Blockchain

MicroStrategy, courtesy of its former CEO and co-founder Michael Saylor, has continued its aggressive accumulation of the flagship cryptocurrency, Bitcoin, with the company’s latest purchase coming in October, according to Saylor himself.  

MicroStrategy Acquired An Additional 155 BTC In October

In a post shared on his X (formerly Twitter) platform, Saylor mentioned that his company acquired this amount of BTC for $5.3 million and now holds 158,400 BTC. The businessman made this comment while sharing the company’s third-quarter 2023 financial results.

The release also affirmed Saylor’s revelation as it gave a detailed analysis of its BTC holdings and the company’s unwavering commitment to continue stacking up the digital asset. The company notably stacked up a total of 6,067 BTC since the end of Q2 2023 for $167.0 million or at $27,531 per token. 

These figures instantaneously raise the presumption that Microstartegy’s Bitcoin investment strategy is currently in profit. This presumption is also backed by the fact that the company further went on to mention that it holds 158,400 BTC, which it acquired at a total cost of $4.69 billion, or $29,586 per token. 

It is worth mentioning that the company recorded a 3% increase year-on-year in its total revenue, which in part could be thanks to its Bitcoin venture, as the company’s CEO Phong Le suggested. He mentioned that his company is “well situated to capitalize on both the tailwinds in Bitcoin and growth in our BI business.” 

MicroStrategy’s Commitment To Bitcoin Remains Strong

Commenting on the company’s Bitcoin purchases, MicroStrategy’s Chief Financial Officer (CFO) Andrew Kang mentioned that their commitment to acquire and hold Bitcoin “remains strong,”, especially with the increased possibility of a wave of institutional adoption happening soon with prominent asset managers like BlackRock moving to offer a Spot Bitcoin ETF.  

The company’s “Bitcoin Strategy” has also positively influenced the company’s outlook, with many (especially crypto natives) having an affinity to the company because of its crypto ties. These ties to BTC also seem to have had an effect on the company’s stocks. 

As Saylor highlighted in an X post, MicroStrategy’s MSTR stocks have seen about a 242% increase since the company incorporated Bitcoin into its balance sheets. This period, which dates back to August 2020, has seen the company’s stock perform better than major stocks like that of Apple and Google. MSTR has even performed better than Bitcoin itself in that period. 

On a personal level, Saylor continues to be one of the major advocates of the flagship cryptocurrency and recently shared a Bitcoin-related X post with the caption “Join the Race. #Bitcoin” in what seems to be him urging his followers to get bullish on the crypto token.

The first day of November marked an eventful moment in the cryptocurrency market as altcoins surged vigorously, led by impressive gains of Solana. This rally in Solana’s value set the tone for a day where altcoins gained significant traction.

(Concurrently, Bitcoin experienced a late rally, breaching the $35,500 mark. This unexpected surge in Bitcoin not only solidified its position but also contributed to the overall bullish sentiment in the market.)

The day’s dynamic movements highlighted the growing influence of altcoins, particularly Solana, showcasing their capacity to drive market trends. This collective push underscored a major shift in the crypto landscape, suggesting a broader diversification of investment interest beyond Bitcoin.

Solana: Meteoric Rise And Resilience In The Crypto Market

Solana’s recent strides in the market have been nothing short of spectacular, showcasing an astounding growth of over 80% in just a few short weeks. SOL demonstrated its bullish momentum by surging to approximately $42.30, as reported by Coingecko. With a circulating supply of 420 million SOL, Solana is valued at a market cap of around $17,685,464,775.

Despite worries about its future following the bankruptcy of Alameda Research, a major investor in the Solana ecosystem, and Sam Bankman Fried’s FTX cryptocurrency exchange, Solana has surprised many observers by emerging as one of the best-performing assets, rising by more than 300% this year.

According to recent data from CoinMarketCap at the beginning of November, the value of SOL experienced a notable increase over the course of the last 30 days. Specifically, SOL’s market valuation rose from $9.80 billion on October 2 to surpass $17 billion on Wednesday, resulting in a substantial addition of approximately $6 billion to its overall capitalization.

Against a backdrop of positive indicators and having already reached a critical milestone of $40, the cryptocurrency Solana is poised to attain a noteworthy valuation of $50. The current rising trajectory of SOL’s value, which has experienced a roughly twofold increase in the past month, establishes a solid basis for the anticipated milestone, lending credibility to its feasibility and potential imminence.

SOL’s Ascent Towards A Milestone And FTX’s Notable Asset Transactions

Given its quick growth, it appears that this new objective is attainable, indicating that SOL may soon achieve this unprecedented level in the dynamic realm of digital currencies.

Meanwhile, according to a recent disclosure made by Nansen, a blockchain analytics company, it has come to light that wallets associated with the bankrupt FTX engaged in transactions involving a significant amount of digital assets, amounting to around $156 million.

FTX funds have continued to move to exchanges since our last update

– 695K PERP $423K
– 767K BICO $182K
– 833K KNC $616K
– 108M TRU $420K
– 138K BAND $221K
– 2.5M GRT $273K
– 845 MKR $1.17M
– 7.16M RNDR $17.8M
– 10.5M USDC
– 23k MATIC $15K
– 9.5M REN $500K
– 1.1M ETH $2M

And… pic.twitter.com/UPKkJh3llq

— Nansen (@nansen_ai) October 31, 2023

These assets include Ethereum and Solana, and the transactions occurred during the previous week. Nansen’s report provides a comprehensive account of FTX’s action of unstaking almost 1.6 million SOL tokens, which were estimated to be worth around $57.6 million, on October 30th.

These assets are presently kept in a staking wallet. The act of unstaking described here is a component of FTX’s money movement plan, which has resulted in a notable rise in the overall amount of SOL transferred, approaching the threshold of $90 million.

(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 foulline/Pixabay

Recent financial maneuvers by Ripple Labs have caught the eye of crypto sleuths again. Recent data from crypto data analysis platform Whale Alert has shown a significant movement of 800 million XRP tokens back into Ripple’s established escrow system. This move comes in the aftermath of Ripple’s customary monthly unlocking of one billion XRP, a practice that started in 2017 as part of the company’s strategy to maintain XRP price stability.

Ripple Returns 800 Million XRP To Escrow

The essence of Ripple’s escrow mechanism is to facilitate a consistent and predictable distribution of XRP to the market. This counteracts any potential price volatility that might arise from a sudden influx of tokens. In its commitment to this cause, Ripple, back in 2017, pledged to gradually release 55 billion XRP in 55 monthly tranches of one billion XRP each.

Post-release each month, Ripple typically returns a majority of the tokens, mostly 800 million XRP, back into the escrow, retaining a minor portion, around 200 million XRP, for market circulation. Recent data from Whale Alert confirms that Ripple was no exception this month and has locked 800 million XRP tokens back into the established escrow system.

Notably, the return of the 800 million XRP tokens occurred in two equal transactions, each involving 400 million XRP. Delving into the data from XRP Scan reveals that the first set, amounting to 400 million XRP, was directed back into escrow from an address known as ‘Ripple 10.’ Prior to this, ‘Ripple 10’ had received the said tokens from two different addresses: Ripple 22 and Ripple 23.

The subsequent batch of 400 million XRP was transacted from ‘Ripple 23’ to another address dubbed ‘Ripple 11,’ before it was also directed to the company’s escrow account. The market value of the re-locked 800 million XRP stood at an approximate $480 million during the time of these transactions.

Of the original 1 billion XRP that were made available, the remaining 200 million XRP, with a current valuation of about $121 million, was moved from Ripple 22 to Ripple 1. This balance is anticipated to facilitate Ripple’s operational expenses and other business-related activities.

Ripple’s escrow holdings now total roughly 40.9 billion XRP. For context, their Q3 report disclosed that they had about 41.3 billion XRP in escrow at the end of September.

XRP Price Poised For More Upside

After XRP broke the 200-day Exponential Moving Average (EMA) line (blue) on October 21, the price has been on a tear. Within 11 days, the XRP price increased by almost 20%. That the XRP price took a breather from its rally yesterday is probably not due to Ripple’s monthly transfer from escrow, as the XRP tokens do not hit the market immediately and, moreover, investors know how to gauge the issue.

A better explanation is that XRP encountered a strong resistance with the 0.386 Fibonacci retracement level at $0.625, where the price was rejected in a first attempt. Notably, the bulls could make another attempt if the price stays above the $0.60 level.

If the breakout succeeds, the 0.5 Fibonacci retracement level at $0.683 could be the next short-term price target. However, if the XRP price is rejected again at $0.625, a retest of the 0.236 Fibonacci retracement level at $0.553 could be the next logical move.

XRP, the native cryptocurrency of the Ripple network, reached a significant milestone as it soared to the crucial psychological level of $0.60, marking its highest value since the mid-August market crash. 

In financial terms, psychological levels are key price points where traders and investors have historically shown heightened interest, often leading to increased buying or selling pressure.

Crossing this mark after a prolonged period of market volatility signals a potential shift in sentiment for XRP enthusiasts, who have eagerly awaited a resurgence in the coin’s value.

Related Reading: Solana Bull Run Could Smash Through $40 Barrier This Week – Here’s How

XRP’s Remarkable Rebound

According to the latest data from CoinGecko, XRP was trading at $0.606379, reflecting a notable 2.7% gain over the past 24 hours. Over the course of the week, the digital asset witnessed an impressive seven-day rally of 9.2%, solidifying its upward trajectory and instilling confidence in the cryptocurrency market.

This upward momentum, while significant in itself, has also sparked a flurry of activity among XRP whales, who have long been regarded as influential players capable of shaping the market’s direction.

Recent data from the crypto analytics platform Whale Alert shed light on a substantial transaction involving a major XRP whale. The data revealed that an anonymous entity had transferred a staggering 412,890,441 XRP tokens, valued at approximately $248,922,341, from one wallet to another. Such large-scale movements by influential holders can often trigger a domino effect, leading to increased interest from smaller investors and, in turn, contributing to further price fluctuations.

412,890,441 #XRP (248,922,341 USD) transferred from unknown wallet to unknown new wallethttps://t.co/FhYAxqGyXW

— Whale Alert (@whale_alert) November 1, 2023

Key Milestones And Challenges For XRP

In parallel to these developments, Ripple, the company behind XRP, published its comprehensive market report for the third quarter, highlighting several key achievements of the cryptocurrency during the period. Notably, the report indicated a significant uptick in the number of new wallets, recording a remarkable surge of nearly 12% to reach a total of 157,936. 

Moreover, the document emphasized the robustness of the XRP trading volume, consistently surpassing the $1 million mark throughout July and August, with certain days witnessing an impressive trading volume range of $20 million to $30 million.

However, amidst these positive indicators, the report also pointed to a slight downturn in the overall transaction count, registering a decrease of over 8% compared to the previous quarter. This decline, while not entirely alarming, underscores the need for continued market analysis and strategic measures to maintain a steady growth trajectory for XRP.

As Ripple and its native coin XRP continue to make significant strides, market observers remain vigilant, analyzing various factors that could impact the cryptocurrency’s trajectory in the coming months.

(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

Polkadot (DOT) is gaining pace above the $4.50 resistance against the US Dollar. The price could surge toward $5.5 if it clears the $4.80 resistance.

DOT is slowly moving higher above the $4.50 resistance zone against the US Dollar.
The price is trading above the $4.60 zone and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $4.50 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
The pair could gain bullish momentum if there is a close above $4.80 and $4.85.

Polkadot Price Regains Strength

After forming a base above the $4.00 handle, DOT price started a decent increase. The price was able to clear the key barrier at $4.20 to enter a positive zone, like Bitcoin and Ethereum.

Polkadot cleared the $4.50 resistance zone and the 100 simple moving average (4 hours). It traded to a new multi-week high at $4.803 and is now consolidating gains. It is well above the 23.6% Fib retracement level of the upward move from the $4.046 swing low to the $4.803 high.

DOT price is now trading above the $4.60 zone and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $4.50 on the 4-hour chart of the DOT/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $4.046 swing low to the $4.803 high.

Source: DOTUSD on TradingView.com

Immediate resistance is near the $4.80 level. The next major resistance is near $4.85. A successful break above $4.85 could start another strong rally. In the stated case, the price could easily rally toward $5.20 in the coming days. The next major resistance is seen near the $5.50 zone.

Are Dips Supported in DOT?

If DOT price fails to continue higher above $4.80 or $4.85, it could start a downside correction. The first key support is near the $4.62 level.

The next major support is near the $4.50 level and the trend line, below which the price might decline to $4.35. Any more losses may perhaps open the doors for a move toward the $4.20 support zone.

Technical Indicators

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

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

Major Support Levels – $4.62, $4.50 and $4.20.

Major Resistance Levels – $4.80, $4.85, and $5.50.

Ethereum price popped above the $1,850 resistance against the US dollar. ETH is showing positive signs and might soon climb toward the $2,000 resistance.

Ethereum is slowly moving higher above the $1,850 resistance zone.
The price is trading above $1,820 and the 100-hourly Simple Moving Average.
There was a break above a key declining channel with resistance near $1,818 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is signaling bullish signs and a possible move toward the $2,000 resistance.

Ethereum Price Aims Higher

Ethereum formed a base above the $1,780 level and recently started a steady increase, like Bitcoin. ETH gained pace for a move above the $1,820 resistance zone.

There was a break above a key declining channel with resistance near $1,818 on the hourly chart. It sparked bullish moves and pushed the price above the main hurdle at $1,850. The price traded to a new multi-week high at $1,875 and is currently consolidating gains.

Ethereum is now trading above $1,820 and the 100-hourly Simple Moving Average. It is also above the 23.6% Fib retracement level of the recent increase from the $1,784 swing low to the $1,875 high.

On the upside, the price is facing resistance near the $1,875 level. If ETH surpasses the $1,875 resistance, it could again start a steady increase and test $1,920. The next key resistance is near $1,950, above which the price could accelerate higher toward the $2,0000 level.

Source: ETHUSD on TradingView.com

Any more gains might call for a move toward the $2,050 level. In the stated case, the price could even climb toward the $2,120 level.

Are Dips Limited in ETH?

If Ethereum fails to clear the $1,875 resistance, it could start a downside correction. Initial support on the downside is near the $1,850 level.

The next key support is $1,820 or the 61.8% Fib retracement level of the recent increase from the $1,784 swing low to the $1,875 high. The main support is now forming near the $1,800 level and the 100-hourly Simple Moving Average. A downside break below the $1,800 support might spark a bearish wave. In the stated case, Ether could drop toward the $1,750 level.

Technical Indicators

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

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

Major Support Level – $1,820

Major Resistance Level – $1,875

Bitcoin price cleared the key $35,000 resistance. BTC is showing positive signs and might rally toward the $36,200 and $37,000 levels in the near term.

Bitcoin is gaining pace above the $35,000 resistance.
The price is trading above $35,000 and the 100 hourly Simple moving average.
There was a break above a rising channel with resistance at $34,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is showing positive signs and might rise toward the $37,000 resistance in the near term.

Bitcoin Price Breaks Hurdle

Bitcoin price remained well-bid above the $34,000 support zone. BTC formed a base, completed a consolidation phase, and recently started a decent increase above the $34,750 resistance.

There was a break above a rising channel with resistance at $34,850 on the hourly chart. The bulls were able to pump the price above the last swing high and $35,500. It traded to a new multi-week high at $35,945 and is still showing positive signs.

Bitcoin is now trading above $34,260 and the 100 hourly Simple moving average. It is also well above the 23.6% Fib retracement level of the recent increase from the $34,120 swing low to the $35,945 high.

On the upside, immediate resistance is near the $35,950 level. The next key resistance could be near $36,200. A clear move above the $36,200 resistance might open the doors for a decent 5% increase 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.

Are Dips Limited In BTC?

If Bitcoin fails to rise above the $35,950 resistance zone, it could start a downside correction. Immediate support on the downside is near the $35,500 level.

The next major support is near the $35,000 level or the 50% Fib retracement level of the recent increase from the $34,120 swing low to the $35,945 high. If there is a move below $35,000, there is a risk of more downsides. In the stated case, the price could drop toward the $34,500 level or the 100 hourly Simple moving average.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now in the overbought zone.

Major Support Levels – $35,500, followed by $35,000.

Major Resistance Levels – $35,950, $36,200, and $37,000.

The US Securities and Exchange Commission (SEC) recently announced charges against SafeMoon, its creator Kyle Nagy, the company’s CEO, John Karony, and CTO, Thomas Smith. 

The SEC alleges that these individuals orchestrated a “massive fraudulent scheme” involving the unregistered sale of SafeMoon (SFM), a “crypto asset security” as defined by the SEC. 

Per the complaint, instead of delivering the promised profits and taking the token “Safely to the Moon,” the defendants allegedly wiped out billions in market capitalization, misappropriated investor funds, and withdrew over $200 million in crypto assets for personal use.

On this matter, David Hirsch, Chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, emphasized the need for caution in the decentralized finance (DeFi).

SEC Charges SafeMoon And Executives 

According to the complaint, Kyle Nagy assured investors that funds in SafeMoon’s liquidity pool were safely locked and inaccessible to anyone, including the defendants. 

However, according to the SEC’s investigations, large portions of the liquidity pool were never locked, and the defendants allegedly misappropriated millions of dollars, indulging in extravagant purchases such as McLaren cars, luxury homes, and lavish travel.

The SEC’s complaint reveals that SFM’s price skyrocketed by over 55,000 percent before plummeting nearly 50 percent when the public discovered that the liquidity pool was not locked as claimed. 

Notably, Karony and Smith allegedly used misappropriated assets to manipulate the market and prop up SafeMoon’s price through wash trading.

The SEC’s complaint, filed in the US District Court for the Eastern District of New York, charges the defendants with violating registration and anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. 

Indictment Unsealed Against Executives For Securities Fraud

An indictment was also unsealed in federal court in Brooklyn, charging Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, wire fraud, and money laundering conspiracy. Breon Peace, United States Attorney for the Eastern District of New York, announced the arrests and charges.

United States Attorney Peace emphasized the commitment to pursuing fraudsters in the digital asset space, stating that their “ill-gotten gains” would not protect them from justice. 

Ivan J. Arvelo, Special Agent-in-Charge of Homeland Security Investigations, New York, highlighted the “relentless pursuit” of individuals exploiting investors and the financial system for personal gain. 

It is noteworthy that the charges in the indictment are allegations, and the defendants are presumed innocent until proven guilty.

SFM Token Crashes To Lowest Trading Price Since Launch

Following the recent disclosure of the news, SFM has experienced a significant crash, plummeting by over 52%. Currently, the token is trading at $0.00009142, marking its lowest trading price since its launch in 2022. This substantial decline of over 72% within the past year underscores the severity of the case.

Furthermore, when examining other time frames, the token has seen declines of 49%, 34%, and 24% over the past seven, fourteen, and thirty days, respectively. These figures highlight the ongoing downward trend and emphasize the magnitude of the situation.

Featured image from Shutterstock, chart from TradingView.com

Citing Messari data, one user on X, @JaromirTesar, notes that despite the effects of the crypto bear market, which has adversely affected valuation and activity, there are more Cardano (ADA) holders willing to stake their assets, helping secure the network and earn staking rewards at the same time.  

More Delegators Staking ADA, Confidence Remains High

Sharing a screenshot on November 1, the user notes that roughly 250 ADA holders have opted to stake their coins daily for the past year. By the end of Q3 2023, there were 1.31 million delegators, up from 1.22 million recorded around the same time last year. This means that despite the harsh crypto market conditions, ADA holders seem to have been unfazed and choose to lock their coins instead of exiting for other coins like Bitcoin (BTC) or stablecoins, including USDT.

Cardano uses the proof-of-stake (PoS) consensus mechanism, which the team, Input Output Global (IOG), claims to be more scalable and efficient than other consensus systems, including Bitcoin’s proof-of-work (PoW). In Cardano, Stake Pool Operators (SPOs) are tasked with validating a block of ADA transactions where they receive rewards after every epoch. 

SPOs eradicate the need for miners. Since anyone with a Cardano wallet can participate in the consensus process, the platform is thought to be more decentralized. ADA holders who choose not to run SPOs can delegate their coins through their favorite validator and receive staking rewards.  

More Stakers Engaging, What Happens To Price Next?

As of November 1, there are 2,888 SPOs with stake, meaning they manage ADA from delegators. Meanwhile, there were 1.31 million unique delegators by the end of Q3 2023, an increase from the previous year.

In total, 65.33% of all ADA is engaged, actively participating in consensus and helping keep the network decentralized. Even so, this is down from 71.57% recorded in Q3 2023. The active stake translates to 22.9 billion ADA, down from 25 billion in Q3 2023. According to trackers, there are 35.2 billion ADA in circulation.

Despite the confidence among ADA holders, prices are relatively subdued. The coin is still trending below July 2023 highs of around $0.37. Even so, prices have been on an uptrend, breaking above the $0.27 high of October.

A close above $0.40 could open up ADA for more gains towards 2023 highs of around $0.46. Conversely, any sell-off from spot rates may push the coin closer to 2023 lows of $0.24.

Ethereum has been notably underperforming Bitcoin through this latest rally. Here’s why this is so, according to a CryptoQuant analyst.

Ethereum Net Taker Volume Has Been Mostly Negative Recently

In a new post on X, CryptoQuant Netherlands community manager Maartunn has pointed out what the “net taker volume” for Ethereum is looking like.

The net taker volume here is an indicator that keeps track of the difference between the taker buy volume and taker sell volume on the Bitcoin futures market.

When the value of this metric is positive, it means that the taker buy volume is dominating the taker sell volume right now. Such a trend implies buying pressure may be strong in the market currently.

On the other hand, negative values could suggest the presence of a bearish sentiment among the investors, as selling pressure is higher than the buying pressure.

Now, here is a chart that shows the trend in the 30-day moving average (MA) Ethereum net taker volume over the past few years:

As displayed in the above graph, the Ethereum net taker volume has been mostly negative during the past few months, implying that sentiment around the asset has remained bearish.

Bitcoin, on the other hand, has enjoyed periods where the taker buy volume has surpassed the taker sell volume, as the chart shared by the analyst a few days back showed.

Most notably, the net taker volume of Bitcoin is significantly positive right now, suggesting the strong buying pressure present in the market. Unsurprisingly, BTC’s sharp rally has come alongside these positive values of the metric.

Ethereum has no such buying pressure present at the moment. Maartunn believes this is why the ETH price has been performing considerably poorly against BTC recently.

Ethereum Has Still Not Touched The Highs Set Earlier In The Year

Ethereum’s underperformance against Bitcoin is easily visible in the asset’s year-to-date chart.

At the same time as Bitcoin observed its rally off the back of the highly positive net taker volume, Ethereum also saw a surge of its own. This rise, though, has been nowhere near as sharp as that of the original cryptocurrency, as ETH is still just trading around $1,800, which is notably less than the top of around $2,100 that the asset set back in April.

Not only has Bitcoin surpassed the $31,000 top it set back in July, it has also done so in spectacular fashion, as it’s now trading above the $34,000 level, which is significantly higher.

If the net taker volume is anything to go by, the second largest cryptocurrency may continue to underperform versus the largest, so long as investor sentiment around it remains negative.