Blockchain

While still recording some profits, the Bitcoin price shows signs of exhaustion, at least on low timeframes. When zooming out, recent data shows the massive rally experienced by cryptocurrencies over the past few months and the sector’s potential for additional gains.

As of this writing, the Bitcoin price trades at $34,800 with sideways price action in the last 24 hours. Over the previous week, BTC recorded a 2% profit, while the altcoins market trends much higher, retaining more gains.

Bitcoin’s 110% Year-To-Date Leap Signals A New Era BTC?

According to a report from Bitfinex, This year has marked a significant milestone for cryptocurrencies as Bitcoin (BTC) and Ether (ETH) have shown remarkable growth, leaving traditional assets like gold behind. Bitcoin has soared by 93% and Ethereum by 3%, indicating a solid performance correlation that has remained consistently tight.

BTC, in particular, has enjoyed the spotlight with its first-mover advantage, earning the moniker of ‘digital gold’ and garnering broad institutional support.

While these digital assets reach new heights, traditional stock indices such as the S&P 500 and NASDAQ are navigating through a correction phase. This contrast hints at a shifting investment landscape, with cryptocurrencies emerging as a dominant force capable of outperforming established markets, the report suggested.

As seen in the chart below, data hints at the Bitcoin price outperforming other assets and Gold “playing catch up” with a 0.8 correlation with the cryptocurrency.

Bitcoin’s price rally of over 110 percent since the start of the year signals a “transition” for holders from unrealized losses to profits.

Typically, such surges lead to market consolidation or sharp pullbacks. Yet, the current trend of declining Coin Days Destroyed, a metric used to gauge market activity and sentiment, suggests that long-term investors remain steadfast, the chart below shows.

The lack of movement in wallets containing significant Bitcoin sums further points to a bullish outlook or a defensive strategy against economic uncertainties.

Amidst this crypto resilience, the Federal Reserve’s latest decision to maintain interest rates between 5.25 and 5.50 percent reflects a cautious but non-restrictive economic approach, the report claims.

Crypto Stands Firm In Economic Uncertainty

Despite the Fed’s updated, confident view of the U.S. economy, the manufacturing sector experienced a downturn in October, mainly due to strikes in the automotive industry. This suggests a significant impact of labor disputes on the sector.

The broader U.S. economy is feeling the effects, with a slowdown in job creation and the slowest wage growth since mid-2021, indicating a shift in labor market conditions. This data supports a continuation of the current bullish trend.

However, as mentioned, traders should be looking for spikes in volatility, which could create obstacles, especially for those speculators taking leverage positions.

Cover image from Unsplash, chart from Tradingview

The XRP price is still in an incredibly bullish position despite the recent pullback and the general sentiment in the community matches this bullishness. One crypto analyst explains the current trend as the altcoin having entered what is referred to as a “markup phase.”

XRP Price Leaves Accumulation To Markup Phase

Crypto analyst and trade The Signalyst took to TradingView to share an interesting phase that the XRP price had entered. Using a chart, the crypto analyst outlined where the altcoin’s price had been in the past, where it is now, and where it is headed using distinct terms.

The first phase outlined in the chart is the markdown phase which took place after the price surge following Ripple’s first victory over the United States Securities and Exchange Commission (SEC) in July. This markdown phase saw the price go from as high as $0.9 to as low as $0.45 when all was said and done.

What came after the markdown phase was complete was the accumulation phase. Here, the XRP price traded in a pretty tight range, offering an opportunity for investors to buy as many coins as possible. During this phase, the price never crossed above $0.55.

Next came the markup phase which is where the XRP price is currently residing. This markup phase is when the price starts to recover. “After breaking above the 0.55 level mentioned in my previous idea, XRP exited the accumulation phase and entered the markup phase,” the analyst said.

This markup phase is important in the fact that it possesses the strength for the XRP price to continue to grow. However, like with any rally, it faces a good measure of resistance from bears who continue to try to pull the price down.

The most important level for bulls to break in this markup phase, according to the analyst, is $0.7345, from which the price has already been rejected once on Monday. The Signalyst believes that if this level is broken, then bulls can maintain control of the price. The chart suggests a rise as high as $0.8 following a break of this resistance; an event that would cement XRP’s bull rally.

“Meanwhile, XRP could still face rejection at the resistance, which can be confirmed on lower timeframes,” the analyst warned. “In this scenario, a correction towards the 0.55 support level would be anticipated.”

Despite the drawdown, the XRP price is still showing bullishness and a high level of interest from investors. Its daily trading volume is up 32% in the last day, breaking above $3.3 billion. Its price is currently sitting at $0.69, up 1.63% and 21% on the daily and weekly charts, respectively.

Solana (SOL) has garnered significant attention in the cryptocurrency market, surpassing its peers with an impressive 79% upward trend over the past 30 days. As its price continues to soar, inquiries have arisen regarding the reaction of the Solana ecosystem to this surge.

About this subject, the Jarvis Labs team has offered intriguing insights into the ongoing SOL bull run and the condition of its ecosystem, addressing the factors influencing its growth.

Is The Solana Ecosystem Lagging Behind?

Despite SOL’s price surge, the Total Value Locked (TVL) on Solana has only doubled during this period, failing to match the fourfold increase in SOL’s token price. This disparity raises concerns about the growth and development of Solana’s ecosystem in 2023. A closer examination of the ecosystem reveals a significant lag compared to the rapid appreciation of SOL’s price.

The Jarvis Labs team highlights that a new wave of projects injects liquidity into Solana’s ecosystem, offering hope for its growth. Notably, these projects have been launched within the past year, leading to a diverse ecosystem rather than a concentration of similar offerings. 

Among the top gainers in TVL, seven projects emerged recently, contributing to Solana’s expanding landscape.

Several projects have caught attention within Solana’s ecosystem, showcasing their potential to drive growth. Jito, a liquid staking provider, offers maximum extractable value (MEV) rewards alongside staking yields. 

Marginfi, another noteworthy project, offers liquid staking tokens (LST) based on Jito’s platform, as well as a lending service emphasizing risk management. Additionally, decentralized exchanges like Phoenix and Jupiter have excelled in their respective niches.

Surprisingly, many successful projects within Solana’s ecosystem have yet to launch their tokens. This absence of tokens, according to Jarvis Labs, has contributed to “the lag in Solana’s TVL” despite the soaring token price. 

Sustainable Token Design

The hesitance to introduce tokens stems from past experiences, where projects tied to now bankrupt crypto exchange FTX and its trading arm Alameda Research suffered significant losses, leaving a cautious sentiment among Solana developers, according to Jarvis Labs’s analysis.

The Jarvis Labs team believes that while tokens have the potential to be valuable assets, the cautionary tale of FTX-related projects highlights the importance of sustainable token design. Fair distribution, reasonable supply, and clear use cases are essential to creating tokens that add real value to the ecosystem.

Despite the challenges Solana’s ecosystem faces, the emergence of new projects and the forthcoming launch of tokens by some protocols offer hope for its future growth. 

Ultimately, Jarvis Labs suggests that by embracing sustainable token designs and maintaining a focus on ecosystem development, Solana can unlock the full potential of its “thriving network.” The Jarvis Labs’ analysis concluded: 

So, to all the Solana protocols out there: let’s make tokens great again. Let’s create tokens that are more than just a quick cash grab, tokens that contribute to the growth and sustainability of the ecosystem.

SOL’s price is approaching the $42 level, experiencing a notable surge of 3.7% within 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

Recent data has revealed that Shiba Inu has experienced a significant surge in whale transactions following a recent whale transaction of a whopping 4.43 trillion SHIB tokens. This has since caused quite a stir in the cryptocurrency space.

Shiba Inu Experiences Surge In Whale Activity

According to data, Shiba Inu has been exhibiting astounding whale transactions over the past 24 hours amid the latest actions taken by the SHIB community to increase token support. 

Currently, the total inflows of SHIB tokens held by major holders are at an impressive 7.84 trillion SHIB. This indicates a significant 48.48% increase in inflows from these major holders over the past 24 hours.

What makes this surge so impressive is the fact that the numbers were 410.21 billion SHIB tokens. The recent numbers present a spectacular 1,911.2% increase in SHIB held by the major holders.

The Shiba Inu’s surge in whale activity came just after a recent whale activity from an unknown wallet involving approximately 4.43 trillion SHIB tokens.

According to data from Whale Alert, the unknown wallet 0x8d14cc60…6e5c7e24dc, transferred the 4.43 trillion SHIB tokens, currently valued at approximately $35.82 million, to another unknown wallet, 0x3ba943c7…225e6dabee.

The alleged transaction is said to have occurred in a freshly created wallet, with just two transactions being carried out in the wallet in 12 hours.

In addition, the Amsterdam-based cryptocurrency exchange Bitvavo, a centralized crypto exchange, also sent trillions of SHIB tokens to the same alleged wallet.

Whales’ large SHIB hoarding is increasing at the same time as the token’s remarkable price movement. The price of SHIB spiked sharply in tandem with this wave of large-scale Shiba Inu token transactions.

SHIB price has since experienced a significant 20% surge in recent weeks. Currently, the price of SHIB is sitting at $0.0000082, slowly gaining momentum at a critical point of $0.0000084, marking the highest price level the token has seen since August.

If the token can surpass this critical point, it might pick up speed and eventually reach $0.00001 and beyond. This is because the last time this happened was back in July; according to historical data, the price of SHIB experienced a significant 37% surge after this happened.

So far, crypto experts are particularly curious about the recent wave of large transactions involving SHIB tokens. These wallet-to-wallet transfers ignite optimistic sentiment in the colossal crypto market.

Shibarium Sparks Price Growth

The achievements of Shiba Inu layer 2 blockchain Shibarium have always had a positive impact on the price of SHIB. The blockchain milestones have caused quite a hype in the Shiba Inu ecosystem, which could bolster SHIB’s growth past its current price of $0.0000082.

The adoption rate of Shibarium will only increase as more SHIB holders become familiar with its advantages. These include reduced costs and quicker transaction times. 

Concurrently, several events have suggested that SHIB’s price will continue to rise, such as the recently launched Shib Name Service (SNS) and Shibdentity.

Ripple CEO Brad Garlinghouse has expressed his anticipation for the upcoming DC Fintech week, dropping major hints and teasers about significant announcements and heated discussions slated for the event. 

Ripple Swell Event Sparks Community Interest

Chief Executive Officer of Ripple, Brad Garlinghouse has teased the X (formerly Twitter) community with hints of discussions and ideas about the upcoming Ripple Swell 2023 event scheduled for November 8th and 9th in Dubai. 

Garlinghouse stated that he was always excited about the DC Fintech Week which occurred every year. He emphasized the importance of the event in bringing together different people with similar interests in one room interacting and sharing their different ideas and perspectives on substantial topics and issues in the finance and blockchain industry. 

In his post, Garlinghouse dropped a cryptic message, likening the Ripple Swell event to a “proverbial cage match.”

“Every year I look forward to DCFintechWeek — everyone from the public to private participants in one room, discussing (and sometimes debating) the substantive issues with no holds barred. wondering…a proverbial cage match?!” Garlinghouse stated. 

Some of the headlining speakers excluding Garlinghouse appearing at the DC Fintech Week include United States Under Secretary of the Treasury for Domestic Finance, Nellie Liang, CEO of Grayscale Investments, Michael Sonnenshein, Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, Vice Chair of Supervision at the Federal Reserve, Michael Barr, and others.

As the Ripple Swell event approaches, many crypto enthusiasts are looking forward to witnessing what could be a defining moment in the Ripple ecosystem as the event may provide more insight into Ripple’s future developments and present challenges.

Garlinghouse To Share Stage With Gensler At Swell Event

Following the conclusion of one of the most heated high-stakes legal battles in the crypto space, Garlinghouse and SEC Chair Gary Gensler are set to share a stage in the DC Fintech Week, discussing and possibly debating on various topics in the fintech and blockchain space. 

The legal battle between Gensler and Ripple’s top Executives Chris Larsen and Garlinghouse has been one of the most closely watched conflicts in the crypto space. The SEC sued both executives, accusing them of violating US securities laws by supporting the sales of XRP tokens in unregistered security offerings to investors. 

The regulator eventually dropped all charges and claims against Larsen and Garlinghouse earlier in October, earning Ripple a partial win against the agency. 

Many XRP community members have rallied behind Garlinghouse’s label of the Ripple Swell event as a “proverbial cage match.” This sentiment is particularly strong when considering participants like Gensler and Garlinghouse who have a history of legal disagreements and Grayscale and US SEC who are currently in a legal dispute concerning the approval of Spot Bitcoin ETFs. 

On-chain data shows there is major resistance ahead for Chainlink, a sign that could be troubling for the rally’s sustainability.

Only 55% Of Chainlink Investors Are In Profit So Far

As explained by an analyst in a post on X, Chainlink is still behind Bitcoin in terms of investor profitability despite the LINK price outperforming BTC in the year so far.

The below chart shows what the LINK address concentration looks like on the different price ranges that the asset has previously visited:

Here, the size of the dot represents the number of investors or addresses who purchased their coins inside the particular price range. It would appear that the ranges below $10 are host to the cost basis of a hefty number of holders.

Since the LINK price is above these levels right now, these investors would naturally be in a state of profit. These addresses only make for about 55% of the network total, however, implying that a significant number of them are still sitting at a loss. From the chart, it’s visible that the $16 to $27 range in particular has a considerable density of investors.

In on-chain analysis, major support and resistance levels are defined on the basis of the number of investors that are at a particular range. This is because of the fact that whenever the spot price interacts with the cost basis of an investor, they become more likely to show a move.

When the price retests the cost basis from above, the holder may decide to buy more. The reason behind this is that they might tend to believe that the level, which had been profitable for them earlier, might produce gains in the future again, so it would appear like an ideal point of accumulation for them.

On the other hand, the red holders might see the break-even point as a decent exit point, as they might fear that the cryptocurrency would go back down in the near future, so going out here at least means they can avoid taking any losses.

Such buying or selling from just a few investors when the price retests their common cost basis doesn’t produce any effects on the macro scale, but if a large number of investors bought at the same level, the reaction might be more pronounced.

Thus, the Chainlink levels ahead until the $27 mark might prove to be a source of some heavy resistance, making the rally hard to sustain through them.

The analyst notes, however, “once LINK breaks the $27 mark, the ensuing rally is expected to be substantial. Alongside this, the wallet profitability ratio is projected to surpass 80%.”

As mentioned before, Bitcoin’s investor profitability distribution is looking much better so far, as the below chart from IntoTheBlock shows:

Bitcoin is currently battling against the resistance offered by the current investor-packed $34,100 to $35,100 range. Once BTC is through these levels, however, the road towards $40,000 might prove to be relatively easy.

LINK Price

Following its 12% rally in the past week, Chainlink is now sitting just below the $12.9 mark.

The newly launched SHIB self-authentication system, Shibdentity, has witnessed some technical issues. Kaal Dhairya, a Shiba Inu developer, revealed this today, November 7. As part of their efforts to make the Shib Ecosystem self-sufficient, the developers also introduced The Shib Magazine.

Shiba Inu Developers Launches The Shib Magazine

The Shiba Inu developers recently launched Shib Name Service (SNS) on its layer-2 network, Shibarium. The Shib Name Service aims to introduce the Shibdentity, a self-custodial identity system for the SHIB ecosystem

The product aims to make the ecosystem sufficiently decentralized so users wouldn’t have to depend on third-party platforms. Shibdentity creates a decentralized identity platform, enhancing security and user experience and eliminating censorship so that users can control their digital identities.

As stated in an October 31 disclosure, the launch of the SNS marks a milestone for Shiba Inu. The team described the newly launched feature as a disruptor introducing something special and human-readable addresses to the ecosystem. 

It allows users to self-manage their Shibarium addresses without third-party interference. They can quickly transfer tokens to others using unique initials. 

Meanwhile, the SHIB self-authentication system Shibdentity, launched on November 1, developed some technical issues. The developer has yet to reveal the reason behind the technical glitch. However, the issue may be due to overwhelming traffic on the system. 

Dhairya noted that the developer team is working to resolve the issues and have things back to normal as soon as possible.

“The newly launched self-custodial authentication system as part of the Shib Magazine is having technical issues for some users. We are working towards fixing this as soon as possible,” the developer said.

Shiba Inu Developers Launches The Shib Magazine For Timely Ecosystem Updates

The Shib Magazine aims to furnish the community with updates regarding Shib Inu products and services, including the layer-2 network Shibarium. In addition, the newly launched magazine will also report on the latest interviews with top cryptocurrency industry experts. 

This will ensure the community members remain up-to-date on happenings around the ecosystem and the broader crypto market. Moreover, when fully up and running, the magazine will promote a timely update of trending tokens and upcoming Shibarium features. 

According to reports, the first 1,000 readers will receive an NFT of the magazine cover for free. The SHIB Doggy DAO Foundation sponsors this effort.

More Updates On Shibarium Progressive Strides

Shibarium has proven successful since its launch in late August, covering significant milestones in the subsequent months. On October 18, the layer-2 network exceeded 3.5 million in total transactions, with over 1.2 million blocks in less than two months post-launch. Currently, Shibarium boasts a total of 3.8 million transactions and over 1.5 blocks.

Related Reading: Chainlink Enters Bull Territory, Signals Long-Term Uptrend — Crypto Expert

There was a popular notion that the launch of Shibarium would boost Shiba Inu’s price by facilitating token burns, lowering transaction costs, and increasing speed. However, within the launch period, Shiba Inu recorded a considerable price decline, even when most tokens soared.

But recently, Shiba Inu has posted notable strides, recording over 15% 30-day price increases and a nearly 6% gain in the last seven days. Over the past 24 hours, SHIB price has increased over 2% and trades at $0.0000081.

Dogecoin has emerged as one of the clear winners in the last week after its price climbed over 10% to secure the $0.075 level. This incredible rally has brought the meme coin to its highest level in the last three months. However, it may only be getting started as multiple DOGE metrics continue to exhibit bullishness.

Dogecoin Whales Still In The Game

One of the most important metrics that show how investors are looking at a coin like Dogecoin is what the large investors are doing. Initially, when the crypto market rally began and DOGE started to move up, the whale addresses remained muted without showing too much activity. But that has started to change with a drastic rise in the whale movements.

According to data from IntoTheBlock, in the last 24 hours, Dogecoin whales have carried out over $1.48 billion worth of transactions. This is in stark contrast to last week’s figures coming in at an average of $600 million in daily transactions by these large holders.

It means that there has been a more than 100% rise in daily large transaction volume for Dogecoin, suggesting that the whales are coming out to play. The spike also began around November 4 which is when the DOGE price had begun moving upward quickly. This could mean that these whales have been buying large quantities, leading to a drastic decrease in the available DOGE supply on the open market.

The number of large transactions reached 1,320 on November 6, just 100 transactions shy of the asset’s October highs. IntoTheBlock also shows a leaning toward bullishness with more addresses being bullish compared to those which are bearish.

DOGE Volumes Are On The Rise

Dogecoin whale transactions and volumes are not the only Dogecoin metrics that have been on the rise. The meme coin’s daily trading volume has also exploded during this time as well, with a 64% increase in a 24-hour period.

This drastic rise has brought its daily trading volume above $870 million with the possibility of crossing $1 billion in the coming days. This exponential rise in daily trading volume indicates rising interest, especially with the spot buying and selling.

During this time, the DOGE profitability has been rising quickly, bringing 53% of all holders back into profit. This has contributed to the bullish sentiment of the meme coin and could help to trigger more capital inflow into Dogecoin as investors try to take advantage of the price recovery.

FOR UPDATE…

Cardano (ADA) has been making significant strides in the cryptocurrency market, reclaiming its position at the forefront of the altcoin buzz. The digital currency’s price rally has propelled it to a multi-month high, signaling a collective effort from both retail and whale investors. 

At the time of writing, Cardano’s trading volume stands at an impressive $380,929, reflecting a remarkable 24.8% increase overnight. This surge in trading activity serves as a testament to the robust health of the Cardano market, underlining the active participation of all ecosystem stakeholders.

Cardano: Rallying To New Heights

The current price of ADA, as reported by CoinGecko, stands at $0.363147, with a 4.6% gain over the past 24 hours and a notable 19.4% surge over the past week. This bullish momentum has been a welcome development for Cardano enthusiasts. 

Crossing the crucial resistance level at $0.37 is a remarkable milestone for the protocol, as the last time ADA tested this level was in early June. This achievement signifies the growing investor confidence in the project and its potential to reach new heights.

Fostering A Thriving Ecosystem

While the price action of Cardano is undeniably positive, its success is further underscored by its expanding ecosystem. The crypto protocol has launched a series of products throughout the year, and their impact is becoming increasingly evident.

Notably, one of the latest innovations, Midnight Protocol, is poised to play a pivotal role as a privacy tool, solidifying Cardano’s position within the Web3 space.

1/6 It’s official – we’ve selected the first group of Midnight Pioneers for the devnet.

Congratulations to you all and big thanks to everyone who registered interest. It’s great to have your support. pic.twitter.com/qu2w5TXJR0

— Midnight (@MidnightNtwrk) November 1, 2023

Midnight Protocol, one of the most recent additions to Cardano’s ecosystem, is set to address privacy concerns that have become increasingly prominent in the world of blockchain and cryptocurrencies.

With the rise of Web3 systems, privacy has become a paramount consideration, and Midnight Protocol aims to provide a solution. This innovative tool will enable users to interact with blockchain networks while preserving their data and transaction privacy. 

By offering enhanced privacy features, Midnight Protocol is positioned to contribute to the broader adoption of Cardano within the decentralized web.

Cardano’s recent price surge to a multi-month high serves as a testament to the platform’s growing popularity and support from both retail and institutional investors.

The crossing of the $0.37 resistance level marks a significant achievement, and Cardano’s flourishing ecosystem, with the introduction of products like Midnight Protocol, adds even more value to the project. 

As Cardano continues to evolve and expand, it remains a cryptocurrency to watch in the ever-changing landscape of blockchain technology and decentralized systems.

(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

Bitcoin could see a decline of at least 20% in the near future, if the historical pattern of this indicator is anything to go by.

Aggregated Open Interest Of Assets Except Bitcoin Is Forming A Bearish Pattern

In a new post on X, CryptoQuant Netherlands community manager Maartunn has talked about a bearish pattern forming in the aggregated open interest of all cryptocurrencies except Bitcoin.

The “open interest” here refers to an indicator that measures the total amount of derivative positions (in USD) that are open on all exchanges around the world right now.

When the value of this metric is high for any cryptocurrency, it means that the asset has a high number of positions on the derivative market currently. Generally, this kind of trend makes it more probable for the price to show volatile moves.

On the other hand, low values imply the derivative side of the coin in question is cool at the moment, which may suggest a relative period of calmness for the price.

In the context of the current discussion, the aggregated open interest of all cryptocurrencies excluding Bitcoin is of interest. The below chart shows the trend in this indicator over the past couple of years:

In the graph, Maartunn has highlighted an interesting pattern that the aggregated open interest of the altcoins and the Bitcoin price has followed in the last two years.

It would appear that whenever the indicator’s value has crossed the $12.2 billion mark, the BTC price has observed a top formation and has subsequently registered a decline. According to the analyst, this drawdown that has followed the pattern has always been at least 20%.

Just this year, the tops of the cryptocurrency’s price observed in February, April, and July all occurred during periods where the metric was above the $12.2 billion level.

From the chart, it’s visible that the aggregated open interest of the sector excluding BTC once again crossed above this line of historical significance back when the asset’s rally toward the current levels first happened.

Since then, the metric has only continued to climb higher and has now hit the $13.8 billion mark, meaning that the derivative market has become quite overheated now.

If the pattern that Bitcoin has displayed in the past is anything to refer to, then the asset may be fast approaching the top right now, given the overheated altcoin open interest.

As another analyst has pointed out on X, the dominance of the futures open interest made up for by assets other than Bitcoin and Ethereum has also hit 2023 highs.

This once again puts into perspective the overheated status of the market, which could end dangerously for Bitcoin as well as the rest of the cryptocurrency sector.

BTC Price

Bitcoin had made another go at $35,000 in the last two days, but the asset has now once again slipped below the level as it’s now trading around $34,700.