions. Even so, $38, marking November 2022 highs, is a vital reaction point for technical analysts.

The Chainlink rally has slowed down recently; here’s what the various LINK on-chain metrics look like to see if the surge has hope of a restart.

Chainlink Has Registered Some Drawdown In The Past 24 Hours

Just during the weekend, Chainlink had been floating above the $16 mark, but winds seem to have shifted for the coin in the past couple of days, as it has registered some drawdown.

During the last 24 hours alone, LINK has dropped around 6%, leading to its price slipping below the $14 level. The chart below shows how the cryptocurrency has performed in the past month.

As displayed above, Chainlink had been riding some sharp bullish momentum in this period before this latest plunge, as the asset had more than doubled in value. Despite the decline, LINK is still up over 90% in the past month, which is an impressive return.

Naturally, the investors may be wondering now if the asset has already hit its peak for this rally or if there is more to come shortly. It’s hard to say anything about that, but perhaps on-chain data could provide some hints.

LINK Activity Has Been Relatively High Recently

In a new post on X, the market intelligence platform IntoTheBlock has shared the data of some Chainlink on-chain indicators. First, when the firm made the post, about 56% of the asset’s investors were sitting on some profit.

The cryptocurrency had then been floating at higher levels than currently (although not too high), so more LINK addresses would have entered a state of loss by now.

Generally, investors in profit are more likely to sell at any point, so a large amount of them being in the green could raise the probability of a selloff. Some Chainlink investors are currently harvesting their profits, but the profitability ratio is still not skewed that much towards profits.

Next, IntoTheBlock has talked about the number of transactions on the network.

“The Chainlink network is showing many positive signs in terms of transaction data,” says the intelligence platform. “Notably, we see a healthy increase in the number of transactions.”

The number of transactions is up 436% from the monthly lows, and as is usually the case, the volume has also spiked alongside this rise.

The transaction activity being high suggests there is interest behind the asset, and so, the price action shouldn’t go stale just yet. However, the volatility due to this activity can go either way, as the asset is already witnessing.

A metric that could more solidly point at a direction for the cryptocurrency is the large holder netflow, which keeps track of the net accumulation/distribution behavior over the last month for LINK holders carrying more than 1% of the supply.

As is visible in the chart, the large Chainlink holders have been buying recently, which could potentially be a positive sign for the asset. This doesn’t have to mean that the rally would restart shortly, of course, but it does provide some support for the idea.

An XRP and crypto enthusiast on X (formerly Twitter) has announced the launch of the newest version of the XRP Ledger, highlighting core updates and new functionalities on the upgraded ledger. 

XRP Ledger New Version

XRP enthusiast, Krippenreiter has released the latest details on the newly upgraded XRP ledger on an X post on November 12. The update introduces four distinct changes incorporated into XRPL’s new version as well as four proposed amendments for the ledger. 

“A new major breaking change is on its way to the XRPL ecosystem in the shape of yet another rippled version update. If all goes as planned, this new version will be available to all node operators by November 13, 2023,” Krippenreiter stated. 

The community member described the new API version, APIV2, which offers more functionalities than traditional APIs. The launch of API V2 on XRPL will include the introduction of a DeliverMax feature, added error messages, and removed API methods. 

Krippenreiter also described the XRP ledger’s Transaction Per Second (TPS) performance and stability. He stated that the new upgrades on this functionality were originally proposed by MarkTravis15 on X, and incorporated three changes that may improve the performance of the ledger. 

These changes focus on enhancing the consensus stability, implementing asynchronous writing of batches to NuDB, and introducing periodic intervals when applying transaction batches. 

Another noteworthy upgrade to the XRP Ledger is the introduction of a new RPC method which allows software apps to effectively connect to a specific network in the XRPL ecosystem by asking information from the node. Other changes in the XRP Ledger include bug fixes and refactoring or rewriting of codes to ensure better readability and efficiency. 

Voting Opens For Ledger Amendments

While providing details on updates in the newest version of the XRP Ledger, Krippenreiter highlighted a series of proposed amendments. These amendments, if approved by the community and subsequently implemented, may have a significant positive impact on the XRPL ecosystem. 

The first amendment, originally titled federated side chains, involves bidirectional connectivity to XRPL assets. This proposal aims to open new routes for interoperability in the XRP ecosystem using witness servers like Xahau, CBDCL, and others.

Krippenreiter also described the second amendment which implements a sovereign identity solution on XRPL called decentralized identifiers (DID). A third amendment seeks to address the unexpected behavior of the XRPL payment engine, providing solutions that appropriately fix the problem.

Finally, the last amendment will help clarify how authorized trust lines should be established and permitted. This proposal specifically focuses on situations where the issuer and user enable certain settings on their accounts.

On Monday, news quickly spread after a BlackRock XRP ETF filing popped up on the Delaware Corp. Commission website. The filing has since been claimed to be false. But the damage was already done as the token’s price surged quickly before reversing.

One interesting development from this event though was a curious correlation that emerged between the XRP price and the XLM price at the time. While the news was localized to XRP, XLM had surged just as much, emerging with a stunning correlation between the two.

XRP And XLM Correlation Balloons

In the wake of the rumored BlackRock XRP ETF filing pumping the token’s price, one enthusiast has noticed a significant correlation between XRP and XLM. Crypto analyst and educator Blockchain Backer took to X (formerly Twitter) to reveal what he terms as one of the “most bizarre” moves.

The chart clearly shows the XLM price surging just as the BlackRock news broke with a straight green candle. Likewise, when the news was debunked and the XRP price began to fall, so did the XLM price, in an eerily similar fashion.

In another post, Blockchain Backer revealed that XLM had followed XRP’s move in the 2-second timeframe. A chart shared with this post showed XRP’s movement and XLM’s movement on the same chart and the moves happened at almost the same time, as shown below:

“The fake news was literally XRP specific, and would impact XRP only, not XLM. If anything, you’d expect XLM sell off like the rest of the market. Instead, it mirrors. Why?” the analyst wondered.

Running A Similar Race

XRP and XLM have always seemed to run in the same circles and the correlation in their price movements has been a testament to that. One X user, in response to Blockchain Backer’s post, reasoned that the correlation was because both digital assets actually “share the same holders.”

One crypto analyst who has also closely tied the performance of XLM to that of XRP is Crypto Bilbuwoo. One of their long-running analysis includes both digital assets which the analyst expects to move toward new all-time highs in the same fashion.

In an October 15 post, Crypto Bilbuwoo posited that “The chart shows that 1.618 Fibonacci ratio(XLM: 6.5$, XRP: 26~33$) will be completed at the end of December.” The last time this happened was back in 2017 and the analyst expects a repeat of that trend, saying there would be a 6,500% surge for both assets.

Despite this correlation, Blockchain Backer still finds Monday’s simultaneous pump strange as he believes “those same holders would have dumped XLM for XRP. Not fomo bought XLM on that news story.”

However, as another X user explains, “Not if they believe XLM and XRP are brother and sister. There are some influencers peddling this for years. Doesn’t make logical sense but does with that narrative. XLM would be next!”

The recent Bitcoin (BTC) price surge has ignited renewed interest and confidence among investors, leading many to believe that the BTC bull run is accelerating. 

According to trader and crypto analyst Adrian Zduńczyk, Bitcoin has reached a new 52-week closing high and has maintained a close above the previous high of $32,000 for three consecutive weeks. 

This sustained upward momentum indicates a strong bullish trend sentiment and signals the beginning of the third wave of the Bitcoin bull run.

Analyst Highlights Key Trends

Zduńczyk points out several dominant trends that contribute to the positive outlook for Bitcoin. The rising 200-week and 50-week moving averages (MAs) highlight the long-term uptrend strength, with key support levels at $28,800 and $26,600. 

Additionally, there is a growing correlation with the S&P 500, as evidenced by the 7-week correlation coefficient of 0.34. This alignment with traditional markets suggests that Bitcoin increasingly trades similarly to the Nasdaq.

Fundamental drivers also play a significant role in Bitcoin’s upward trajectory. Traders eagerly anticipate the approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming fourth halving event. 

Furthermore, according to Zduńczyk, the historical pattern of previous halvings indicates that Bitcoin has rallied significantly after each halving and has never retraced to pre-halving prices. 

Examining the daily trend, Zduńczyk highlights the technical strength demonstrated by Bitcoin’s reliable breakout above $32,000. Breakouts often lead to new trend formations that persist over time. 

Despite occasional volatility, the 50-day average true range (ATR) trend and the 50-day relative strength index (RSI) momentum trend are rising, indicating ongoing positive momentum.

Bitcoin’s future appears promising, supported by positive market trends, fundamental drivers, and technical indicators. However, warning signs cast doubt on Bitcoin’s favorable outlook, as renowned crypto analyst Ali Martinez pointed out. 

Bitcoin Bullish Momentum At Risk?

Martinez draws attention to the bearish divergence between Bitcoin’s price and network growth, indicating a potential lack of sustained momentum in the ongoing uptrend.

The chart above shows a notable disparity between the exponential rise in Bitcoin’s price and the dramatic decline in new addresses over recent days. 

This bearish divergence raises concerns about the overall strength of the current uptrend. While Bitcoin’s value has experienced significant gains, the number of new addresses created has decreased significantly.

According to Martinez, this bearish divergence between Bitcoin’s price and network growth serves as an on-chain sell signal that traders should be aware of. The slowdown in network growth despite the price surge suggests that the current upward momentum may not have enough strength to sustain.

At the time of writing, BTC is trading at $36,200, down 1.6% over the past 24 hours. However, it is still up a substantial 4.6% over the past 7 days. 

It remains to be seen if a surge in new addresses will be able to support BTC’s bullish momentum and break the current consolidation phase. Alternatively, the cryptocurrency could retest support levels in the coming days.

Featured image from Shutterstock, chart from TradingView.com

The Bitcoin price returned to its sideways price action following a powerful surge into new yearly highs. The cryptocurrency seems poised for further gains if bulls can hold a critical level.

As of this writing, BTC trades at $36,370, with a 2% loss in the last 24 hours. Over the previous week, the number one crypto by market capitalization recorded a 5% gain, while the sentiment in the sector looks mixed, with BTC recording losses as Ethereum and Solana stayed strong in the same period.

Bitcoin Likely To Bounce If This Scenario Plays Out

According to a pseudonym analyst, the liquidity in the Bitcoin spot market, measured by a “Liquidity Map,” has been allocated to the downside. This metric gauges the amount of leverage in the BTC/USDT trading pair.

The chart below shows that BTC is trading close to a huge liquidation cluster. Overleverage positions create these levels and are often tapped by big players to exploit the liquidity.

BTC whales chase liquidity, moving prices towards the biggest pools of overleveraged positions. If the $36,300 gets tapped, the next level of interest is located to the upside between $36,961 and $37,700. The analyst stated:

Big clusters at $36K and ~$37K. Would expect there to be quite some positions build up around that 37K region mainly as we chopped around it all day yesterday. Bears are back in control on the LTF (Low Timeframe) below $36.3K I’d say.

BTC Hits Local Top?

On the other hand, the Bitcoin price could trend sideways between $36,300 and the high of its current range. Additional data from crypto analytics firm Bitfinex Alpha indicates that historical data hints at bad news for optimistic traders.

The firm advises caution for traders as the liquidity gap in the Bitcoin spot market increases. Per recent data, BTC Short-Term Holders Realized Price (STH RP) bought the cryptocurrency at an average price of $30,380, which could incentivize these investors to take profit at current levels.

This is the first time STH has had an opportunity to make a big profit on their BTC holdings since April 2022 and December 2022. Historically, a monthly change in STH RP exceeding $2,000 often signals local peaks, particularly post-recovery in bear markets, as seen in the chart below.

Concurrently, a negative monthly shift in LTH RP usually implies long-term holders are offloading their Bitcoin. The convergence of a $2,000 increase in monthly STH RP and a decline in LTH RP suggests a high likelihood of a local peak in Bitcoin’s price.

Cover image from Unsplash, chart from Tradingview

The MATIC price has gained quickly making it one of the top gainers in the last day. But even after growing so much, crypto analysts think that the main event is only beginning, expecting the token to cross the $1 mark once more and make it above $1.5.

MATIC Price Could Mount 76% Rally To $1.5

Crypto analyst Babenski has laid out a scenario where the MATIC price could rise back above $1.5. The token has seen investors eagerly await its return and it is expected to be glorious. As the analyst outlines, the Polygon native token is still facing a bit of a resistance but a breakout above the $0.9 would spark a surge.

The analyst explains that the price is being held back but is trying to break out of the A&V pattern. Even the fact that the altcoin is trying to break out of this pattern is bullish and a complete break could see it rise up and clear the coveted $1 level.

Also, this breakout could see the price rise as high as 76%, as Babenski notes. Such a surge would bring MATIC above $1.5. If this happens, it will be the first time in almost a year that the MATIC price has crossed this level and could signal the start of another bull rally.

Maintaining A Bullish Outlook

In addition to Babenki, another crypto analyst has taken to TradingView to share their own bullish outlook on the MATIC price. This time around, Nathan at MyCryptoParadise presents their analysis with the fact that MATIC seems to have a well-executed rounding bottom pattern.

Then using the daily candle, the analyst predicts a potential to break out from its current supply area. “A successful breakout would pave the way for MATIC to probability advance toward our targeted supply area,” Nathan said. The outcome and the expected peak of this breakout, although not as high as Babenski’s forecast, also put the price above $1.1.

However, it is not a completely smooth road for the MATIC price here. This is because the analyst says that if the altcoin comes across any difficulty in breaking the supply area, then it could trigger a downtrend. This would cause the price to dip and head toward demand at $0.69.

“The undesirable scenario unfolds if, during the retesting at the demand of $0.69, MATIC struggles to sustain its position and breaches the demand area,” says Nathan. “In such a case, MATIC would revert to a bearish movement, potentially retracing to the robust support area.”

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.

Crypto.com achieves yet another milestone with its recently acquired license from Dubai’s regulatory authority to offer services in the country by Dubai’s arm CRO DAX Middle East FZE.

Significance of Crypto.com Recent License

According to the announcement, Crypto.com Dubai’s entity acquired the coveted Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This marks a major step for the firm as it aims to extend its services worldwide.

The recently acquired VASP license will enable the firm to completely satisfy selected conditions and localization requirements outlined by VARA. In addition, it will allow the firm to launch operations, upon receiving operational approval notice from the regulatory body.

Furthermore, it will enable the firm to offer regulated virtual asset service activities in the country. These include exchange services, broker-dealer services, management and investment services, and lending and borrowing services. These services are accessible to retail and institutional users in the market through the Crypto.com Exchange and Crypto.com App.

The announcement also saw the company highlighting Dubai as its regional hub for the Middle East and Africa. According to Crypto.com CEO Kris Marszalek, Dubai is one of the top markets for creating effective regulation for the crypto space.

 “Dubai continues to show it is a leading market when designing effective regulation for the crypto space while still supporting adoption and innovation,” the CEO stated.

Since VARA released its specialized regulations for virtual assets in February 2023, Crypto.com has been working to be among the first virtual asset exchanges to operationalize its VASP Licence. Finally, the firm’s aim has been realized.

“It is an incredible honor to be one of the first crypto exchanges to be granted a Virtual Asset Service Provider Licence by VARA,” Kris stated.

The VASP license is one of the notable licenses acquired by the company this year. In March, Crypto.com also acquired an MVP Preparatory Licence from the Dubai regulatory authority.

Latest License Might Propel Cronos (CRO) Price

Over the past weeks, Cronos (CRO) has been seen as one of the best-performing coins. CRO experienced an impressive 57% price surge within the seven-day timeframe reaching the $0.1 mark.

The token outclassed some major cryptocurrencies in the top 100 ranking over the weekend. However, the crypto asset seems to have lost its momentum, as it fell from $0.1 to $0.088. According to CoinMarketCap, CRO is currently down by over 5% in the past 24 hours.

Related Reading: Snowfall Protocol (SNW), Shiba Inu (SHIB), and Cronos (CRO) – The Best Cheap Cryptos to Buy Now

So far, Crypto.com’s recent milestones have not had any current impact on CRO. Nonetheless, as the native token of Crypto.com, the license could spark larger adoption for CRO, which might help CRO regain its momentum. 

Since Monday, discussions around the mysterious BlackRock XRP ETF filing that appeared in Delaware have dominated the crypto space. The news of the filing was initially debunked by Bloomberg’s Eric Balchunas, but recent developments have raised suspicions that the filing was actually made by BlackRock.

BlackRock XRP ETF Could Be Filed By Anyone

One interesting revelation that has come from the BlackRock XRP ETF debacle is the fact that pretty much anyone can make an ETF Trust. Pro-XRP attorney Jeremy Hogan revealed this on X (formerly Twitter), saying that anyone could actually spoof an “XRP ETF” Trust.

Hogan explains that while the filing is real, it is fraudulent and could be cheaply made with just $500. Apparently, all that is needed for such a Trust to appear on the Delaware Corp. Commission website is to fill out two documents. These include the ‘State of Delaware Certificate of Trust’ and the ‘State of Delaware – Division of Corporations’ documents. Then once the $500 fee is paid, Hogan says the filing then gets “a ‘placeholder’ on the state website.”

The attorney reasons that whoever did this may have tried to replicate what happened when BlackRock filed for an Ethereum spot ETF. “criminal saw what happened with the Eth trust filing, files the XRP trust “filing,” buys $100k xrp on leverage, sells at 74 cents, and pockets 2-3 million dollars.” On the other end of this, Hogan also reasons that maybe “Blackrock has clients who want exposure to XRP and have begun the process.”

Details Of The ‘Fake’ ETF Filing

Another attorney, Fred Rispoli, also took to X (formerly Twitter) to give their own two cents on the BlackRock XRP ETF situation. Rispoli confirmed what Hogan said about anyone being able to fake such a filing and having it listed on the site. But other than that, the attorney went into the details of the filing.

The XRP Trust filing reportedly matches the BlackRock Ethereum ETF filing with the exception of the name being changed and the date of the filing being different. However, the XRP Trust has a different registered agent than the BlackRock Bitcoin Trust but shares the same one with the Ethereum Trust.

Rispoli adds that only the BlackRock iShares Bitcoin filing is currently listed on the SEC’s Edgar site, which is where filings with the regulator are listed. There is no trace of an iShares Ethereum and XRP Trust. “However, the Bitcoin Delaware filing preceded the SEC Registration statement by 7 days (6/8/23, 6/15/23),” the attorney said.

He also added that there were no trademarks filed by BlackRock for all its crypto trusts filed this year, including the Bitcoin, Ethereum, and XRP ones. However, this is not out of the ordinary since the asset manager does not trademark all of its products.

Finally, Rispoli explains that even if the BlackRock XRP Trust filing were true, it wouldn’t be the first one. That actually goes to Grayscale, which ran an XRP Trust between 2018 and 2021. However, the asset manager discontinued this trust after the SEC sued Ripple over alleged securities violations.

XRP Trust Filing Still Up

Even though Bloomberg’s Eric Balchunas had said that an insider at BlackRock had denied that the asset manager filed the XRP Trust, the filing remained on the Delaware Corp. Commission website.

This raised skepticism among investors who began to speculate that maybe the asset manager may have made the filing after all. “If it was fake, it would’ve been delisted by now,” WhaleWire said on X.

It’s been over 6 hours, and the iShares $XRP Trust filing is still actively listed on the ICIS Delaware website. If it was fake, it would’ve been delisted by now.

Also, in order to apply, you must have TWO notorized witnesses & the Grantor MUST sign the documents, as well as… pic.twitter.com/Uup7wy0Xvp

— WhaleWire (@WhaleWire) November 13, 2023

At the time of this writing, there is still no official word from BlackRock on whether the filing is legit or not. However, Eric Balchunas has stated that a BlackRock spokesperson has confirmed the filing is fake.