Blockchain

During the Messari Mainnet event, the company behind the internet browser Brave announced a partnership with the Electric Coin Co. (ECC) and the Filecoin Foundation. These entities are the leading developers of the Zcash (ZEC) protocol and Filecoin (FIL).

Brave Brings Zcash Tools Into Web3

According to an official announcement, the cooperation aims to “improve” privacy for Brave’s Web3 wallet. This feature allows users to transact with cryptocurrencies, including the Basic Attention Token (BAT), which people can earn by interacting with websites.

Zcash’s native token, ZEC, will become the latest to integrate with the wallet. The company behind Brave claims that this cooperation underscores its “commitment” to provide privacy tools for its users.

The integration will allow users to transact privately or publicly with other users and “have greater control” over their Web3 activity. Zooko Wilcox, CEO of the Electric Coin Co., stated:

I’m excited about integrating Zcash into the Brave web browser because privacy should be normal. The Brave browser is a tool that tens of millions of people are using for everyday communication, web browsing, shopping, and other activities. This gives them access to money that respects their security and consent. I’m thrilled for this launch — and what’s to come — as a result of this partnership with Brave and Filecoin Foundation.

Since its inception, Brave has provided its users with more control over their data and activity. The company behind the browsers has been increasing its privacy features recently by launching easy ways to delete cookies, profiles, and any traces of interaction with a website.

In that sense, Yan Zhu from Brave added:

This partnership with like-minded organizations reinforces Brave’s mission for a more private and user-first Web. Not only do we hope to make it simple to use ZEC for private transactions, but we also aim to maximize privacy during key moments of purchase or exchange.

More Privacy, More Features

In addition to the above, the partners hinted at launching a new privacy-based tool to send and receive messages and multimedia files supported by the Zcash protocol. The content will be stored using the InterPlanetary File System (IPFS), which supports Filecoin.

Marta Belcher, president of the Filecoin Foundation, said:

We’re thrilled to be a part of this important project. We believe cryptocurrency can be the foundation for a better Internet — an alternative to big tech that puts people in control of their own data, protects user privacy and security, and permanently preserves humanity’s most important information.

As of this writing, neither ZEC nor BAT has seen any upside driven by the announcement. However, Brave users will likely benefit long-term by leveraging a privacy-oriented tool and an alternative to Google and other big tech companies seemingly growing more hungry for people’s data.

Cover image from Unsplash, chart from Tradingview

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has faced a setback in its recent gains after failing to consolidate above the $27,000 level. With no positive macro news to drive BTC beyond upper resistance lines, industry experts are looking for a chart analysis that suggests BTC may be on the verge of a significant move toward $20,000. 

This potential lower price point could serve as a new higher low in Bitcoin’s 1-week chart, reminiscent of its trajectory in 2019 before the halving event.

Bitcoin Chart Flashing Red

Crypto analyst Rekt Capital recently shared a chart on X (formerly Twitter) outlining Bitcoin’s potential downward trajectory. According to Rekt Capital’s analysis, Bitcoin may revisit the $20,000 mark, establishing a new higher low on its 1-week chart, mirroring the price movement observed in 2019 before the halving event.

Rekt Capital highlights the significance of a revisit to the Macro Higher Low in the current cycle, which could occur in early 2024, coinciding with the halving year. In the four-year cycle, this would signify that the downside wick of Candle 4 would form a Macro Higher Low relative to Candle 3, as seen in another chart shared by Rekt below. 

While some argue that another drop into the Macro Higher Low is unlikely due to the COVID-19 crash in March 2020 as a black swan event, Rekt Capital emphasizes that the magnitude of a potential upcoming drop may differ considerably. 

The COVID-19 crash resulted in a 72% drop from the 2019 local top to the March 2020 higher low. However, if the 2023 local top were around $31,000, it would only require a 37% drop to revisit the higher low. 

While a repeat of the -72% crash is unlikely, Rekt Capital suggests that Bitcoin could retrace -37% without needing another black swan event.

With Bitcoin being 210 days away from halving in April 2024, Rekt Capital parallels the 2019 cycle, during which BTC experienced a relief rally before forming another lower high. 

All around, Bitcoin appears to be experiencing a similar relief rally. Rekt Capital suggests that Bitcoin may not need a drastic crash or another black swan event over the following months to reach its Macro Higher Low in this cycle but rather a retracement of approximately 27% from current prices.

Currently, the largest cryptocurrency in the market is trading at $26,600. Despite experiencing a retracement below the $27,000 level, Bitcoin has achieved a slight profit of 0.7% within the 24-hour. 

As highlighted by Rekt Capital, it remains uncertain whether Bitcoin will follow the path observed in 2019. However, what is evident is that the BTC market is exhibiting signs of stagnation, with a potential price breakout looming on either side. 

Featured image from iStock, chart from TradingView.com 

After the XRP token recorded an all-time high in daily trading volumes for crypto exchanges in the US, the Ripple ecosystem has achieved a new milestone, successfully hitting over 82 million registered ledgers on its XRP Ledger. 

XRP Ledger Surpasses 82 Million Ledgers

XRP Ledger, a decentralized public blockchain backing the XRP token has gained recognition for its unique consensus algorithm and incorporation of the XLS-20 protocol. The leading cryptographic ledger reported that it had closed approximately 82,035,421 registered ledgers on its blockchain. 

This achievement follows another milestone in August where XRPL successfully locked in 81 million ledgers. The blockchain ledger’s rapid growth has been a significant achievement for the ecosystem, emphasizing XRPL’s commitment to decentralization and focus on speed, scalability, and security. 

A blockchain researcher, Collin Brown announced details of XRPL’s recent achievements in an X (formerly Twitter) post on Thursday, September 21. Brown was enthusiastic about the current development in the XRP ecosystem and even suggested that the XRP blockchain ledger is on its way to becoming an adversary to crypto giants in the space like Bitcoin and Ethereum. 

“With over 82 million ledgers successfully closed, the XRPL continues to make history. The XRPL’s growth in NFTs positions it as a STRONG competitor to Ethereum, paving the way for increased XRP adoption!” Brown said. 

XLS-20 Feature Drive Crypto Adoption And Growth For XRPL

The XRP Ledger has long been celebrated for its advanced scalability and decentralization features. However, with the introduction of the XLS-20 feature in 2022, XRPL has emerged as a force to be reckoned with in the NFT ecosystem. 

The XLS-20 protocol delivers new features to the XRP ledger. According to Brown, XLS-20 is integrated with special features like minting and burning, automated royalties, DEX integration, and traditional NFTs. 

XRPL has also recorded over 1.9 million NFTs minted on the ledger and almost 30,000 user accounts own 1.6 million of the minted NFTs. Additionally, approximately $12.8 million worth of NFT assets have been sold in one-step transactions on the blockchain. 

While XRPL’s foray into the NFT sector has sparked major interest among creators and collectors in the space, the XRPL ecosystem has also reported upcoming upgrades in its layer 2 smart contract platform, Evernode. 

According to reports, the Evernode network will be featuring new upgrades that improve the reliability and sustainability of the platform, while also furthering crypto and NFT adoption and innovation in the space.

The Bitcoin bull run may not start properly until this on-chain ratio reverses the trajectory it is currently going in.

Bitcoin RHODL Ratio Is Currently Showing A “Dead Cat Bounce”

As analyst James V. Straten explained in a post on X, the BTC RHODL ratio may contain hints about when the cryptocurrency’s next bull run could be coming.

The “Realized HODL ratio” (RHODL) here refers to an indicator that keeps track of the ratio between the value held by the investors holding since 6 months and 3 years ago and that held by the 1 day to 3 months old holders.

These former investors make up a segment of the larger “long-term holder” (LTH) group. More specifically, this part of the group may be termed the “single cycle LTHs” since their holding range is inside the span of a BTC cycle (typically four years).

The other investors, those holding since 1 day and 3 months ago, represent the youngest members of the “short-term holder” (STH) cohort. The entire STH group has its cutoff at the six-month mark, where the LTH group naturally begins.

As the RHODL ratio compares the value held by these two cohorts, its trend can provide hints about how the rotation of capital occurs in the market.

Now, here is a chart that shows the trend in the Bitcoin RHODL ratio over the history of the cryptocurrency:

The above graph shows that the Bitcoin RHODL ratio has followed a similar pattern in each Bitcoin cycle. The metric always hits a bottom during bull run tops and starts heading up.

This increase represents a rotation of capital towards the LTHs, as the bear market setting in leads to the STHs giving up on the asset and exiting, while the persistent holders left behind accumulate more at the lower prices.

This accumulation from the LTHs continues until the bear market bottom. The graph shows that the RHODL ratio has always seen its top coincide with the cyclical bottoms in the price.

Due to the relief rally following the worst bear market stage, STHs return to the market and grow their holdings, while some LTHs sell their coins to take their profits.

In the graph, Straten has highlighted that the indicator has been sharply going down during the past few months, just like it did in the buildup to past bull markets.

As noted by the circles, though, the indicator generally experiences a sort of dead cat bounce on the way down. The indicator has recently turned towards the upside, potentially implying that this same dead cat bounce pattern is again forming.

Historically, true bull markets have followed when the Bitcoin RHODL ratio has again reversed its direction following this pattern and has resumed its downtrend. A similar reversal may also be the one to watch for this time, as it could lead towards the next bull run.

BTC Price

Bitcoin has continued to move sideways since the drop yesterday as its price continues to trade around the $26,600 mark.

The price surge of ImmutableX (IMX) came as a surprise to the market, as the altcoin took the lead in the cryptocurrency market rally on Friday. The alternative cryptocurrency reached its highest point in 45 days and successfully transformed several resistance levels into stable support levels.

IMX reached a peak of $0.77, marking a 33% increase from its starting price. Nevertheless, this upward momentum couldn’t be maintained, and there’s now a potential threat to the breakout from a descending resistance line for IMX.

The notable surge in the price of IMX can be attributed in part to the implementation of the IMX-Korean won trading pair on Upbit, a cryptocurrency exchange based in South Korea.

Significant Boost For ImmutableX

The inclusion of this listing on Upbit resulted in a significant boost, accounting for over 35% of the global trading activity for IMX. This allowed direct trading with the Korean won and increased South Korean trader interest in BW.com.

ImmutableX’s $IMX token skyrocketed over 30% following the listing of IMX-Korean won pair on South Korea’s leading exchange @Official_Upbit.

The newly listed IMX/KRW pair on Upbit exchange accounted for nearly 20% of the global trading volume.. pic.twitter.com/UcZhiTT7MA

— GeckoTerminal (@GeckoTerminal) September 21, 2023

According to data source Coingecko, the IMX-Korean won (IMX/KRW) pair listed on South Korea’s Upbit exchange accounted for roughly 20% of worldwide activity, followed by Binance’s IMX-tether (IMX/USDT) pair, which contributed 7% to total volume.

A number of Upbit wallets absorbed millions of dollars’ worth of IMX, according to the Web3 data research application Lookonchain, even though the precise reasons driving up the price are yet unknown.

Whales are essential to the dynamics of the market since they own about 87% of the circulating supply of IMX. Their presence can cause losses for other investors, and their activities have a major impact on the market.

The number of significant transactions (those over $100,000) has been quite modest in recent weeks, averaging about $7 million, with sporadic little rises occurring every few days. Whale trades barely reached $22.6 million in the last 24 hours.

At the time of writing, IMX was trading at $0.66, up 33% in the last seven days, data from crypto market tracker Coingecko shows.

IMX Derivatives Short-Selling

Meanwhile, according to the data provided by CoinGlass, there is evidence of traders actively engaging in short selling of IMX derivatives. This is evident from the notable increase in negative funding rates observed on perpetual swaps.

Despite the recent surge, the native token of ImmutableX remains far below its all-time highs recorded during the crypto market bull run at the end of last year. IMX hit an all-time high of more than $9.30 at that time.

Although the price of the IMX has demonstrated considerable strength, investors should be vigilant for indications of sustained momentum above important support levels and be wary of any potential pullbacks.

While the positive signs suggest IMX could remain a market challenger, traders should always put risk management first.

(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

It’s been almost a year since the collapse of FTX, but the failed crypto exchange continues to be surrounded by drama. In a flurry of moves to claw back funds for investors, FTX lawyers are now going after employees of Salameda Ltd. 

According to court filings, the employees of Salameda – a Hong Kong-incorporated entity allegedly controlled by former FTX CEO Bankman-Fried, named as defendants were prioritized over other customers as many raced to withdraw their assets from the exchange before its imminent crash on November 11, 2022. 

FTX Wants $150 Million Back

The filing alleges Michael Burgess, Matthew Burgess, Kevin Nguyen, and Darren Wong, all former employees of Salameda, fraudulently withdrew assets in their FTX accounts just hours before bankruptcy. Court filings suggest that while the defendants worked for Salameda, they were effectively employees of the FTX Group, as they worked in senior-level roles at FTX Group companies. 

Before its imminent crash, FTX had been under public scrutiny as many investors had concerns about the exchange’s liquidity and solvency. This prompted many FTX.com and FTX US customers to make withdrawal requests leading up to billions of dollars. 

As the backlog grew, many had to wait for days for their withdrawals to be processed, with some not receiving their money before the exchange filed for bankruptcy. However, court documents show that the defendants received the benefit of withdrawals ahead of other customers due to their connections to FTX Group executives. 

Personal messages show one of the defendants, Matthew Burgess, urging other employees to expedite a pending withdrawal request for $73 million from one of Michael Burgess’s accounts on the exchange.

The defendants were able to withdraw $157.3 million based on pricing as of August 31, 2023, with the majority of those coming withdrawn on or after November 7, 2022. FTX attorneys are now demanding the full amount be returned, arguing that the funds were improperly transferred to the defendants without the required procedures being followed.

Trying To Recover

Since filing for bankruptcy in November 2022, FTX has filed several lawsuits hoping to claw back money to pay some of its investors and customers. The exchange’s attorneys filed a similar case in July, as it went after executives of its European subsidiary in a bid to recover $323 million. 

Lawyers recently went after Sam Bankman-Fried’s parents, accusing them of misappropriating funds from the exchange while it was still in operation. However, the parents, both law professors at Stanford Law School, dismissed the claims as completely false. Sam Bankman-Fried is set to be tried in court starting on October 3 for eight charges brought against him. 

In an environment of soaring interest rates and economic unpredictability, Bitcoin and the broader crypto market face increased headwinds. The shift in the financial landscape was recently underscored by the Benchmark 10-year US Treasury yield, which hit a 16-year high this Thursday.

Longest Yield Curve Inversion Ever

Historically, an inverted yield curve, where short-term yields are higher than long-term ones, has been a harbinger of economic downturns. Notably, the 10-Year minus the 3-Month Treasury Yield curve has been inverted for a record 217 trading days. Past data indicates that the longer the delay between the inversion and the start of a recession, the more severe the recession is likely to be.

Joe Consorti, Market Analyst at The Bitcoin Layer, underscored this concern, remarking on Twitter: “The yield curve is re-steepening at breakneck speed. Up by 10 bps or more today across the curve. Do you know what happens when the yield curve steepens, every single time? Hint: not economic expansion.”

The Fed’s recent signals and policy stance have taken the financial world by storm. Charlie Bilello, Chief Market Strategist at Creative Planning, noted, “The 10-Year Treasury Yield moved up to 4.49% today, highest since October 2007. The Real 10-Year Yield (adjusted for expected inflation) of 2.11% is now at the highest level since March 2009.” Bilello also pointed out the significant reduction in the Fed’s balance sheet, which is currently “over 10% below its April 2022 peak.”

The two largest drawdowns over the last 20 years were between December 2008 and February 2009 with 18.2% (balance sheet hit a new high in Jan 2010), and from January 2015 to August 2019 with -16.7% (balance sheet hit a new high in March 2020).

The rise in the 10-Year Treasury Yield was reiterated by the analysts from “The Kobeissi Letter,” who stated: “BREAKING: 10-Year Note Yield officially hits our 4.50% target… The 10-Year Note Yield is up an incredible 20 basis points in less than 24 hours… With supply side inflation out of control and oil prices back to $90+, the Fed has no choice. Higher for longer is back.”

The Federal Reserve’s Stand

During Wednesday’s FOMC meeting, the US central bank and chairman Jerome Powell have made clear its intentions, signaling the potential for an additional rate hike this year and forecasting fewer cuts next year. It now forecasts half a percentage point of rate cuts in 2024. Prior, the dot plot showed cut rates by a full percentage point next year.

This “higher for longer” strategy seems to diverge from the market’s prior expectations, despite three months of seemingly positive inflation data. Moreover, Powell conveyed confidence in the US. economy, emphasizing the need to ensure interest rates are adjusted correctly to achieve the central bank’s 2% inflation target.

However, the market remains uncertain, with the CME Group’s FedWatch Tool indicating only a 32% chance of another rate hike in November and a 45% likelihood by December.

Implications For Bitcoin And Crypto

Risk assets, including Bitcoin and other cryptocurrencies, have historically been sensitive to increases in the 10-Year Treasury Yield. Charles Edwards, founder of Capriole Investments, highlighted the challenges for the Bitcoin and crypto sector:

The Fed wants more unemployment. The job market is still too strong. They’ve raised the expected 2024 rates as a result and the 10YR has broken out to new decade highs. As long as the 10YR is breaking upwards like this, risk assets are going to see further headwinds.

Historically, rising yields are indicative of an expectation of higher interest rates, which increase the cost of borrowing. This scenario often leads to a reduction in speculative investments, with investors favoring more stable, yield-bearing assets over riskier options such as Bitcoin and crypto.

Another problem for the market is the “higher for longer” approach and the massive reduction of the Fed’s balance sheet. Risk assets like Bitcoin are traditionally a “sponge” for high liquidity, but when this dries up in the financial market, they usually suffer the most.

In addition, concerns about a possible recession will continue to rise due to the inverted yield curve. Remarkably, Bitcoin and crypto have never traded in a recession, the reaction is uncertain.

At press time, Bitcoin traded at $26,655.

XRP, a cryptocurrency Ripple Labs uses to facilitate transactions on its network, has been making headlines recently for all the right reasons. The digital asset has emerged as one of the top performers in the crypto market in recent months, largely owing to Ripple’s significant legal victory against the US Securities and Exchange Commission in July. This victory marked a turning point in the ongoing legal battle that has been unfolding since December 2020.

As XRP enthusiasts eagerly anticipate Ripple’s “Proper Party” scheduled for September 29, the crypto’s price remains a point of interest for investors and traders. The community of XRP holders is curious as to whether the company would reveal anything significant regarding the SEC litigation at the party.

Currently, XRP is trading comfortably above the critical support level of $0.5, indicating the resilience of its bullish momentum.

XRP’s Current Price Position

As of the latest data from CoinGecko, XRP is valued at $0.508916. While the past 24 hours have seen a minor decline of 0.6%, the cryptocurrency has exhibited a seven-day gain of 1.3%. These figures suggest that XRP remains firmly within the spotlight, even amidst the recent market turbulence caused by the Federal Reserve’s decision to pause the interest rate hike for September.

However, it’s not all smooth sailing for XRP. As shown in a recent price analysis, the coin faces a significant hurdle in the form of the 200-day Exponential Moving Average (EMA). For more than a month, this EMA has acted as a formidable barrier, thwarting XRP’s attempts to break through to higher price levels. The consistent rejections at this line have solidified its reputation as a formidable resistance zone for XRP.

For XRP bulls, the key focus now is to maintain the critical support level at $0.5. Failure to do so could expose the cryptocurrency to further downside pressure and the risk of a bear flag breakout. In such a scenario, XRP might be compelled to retest the $0.4 and $0.3 price levels, respectively.

Anticipating Bullish Momentum

If support at $0.5 holds steady and bulls manage to break through the confluence resistance at $0.5239, XRP could be poised for substantial gains. Enthusiasts and investors are eyeing a potential uptrend that could lead XRP to the $0.85 and $1 price levels in the near future.

XRP’s recent performance and its legal victory against the SEC have undoubtedly rejuvenated the cryptocurrency’s prospects. While hurdles remain, the XRP community hopes the upcoming celebration and sustained market support will propel the digital asset to new heights in the crypto landscape.

(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 iStock

SkyBridge Capital founder Anthony Scaramucci recently shared positive views on the flagship cryptocurrency, Bitcoin, which could provide some comfort to BTC holders as the bear market lingers. 

Scaramucci Says HODL Bitcoin

According to a report by Business Insider, the investment firm founder advised Bitcoin holders not to sell their BTC as they already made it through the winter. Interestingly, he mentioned that the worst of the bear market is over. Despite this being a bold assertion, there is evidence to suggest that he might be right.

There is the likelihood that Bitcoin has bottomed as the co-founder of Delphi Digital, Kevin Kelly once noted. Following past trends, BTC usually bottoms 18 months before the Bitcoin Halving (with the next coming in April 2024). As such, the worst part of this current market cycle might truly be over.

Scaramucci made this known while speaking at the Messari Mainnet conference in New York. He stated that he was still bullish on Bitcoin despite the cryptocurrency trading far below the highs it reached in 2021. Bitcoin peaked at $68,789 in November 2021 but has since declined by about 61%.

Meanwhile, he has singled out Wall Street’s adoption of BTC as one of the factors that will drive the cryptocurrency’s mainstream adoption. Wall Street giants, like the biggest asset manager, BlackRock, have applied to offer a Spot Bitcoin ETF, and he believes that once these firms have that in their “arsenal,” the Bitcoin market is going to widen as it is expected that institutional investors will be looking to invest in it.

Scaramucci also likened the potential growth of BTC to the Internet boom, as he stated that the younger generation would be “mainstreaming Bitcoin” the same way his generation mainstreamed the Internet (most likely about when there was massive growth in Internet adoption). 

Factors That Could Affect BTC’s Growth

Despite his optimism about Bitcoin’s future, Scaramucci noted certain macro factors that could hamper Bitcoin’s growth. These factors include the higher interest rates, negative sentiment around crypto, and the SEC Chief Gary Gensler with Gensler recently stating that there are so many “hucksters” and “fraudsters” in the crypto space.

However, his opinion on the higher interest rates seems to contrast with that of Crypto analyst Nicholas Merten, who stated that the Fed isn’t doing enough (regarding the interest rate hike) to keep inflation down. According to him, re-inflation is on the rise, and this could be one of the factors that could affect Bitcoin’s price going forward.

Renowned crypto analyst EGRAG Crypto has unveiled a fresh XRP price prediction, introducing the community to a less-known indicator, the “Average Sentiment Oscillator” or ASO. Commenting on its significance, EGRAG explained on Twitter today: “Exciting ASO Update Alert! Check out the post from September 9th to witness the impressive ascent and curve of the bullish trend! The momentum is ablaze, with an unstoppable surge toward that coveted bullish cross! #XRPArmy, HOLD STEADY! The imminent ASO bullish cross is the spark that will ignite the upcoming XRP bull run!”

Here’s When The Next XRP Bull Run Could Start

From the chart presented by EGRAG, the convergence of the blue line (representing bulls) and the red line (representing bears) is evident. By demarcating a yellow box on this chart, EGRAG anticipates the bullish crossover to manifest between the conclusion of 2023 and the commencement of the second half of 2024.

Historical data reveals that XRP has already undergone this bullish crossover on two prior occasions. The first, in 2017, witnessed a meteoric 55,000% rise in XRP’s price. The subsequent occurrence, spanning late 2020 to April 2021, saw XRP appreciate by a commendable 1500%. EGRAG underscores the magnitude of the current situation by noting the presence of “the largest jaw” ever, leading to speculation that the ensuing XRP rally could dwarf previous ones.

EGRAG’s September update brought substantial insights, underscoring the notable shift in the ASO and the build-up of undeniable momentum towards the bullish cross. In his words, “there’s an undeniable momentum building towards that coveted bullish cross.”

First, EGRAG had outlined the oscillator’s remarkable potential in March, describing it as the harbinger of a monumental bullish setup, showcasing the depth of market volatility and the contrasting strength/weakness of an asset. He emphasized, “The Mother of all #Bullish Set-Ups is upon us,” pointing to the impressive setups building in both the 3 Weeks Time Frame (TF) and Monthly TF.

A Deep Dive Into ASO

The ASO serves as a momentum oscillator, providing averaged percentages of bull/bear sentiment. This tool is recommended for accurately gauging the sentiment during a specific candle period, aiding in trend filtering or determining entry/exit points.

Conceptualized by Benjamin Joshua Nash and adapted from the MT4 version, the ASO employs two algorithms. While the first algorithm evaluates the bullish/bearish nature of individual bars based on OHLC prices before averaging them, the second assesses the sentiment percentage by considering a group of bars as a single entity.

The ASO displays Bulls % with a blue line and Bears % with a red line. The dominance of sentiment is represented by the elevated line. A crossover at the 50% centreline indicates a power shift between bulls and bears, offering potential entry or exit points. This is particularly efficacious when the average volume is significant.

Further insights can be derived by observing the strength of trends or swings. For instance, a blue peak surpassing its preceding red one. Any divergence, like a second bullish peak registering reduced strength on the oscillator but ascending in the price chart, is clearly visible.

By setting thresholds at the 70% and 30% marks, the oscillator can function similarly to Stochastic or RSI for trading overbought/oversold levels. As with many indicators, a shorter period provides advanced signals while a longer period reduces the likelihood of false alerts.

At press time, XRP traded at $0.5097.