Blockchain

Solana is gaining pace above the $35 resistance against the US Dollar. SOL price remains supported and might aim for a fresh rally toward $38.

SOL price started a major rally above the $32 resistance against the US Dollar.
The price is now trading above $35 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $33.30 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair is up nearly 10% and might surge further toward the $38 resistance.

Solana Price Rallies 10%

After a decent upward move, Solana settled above the $30 pivot level. SOL gained bullish momentum after it formed a base above the $30 and $32 levels.

It is now outperforming Bitcoin and Ethereum. There was a clear move above the $35 resistance zone. A new multi-week high is formed near $36.48 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $32.34 swing low to the $36.48 high.

SOL is now trading above $35 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $33.30 on the 4-hour chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

On the upside, immediate resistance is near the $36.50 level. The first major resistance is near the $36.80 level. A successful close above the $36.80 resistance could set the pace for a larger increase. The next key resistance is near $38.00. Any more gains might send the price toward the $40.00 level.

Are Dips Limited in SOL?

If SOL fails to recover above the $36.50 resistance, it could start a downside correction. Initial support on the downside is near the $34.40 level.

The first major support is near the $33.30 level, the trend line zone, and the 76.4% Fib retracement level of the upward move from the $32.34 swing low to the $36.48 high. If there is a close below the $33.30 support, the price could decline toward the $32.00 support in the near term.

Technical Indicators

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

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

Major Support Levels – $34.40, and $33.30.

Major Resistance Levels – $36.50, $36.80, and $38.00.

Cardano (ADA), a Proof-of-Stake (PoS) Layer-1 (L1) smart contract network launched in 2017, experienced a largely quiet Q3 2023 in the overall crypto market. However, the network faced challenges with a decline in ADA’s price and revenue. 

Despite these setbacks, Cardano showcased growth in its treasury balance, stablecoin market cap, and Total Value Locked (TVL) ranking. Furthermore, the network’s infrastructure and connections to other ecosystems have paved the way for future decentralized finance (DeFi) sector developments.

Cardano Sees Decrease In Daily Active Addresses And Transactions

According to a recent report by Messari, ADA’s price declined for the second consecutive quarter, down 9.5% quarter-over-quarter (QoQ) to $0.25, in line with the overall crypto market’s 9.2% QoQ fall. 

The revenue generated from transaction fees also decreased by 29.9% QoQ, reflecting a decline in user urgency to transact during this period.

Cardano’s Treasury balance grew by 7.2% QoQ to 1.39 billion ADA. Although the treasury’s value in USD terms decreased by 3.0% QoQ due to ADA price depreciation, it demonstrated steady growth in ADA holdings. 

Currently, 20% of transaction fees contribute to the treasury, providing a potential funding source for future projects.

Moreover, Cardano experienced a decline in daily active addresses for the third consecutive quarter, down 28.9% QoQ to 41,100. Average daily transactions also decreased by 12.2% QoQ. 

However, the ratio of transactions to active addresses indicated that while the number of active users decreased, those present were power users, suggesting high engagement within the network.

Average daily dapp transactions decreased by 14.7% QoQ, but overall, they increased by 40.0% YTD. Non-fungible token (NFT) transaction activity declined for the third consecutive quarter, while NFT trading volume increased, highlighting the growing value of Cardano NFTs.

Cardano’s TVL Demonstrates Stability Despite Market Challenges

Cardano’s TVL remained steady, declining only 0.1% QoQ. However, its TVL ranking among all networks improved from 21st to 15th during Q3, indicating relative growth compared to other ecosystems. 

The launch of two new stablecoins, iUSD and DJED, significantly contributed to the overall TVL growth, as the stablecoin market cap increased by 16.3% QoQ.

Per the report, Cardano also made progress in interoperability and core infrastructure during Q3. Partnerships with networks like Wanchain and developments in state channels, on-chain governance, and sidechains demonstrate the network’s commitment to expanding its capabilities. 

Overall, Cardano’s Q3 2023 reflects a period of challenges and growth for the network. Despite declining ADA’s price and revenue, the treasury balance, stablecoin market cap, and TVL ranking showcased positive trends. 

The network’s infrastructure developments and connections to other ecosystems position it favorably for future advancements in the DeFi sector. As Cardano continues to address challenges and foster innovation, it remains a key player in the blockchain landscape.

ADA Price Soars By 17% In 30 Days

Despite the sideways movement and declines in various indicators of Cardano’s overall ecosystem, ADA has experienced a significant surge of 17% in the past 30 days. 

Currently, ADA is trading at $0.2983, continuing its upward trend recovery over the past weeks following a sharp decline since July 13 and a subsequent consolidation phase. 

This consolidation phase led to a breakout of the previous four-month trend, which halted on October 19, triggering the recent surge in the token’s price. However, looking at the one-year timeframe, ADA’s value has seen a decline of 26%.

Featured image from Shutterstock, chart from TradingView.com 

Ethereum price is slowly moving higher toward the $1,850 resistance against the US dollar. ETH must clear $1,820 and $1,850 to continue higher.

Ethereum is still facing a major hurdle near the $1,850 zone.
The price is trading above $1,780 and the 100-hourly Simple Moving Average.
There is a key rising channel forming with support near $1,790 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if it clears the $1,820 resistance.

Ethereum Price Eyes Fresh Increase

Ethereum remained in a range below the $1,850 resistance. There was a minor decline, but ETH remained supported above the $1,750 zone, like Bitcoin.

The price is now moving higher above the $1,780 level. There was a break above the 50% Fib retracement level of the upward move from the $1,865 swing high to the $1,741 low. There is also a key rising channel forming with support near $1,790 on the hourly chart of ETH/USD.

Ethereum is now trading above $1,780 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $1,820 level. It is close to the 61.8% Fib retracement level of the upward move from the $1,865 swing high to the $1,741 low.

A clear move above the $1,820 resistance could send Ether toward the main hurdle at $1,850. A close above the $1,850 resistance could start a decent increase. In the stated case, the price could rally toward $1,920.

Source: ETHUSD on TradingView.com

The next key resistance is near $1,950, above which the price could accelerate higher. In the stated case, the price could rise toward the $2,000 level. The main hurdle sits at $2,040.

Another Drop in ETH?

If Ethereum fails to clear the $1,820 resistance, it could start another decline. Initial support on the downside is near the $1,790 level, the 100-hourly Simple Moving Average, and the trend line.

The next key support is $1,750. A downside break below the $1,750 support might trigger more bearish moves. In the stated case, Ether could drop toward the $1,700 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 below the 50 level.

Major Support Level – $1,750

Major Resistance Level – $1,820

Bitcoin price is still struggling to gain pace for a move above $35,000. BTC could correct a few points before the bulls attempt another increase.

Bitcoin is still struggling to clear the $35,000 resistance.
The price is trading above $34,150 and the 100 hourly Simple moving average.
There is a short-term rising channel forming with support near $34,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower toward the $34,000 zone before it attempts a fresh increase.

Bitcoin Price Eyes Fresh Increase

Bitcoin price remained strong above the $33,800 level. BTC formed a base and attempted another increase above the $34,500 resistance zone. It even spiked toward the main barrier at $35,000.

However, there was no upside continuation. The price formed a top near $34,953 and recently corrected lower. There was a move below the $34,600 level. The price declined below the 23.6% Fib retracement level of the upward move from the $33,319 swing low to the $34,953 high.

Bitcoin is now trading above $34,280 and the 100 hourly Simple moving average. There is also a short-term rising channel forming with support near $34,280 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $34,780 level. The next key resistance could be near $34,950 or the channel upper trend line. The main resistance is still near the $35,000 zone. A clear move above the $35,000 resistance might start a decent increase.

Source: BTCUSD on TradingView.com

The next key resistance could be $35,500, above which the price could test $36,200. Any more gains might send BTC toward the $36,500 level in the near term.

Dips In BTC?

If Bitcoin fails to rise above the $34,750 resistance zone, it could start a downside correction. Immediate support on the downside is near the $34,250 level and the 100 hourly Simple moving average.

The next major support is near the $33,950 level or the 61.8% Fib retracement level of the upward move from the $33,319 swing low to the $34,953 high. If there is a move below $33,950, there is a risk of more downsides. In the stated case, the price could decline toward the $33,400 level or even $33,200.

Technical indicators:

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

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

Major Support Levels – $34,280, followed by $33,950.

Major Resistance Levels – $34,750, $34,950, and $35,000.

Crypto and Bitcoin traders should prepare for another sharp leg up, especially if the coin breaks above the $35,750 to $36,000 resistance wall this week. According to an X user, Alex Thorn, the Head of Firmwide Research, the $250 zone between those prices is a crucial liquidation barrier that derivatives traders closely watch.

If bulls have the upper hand and push above the upper limit of the belt, prices could rip higher this week primarily because of the resulting demand in the spot market.

Is Bitcoin Ready For Another Rally?

Thorn compares the current setup evolving in the Bitcoin chart to the events last week, which saw the coin explode. At spot rates, Bitcoin is stable but trending around 2023 highs, with buyers expecting more gains as market sentiment improves.

Though most users are looking at the United States Securities and Exchange Commission (SEC) and the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) as a trigger for the next leg up, Thorn is closely tracking events in the Bitcoin trading scene, specifically, the derivatives market. In the analyst’s assessment, options traders will be the primary drivers of the next bull run. 

Why $36,000 Is A Key Price Level To Watch

Based on the analyst’s assessment, once Bitcoin breaks the $35,750 to $36,000 zone, “options dealers will need to buy $20m in spot BTC for every 1% upside move,” driving prices higher. The reason dealers have to buy or sell Bitcoin at the spot market depends on whether they are “short or long gamma.” 

The objective, when this happens, is to stay “delta neutral.” The decision to buy at the spot market comes after a “gamma squeeze,” which, as Thorn notes, lifted prices last week.

Technically, a gamma squeeze arises when there is a spike in call (or buy) options being purchased, forcing options dealers, most of whom are market makers, to buy the underlying asset, in this case, Bitcoin, to hedge their positions and stay “delta neutral.” Going by trends and the current setup, especially in the daily chart, this could happen.

Looking at other metrics, Thorn noticed a divergence in supply held by speculators and long-term holders, opining that on-chain liquidity could be dwindling. However, on the bright side, the Z-Score ratio of market price to realized price shows that Bitcoin is in a “healthy” position.

As of October 30, Bitcoin is within a bullish breakout formation, with traders bullish. Whether the uptrend remains depends on whether buyers follow through, pushing the coin above recent highs, away from the breakout level at around $32,000.

In a chilling development on Halloween Day, the crypto community was hit with disturbing news as PeckShield, a renowned blockchain security company, revealed a series of rug pulls over the past few hours.

Rug pulls, a form of cryptocurrency scam, involve sudden and deliberate value drops in specific tokens, accompanied by the perpetrators swapping the native tokens for Ethereum (ETH). The meme coins affected by the rug pulls were identified as MEME, MEMEPAD, and TITANX.

Multiple Rug Pulls Shake Crypto Market On Halloween

According to PeckShield’s X (formerly Twitter) post, the MEME token on the Ethereum blockchain experienced a jaw-dropping 100% drop in value. The address 0xBd72…5871 was responsible for swapping a staggering 4,854,740,126,240,000 MEME tokens for approximately 43.68 ETH. 

It is important to note that the rug pull token shared the same name as the legitimate MEME token, adding to the confusion.

Similarly, the MEMEPAD token on Ethereum suffered an identical 100% value drop. The address 0xBd72…5871 conducted a swap of 4,854,740,126,240,000 MEMEPAD tokens for around 44.84 ETH. 

Once again, the fraudulent crypto rug pull shared the same name as the genuine MEMEPAD token, compounding the deceitful nature of the scam.

Additionally, the TITANX token launched two days ago, October 28, on Ethereum experienced a staggering 100% value decline. 

The address 0xBd72…5871 executed a swap of 4,854,740,126,240,000 TITANX tokens for approximately 46 ETH. Mirroring the previous instances, the rug pull token masqueraded under the same name as the legitimate TITANX crypto token.

Fantom Foundation Funds Vanish

In alarming events, the Fantom (FTM) Foundation finds itself entangled in a harrowing tale of fund drains and swift token swaps. PeckShield has reported two significant incidents involving the Fantom Foundation’s finances, leaving the organization with substantial losses.

The first incident occurred on October 17, 2023, when wallets associated with the Fantom Foundation were drained of approximately $7 million worth of cryptocurrencies, equivalent to around 4,500 ETH.

Additionally, on October 26, the Fantom Foundation faced another devastating event. An unidentified entity, the “Fantom Foundation Drainer,” executed a bold move by swapping a staggering 8,087,377.97 DAI for 4,560.52 ETH. 

The gravity of the situation intensified when the Fantom Foundation Drainer swiftly executed another swap on October 30, converting the 4,560.52 ETH back into approximately 8.3 million DAI within a mere 30 minutes. 

The Fantom Foundation is now faced with the daunting task of investigating the breaches, identifying the culprits, and fortifying its security infrastructure to prevent future incidents. 

Despite recent developments, the native token of the Fantom protocol, FTM, is trading at $0.2388, reflecting a 1% increase in the past 24 hours. 

Notably, the token has experienced a substantial surge across various time frames. Presently, it has maintained an upward trend, with gains of over 6% and 30% in the seven-day and fourteen-day periods, respectively. 

Over the year-to-date period, the token has recorded a 5% increase. These figures indicate the token’s positive performance and growth trajectory.

Featured image from Shutterstock, chart from TradingView.com 

Luke Bryoles, a Bitcoin advocate who thinks the world’s most valuable network will save people’s energy, is bullish. On October 30, Bryoles said the coin could rally to $3 million, and all it needs is to be “100X from today.” For this reason, the crypto supporter thinks users engaging with the coin are “still early.”

Is This The BTC Road To $3 Million?

The Bitcoin defender said the coin has “indescribable future value,” especially compared to other centralized finance (CeFi) market metrics like market capitalization. Bitcoin is changing hands at around 2023 highs, trading above the $34,500 level, with traders and coin holders expecting more gains.

The expansion of last week saw the coin extend gains, lifting higher above the $32,000 level recorded in July. Considering the associated trading volume and resulting activity following the BTC jump, more supporters expect another rally in the next few sessions. 

Bitcoin is down 50% from the November 2021 peak, when prices surged to approximately $70,000. However, the coin has more than doubled after dropping to as low as $16,000 in November 2022. At spot rates, BTC has more than 100% from 2022 lows, emerging as “one of the top-performing assets.”

This stellar performance, Bryoles adds, is despite Bitcoin maintaining a market cap of around $500 billion in 2023 while remaining “TINY in comparison to the world’s largest asset classes,” most of which include debt, equities, and gold.

To support the hyperbolic prediction, the supporter pointed to the low Bitcoin adoption level of “0.05% and 0.5%.” An eventual increase to 10% means there will be 100X users, easily driving the coin to $3 million, though even this remains a “misleadingly pessimistic prediction,” according to Bryoles.

At this valuation, the analyst added that the coin’s market cap will be “unfathomable.” Even so, all that is required is “4% of the global adult population to demand 1 million sats to exhaust exchanges.”

Bitcoin Finds Support And Opposition: Will Bulls Win?

Bitcoin remains the world’s most valuable crypto asset. At the same time, the United States Securities and Exchange Commission (SEC) might authorize the first spot Bitcoin Exchange-Traded Fund (ETF). Analysts expect this to drive prices towards the 2021 high at around $69,000. 

Meanwhile, Federal Reserve’s Jerome Powell and SEC’s Gary Gensler think the coin is a “speculative asset.” These sentiments have also been shared by Senator Elizabeth Warren, who once said, “Bitcoin is a scam.”

Bitcoin has been on a winning streak for the better part of October and the multiple surges since then have pushed the price above $35,000 before correcting back downward. Even now, Bitcoin continues to show strength but not everyone is convinced that this winning streak will continue. One of these is a crypto analyst who has maintained that the price of Bitcoin will be headed back downward with an immense drop in price to crown the rally.

Seeing Bitcoin At $8,000

The crypto analyst who goes by holeyprofit first posted their analysis of Bitcoin on TradingView on October 22, right at the start of the uptrend. At this point, the Bitcoin price was still hovering just around $30,000, and the analyst posited that the price of asset would not be able to climb above $31,000.

According to the analyst, the recovery would make investors want to get in the market because they believe the price of BTC would continue to go up. However, this would be a bull trap and a consistent downward trend would follow quickly.

Following the Bitcoin breakout just a few days later, the analyst updated the forecast but maintained that the price would return back downward. An October 25 update from the analyst read: “If this indeed going to be a reversal, the recent action would imply a very strong one.”

This sustained bearish expectation from the analyst prompted short positions which seemed to raised from $34,000 to $35,000. “Moved off the high a bit and so far we have early structural failure of the uptrend,” the post read. “Very possible we drop here and it’s just a pullback (Highly likely even in a bull move this would retrace, which is why the 34/35K short seems a no brainer to try again.”

Doubling Down On Bearish BTC Stance

The analysis from the crypto analyst had received a lot of backlash from Bitcoin bulls but holeyprofit remains unmoved in their resolution. Even after the BTC price continued to rise, the analyst maintains that the crypto is headed for the $8,000 level.

The most recent iteration of the post points out that the crypto is actually at the point where they expect it to start the downtrend. This region around $34,700 failed to hold on Sunday and has since broken back down into the $34,200 level.

Holeyprofit addresses comments that they were trading against the trend saying that they were actually betting on the trend to hold. “This is where my models would suggest would be the best time to exit bull trades or at the very least trail stops to protect again a bear break,” the analyst said.

The Shiba Inu burn initiative continues this week but with a drastic decline in volume. The latest figure which shows a decreased participation from investors could have long-running significant implications for the SHIB price.

SHIB Burn Rate Drops From 7,700% Spike

Over the last 24 hours, Shibburn has shown that the SHIB burn rate has been less than encouraging. The burn tracker revealed a total of 106.72 million tokens burned in the 23-hour period, which is a significant decline of almost 60% from the prior day’s figures.

Now, the interesting thing is not just the fact that the Shiba Inu burn rate plunged but how far it plunged. Coming out of the weekend, the burn tracker had flagged an over 7,700% spike in the burn rate, which makes the current deceleration concerning.

There were only a total of five transactions that burned SHIB in the last 24-hour period, with one wallet “0x75d9” doing the majority of the work at this time. The wallet address alone had 100 million tokens, accounting for around 98% of the total burn figure. At the time of writing, there has not been a single Shiba Inu burn transaction in the last 8 hours amid the slowdown.

However, there has been an uptick on the weekly chart which suggests the current deceleration might be localized to just the 24-hour period. Shibburn shows an increase of 151.4% over the last 7 days, bringing the total burned figure to above 620 million.

Shiba Inu Sustains Rally

Despite the decline in the burn rate, the Shiba Inu price remains resolved to go the other way. The altcoin’s price crossed the $0.000008 mark and bulls have demonstrated a strong hold on the coin. This has resulted in an 11.75% rise in the last day compared to a 9.38% increase in the last week.

Daily volume for the digital asset is down 14.75% though, so it could mean that this rally is destined to be short-lived. However, if the SHIB price can maintain its hold above the 50-day moving average, then it will provide the momentum needed for the rally to continue.

The recovery is also closely linked to the Bitcoin price recovery, which means a drawdown in Bitcoin could also mean a drawdown in the SHIB price. So the Bitcoin price will be important to keep an eye on to figure out SHIB’s next moves.

Presently, SHIB is trading at $0.00000804. with a market cap of $4.74 billion, it is the 19th-largest cryptocurrency in the space.

Bitcoin has shown some impressive strength above the $34,000 mark despite a high amount of profit-taking from short-term holders.

Bitcoin Short-Term Holders Are Selling, While Long-Term Holders Are Still Quiet

As explained by analyst James V. Straten in a new post on X, the short-term holders are currently participating in one of the strongest profit-taking events of the past couple of years.

The “short-term holders” (STHs) here refer to all those Bitcoin investors who have been holding onto their coins since less than 155 days ago. This group comprises one of the two main divisions of the BTC market, with the other being called the “long-term holders” (LTHs).

Statistically, the longer an investor keeps their coins dormant, the less likely they become to sell them at any point. Because of this reason, the STHs are generally the weak-minded hands of the sector, while the LTHs are the strong, persistent holders.

Whenever the sector goes through any significant FUD or FOMO, the STHs budge and participate in at least some amount of selling. The LTHs, on the other hand, usually show little reaction.

Since the Bitcoin price has enjoyed a sharp rally recently that has taken its price above the $34,000 level, the STHs would naturally be selling now. One way to track whether this Bitcoin group is selling their coins can be by tracking the volume that they are transferring to exchanges.

In the context of the current discussion, Straten has decided to choose the version of this indicator that specifically tracks the transactions from investors who are in profit, as profit-taking is generally the behavior of focus during rallies. In contrast, loss transactions play a greater role in price slumps.

Now, here is a chart that shows the trend in the metric for the Bitcoin STHs over the past two years:

As shown in the above graph, the Bitcoin STHs in profit have sent large amounts to these centralized platforms since the latest rally in the asset.

This confirms that these weak hands have been selling recently. As mentioned before, it’s not unusual for such a thing to happen, but the scale of the profit-taking this time around is particularly significant.

From the chart, it’s visible that there have only been a few times in the past couple of years where the STHs in profit have transferred comparable or higher volumes to exchanges. Given this selloff, it’s impressive that Bitcoin has been able to hold on above the $34,000 level during the last few days.

As expected from the LTHs, they haven’t sold much despite the rally.

The metric is currently at its sixth-largest value for this year, but as is clear from the above graph, the scale of this selloff is still not that much in pure terms.

BTC Price

At the time of writing, Bitcoin is trading at around $34,700, up 13% in the past week.