Blockchain

BNB price is still consolidating above the $200 support zone against the US Dollar. It could start a decent increase if there is a close above the $220 resistance.

BNB price is slowly moving higher toward the $220 resistance against the US Dollar.
The price is now trading above $210 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $211.5 on the 4-hour chart of the BNB/USD pair (data source from Binance).
The pair might gain bullish momentum if there is a daily close above $220.

BNB Price Remains In A Range

This past week, BNB price again retested the $200-$202 support zone. The bears made another attempt to clear the key $200 support, but they failed. A low was formed near $203 before the price started a decent increase, like Bitcoin and Ethereum.

There was a move above the $210 and $212 levels. The price tested the main $220 resistance. A high is formed near $219.2 and the price is now consolidating above the 50% Fib retracement level of the upward move from the $203 swing low to the $220 high.

BNB is now trading above $210 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $211.5 on the 4-hour chart of the BNB/USD pair.

Source: BNBUSD on TradingView.com

If there is a fresh increase, the price could face resistance near the $215.5 level. The next resistance sits near the $220 level. A clear move above the $220 zone could send the price further higher. In the stated case, BNB price could test $235. A close above the $235 resistance might set the pace for a larger increase toward the $250 resistance.

More Losses?

If BNB fails to clear the $220 resistance, it could start another decline. Initial support on the downside is near the $211 level and the trend line. The next major support is near the $207 level or the 76.4% Fib retracement level of the upward move from the $203 swing low to the $220 high.

If there is a downside break below the $207 support, the price could drop toward the $202 support. Any more losses could initiate a larger decline toward the $185 level.

Technical Indicators

4-Hours MACD – The MACD for BNB/USD is losing pace in the bearish zone.

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

Major Support Levels – $211, $207, and $202.

Major Resistance Levels – $215, $220, and $222.

The recent price surge of Solana (SOL) encountered a significant roadblock at the $25 mark, which prompted a reversal following a retest in early October. Despite this setback, the market sentiment remained relatively positive, with demand showing resilience at press time. 

SOL traders on higher time scales may find themselves in a state of uncertainty regarding price direction. As of the present moment, SOL has been on a modest 10% upward trajectory, surging from $21.5 to $24.70 over the past few weeks.

This development has left traders and investors pondering the possible outcomes for SOL’s trajectory, leading to discussions about potential bullish or bearish trends, or even a breakout.

Analysts have pointed to encouraging signs within SOL’s price chart, notably the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF), both of which have been exhibiting positive trends. These indicators have shown steady upticks, indicating a commendable recovery in buying pressure and an increase in capital inflows over the past few days. 

Solana’s Positive Indicators Amidst Uncertainty

Market observers have highlighted the significance of a convincing flip of the $25 hurdle into a support level, suggesting potential bullish momentum that could drive the price towards the $27 mark in the near future. However, cautionary notes have been sounded regarding the possibility of a price reversal, given the RSI’s overbought condition and the persistence of the resistance at $25.

Currently, SOL is trading at $24.16 according to CoinGecko, with a 24-hour movement of 0.0%. The seven-day rally, however, stands at an encouraging 9.9%, indicating a degree of price resilience even in the face of these challenges.

Adding to the complexity of SOL’s price dynamics, the cryptocurrency has experienced negative funding rates, despite the recent price rally. This discord between the price surge and the negative sentiment in the market has fueled debates among investors about the sustainability of the current upward momentum.

Discontinuation Of Services By Lido Finance

In a significant development, Lido Finance, a prominent liquid-staking provider, announced its decision to phase out services on the Solana network in the coming months.

As the third-largest protocol on the Solana blockchain and with a presence on multiple chains, including Ethereum, this move has sent shockwaves through the cryptocurrency community.

The announcement caused a notable impact on Solana’s Total Value Locked (TVL), which witnessed a sharp decline of $100 million within a single day following the news.

As SOL grapples with these mixed signals and developments, the immediate outlook for the cryptocurrency remains uncertain. Traders and investors are closely monitoring the upcoming price movements, awaiting further market cues and developments that could potentially sway the balance towards bullish recovery or a prolonged bearish phase. 

While the indicators suggest a potential breakout, the cautionary notes regarding resistance levels and market sentiment continue to linger, creating an air of anticipation and apprehension in the cryptocurrency community.

(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 Meetinghouse

Ethereum price failed to start fresh increase above $1,600 against the US dollar. ETH is now struggling to stay above the $1,550 support zone.

Ethereum extended its decline and tested the $1,550 support zone.
The price is trading just below $1,580 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance near $1,570 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate lower if the bulls fail to protect the $1,550 support.

Ethereum Price Dips Further

Ethereum struggled to settle above $1,650 and started a fresh decline. ETH traded below the $1,620 and $1,600 support levels. There was a short consolidation phase before the price extended its decline, unlike Bitcoin.

There was a move below the $1,575 support and the price tested $1,550. A low is formed near $1,553 and the price is now consolidating losses. There is also a connecting bearish trend line forming with resistance near $1,570 on the hourly chart of ETH/USD.

Ethereum is now trading just below $1,580 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $1,570 level and the trend line. The 23.6% Fib retracement level of the downward move from the $1,669 swing high to the $1,553 low is also just above the trend line.

The first major resistance is near the $1,600 zone or the 50% Fib retracement level of the downward move from the $1,669 swing high to the $1,553 low.

Source: ETHUSD on TradingView.com

A close above the $1,600 resistance might start a decent increase. In the stated case, Ether could rise and recover toward the $1,660 resistance. Any more gains might open the doors for a move toward $1,720.

More Losses in ETH?

If Ethereum fails to clear the $1,570 resistance, it could start another decline. Initial support on the downside is near the $1,550 level.

The next key support is $1,520. A downside break below the $1,520 support might send the price further lower. In the stated case, the price could drop toward the $1,480 level. Any more losses may perhaps send Ether toward the $1,420 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 – $1,550

Major Resistance Level – $1,570

Bitcoin price is consolidating above the $28,000 support. BTC could gain bullish momentum if it clears the $28,550 resistance zone.

Bitcoin started a consolidation phase below the $28,500 level.
The price is trading above $27,800 and the 100 hourly Simple moving average.
There is a short-term contracting triangle forming with resistance near $28,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh increase if there is a clear move above the $28,550 resistance.

Bitcoin Price Aims Fresh Increase

Bitcoin price retreated and trimmed gains from the $30,000 resistance zone. BTC traded below the $29,200 and $28,800 levels to move back into a short-term negative zone.

However, the bulls were active near the $28,000 zone. A low was formed near $28,100 and the price started a consolidation phase. There was a move above the $28,250 level. The price tested the 23.6% Fib retracement level of the downward move from the $30,000 swing high to the $28,100 low.

Bitcoin price is now trading above $28,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $28,550 level. There is also a short-term contracting triangle forming with resistance near $28,500 on the hourly chart of the BTC/USD pair.

The next key resistance could be near $29,000 or the 50% Fib retracement level of the downward move from the $30,000 swing high to the $28,100 low. A clear move above the $29,000 resistance zone could set the pace for a larger increase. The next key resistance could be $29,500.

Source: BTCUSD on TradingView.com

If the bulls remain in action, the next stop above $29,500 could be $30,000. Any more gains might send BTC toward the $30,650 level.

More Losses In BTC?

If Bitcoin fails to rise above the $28,550 resistance zone, it could slide further. Immediate support on the downside is near the $28,350 level and the triangle region.

The next major support is near the $28,000 level. A downside break and close below the $28,000 support might send the price further lower. The next support sits at $27,600 and the 100 hourly Simple moving average.

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 – $28,350, followed by $28,000.

Major Resistance Levels – $28,550, $29,000, and $29,500.

In 2012, a staggering 50,000 Bitcoin (BTC) were stolen from the infamous Silk Road, an illicit dark web marketplace. Over the years, the value of the stolen BTC skyrocketed to $3 billion, making it one of the most significant mysteries in cryptocurrency.

However, nearly a decade later, a critical mistake by the thief led to a breakthrough in the case, allowing the IRS-CI (Internal Revenue Service Criminal Investigation) to crack the puzzle. 

CNBC has obtained exclusive footage that reveals how investigators meticulously connected the dots, ultimately leading to the unmasking of the perpetrator behind the Bitcoin heist.

Silk Road Bitcoin Heist Unraveled

The story begins in Athens, Georgia, an unsuspecting college town familiar with typical misdemeanors. On the night of March 13, 2019, 28-year-old Jimmy Zhong, a local computer expert, made an unusual 911 call to report the theft of hundreds of thousands of dollars’ worth of Bitcoin from his home. 

Per the report, the investigation into the theft from Zhong’s residence initially yielded no suspects. The Athens-Clarke County Police Department, inexperienced in crypto-related cases, struggled to make headway. 

In a quest for answers, Zhong sought the assistance of local private investigator Robin Martinelli. Although not well-versed in cryptocurrencies, Martinelli was determined to crack the case.

Martinelli meticulously examined Zhong’s extensive home surveillance system and stumbled upon a crucial piece of evidence—a slender figure captured in the footage from the night of the crime. 

Little did Zhong know that while reporting his stolen Bitcoin, a team of IRS agents worked tirelessly to solve the 2012 Silk Road hack.

However, the hacker’s identity remained concealed until a tiny slip-up occurred. In September 2019, the hacker mistakenly transferred around $800 worth of BTC to a cryptocurrency exchange that adhered to established banking regulations, including “know your customer” procedures.

To the investigators’ surprise, the account used for the transaction was registered in Jimmy Zhong’s name, linking him to the stolen Silk Road funds. The IRS contacted the Athens-Clarke County Police Department, seeking collaboration to build a solid case against Zhong.

United by a shared objective, Lt. Jody Thompson, IRS-CI special agent Trevor McAleenan, and Shaun MaGruder, CEO of cyber intelligence company BlockTrace, formed a team. 

Armed with evidence, they obtained a federal search warrant for Zhong’s residence. On November 9, 2021, a large team of officers raided Zhong’s home, delivering the shocking news that he was the prime suspect.

From Creator To Thief?

Investigations revealed that Zhong, an early coder allegedly involved in the development of Bitcoin since its inception in 2009, had played a role in perfecting the technology. 

In an ironic twist, a hacker involved in the creation of Bitcoin had transformed into one of the most prominent BTC thieves in history. Zhong was charged with wire fraud, pleaded guilty, and received a sentence of one year and a day in federal prison, starting on July 14, 2023.

Zhong could not retain the illicit funds despite his immense fortune in stolen BTC. The US government seized the assets, initiating a process for victims of the Silk Road hack to reclaim their lost Bitcoin. 

However, no claimants came forward, and the government sold the seized Bitcoin, with the proceeds likely to be shared with the Athens-Clarke County Police Department as a token of appreciation for their assistance.

In his statement to the judge, Zhong admitted that the stolen Bitcoin had made him feel important, but ultimately, his actions had only benefited the government financially.

While the original crime of the Bitcoin theft from Zhong’s Athens residence remains unsolved, the arrest and conviction of Zhong have brought closure to one of the most significant cryptocurrency crimes of our time.

Featured image from Shutterstock, chart from TradingView.com 

Two Fantom Foundation wallets on Ethereum and the Fantom Network have fallen victim to a phishing attack, losing over $650,000, according to reports from CertiK, a blockchain security firm. Another report by “Spreakaway” on X alleges that one of Fantom’s team members also lost $3.4 million.

Fantom Foundation Falls Victim To Phishing Attack

Fantom Foundation is a non-profit organization dedicated to supporting the growth and development of the Fantom ecosystem. On the other hand, Fantom is a scalable, layer-1 blockchain that is compatible with Ethereum. Like the world’s most valuable network, the platform supports the deployment of smart contracts. For clarity, Fantom’s network was not hacked; the foundation’s wallets were compromised.

According to CertiK, the Fantom Foundation lost $470,000 on Fantom and at least $187,000 on Ethereum. Following the attack, Etherscan data show that the scammers consolidated funds into one account, holding at least $7 million of various coins. The address has already been marked and identified as a facilitator of multiple phishing campaigns impacting crypto and decentralized finance (DeFi) projects. 

Reports on Reddit show that Fantom Foundation fell victim to a “zero day” exploit on Chrome, a web browser, resulting in the loss of hundreds of thousands worth of FTM. In a screenshot of a Telegram conversation said to have been shared by a Fantom admin, the foundation acknowledged that “some” of their wallets were “drained.” They are actively tracking the movement of stolen funds. 

Zero Day Exploit, FTM Sinks Even Lower

 A zero-day exploit is a vulnerability unknown to the developer or its tech team, who might be able to fix it. Because the flaw isn’t known to the team, the threat actor can exploit it until it is patched. This is why zero-day exploits can be consequential, especially for DeFi protocols whose infrastructure relies on flawed software.

In the same screenshot shared on Reddit, a representative of Fantom Foundation said they didn’t update their browser to the latest version. The latest Chrome browser update, version 118.0.5993.70, was released on October 11.

Following this news, FTM fell roughly 5% and is now rocking close to multi-month lows. If bears press on, the coin may drop below 2022 lows.

As such, it will reverse all gains made in the first half of 2023. At this year’s peaks, FTM prices rose to as high as $0.65 in February 2023 before contracting to spot rates. The coin is trading at approximately $0.17 and under intense selling pressure.

As the crypto market suffered major losses due to the bear season, meme coins were not left out. These tokens which are often created in line with memes on the internet saw their cumulative market cap drop by $3.2 billion in 2023. This decline has paved the way for possibly buying these highly popular tokens at what could be considered a discount.

Dogecoin (DOGE): King Of The Meme Coins

Dogecoin (DOGE) has managed to retain its title as the king of the meme coins over the years but that has not helped the altcoin to dodge the bloodbath. Despite starting out the year 2023 strong and trading close to the $0.1 level, it has succumbed to the seemingly never-ending bear pressure and fallen around 50% since then.

Dogecoin is currently trading at one of its lowest points since the year began, which could signal a prime time for purchasing the meme coin. According to data from Messari, DOGE’s price is currently over 91% lower than its all-time high price of $0.738. This means that a return to its all-time high in a bull market would be an almost 10x return on investment from its current $0.059 level.

Shiba Inu (SHIB): The DOGE Killer

When Shiba Inu first came out in 2020 as an alleged ‘Dogecoin killer’, crypto investors did not take it seriously. It wasn’t until it mounted one of the most impressive rallies of 2021 that investors saw its potential. Eventually, it grew to become the second-largest crypto among the meme coins, clocking an over $10 billion market cap at one point.

However, just like its biggest competitor Dogecoin, Shiba Inu has been subject to unfavorable conditions which have seen its price decline rapidly. It is almost 92% below its October 2021 all-time high of $0.0000869. So just like Dogecoin, a return to its all-time high price will also see SHIB return almost 10x on its current price of $0.00000706.

SHIB also remains a fierce competition for Dogecoin after the team released their very own Layer 2 blockchain called Shibarium. This blockchain, built atop the Ethereum network, has put it in the league of large players such as Polygon (MATIC), Arbitrum (ARB), and Optimism (OP).

Pepe Coin (PEPE): The New Kid On The Block

Pepe Coin (PEPE) is currently only a few months old but it has already shown that it deserves to be listed among the top meme coins. PEPE’s run-up to over $1.4 billion in a bear market was nothing short of historical. But even this new kid on the block could not completely shake off the bears.

PEPE’s market cap has fallen by over $1.2 billion since it hit its all-time high in May, which could present a buying opportunity. Now, given PEPE’s performance in a bear market, it is expected to rally even more in a bull market.

Since it is currently 84% below its all-time high price, a return to that level from here would mean an 8x return. The coin also commands a significant following with 520,000 followers on Twitter, making it one of the most followed meme coins in the space.

China developers are active and willing to build on leading blockchain platforms if statistics from Solana Hyperdrive Hackathon submission details are anything to go by. In an X post on October 17, Matty Taylor, the Head of Growth at the Solana Foundation, said there were far more developers from China who submitted applications, willing to participate in the Solana Hyperdrive hackathon than from the United States. 

Solana Attracting Chinese Developers

The hackathon has a prize pool of $1 million, and all submissions had to be submitted by October 15. It is an online event aiming to “nurture and expand” the Solana ecosystem. 

Developers from 68 countries submitted, with the highest numbers coming from China and Vietnam. The rest were mainly from the United States, India, Mexico, Turkey, and Germany.

That notable participation from Chinese developers can be a massive boost for Solana, indicating that the blockchain could be popular in the Asian economic powerhouse. China remains pro-blockchain and believes that the technology can give them an edge and even improve efficiency in some critical sectors, like agriculture, healthcare, governance, and finance, that the country seeks to enhance gradually. 

However, China has banned crypto trading and mining, citing the “need to go green, protect consumers, and ensure financial stability.” The Chinese central bank, PBoC, said cryptocurrencies could pose a risk to the country’s financial system.

Unlike Ethereum, Solana permits fast transaction processing and is relatively scalable with decent activity. Although the project suffered following the collapse of FTX in November 2022, there has been a revival in price and on-chain activity.

The Revival, Will SOL Breach $30?

To illustrate, non-fungible token (NFT) trading activity on Solana has steadily risen over the past few months. While there was a spike, the network didn’t halt, as in previous instances, especially in 2022. 

Instead, the high reliability seems to have inspired activity, directly helping revive SOL prices that collapsed by over 90%, worsened by news that Sam Bankman-Fried and Alameda Research allegedly embezzled customer funds. FTX had invested in Solana and has a considerable share of SOL, which will be liquidated and reimbursed to impacted clients.

At spot rates, SOL is up 36% from September 2023 lows and overly firm. Looking at the candlestick arrangement in the daily chart, SOL is trading at October and 2023 highs and could break higher if bulls press on. The October 16 bull bar is wide-ranging, has marked trading volumes, and could anchor the next leg towards July 2023 highs of around $32.

Recently, Uniswap, a prominent decentralized exchange, made headlines by introducing a 0.15% swap fee on specific tokens. While generating buzz and curiosity, this decision has raised several questions regarding its impact on traders.

Decentralized exchanges (DEX) facilitate peer-to-peer trading without intermediaries. The absence of centralized entities has advantages but also presents challenges, especially regarding fee structures.

Uniswap’s latest update to alter its fee structure is a significant shift with potential implications for its large user base.

Uniswap Fee Structure: Analyzing The Financial Impact

According to data shared by Colin Wu, a blockchain-focused reporter, the daily fees from this change on Uniswap V3 could range between $388,000 and $444,000.

Providing deeper insight into the platform’s operations, Wu mentions that approximately 35% to 40% of the entire transaction volume on Uniswap occurs on the front end.

These figures, while substantial, are just the tip of the iceberg. Specific tokens targeted for this new fee include popular tokens such as ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD.

However, according to the Chinese reporter, this fee will only apply when these tokens are traded through Uniswap Labs interfaces on the mainnet and its supported Layer 2 networks.

Currently, about 35%-40% of the transaction volume in Uniswap is completed through front end, H/T @1kbeetlejuice. Ethereum Uniswap V3 in the past 24h is $810m, excluding major stablecoin pairs, which is $740m, the daily fees charged by V3 may be $388k-444k.… https://t.co/EAeV6xwQHX

— Wu Blockchain (@WuBlockchain) October 17, 2023

Understanding The Broader Context

While the announcement sparked curiosity, it also led to some confusion concerning the fees. Uniswap’s help center, in response, clarified that these newly implemented fees stand apart from the Uniswap Protocol fee switch, which is determined through votes by Uniswap’s governance mechanism.

Despite the explanation by the DEX’s team, the genesis of this new fee introduction remains ambiguous to many within the community.

In response to Wu’s initial post, several individuals opposed the update, with a particular user questioning the rationale behind the 0.15% fee, the considerations leading to this specific percentage, and the selection of particular tokens for the fee imposition.

According to data from Coinmarketcap, Uniswap has reported a significant trading volume of $518.3 million in the past 24 hours, capturing 18.3% of the market share within the decentralized exchange sector.

Meanwhile, Uniswap native token UNI has witnessed a substantial decline. The asset has dipped by more than 10% over the past two weeks and showed a continuous drop of 5.5% in the last 24 hours. Currently, UNI is trading for $3.8.

Featured image from Bitcoin-Bude, Chart from TradingView

CryptoQuant has revealed in its latest report that the Bitcoin market cap could rise by as much as $1 trillion after launching the spot ETFs.

Bitcoin Could See A 165% Rise When The Spot ETFs Launch

Yesterday, fake news of the approved iShares Bitcoin spot ETF took the sector by storm, as all cryptocurrencies observed sharp rallies. At the peak of this surge, BTC had approached the $30,000 level.

However, when the market realized the truth about the announcement, the asset quickly retraced to the levels it was at before the rally. While the gains were only brief, the rally nonetheless provided a glimpse into the strong reaction that the market could see to the launch of a real ETF.

This was just one spot ETF; however, several others are waiting in line to be approved. How would the market look like when all these ETFs have launched? In its new report, the on-chain analytics firm CryptoQuant has discussed precisely that.

The above table shows information about the various companies waiting to be approved for the Bitcoin spot ETF, including the total size of their assets under management (AUM).

“Although these ETFs are not expected to be approved this year, the probability that they will be approved by the final deadline (March 2024) has been growing as a result of favorable court rulings for Grayscale (GBTC Fund) and XRP in their respective legal fight against the SEC,” says the firm.

In total, these companies’ AUM are around $15.6 trillion. If they put just 1% of this amount towards BTC, it would mean inflows of a whopping $155 billion for the asset. “To put it in context, these amounts represent almost a third of the current market capitalization of Bitcoin,” notes CryptoQuant.

Now, how this capital inflow could affect the market cap of BTC isn’t exactly simple to say. Generally, the market cap increases by more than just the raw capital entering the cryptocurrency.

The firm has used the “realized cap” metric to assess this relationship. The realized cap is a capitalization method for BTC that calculates its total value by assuming that the value of each coin is the same as the price at which it was last transacted on the blockchain.

The realized cap can be imagined as the total investment made by the investors, accounting for the prices at which each bought their coins. The chart below shows how this realized cap has compared with the market over the years.

The graph shows that the market cap and realized cap usually have noticeably different growth rates, as they have always followed pretty different paths.

CryptoQuant has calculated the ratio between the annual growths of the two caps and has found that for most of the asset’s history, the market cap has grown by 3 to 6 times faster than the realized cap.

If the realized cap grows by $155 billion when the spot ETFs get approved and the asset managers allot 1% of their AUM to Bitcoin, the market cap could grow by between $450 and $900 billion.

The report notes this figure implies “the market cap would increase between 82% and 165% from the current level and that Bitcoin price could reach between $50K and $73K as a result of these inflows of fresh money.”

BTC Price

Bitcoin has enjoyed some uptrend over the past few days as the asset has now climbed above the $28,500 level.