Blockchain

Binance Coin (BNB) has experienced a notable resurgence in the last few weeks, sparking a renewed interest in the cryptocurrency market. With its versatile applications and growing popularity, BNB has captured the attention of influential investors, leading to a surge in on-chain activities that have stirred the digital asset community.

The latest developments surrounding BNB reveal intriguing movements within the crypto space, particularly with the recent actions of a prominent whale investor. 

Whale’s Strategic BNB Acquisition And Deployment

According to a recent report shared by Lookonchain, a significant whale recently acquired a substantial amount of BNB, totaling 22,319 coins valued at a staggering $5.6 million. In an unexpected move, the whale swiftly withdrew the acquired BNB from the Binance exchange over the course of the last three days.

Rather than holding the assets, the whale strategically injected these tokens into liquidity pools on both Biswap and PancakeSwap, aiming to generate additional revenue through trading fees.

The #BinanceBlockchainWeek is coming soon!

The price of $BNB has increased by 10% in the past week.

A whale withdrew 22,319 $BNB($5.6M) from #Binance in the past 3 days and provided liquidity on #Biswap and #PancakeSwap to earn trading fees.https://t.co/dQTc7OUNp2 pic.twitter.com/GIzxVT9mvF

— Lookonchain (@lookonchain) November 6, 2023

The implications of this large-scale BNB movement have been manifold, triggering notable fluctuations in the coin’s price and market positioning.

At the time of reporting, BNB is trading at $245, experiencing a minor dip of 2.2% in the last 24 hours. However, this dip comes amidst a significant seven-day rise of nearly 10%, indicating the ongoing dynamic nature of BNB’s value within the market. 

While these fluctuations are not uncommon within the volatile crypto sphere, the recent whale activity has certainly played a pivotal role in shaping BNB’s current trajectory.

Market Impact: BNB’s Price Volatility

The significance of the whale’s strategic investment and subsequent actions on Biswap and PancakeSwap cannot be understated. By adding a substantial amount of BNB to the liquidity pools, the whale has effectively contributed to the overall liquidity and trading volume of these platforms, potentially enhancing the overall ecosystem for BNB and other associated tokens. 

This move not only demonstrates the growing confidence in BNB’s potential but also highlights the increasingly diverse strategies that influential investors are employing within the cryptocurrency landscape.

Amidst these developments, BNB recently faced a temporary setback as XRP, the cryptocurrency associated with Ripple, briefly surpassed BNB in terms of market capitalization, relegating BNB to the fifth position.

However, the setback proved to be short-lived as Binance Coin swiftly reclaimed its fourth spot from XRP, underscoring its resilience and enduring appeal within the competitive cryptocurrency market.

With growing investor interest and strategic maneuvers shaping its trajectory, BNB’s chart in the coming months is poised to be a compelling narrative within the ever-evolving world of cryptocurrencies.

(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 Shutterstock

XRP, the cryptocurrency associated with Ripple, has been making headlines in recent trading sessions as it grapples with a critical support level and the challenges of overbought territory.

Despite its struggles, XRP has managed to maintain its position above the $0.66 support level, reflecting its resilience in the face of market pressures.

Overbought territory refers to a situation where an asset’s price has risen to such an extent that it is considered overvalued in the short term. This often leads to a correction or a pullback in the price as traders take profits or sell off their positions.

In the case of XRP, it has entered this overbought zone, which is typically indicated by technical indicators like the Relative Strength Index (RSI) rising above 70. While this may sound like a warning sign, it doesn’t necessarily mean that XRP is ripe for selling.

Challenges Amid Attempts At Breakout

Recent attempts by XRP to break out above the pivotal $0.66 level have been met with resistance, leading to retracements. This echoes the challenges faced by the broader cryptocurrency market, where price surges are often followed by corrections.

However, XRP managed to break through the $0.60 barrier last week, driven by buying pressure from retail traders.

It’s great to see you all in Dubai!
Day 1 of #RippleSwell kicks off tomorrow. pic.twitter.com/QTVGniRlBx

— Ripple (@Ripple) November 7, 2023

The cryptocurrency’s upcoming community event, the Ripple Swell, scheduled to take place on November 8 and 9 following DC Fintech Week, has generated considerable speculation and excitement.

Many are pondering whether Ripple will make significant announcements during the event, such as an initial public offering or strategic partnerships. The anticipation surrounding the event has had a positive impact on XRP’s valuation, witnessing a 14% increase in its market value.

Analyzing XRP Status

The current price of XRP, as reported by CoinGecko, stands at $0.676542, with a 2.3% dip in the last 24 hours but a notable seven-day rally of 15%. This upward momentum is indicative of the optimism surrounding Ripple and XRP’s future prospects.

The Ripple Swell event is expected to address critical industry themes, highlighting new partnerships and company milestones. Its timing, coinciding with the conclusion of DC Fintech Week, ensures that Ripple’s updates will reach an audience deeply engaged in fintech discussions.

Additionally, Ripple’s recent legal battles and the subsequent increase in the value of XRP add to the positive narrative for Ripple’s presentations at the Swell event.

Cautionary Signal

Despite the overbought condition signaled by the RSI, XRP’s reluctance to cross below the 70 level should be viewed as a cautionary signal rather than a reason to sell. It indicates that there is still potential for upside movement in the payments token.

If sidelined investors enter the market, XRP’s price could continue to rise, potentially pushing it above the $0.69 resistance level.

XRP remains in a precarious position in overbought territory, but the crypto community’s optimism and the upcoming Ripple Swell event contribute to a positive outlook for the cryptocurrency’s future. 

(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 Shutterstock

In a series of insightful observations, Adam Cochran, a renowned expert in the field of cryptocurrency and founder of Cinneamhain Ventures, recently shared his analysis on the relationship between Bitcoin price movements and US Treasury auctions. Cochran’s comments, primarily disseminated viaX (formerly known as Twitter), offer a unique perspective on an emerging trend in the market, particularly in relation to traditional financial instruments.

Bitcoin Price Rises After Each Treasury Auction

Cochran notes a distinct pattern: “Some big market maker seems to really care about real rates vs Bitcoin (I guess in anticipation of ETF buyers?). Every time you get a good auction on US treasuries, you’ve got about 5 min before BTC takes a leg up.” This observation suggests a correlation between the outcomes of USTreasury auctions and subsequent movements in Bitcoin prices.

The essence of Cochran’s theory revolves around the concept of real interest rates and their inverse relationship with Bitcoin. Real rates refer to the interest rates adjusted for inflation. In traditional finance, these rates significantly influence investment decisions across various asset classes.

Cochran posits that a successful US Treasury auction, which typically indicates lower yields (and hence lower real rates), is quickly followed by a spike in Bitcoin prices. This trend, according to Cochran, is indicative of a market maker betting on large funds allocating to Bitcoin as a hedge against real rates.

This relationship becomes particularly significant in light of discussions around Bitcoin Exchange-Traded Funds (ETFs). According to Bloomberg experts, there is a 90% chance of a spot Bitcoin ETF receiving approval by the end of the year.

One of the reasons for this is that the US Securities and Exchange Commission (SEC) has been actively communicating with applicants such as BlackRock and Fidelity in recent weeks, as a result of which amendments to the application have been submitted. The increasing seriousness of these conversations seems to have amplified the correlation, as noted by Cochran: “Someone is making the bet that large funds will allocate to Bitcoin as a counter to real rates which would be huge.”

Furthermore, Cochran highlights the impact of Bitcoin’s price movements on the broader financial market: “The BTC momentum on any upswing is pretty clear, it’ll suck a lot of momentum out of other parts of the market, because its current catalysts are just on another scale.”

Backtest For The Theory Still Pending

In response to an inquiry about backtesting this theory, Cochran admitted the lack of long-term data but emphasized the recent nature of this trend: “Hrm, someone probably has that data? I’ve just been monitoring manually, and the correlation has only been the past few weeks to month, since the ETF convo got serious, so a long dated backtest wouldn’t hold.”

This acknowledgment points to the nascent stage of this observed correlation. Nevertheless, Cochran’s insights offer a compelling narrative linking traditional financial markets with Bitcoin. As the conversation around Bitcoin ETFs gains momentum, these observations could become increasingly relevant, offering valuable insights for investors.

At press time, Bitcoin traded at $35,278.

Solana (SOL) is one of the top performers, looking at price action in the weekly chart. According to Kaiko, SOL’s net buying, measured via cumulative volume delta (CVD), has been led by Coinbase, one of the most active cryptocurrency exchanges in the past few trading weeks. To illustrate, since October 18, the blockchain analytics platform notes that 2.2 million SOL have been purchased, an indicator of rising demand as the broader crypto market thaws.

Coinbase Leading The Solana Buying Wave

At over 2.2 million SOL purchased, Coinbase leads the wave of buying pressure. However, closely behind, Binance, the world’s largest cryptocurrency by client count, follows. There are around 2 million SOL bought through Binance from October 18, highlighting the role of the exchange in funneling liquidity to SOL. Even so, specific drivers forcing users to opt for Coinbase over Binance couldn’t be laid out. 

While at it, there is rising demand for SOL on Kraken. Even so, demand for SOL has been fizzling on Bybit, Upbit, and OKX over the same period. It couldn’t be ascertained why the trajectory on these exchanges has been trending lower. However, what’s clear is that all of these exchanges allow derivatives trading of multiple assets, including SOL.

When writing on November 7, SOL is a top-10 coin by market cap. Perched at seventh in the leaderboard, Solana has flipped Cardano, Dogecoin, and Tron, cementing its position considering the over $7 billion gap between the seventh and eighth projects in the market cap ranking. 

The CVD measures the difference between buying and selling volume over a period. The tool can be used to identify trends. When rising, the uptrend might continue while a falling CVD points otherwise.

SOL Trending At New 2023 Highs: Will The Uptrend Continue?

At spot levels, SOL is also changing hands at around $43, trending at around 2023 highs after breaking above the resistance level at $32 in late October. The uptrend could continue, considering the surging interest Solana continues to garner. This may push the coin 2X to $80, a critical resistance, looking at the candlestick arrangement in the weekly chart. 

This demand is primarily because of improving investor confidence and Solana Labs’ decision to roll out new features and strike strategic partnerships, pulling more capital to SOL. Rising CVD could suggest that institutions might be eying SOL, aiming to ride the uptrend.

On November 6, the FTX estate transferred 750,000 SOL to Binance and Kraken. Although it couldn’t be verified that they sold, SOL prices retraced from recent highs. FTX, the defunct crypto exchange, controlled over $1.1 billion worth of SOL, and the estate manager has been gradually selling the coin and other crypto assets to repay creditors.

Dogecoin is showing positive signs above the $0.0720 resistance against the US Dollar. DOGE could rally over 10% if it clears the $0.0765 resistance zone.

DOGE started a decent increase above the $0.070 resistance against the US dollar.
The price is trading below the $0.0720 level and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $0.0712 on the 4-hour chart of the DOGE/USD pair (data source from Kraken).
The price could start a strong rally like Solana if it clears the $0.0765 resistance.

Dogecoin Price Aims Key Upside Break

After forming a base above the $0.065 level, Dogecoin price started a fresh increase. DOGE broke the $0.0685 resistance zone to move into a positive zone, like Bitcoin and Ethereum.

The bulls were able to push the price further above the $0.0720 resistance. However, the price failed to clear the $0.0765 resistance and corrected lower. There was a move below the $0.0740 level. The price declined below the 23.6% Fib retracement level of the upward move from the $0.0655 swing low to the $0.0764 high.

DOGE is now trading above the $0.072 level and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $0.0712 on the 4-hour chart of the DOGE/USD pair. The trend line is near the 50% Fib retracement level of the upward move from the $0.0655 swing low to the $0.0764 high.

Source: DOGEUSD on TradingView.com

On the upside, the price is facing resistance near the $0.0750 level. The first major resistance is near the $0.0765 level. A close above the $0.0765 resistance might send the price toward the $0.080 resistance. The next major resistance is near $0.0820. Any more gains might send the price toward the $0.085 level.

Are Dips Limited in DOGE?

If DOGE’s price fails to gain pace above the $0.0765 level, it could continue to move down. Initial support on the downside is near the $0.0720 level.

The next major support is near the $0.0712 level and the trend line. If there is a downside break below the $0.0712 support, the price could decline further. In the stated case, the price might decline toward the $0.070 level or the 100 simple moving average (4 hours).

Technical Indicators

4 Hours MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.

4 Hours RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.

Major Support Levels – $0.0720, $0.0712, and $0.0700.

Major Resistance Levels – $0.0750, $0.0765, and $0.0850.

Ethereum price is still struggling to clear the $1,920 resistance against the US dollar. ETH is moving lower but downsides might be limited below $1,850.

Ethereum is still struggling to clear the $1,920 level.
The price is trading above $1,860 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $1,880 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could rise once again unless there is a close below the $1,850 support zone.

Ethereum Price Stuck In Range

Ethereum remained stable above the $1,850 support zone. ETH made another attempt to gain bullish momentum above the $1,880 resistance, like Bitcoin.

There was a break above a connecting bearish trend line with resistance near $1,880 on the hourly chart of ETH/USD. However, the pair again failed to clear the $1,920 resistance zone. A high is formed near $1,907 and the price is moving lower.

There was a drop below the $1,885 level. The price even tested the 50% Fib retracement level of the recent increase from the $1,851 swing low to the $1,907 high.

Ethereum is now trading above $1,860 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $1,900 level. The first major resistance sits at $1,920. To start a fresh increase, the bulls need to clear the $1,920 resistance.

Source: ETHUSD on TradingView.com

In the stated case, the price could rally toward the $2,000 resistance. The next key resistance is near $2,050, above which the price could accelerate higher toward the $2,120 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $1,900 resistance, it could continue to move down. Initial support on the downside is near the $1,880 level. The next key support is $1,870 or the 100 hourly SMA.

The 61.8% Fib retracement level of the recent increase from the $1,851 swing low to the $1,907 high is also at $1,870. The main support sits at $1,850. A downside break below the $1,850 support might send Ether further lower. In the stated case, the price could drop toward the $1,780 level.

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 – $1,870

Major Resistance Level – $1,920

Bitcoin price made another attempt to clear the $36,000 resistance. BTC struggled again and is now correcting lower toward the $35,200 support.

Bitcoin again failed to clear the key $36,000 resistance zone.
The price is trading above $35,000 and the 100 hourly Simple moving average.
There was a break above a major contracting triangle with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is correcting gains and might find support near $35,200 or $35,000.

Bitcoin Price Faces Uphill Task

Bitcoin price remained stable above the $34,000 support zone. BTC attempted a fresh increase above the $35,250 resistance zone. There was a break above a major contracting triangle with resistance near $35,000 on the hourly chart.

It even cleared the $35,500 resistance, but the bears were active near the $36,000 zone. A high was formed near $35,900 and the price is again moving lower. There was a move below the $35,500 level. The price declined below the 23.6% Fib retracement level of the upward move from the $34,560 swing low to the $35,900 high.

Bitcoin is now trading above $35,000 and the 100 hourly Simple moving average. It seems to be approaching the $35,200 support or the 50% Fib retracement level of the upward move from the $34,560 swing low to the $35,900 high.

If it stays above $35,200, there might be a fresh increase. On the upside, immediate resistance is near the $35,560 level. The next key resistance could be near $35,900 or the recent high. The main resistance is still near $36,000. A clear move above the $36,000 resistance might open the doors for a move toward the $37,000 resistance.

Source: BTCUSD on TradingView.com

The next key resistance could be $37,500, above which the price could rise toward $38,000. Any more gains might send BTC toward the $38,800 level.

More Downsides In BTC?

If Bitcoin fails to rise above the $35,560 resistance zone, it could continue to move down. Immediate support on the downside is near the $35,200 low.

The next major support is near the $35,000 zone or the 100 hourly SMA. If there is a move below $35,000, there is a risk of more downsides. In the stated case, the price could revisit the $34,000 support level in the near term.

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 – $35,200, followed by $35,000.

Major Resistance Levels – $35,560, $35,900, and $36,000.

According to a recent Bloomberg report, the crypto market is experiencing a significant rally, with speculative demand expanding beyond the revival of Bitcoin (BTC). 

In November, gauges tracking the performance of the bottom half and mid-tier tokens in MarketVector’s index of the largest 100 digital assets surged by 16% and 14%, respectively. This surpasses the broader market’s 4% gain and Bitcoin’s modest 1% rise.

As a result, BTC’s dominance in the $1.38 trillion crypto market has decreased to around 49%, down from its peak of 51.5% in October, as per CoinGecko data. This decline is often perceived as a sign of growing risk appetite among digital asset investors.

Optimism Spreads Beyond Bitcoin

Richard Galvin, co-founder at Digital Asset Capital Management, noted that this rally is “more extensive and sustained” than any price action seen since January. Galvin mentioned to Bloomberg that in an environment still “relatively thin” in terms of liquidity, substantial upward movements are being witnessed.

Bitcoin experienced a notable 28% surge last month, the largest since January, driven by expectations of the first US Bitcoin spot exchange-traded funds (ETFs) securing approval for direct investment in the token. 

Per the report, the general sense of optimism has extended beyond Bitcoin, fueled by speculations that the Federal Reserve (Fed) has concluded its interest-rate hikes. Furthermore, according to Bloomberg, the crypto rally is spreading to other areas, such as decentralized finance (DeFi), encompassing blockchain projects facilitating peer-to-peer transactions. 

Interest rates to borrow stablecoins on major DeFi lender Aave have exceeded 10%, indicating investors’ willingness to pay higher costs to fund trading positions.

XRP Strength Shines Amid Ripple’s Legal Battle

Among “smaller tokens,” XRP demonstrated strength in November by recording a 14% increase. This surge can be attributed to Ripple’s recent partial legal victory over the Securities and Exchange Commission (SEC). The lawsuit raised questions regarding whether XRP should be classified as a security falling under the regulatory purview of the SEC.

As a result, XRP is currently trading at $0.6699, experiencing a notable decline of over 5% in the past 24 hours after failing to consolidate above current levels. Nonetheless, the token has generated significant profits, evidenced by its 11.4% surge over the past seven days.

Moreover, speculation regarding a potential settlement of the SEC lawsuit has been fueled by an upcoming November 9 deadline for a briefing schedule on remedies for pending issues in the case.

While Bitcoin has experienced a significant rebound this year, with a 111% increase following the crypto rout in 2022, it is currently trading at 34,800, consolidating above this key level with sideways price action and a slight surge in the past seven days of 1%.

Overall, the crypto market is experiencing a broader rally beyond Bitcoin, with its peers gaining momentum and decentralized finance gaining traction.

Positive developments for Ripple have contributed to the surge in XRP, while Bitcoin’s rebound and growing investor sentiment indicate a potential shift in the overall market dynamics.

Featured image from Shutterstock, chart from TradingView.com

Looking at Kaiko’s data shared on November 7 by Dessislava Ianeva, a Research Analyst at the blockchain analyst firm, it is evident that altcoins market share versus Bitcoin (BTC) has been rising in the past four months, reaching a 4-month high, the highest level since July 2023.

The surge in market share can be attributed to multiple factors but primarily because of the upswing in Bitcoin prices, improving sentiment across the crypto market, and project-related developments that have attracted capital over the past few trading months.

Altcoins Market Share Rising Versus Bitcoin

Kaiko notes that the altcoins market share of the top 30 altcoins stands at 44%, an improvement over the past few trading months. This is a notable expansion considering that altcoin prices, including those of leading coins like Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), and the rest posted sharp losses in 2022. Even though prices continued falling, losses were contained in 2023 but remain lower from 2021 peaks when asset prices surged to record lows. 

Despite altcoins gnawing more market share from Bitcoin, the most valuable coin continues to enjoy multiple advantages, especially from a regulatory standpoint. For instance, the coin has been endorsed by regulators in the United States, Europe, and Canada.

In this line, complex derivatives products, including Exchange-Traded Products (ETPs) and futures, are already listed in Canada, the United States, and some European countries. The spike at the end of July was partly because of the increasing confidence across crypto that the United States Securities and Exchange Commission (SEC) might approve the first Exchange-Traded Fund (ETF).

This confidence follows BlackRock’s decision to submit its Bitcoin ETF application. Due to their track record, market analysts elevated the odds of the strict agency to authorize the first spot in Bitcoin ETF.

Why Are Altcoins Like Ethereum, XRP, And Solana Rallying?

Presently, the upward momentum in Bitcoin has been shrinking but remains at around 2023 high on improving market sentiment. The slowdown in the uptrend coincides with rapidly shifting investor patterns, especially in Solana, XRP, and Ethereum.

To illustrate, the SEC’s decision to approve the launch of the Ethereum Futures product led to more interest in the project, directly supporting ETH prices. At the same time, Solana has been edging higher, even reversing post-FTX losses despite action by FTX estate managers.

There is more on-chain activity on Solana. Meanwhile, regulatory clarity on XRP has seen Ripple double down, striking more partners.

Bitcoin’s open interest—the total number of outstanding derivative contracts that have not been settled—has surged to levels not seen in over six months. Amid these high-interest levels, market analysts warn that Bitcoin may see a 20% price correction.

Analysts Weigh In On Market Implications

The surge in open interest has been linked to a substantial increase in derivatives market activity. Financial commentator Tedtalksmacro hinted at the potential market shifts, noting a significant addition to open interest, which could indicate impending “fireworks” in the market.

Almost 10k BTC (~$350MM USD) in open interest added today.

Fireworks soon.

— tedtalksmacro (@tedtalksmacro) November 7, 2023

With more than $16 billion in open interest recorded currently, according to data from CoinGlass, the market is witnessing noticeable fluctuations that could spell out more significant changes in Bitcoin’s valuation.

So far, analysts are keenly observing these fluctuations, interpreting them as signals for future market movements. James Van Straten from CryptoSlate pointed out the record open interest in the CME exchange, often “preferred by institutional investors.” The analyst noted:

The CME exchange, preferred by institutional investors, has achieved a new record in open interest, with 105,380 BTC contracts open, valued at $3.68 billion. Binance has edged past this figure with open interest of approximately 113,500 BTC.

With Binance’s open interest slightly surpassing the CME’s figures, Van Straten suggests that this trend could indicate a growing interest in Bitcoin futures, which may reflect a “positive shift” in market sentiment or a strategic move by investors to adopt “protective strategies.”

The implications of this rising open interest, however, are not universally seen as positive. J. A. Maartunn from CryptoQuant cautioned that such high open interest levels have historically preceded price drawdowns of at least 20% for Bitcoin.

This pattern, he argues, warrants “significant attention” as it could indicate an upcoming price correction. 

Bitcoin Latest Price Action

The current trajectory of Bitcoin’s market performance has been discussed among analysts, particularly in light of the recent surge in open interest. Despite this interest, Bitcoin has experienced a slight pullback from its recent growth spurt.

At the time of writing, the cryptocurrency has seen a 1% decrease over the last day, now valued at $34,722. Meanwhile, over the last week, Bitcoin’s growth has been modest, charting a 1.4% increase, while the bi-weekly figures show a slightly 3.1% rise.

This corrective movement in Bitcoin’s price is mirrored by a notable drop in its daily trading volume, which has fallen sharply from last week’s high of $21 billion to a current figure of just $3.8 billion within the past day. This reduction in volume may be indicative of a cooling off in trading activity.

Featured image from Unsplash, Chart from TradingView