Blockchain

Ethereum (ETH) investors are bracing for a turbulent ride ahead as a well-regarded crypto analyst casts a shadow of doubt over the smart contract platform’s future. 

In a recent report, Nicholas Merten predicts that Ethereum has less than a year to break free from an ascending triangle pattern, a technical indicator that holds significant implications for the cryptocurrency’s trajectory.

The Enigma Of The Ascending Triangle Pattern

In a nutshell, an ascending triangle pattern is a chart formation that typically indicates an impending breakout. It forms when the price of an asset reaches higher lows, forming a rising trendline (the ascending side of the triangle), while facing resistance at a horizontal level (the flat top of the triangle). The longer the pattern persists, the more pressure builds for a decisive price move, either upwards or downwards.

Merten, a prominent voice in the crypto community, has been closely monitoring Ethereum’s performance against this crucial pattern. According to Merten, Ethereum’s inability to convincingly breach the resistance at around $2,000 is a cause for concern. 

“Ethereum cannot show up to the plate. It keeps getting shot down at around $2,000, and that’s okay for a while,” he emphasized.” But eventually, you’ve got to be able to either break out to the upside or, if you break through the ascending line of support to the downside, that spells bad news.”

The Ethereum Exodus And Ambiguous Implications

Meanwhile, a separate report has presented a puzzling trend that adds to the uncertainty surrounding Ethereum. Approximately 640,000 ETH has recently exited exchanges, a move that could be interpreted as a bullish sign. This outflow suggests that investors might be hoarding Ethereum for the long haul, anticipating a future price surge.

However, caution is warranted. Ethereum’s long-term performance has not been impressive, with persistent bearish trends weighing it down. This raises questions about the credibility of the accumulation theory. While investors might be tempted to stock up on Ethereum at its current lower price point, they must tread carefully given the unpredictable nature of the cryptocurrency market.

At the time of writing, Ethereum is trading at $1,619, displaying a 1.7% gain over the past 24 hours, yet nursing a 1.0% loss in the seven-day period, according to CoinGecko.

The coming months will likely determine whether Ethereum will defy the odds, break free from its current constraints, and soar to new heights — or if it will succumb to the pressures outlined by Merten, leading to a collapse that could reshape 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 Daily Express

In a surprising twist of events, Paxos has come forward to take the blame for the $500,000 Bitcoin fee payment after PayPal was accused of being the party responsible for the exorbitant fee transfer. 

Paxos Comes Forward As Guilty Party

Paxos, a New York-based blockchain infrastructure company and the issuer of PayPal USD (PYUSD) and Pax Dollar (USDP), recently admitted responsibility for a substantial $510,000 Bitcoin fee payment, the highest fee ever paid in US dollars for a single Bitcoin transaction. 

The story began when several blockchain sleuths noticed the abnormally high Bitcoin network transaction fee of 19.89 BTC attached to a relatively small Bitcoin transfer of 0.074 BTC. Usually, BTC network fees range from $1-$5 and sometimes $50 when network activities are high, so the fee instantly piqued interest. 

An analysis by an X (formerly Twitter) user, Mononautical claimed that the entity behind the overly paid Bitcoin fee transaction was PayPal because the address behind the transaction was similar to one tagged as PayPal on OXT, a mobile block explorer for Bitcoin. In light of these rumors, Paxos has come forward to debunk the statement, clarifying that it was indeed an error on their part.

Paxos has stated that the substantial BTC fee was caused by a bug error on the Bitcoin transfer. However, the blockchain infrastructure company has begun making plans to reclaim the lost funds from BTC miners involved in the transfer. 

“Paxos overpaid the BTC network fee on Sept. 10, 2023. This only impacted Paxos’ corporate operations. Paxos clients and end users have not been affected and all customer funds are safe,” the blockchain service provider said.

Bitcoin Miners Contemplate Refund

Presently, Bitcoin miners are contemplating refunding the significant Bitcoin network fee paid by Paxos for a 0.074 BTC transfer. The mining company involved in the transfer was Stakefish, a leading validator for proof of stake blockchains. 

The CEO and Founder of Stakefish, Chun Wang announced in a post on X that the individual behind the overly paid BTC fee transaction should come forward and reclaim their funds within three days. 

Following the announcement, a claim was made after three days, however, Wang has been uncertain about releasing the Bitcoin fee funds. He stated that he felt contrite about giving consent to the reimbursement and asked if he should split the funds between miners and Paxos. 

A few members of the crypto community had suggested distributing the funds to miners, while others proposed splitting the funds equally between Paxos and miners. All things considered, the loss of the Bitcoin fee funds has been a huge blow to Paxos, raising concerns about the firm’s security. 

The crypto infrastructure provider has also been on the United States Securities and Exchange Commission’s (SEC) radar, for allegedly infringing several investor protection laws in issuing the BUSD stablecoin. Paxos also faces significant regulatory challenges in several regions including Canada and New York.

The much-anticipated biography of the world’s richest man, Elon Musk, recently dropped. As expected, it contains some interesting tales of Musk’s involvement with the meme coin Dogecoin and how he has contributed to its growth.

Musk’s Love For Dogecoin Runs Deep

Musk’s biography, authored by Walter Isaacson, contains certain important parts that highlight how much the world’s richest man is invested in the token. In one part, Isaacson writes that Musk’s brother discussed the possibility of creating a blockchain-based social media platform that would include a payment system using Dogecoin. 

Musk thought it was a great idea and even sent his brother an idea for “a blockchain social system that does both payments and short messages like Twitter.” Considering that it will be decentralized, Musk stated that it will guarantee free speech (something which Musk has continuously advocated for). The other option that Musk mentioned instead of this idea was to buy Twitter, which he eventually did.

However, considering that the initial idea was to create a decentralized social system with Dogecoin being an integral part of the payment system, it won’t be surprising to see Musk incorporate the meme coin into the payment system he intends to build on the X (formerly Twitter) platform. 

Musk is known to post cryptic memes about Dogecoin usually. Still, his wittiness towards the meme token doesn’t stop there, as he went as far as purchasing a Shiba Inu dog named Floki, which happens to be Dogecoin’s logo. In February, he posted a tweet of this pet dog with the caption, “The new CEO of Twitter..”

According to the book, FTX’s CEO Sam Bankman-Fried (SBF) was in support of Musk acquiring Twitter as he believed that Twitter could be rebuilt on the blockchain and was “eager” to be part of the deal. Last year, Musk confirmed that SBF wanted to finance his Twitter takeover, but he wasn’t so inclined to the idea as SBF had “set off his bullshit meter.”

The world’s richest man considered the idea of using blockchain technology as a support system for Twitter. However, it seems that Musk’s love for Dogecoin didn’t translate to him being a huge fan of blockchain technology. Isaacson stated that “despite the fun he had with Dogecoin and other cryptocurrencies, he was not a blockchain acolyte and he felt it would be too sluggish to support fast-paced Twitter postings.”

DOGE Is An Investment

Beyond his fondness for the meme token, Musk is reportedly invested in Dogecoin’s development. A page in the book revealed that Musk had been funding the cryptocurrency, with Isaacson labeling Dogecoin “the semi-serious cryptocurrency whose development he [Musk] had been quietly funding.” 

As such, it won’t be surprising to see Musk work towards ensuring that the meme token attains new heights, with a prominent member of the Dogecoin community positing that Elon Musk will make the token “the official currency of X and earth in the future.”

While this may seem farfetched to many, Musk is already taking steps that could place Dogecoin on the global stage. His X platform recently acquired licenses to offer payment services in multiple states in the US. This move could undoubtedly form part of Musk’s plans to create a payment system where users make payments in DOGE. 

DOGE is currently trading at around $0.06145, up by 0.50% in the last twenty-four hours, according to data from CoinMarketCap. 

Polygon Labs announced today the roll out of their ambitious Polygon 2.0 implementation. The announcement, made via a tweet, marks the release of three pivotal Polygon Improvement Proposals (PIPs) and a detailed roadmap for phase 0. “The wait is over. Polygon 2.0 implementation kicks off now,” the tweet reads, signaling the beginning of a new era for the platform.

Earlier this summer, Polygon Labs had unveiled their vision for Polygon 2.0, a roadmap that aims to scale Ethereum blockspace to create what they term as the “Value Layer of the Internet.” This transformative vision promises unlimited scalability and unified liquidity. To bring this vision to fruition, a series of upgrades to the Polygon protocol architecture are imperative. Phase 0, announced today, is the first step in this direction.

Phase 0 focuses on four main upgrades to the protocol:

The transition from MATIC to POL.
Establishing POL as the native (gas) token for PoS.
Designating POL as the staking token for PoS.
The introduction of the Staking Layer, a feature that will empower validators to secure a diverse range of chains within the evolving Polygon 2.0 ecosystem.

What Phase 0 Of Polygon 2.0 Brings

Polygon Labs has indicated that if the community endorses these proposals, the implementation could begin as early as the fourth quarter of this year. It’s noteworthy that the changes detailed in the first three PIPs are designed to be seamless, ensuring no disruptions for end-users at this stage.

An official blog post, also released today, provides deeper insights into the transformative journey of Polygon 2.0, which was first introduced to the public in June. This set of proposed enhancements seeks to revolutionize nearly every facet of the Polygon ecosystem. The three PIPs released today offer a comprehensive blueprint for phase 0. Their goal is to construct a network of interconnected zero-knowledge-powered L2 chains, effectively scaling Ethereum to the vast expanse of the Internet.

Central to these PIPs is the transition process, the specifications for the revamped token of the Polygon 2.0 architecture, and crucial updates to the Polygon PoS native token.

PIP-18, titled “Polygon 2.0 Phase 0,” offers a comprehensive overview of the initial phase, detailing the upgrades that will be further elaborated upon in subsequent PIPs. The milestones of phase 0 are crafted with the user in mind, ensuring minimal disruptions for those already operating on Polygon PoS and Polygon zkEVM chains.

Meanwhile, PIP-17 delves into the intricacies of the POL token, outlining the associated contracts that will oversee its emission and migration. The POL token is not just a new name; it represents a next-generation token designed to accommodate an ecosystem of ZK-based Layer 2 chains, enabling staking, community ownership, and governance.

Lastly, PIP-19 focuses on the transition of the native gas token on Polygon POS from MATIC to POL. This transition is designed to ensure maximum compatibility with existing systems, with the native token’s properties remaining unchanged.

MATIC Price Analysis

The MATIC price currently remains in a downtrend channel that saw its beginning in mid-February this year. MATIC hit its yearly high of $1.56 on February 13 and has fallen 68% since then. However, a look at the 1-week chart shows that there is hope for MATIC bulls.

At the time of writing, MATIC was trading at 0.5184. All it would take to breathe new life into the MATIC price is a move above $0.5855. This price level marks the 78.6% Fibonacci retracement level, in addition, a move above this price would signify a breakout from the downtrend channel. The bulls could regain the upper hand and target the 20-week EMA at $0.7007.

Another key resistance level is at $0.7698, where the 200-day EMA is located. A rise to this price level would already represent a 45% rally. As then, the 50% Fibonacci retracement level at $0.9435 could be targeted by the bulls. Major selling pressure can also be expected at $1.27 (23.6% Fibonacci retracement level) before the yearly high would be within reach.

Polygon 2.0 clearly has the potential to awaken the bulls from their slumber. However, the $0.5855 price level is the critical key. If MATIC fails at this price level, a sweep of 65-week low at $0.3177 could loom.

Dogecoin (DOGE) has had its share of ups and downs. Recently, as the altcoin market experienced a significant selloff, DOGE found itself caught in the turmoil, succumbing to substantial outflows earlier in the week. 

This downturn had a critical consequence, as it sent the coin’s price plummeting below a crucial support trendline that had been instrumental in propping up DOGE for over three weeks. 

As the market sentiment shifted, this breakdown raised concerns about the future trajectory of Dogecoin, hinting at a possible continuation of the downtrend and further price declines.

Dogecoin Breakdown And Retest

On a fateful Monday, DOGE’s price decisively breached the support trendline, taking a nosedive to reach a low of $0.0593. However, the cryptocurrency market is known for its swift and unpredictable moves, and DOGE was no exception. 

Bulls promptly rallied, pushing the price up in a retest of the very trendline that had turned into resistance. At the time of writing, the current DOGE price stands at $0.061452, with a 24-hour gain of 0.5% and a seven-day dip of 3.0%.

The critical question now is whether this retest phase will demonstrate the sustainability of DOGE’s price below the trendline. If it does, the outlook for Dogecoin, according to a price analysis, remains uncertain, with the potential for an additional decline of approximately 8%, targeting the $0.056 zone. Traders and investors are keenly watching this juncture, as it may dictate DOGE’s short-term future.

Longer-Term Assessment On The Meme Coin

Beyond the immediate challenges, some analysts have offered a longer-term perspective on Dogecoin. A separate report suggests a Dogecoin price prediction of $0.10 by the time the next decade rolls around, representing a major 68% increase. 

This prediction raises eyebrows, considering DOGE’s history of meteoric rises. However, it’s essential to remember that past performance in the fast-paced crypto world doesn’t always indicate future results.

The Dogecoin Dilemma

While Dogecoin undeniably boasts a loyal fanbase and a handful of celebrity endorsements, it hasn’t showcased the same level of aggressive growth strategy or innovative features as some of its younger counterparts, like Shiba Inu.

As the cryptocurrency landscape continues to evolve, DOGE faces the challenge of staying relevant and competitive in a field where innovation and adaptability are highly prized.

And, as Dogecoin finds itself at a critical juncture, its price is teetering on a support-turned-resistance trendline. The broader altcoin market’s performance and investor sentiment will likely play a pivotal role in determining DOGE’s near-term fate. 

(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

The price of Bitcoin has fluctuated over the past month, but BitMEX co-founder Arthur Hayes is the latest crypto expert to make a bullish forecast for the asset. According to the former CEO of the cryptocurrency exchange BitMEX, Bitcoin could reach $70,000, and the only reason the asset is not yet at this price is because investors are fixated on the Fed’s nominal rate.

Bitcoin Can Still Rise 150%

Various predictions have come in regarding Bitcoin, with some being more bullish than others. As for Hayes, he made his case regarding BTC in his Crypto Trader Digest blog post in light of various actions by the US Federal Reserve to curb inflation. 

Since March 2022, the Fed has raised interest rates multiple times, causing many investors like Hayes to reconsider their predictions regarding the outlook of Bitcoin.

What happens if the Fed keeps raising rates? Can the $BTC bull market gain steam? “Are We There Yet?” is an essay exploring that question.https://t.co/OGkVQreIBg pic.twitter.com/FTYR3HBq1a

— Arthur Hayes (@CryptoHayes) September 11, 2023

In the blog post, Hayes shared several metrics relating to the US treasury yield and GDP growth. Hayes began adjusting his forecasts by disputing the widely held belief that BTC’s value is negatively correlated with rising interest rates. 

A new outlook shows that the government’s spending rates and the current growth of GDP have driven down the actual treasury yield on 5% government bonds closer to 4%, making risky assets like BTC and stocks still attractive. 

Hayes believes the Fed will be able to continue down this path of raising rates, and investors’ search for positive real yields in response to this has translated into a bullish market for Bitcoin which began in March 2023. 

However, although Bitcoin is up by close to 29% since then, most of the market is still yet to catch on as everyone is focused on the nominal Fed rate and not the real rate.

“The reason why we aren’t at $70,000 is that everyone is focused on the nominal Fed rate, and not on the real rate when compared to the U.S.’s eye-poppingly high nominal GDP growth.”

BTC Price To $70,000?

While speaking at the Korea Blockchain Week, Hayes mentioned that the next Bitcoin bull market started on March 10, the day the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank (SVB). 

Hayes has actually made similar predictions regarding Bitcoin. Back in March 2020, the pundit made a prediction Bitcoin could rise from $8,000 and reach $20,000 by the end of the year. BTC’s price would later close the year 2020 at around $27,000. 

The BitMEX co-founder has previously expressed his discomfort on Spot Bitcoin ETF, from investment companies like BlackRock, calling them “crypto gatekeepers” who are only looking to balance their deposit base. However, Hayes believes a catchup by the market would Bitcoin survive more interest rate raise from Fed to skyrocket more than 150% from its current level by early 2024. 

At the time of writing, Bitcoin is trading at $26,320 and is up by 2.27% in a seven-day timeframe.

Solana (SOL) has recorded a 5% gain in the last 24 hours amidst certain concerning developments in the crypto space. On Wednesday, the United States published its Consumer Price Index (CPI) data for August, which shows that inflation rose from 3.2% to 3.7%, higher than the predicted outcome by analysts.

In addition, the bankrupt FTX exchange obtained court approval to liquidate its crypto holdings worth $3.4 billion as it looks to offset its debt.

Normally, developments such as this are expected to induce a selling pressure on crypto assets.  However, the majority of the market is staying afloat with slight gains in the last few hours, while Solana has even embarked on a rally, drawing much attention from investors. 

Interestingly, popular crypto analyst Michaël van de Poppe has given possible reasons as to why the crypto market may not be moving as widely expected. 

Most of FTX’s Solana Are Staked And Inaccessible – Analyst Explains

According to an X post on Wednesday, Michaël van de Poppe states that there should not be much reaction from the crypto market despite the latest CPI data and the court approval for FTX’s liquidation.

Related Reading: Solana Potential Rebound: Can Bulls Hit Their $30 Target?

The analyst explains that most of the Solana, which makes up the bulk of the FTX crypto holdings, with a value of $1.2 billion, is currently staked and thus cannot be liquidated.

Van de Poppe states that only 7 million SOL is available to FTX for liquidation, and most of these tokens have been sold in the past week. Given these circumstances, the analyst predicts a “sell the rumor, buy the news” scenario would likely occur.

FTX gets approval to sell $3.4B in #Crypto assets & CPI data comes in worse than expected

Markets aren’t falling down that much, and not much should be happening from it.

The Solana, which corresponds to $1.2 billion of the assets of FTX, is mostly staked and can’t be sold.… pic.twitter.com/uKG9XefCzy

— Michaël van de Poppe (@CryptoMichNL) September 13, 2023

In relation to the other crypto holdings of FTX, Michaël van de Poppe states the exchange is only allowed to sell $200 million worth of assets per week. 

Furthermore, the current market prices have been factored on during the calculation of this liquidation rate; thus, it will likely not produce a high level of selling pressure. 

In addition to Solana, FTX also looks to liquidate other assets such as Bitcoin (BTC), Ethereum (ETH), Aptos (APT), and XRP, among others.

Van De Poppe’s Take On CPI Report

Explaining the crypto market’s response to the latest CPI data, Michaël van de Poppe explains that while inflation rates rose higher than predicted in August, the core CPI value was 4.3% as expected, which is lower than July’s value of 4.7%

Related Reading: SOL Price Prediction: Solana Takes Hit and Could Dive To $15

Therefore, the analyst postulates that the US Federal Reserve would likely not be introducing any interest rate hike. This is because the Fed is known to focus more on core CPI data, which provides a long-term outlook on the nation’s inflation rate. 

At the time of writing, Solana trades at $18.69, with a loss of 0.29% in the last hour based on data from CoinMarketCap. Meanwhile, the token’s trading volume is up by 47.89% and is now valued at $446.52 million. 

Tron (TRX), the blockchain platform founded by Justin Sun, has been showing a good performance for the most part of 2023. The project, which was launched just six years ago, recently registered an impressive surge in transaction activity, underscoring the increasing organic demand for the TRX cryptocurrency. 

Recent data from a Nansen report reveals that Tron has been processing a remarkable average of over 4.8 million daily transactions, a testament to its rapid expansion within a relatively short period.

Driving Forces Behind Tron’s Surge 

Tron’s growth can be attributed primarily to its steadfast pursuit of utility and, notably, the burgeoning demand for cost-effective and reliable stablecoin transactions. The stablecoin marketcap has exhibited aggressive growth in 2023, reaching a pinnacle of over $45 billion between May and June, with daily transactions peaking at an impressive 13 million transactions around the same period. 

According to recent data from @nansen_ai, TRON is processing around 4.8M daily transactions!

We’re glad to see so many people using this network and we’re looking forward to increasing that number.

Take a look at more data here: https://t.co/weWHfWXz2k pic.twitter.com/z47TpyIRpQ

— TRON DAO (@trondao) September 12, 2023

What’s particularly noteworthy is that these daily transaction volumes have been achieved during a relatively subdued phase in the cryptocurrency market, suggesting the potential for even higher transaction counts during bullish market conditions. This robust adoption underscores Tron’s resilience and appeal within the blockchain ecosystem.

The cryptocurrency market has reacted positively to Tron’s outstanding performance. At the time of writing, TRX is priced at $0.081092, according to CoinGecko, showing a modest 0.8% gain over the past 24 hours and a 2.6% increase in the seven-day period. 

FTX Liquidations Pose Potential Risks 

However, it’s essential to exercise caution as Tron continues its upward trajectory. According to cryptocurrency data provider Messari, TRX is one of the digital assets that could face price fluctuations due to impending FTX liquidations.

FTX LIQUIDATIONS UPDATE

FTX liquidators hold approximately $1.3 billion of liquid crypto assets (excluding stablecoins) which have been dragged down by fear of FTX liquidations potentially beginning Wednesday.

Largest holdings: $SOL, $BTC, $ETH, $APT, $DOGE, $TRX, $MATIC… pic.twitter.com/ki3l6xKgPf

— Messari (@MessariCrypto) September 11, 2023

FTX and Alameda Research hold significant amounts of TRX, totaling $33 million, along with $37 million worth of Dogecoin (DOGE) and $22 million worth of Polygon (MATIC). These holdings raise concerns about potential market volatility, as large liquidations can impact the price of these assets.

Implications For The Future 

As the cryptocurrency market continues to evolve, Tron’s pursuit of utility and its growing adoption rates indicate a promising future. 

However, investors should remain vigilant amid potential price fluctuations linked to FTX liquidations, underscoring the need for careful risk management in the cryptocurrency space.

(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 Goodreturns

In a recent series of exchanges on X, prominent XRP community influencer, Crypto Eri, addressed the controversial theory that the XRP price can be artificially set by a central authority. The debate has ignited discussions among enthusiasts, experts, and Ripple insiders.

Eri’s initial tweet emphasized the decentralized nature of cryptocurrencies, stating, “Decentralized crypto-assets like XRP, cannot be ‘price set’. Price is determined by supply & demand dynamics in the global open market, sometimes with Influence factors like trading, sentiment, adoption, news & liquidity.” She further warned against the “deceptive false price hype” that has been circulating within the community.

Can XRP Price Be Set?

In a hypothetical scenario presented by a user, the idea of “setting the price” was explored, suggesting that if a powerful entity like OPEC decided to trade a barrel of oil for 1 XRP, it would effectively set the price. Eri responded, “Granted, artificial price setting has been tried, but If the price is above the equilibrium level, then the quantity supplied has always exceeded the quantity demanded… In the Crypto Market, you can’t ignore arbitrage.”

Khaled Elawadi.XRP, another community member, argued that the tokens price could be set in different ways, either directly by Ripple or by determining a face value through various parties. Eri swiftly countered, clarifying the distinction between XRP, the XRP Ledger, and RippleNet, a software solution created by Ripple.

She emphasized, “Fact 1: The digital asset XRP is not a unique software product… Fact 2: Ripple does not control XRP or the Ledger… Fact 3: Ripplenet is the name of a software created by the Company Ripple, that can use XRP (or any asset) in a solution.”

Jesse Hynes, a renowned community lawyer, humorously questioned the persistence of the price set theory, “Are people still saying that there’s going to be a price set?”, to which Eri simply replied, “Yes.”

Neil Hartner, a Senior staff software engineer at Ripple for On-Demand Liquidity (ODL), weighed in on the debate as well, questioning the logic behind two parties artificially setting a price, stating, “Why would 2 parties do that unless they want to lose a lot of money? Unless those 2 parties are willing to defend the price and not run out of money, it won’t last.”

The debate took another turn when Vandell Aljarrah, founder of Black Swan Capitalist, drew parallels between XRP and gold, suggesting that the token could achieve a stable value similar to gold in the future. He cited the capped supply of 100 billion tokens as a potential factor for increased demand as the market matures.

Another perspective emerged from a community member who believed that a decentralized asset’s price could be pegged or fixed, drawing comparisons to the former “gold window” of the Federal Reserve. They posited that entities like the IMF or Ripple could act as central authorities in such a scenario.

As the debate continues, it’s clear that the community remains divided on the issue. While some believe in the potential for a centralized price setting, others, like Eri, firmly stand by the principles of supply, demand, and market dynamics.

At press time, XRP traded at $0.4806.

Solana is eyeing a fresh increase above the $19.00 resistance against the US Dollar. SOL price must settle above $19 and $20 to start a fresh increase.

SOL price is attempting a bullish breakout above the $19 resistance against the US Dollar.
The price is now trading below $20 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $18.80 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could gain bullish momentum if it settles above the trend line and $20.

Solana Price Eyes Bullish Breakout

In the past few days, Solana’s price extended its decline below the $22 support. SOL even traded below the $20 level to move further into a bearish zone.

Finally, it tested the $17.40 zone. A low was formed near $17.37 and the price is now attempting a fresh increase, like Bitcoin and Ethereum. There was a move above the $18.50 resistance zone. The price even spiked above the 50% Fib retracement level of the downward move from the $20.60 swing high to the $17.37 low.

However, the bears are protecting a close above the $19 resistance. There is also a major bearish trend line forming with resistance near $18.80 on the 4-hour chart of the SOL/USD pair.

Solana is now trading below $20 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $19.00 level. The first major resistance is near the $19.40 level or the 100 simple moving average (4 hours). It is close to the 61.8% Fib retracement level of the downward move from the $20.60 swing high to the $17.37 low.

Source: SOLUSD on TradingView.com

The next key resistance is near $20. A clear move above the $20 resistance might send the price toward the $21.20 resistance. Any more gains might send the price toward the $22 level.

Another Decline in SOL?

If SOL fails to settle above $19.00 and $19.40, it could start another decline. Initial support on the downside is near the $18.10 level.

The first major support is near the $17.40 level. If there is a close below the $17.40 support, the price could decline toward the $16.50 support. In the stated case, there is a risk of more downsides toward the $15.00 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 – $18.10, and $17.40.

Major Resistance Levels – $19.00, $19.40, and $20.00.