Blockchain

The XRP price has been showing promises of a price spike since Ripple’s victory against the US SEC. Many community members are currently keeping a close eye on the cryptocurrency, and hoping for a significant price increase. One crypto analyst, in particular, has predicted a massive run for the altcoin that could see its price hit triple-digits.

XRP Predicted To Reach $130 In Next Bull Run

Following its partial victory against the United States Securities and Exchange Commission (SEC) in July after Judge Analisa Torres ruled in favor of Ripple labs, XRP, the native token of Ripple, has fluctuated heavily despite the positive sentiment surrounding it. Nevertheless, an analyst sees a potential bull run for the altcoin.

Crypto analyst and XRP influencer, XRP Captain, has predicted a significant price jump for the XRP token on an X (formerly Twitter) post.  XRP Captain shared a chart with a symmetrical triangle pattern which he used to predict XRP’s $130 future price movement.

Apparently, XRP has a history of symmetrical triangle patterns. In 2017, the cryptocurrency broke out of a similar symmetrical triangle pattern which pushed the token to new all-time highs. As for when this will happen, the analyst points toward the expected 2024 bull run.

Can You Imagine The Magnitude When This Breakout Happens?? I Won’t Be Surprised If #XRP Hit 100$ To 130$ In Next Bullrun. #XRP Consolidation 2014 To 2017 VS 2018 To 2024. Full Throttle #XRPHolders #XRPCommunity pic.twitter.com/gm9hLiqh6M

— XRP CAPTAIN (@UniverseTwenty) September 3, 2023

The analyst is not the only one who has predicted a bull run for the altcoins. Earlier in August, a pseudonymous analyst also predicted a massive rally for XRP that could see the token reaching its previous all-time high of $3. 

In this case, the analyst highlighted that the XRP/BTC pair had finally reclaimed the 20-day and 50-day moving averages, and the last time this had happened had also been back in 2017. This led to an over 500% increase in the price of the altcoin at the time.

This is the first time we have seen this for $XRP in 5 years! $XRP / $BTC on the monthly timeframe has reclaimed the 20 and 50 SMA.

Not only this, but it has also wicked back to the 50 SMA to test it as support (if we continue to hold out the month).

The last time we… pic.twitter.com/d5zjzwcTvm

— Cryptoinsightuk (@Cryptoinsightuk) August 13, 2023

Crypto Community Uncertain About Analyst XRP Price Prediction

Following XRP Captain’s prediction of XRP’s possible bull run, other crypto analysts have also shared their thoughts on the sheer incredulity of the prediction. 

Another crypto trader and chartist, JD was enthusiastic about the technical patterns XRP price charts were displaying. He explained that the symmetrical triangle was accurately represented. However, he could not see the price of XRP reaching three digits.

“I just can’t see that 3 digit target. $20s are still in the cards though,” he stated. 

XRP price has also been notably down. However, XRP Whales are not deterred as these large investors are taking advantage of the market downturns and buying up hundreds of millions worth of tokens. 

XRP is currently looking toward a reversal with its price seeing meager gains of 0.02% in the last day. However, it is still struggling on the weekly chart with losses of 2.61%.

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Prominent crypto research firm Kaiko reports that the XRP token recorded impressive trade volume strides across August 2023. This development comes amidst the token poor price performance in the said month. 

XRP Dominates Altcoin Market In Trade Volume Amidst Price Downtrend

According to the latest Data Debrief by Kaiko on September 4, the market research firm notes that XRP recorded an average daily trade volume of $462.8 million in August, representing the highest value of that metric in the altcoin market. 

Solana (SOL) followed in second place, with a trade volume of $128.4 million. Other altcoins that also experienced a significant average daily trade volume in August included Binance Coin (BNB), Dogecoin (DOGE), and Litecoin (LTC), among others.

As earlier stated, XRP’s surge in trading volume was accompanied by underwhelming market performance. Kaiko notes that the altcoin experienced a 25% price decline in August.

This negative price performance was in much contrast to July, during which XRP had recorded lofty gains following Ripple’s partial victory over the United States Securities and Exchange Commission (SEC).

Why Is The XRP Price Struggling? 

To explain the contrast between XRP’s negative price performance and its surging trade volume, Kaiko has provided some interesting, in-depth analysis.

According to the research firm, the court ruling in July led to a large demand for XRP by US traders, as was seen in the token’s price movement. Kaiko noted that the XRP average trade size on Coinbase, the largest US crypto exchange, experienced a significant boost, surpassing all top ten altcoins.

However, this massive XRP demand was only present in the US. Kaiko states there was high selling pressure on foreign exchanges, indicating that most investors sold off their tokens to capitalize on XRP’s gains from its court victory. 

In particular, Kaiko reported that the South Korean exchanges Upbit and OKX recorded the strongest XRP selling pressure for August. 

Kaiko notes that the XRP’s trading volume is higher on foreign markets than on US exchanges. The research firm reported:

Overall, the share of XRP traded on U.S. markets remains lower than on offshore exchanges. XRP is only the sixth most traded altcoin in the U.S. by cumulative trade volume, while it tops the list on offshore markets.

Therefore, the high demand for XRP in the US was overwhelmed by higher selling pressure on the global market, which explains why the XRP market price took a nosedive in August. 

At the time of writing, XRP trades at $0.503, having gone up by 0.17% in the last day based on data from CoinMarketCap. However, the fifth-largest cryptocurrency is still in the red zone and is down by 2.28% and 19.70% on the weekly and monthly charts. 

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Solana is one of the fastest growing cryptocurrency platforms thanks to its high speed and low costs. Launched in 2020, its native SOL token has seen massive appreciation.

Here we analyze Solana’s price outlook for the future using technical analysis to provide an evidence-based Solana price prediction guide.

What is Solana (SOL)?

Solana is a highly scalable decentralized blockchain created by Anatoly Yakovenko in 2017. It uses a unique proof-of-history consensus mechanism to achieve high transaction speeds and low fees while maintaining security.

The native cryptocurrency of the Solana network is SOL. It is used to pay for executing transactions, interacting with smart contracts, and staking on the blockchain.

Some key aspects of Solana include:

Speed

Solana can process over 50,000 transactions per second, significantly faster than Bitcoin or Ethereum.

Low fees

With high speed, Solana offers transaction costs as low as $0.00025 making it ideal for DeFi.

Proof-of-History

This novel consensus mechanism coordinates timeline between nodes without slowing things down.

Programming

Solana supports programming languages like Rust and C++ to develop dApps.

Staking

SOL holders can stake tokens to help validate transactions while earning staking rewards.

Solana’s powerful performance makes it a leading choice for developing fast, scalable DeFi applications and services.

Factors Influencing Solana Price

Several core factors determine the price movement and growth potential of SOL:

Cryptocurrency Market Conditions

Like most altcoins, Solana’s price depends significantly on Bitcoin and overall crypto market trends. A rising market lifts SOL.

Adoption by Developers

As more projects build DEXs, NFT marketplaces, Web3 applications etc on Solana, demand for SOL increases.

Competition From Rival Networks

Alternative scalability solutions like Avalanche, Polkadot or Cardano could fragment developer interest and diminish Solana’s growth potential if they gain traction.

Network Upgrades and Innovation

Upgrades to further boost Solana’s speed and capabilities can augment developer demand, boosting SOL’s value.

Staking Trends

Higher staking activity reduces available SOL supply which may lead to appreciation in token price.

Security and Reliability

Network outages or vulnerabilities could damage confidence in Solana and depress SOL price. Smooth performance boosts its reputation.

Major Historical Price Developments

SOL’s price has seen huge growth since launching, but also periods of instability. Let’s look at key highlights:

2020 – Minimal Trading After Launch

Solana launched the mainnet in March 2020 with SOL starting off around $0.50 initially with minimal exchange availability and trading. By December 2020, it reached $1.52 as trading volumes gradually picked up.

2021 – Massive Breakout

The 2021 crypto bull run catapulted Solana into the limelight with SOL surging exponentially from $3 in January 2021 to a peak of $260 by November 2021 – an unbelievable 8700% return within 10 months!

Driving this were:

Explosive growth of DeFi and NFT activity on Solana, riding the hot trends.
Attracting developers due to faster speeds and lower costs than Ethereum.
Major protocol improvements and ecosystem funding.
Listing on Coinbase and Binance centralized exchanges.

This established Solana as a leading Ethereum competitor. But lack of maturity showed…

2022 – Crash and Outages

In 2022, the crypto downturn brought SOL back down below $40 from its highs. More damaging were network outages in 2022 that dented confidence in Solana’s stability. The final days surrounding the FTX collapse, Solana also suffered, taking the cryptocurrency to a 2022 low of $8.

While still early days for such a nascent project, Solana needs to improve reliability to gain institutional trust. But its developer momentum continues unabated, with over 4000 projects built on Solana so far.

Recent SOL Price Analysis

Solana has been recovering throughout 2023, but the US SEC hasn’t made it easy, attacking altcoins around every turn. Each time altcoins like SOL attempt to gain momentum, the SEC files another case against a crypto exchange. Past filings include naming Solana as a possible unregistered security.

However, it continues to be the choice for big institutions such as VISA, which is launching a stable coin payment system on Solana.

Short-Term Solana Price Prediction for 2023

The latest bullish news that VISA is using Solana for its stable coin payments could propel SOL higher and reach the target of this inverse head and shoulders pattern, with a target of $75 per token.

Medium-Term Solana Price Prediction for 2024-2025

Solana very closely mimics the price action of 2016 through 2020 Ethereum. If another similar rally follows in Solana like it did in Ethereum, SOL could approach upwards of $1,000 per token.

Long-Term Solana Price Prediction for 2030

In the longest term outlook, it becomes much more challenging to properly predict what SOL might do. It very much depends on adoption of the SOL token, the Solana blockchain, and crypto itself. If SOL can maintain its current mean trajectory, then it is possible Solana could be priced around $3,000 to $4,000 by the year 2030 or beyond.

Conclusion: Solana Price Outlook

Solana has demonstrated immense potential with its blazing fast speeds at low costs. But it still has much to prove regarding stability and institutional-grade security.

If Solana can build on its developer momentum and rapidly evolving ecosystem while improving reliability, its long-term growth upside is immense. But execution risks remain for this ambitious project aiming to reshape decentralized finance.

Solana Price Prediction FAQs

Let’s look at some common questions crypto investors have about SOL price analysis:

What was Solana’s lowest ever price?

SOL sank to as low as $0.50 in the early days after its mainnet launch in 2020. Its 2022 low was around $8 amidst broader crypto market weakness.

What was the highest price for Solana?

Solana’s all-time high price stands at $260 reached in November 2021 during strong bullish momentum carrying crypto markets higher.

Is $500 realistic for Solana?

SOL reaching $500 is achievable this decade if Solana fulfills its technological promise and sees high adoption as the leading DeFi blockchain.

Can Solana crash to zero?

A complete collapse is unlikely given Solana’s strong fundamentals unless critical flaws emerge in its core protocol. But extended weakness could sink SOL below $10 until a recovery.

Why is SOL price volatile?

As a relatively new asset with limited liquidity, Solana experiences high volatility from speculative trading and sentiment shifts. As adoption increases, volatility should stabilize.

When will Solana’s price stabilize?

Solana price swings may start normalizing once it builds a large user base and matures technically. But as a crypto asset, some volatility will always remain.

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On-chain data suggests the $33,700 level could be a very significant level to break for Bitcoin if the historical pattern is anything to go by.

Bitcoin 6 Months To 3 Years Old Investors Have $33,700 As Cost Basis

In a new post on X, Ali, an analyst, has shared a chart that could shed light on the path that BTC may end up taking. The relevant indicator here is the “realized price,” which tells us about the price at which the average investor in the Bitcoin market acquired their coins.

Related Reading: Bitcoin Exchanges See Three Straight Months Of Withdrawals For First Time Ever

When the spot price of the asset exceeds this line, it means that the holders as a whole are currently carrying a net amount of profit on their coins. On the other hand, BTC being below the level suggests the average investor is underwater right now.

In the context of the current discussion, the cost basis of the entire market isn’t of relevance, but of only a specific segment: the holders who acquired their coins at least six months and at most three years ago.

Here is a chart that shows how the cost basis of these Bitcoin investors has changed over the years:

The six months to three years old investors are actually a part of the larger “long-term holder” (LTH) group. And the LTHs are simply the investors who bought their coins at least six months ago.

In the chart, the analyst has also attached the data for the cost basis of the entire LTH group and it’s visible that this metric currently has a value of about $20,300, meaning that the spot price is currently a decent distance above this line.

The realized price of the six months to three years old holders, however, is above the spot price right now, as it’s valued at about $33,755. Naturally, this means that this segment of the LTHs is currently firmly in the red.

From the graph, it’s also apparent that the Bitcoin price has not touched this level since early 2022, when the bear market first kicked off. If the cryptocurrency can surge towards the level and finally make a retest of it, then its fate might change for the better.

This is because, as Ali has pointed out, BTC has observed a significant rally whenever the asset has crossed this mark and these HODLers have gotten back into profits.

Three instances of this pattern are clearly visible in the chart. The 2017 bull run, the April 2019 rally, and the 2021 bull run all emerged from successful breaks of the cost basis of the six months to three years old LTHs.

If this historical pattern holds any weight at all, then a Bitcoin break above the $33,700 level in the near future could become the starting point of the next major bull run.

BTC Price

At present, Bitcoin is quite a bit below the cost basis of these LTHs, as its price is trading just under the $25,800 level.

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Bitcoin, the world’s largest cryptocurrency, has had a few progress and setbacks in the past year. This has been reflected in digital asset investment products. However, new data shows that while outflows from digital investment products have dominated for another week, Bitcoin has shown some resilience to record a weekly inflow of $3.8 million. 

Bitcoin Trading Volume 90% Above The YTD Average

In its latest report on digital asset investment products, Coinshares has shown Bitcoin investment products received net inflows despite the whole market seeing minor outflows. During the same time period, trading volumes spiked to more than 90% above the YTD average.

Regulatory issues have bombarded BTC in the past week, and the asset has shown uncertainty about what’s next to come. In particular, August concluded with a Bitcoin setback as the SEC announced a decision to delay its ruling on some Bitcoin spot Exchange Traded Funds (ETFs) applications. 

As a result, the price of BTC dropped from $28,000 to $25,400 in the space of 48 hours. But despite this decrease, digital asset investment products trading volume reached $2.8 billion.

Outflows in digital asset funds have been consistent for the past seven weeks, totaling $342 million. Last week, chains like Polygon and Ethereum saw outflows of $8.6 million and $3.2 million, respectively, contributing to a total net outflow of $11.2 million across all assets. 

On the other hand, Bitcoin registered net inflows of $3.8 million. Solana also registered net inflows of $0.7 million, bringing its inflow streak to nine consecutive weeks. However, total assets under management (AuM) have fallen 48% from this year’s peak.

Is A Shift Toward Positive Sentiment Imminent?

The uptick in activity and investment is a good sign for the market and hints at growing mainstream interest in Bitcoin. However, this could end up being short-lived. Considering BTC is just like any other asset, sentiment is mostly based on news surrounding the crypto industry. So a consecutive weekly inflow to Bitcoin digital asset funds would suggest a change in sentiment.

The outlook for BTC and the broader crypto market for the rest of 2023 is still cautiously optimistic. Experts from JP Morgan have predicted that the SEC will be forced to greenlight several spot Bitcoin ETFs, and former US Securities and Exchange Commission (SEC) Chair Jay Clayton, has also called the approval inevitable.

Nevertheless, the past 24 hours have seen the trading volume of Bitcoin increase by more than 11% to reach $10.87 billion. Of course, higher trade volumes don’t necessarily mean prices will skyrocket. But they show more people are buying and selling BTC, indicating stronger sentiment and momentum.

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Litecoin (LTC) has found itself in a tight consolidation phase, firmly locked within the $60 to $70 range since mid-August. Despite several attempts to break above the $70 resistance level, bulls seem to be running low on aggressiveness.

As of the latest data from CoinGecko, LTC is trading at $62.99, reflecting a 1.8% decline over the past 24 hours and a seven-day slump of 3.1%.

In recent weeks, LTC bulls have diligently defended the August 2022 range-high of $63, preventing a drop below this crucial support level. However, their efforts to push the price beyond $70 have proved futile. 

Litecoin Bulls Defend Key Levels But Face Technical Challenges

A closer look at the technical indicators reveals that the H12 bearish order book and the 50-day Exponential Moving Average (EMA) are posing significant challenges for the bulls.

Analysts believe that Litecoin could continue its consolidation above the $63 range-high in the coming hours or days. Still, the prevailing bearish pressure could hinder any substantial upward movement in the near term.

LTC’s Struggle Amid Growing On-Chain Activity

Surprisingly, despite Litecoin’s price consolidation, its on-chain data has shown increased activity in its ecosystem. According to a separate report, over the past four months, the share of Litecoin in global cryptocurrency payments has surged by an impressive 21%. 

This suggests that despite the stagnant price, Litecoin remains a popular choice for transactions.

Sell Limit Orders And Bearish Sentiments

To complicate matters further for LTC, order flow tracking platform Mobchart cited in an analysis significant sell limit orders at $66 (3.11k LTC) and $70 (3.26k LTC) on Binance Exchange’s spot market. 

These levels are strategically positioned between the H4 50-EMA and the H12 bearish order book, effectively forming a formidable barrier for Litecoin’s price to overcome. This adds to the growing challenges faced by LTC bulls in their quest to push the price higher.

Moreover, sentiment around Litecoin has been increasingly bearish in recent times, as indicated by a separate report revealing that LTC bears have strengthened by 19% in the past week. This surge in bearish sentiment has likely contributed to the current downward pressure on LTC’s price.

Litecoin (LTC) remains trapped within the $60 to $70 range, with technical indicators and significant sell orders acting as obstacles to any substantial price movement.

Despite on-chain activity showing promise, growing bearish sentiments continue to weigh on LTC’s price, making it a challenging period for Litecoin investors and enthusiasts.

(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 CMC Markets

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The burning of SHIB tokens has become an important part of the Shiba Inu community. Each week, tokens are sent to a ‘burn’ address by community members as they try to reduce the supply of the token. This is why the introduction of a burn mechanism for the Shibarium Layer 2 network is a welcome development for the community.

Lead Dev Says Shiba Inu Burn Portal Is Coming

In a tweet shared on X (formerly Twitter) on Monday, Shiba Inu lead marketer LUCIE shared a much-anticipated announcement with the community. Lucie revealed in a screenshot of an exchange with the developer that a Shiba Inu burn portal for Shibarium was being developed.

This comes after a long stretch of calls for the team to introduce an automatic burn for SHIB as the Shibarium blockchain grows. However, contrary to the belief that the burn portal is exactly what is needed, the developer emphasized that “BURNS WILL NOT AND ARE NOT THE END ALL BE ALL.” Instead, the developer says that the focus should shift toward the adoption of the blockchain rather than being on just burns.

So to confirm that ADOPTION is the right way$SHIB Burns x Shytoshi answered pic.twitter.com/BizkLZ0V83

— 𝐋𝐔𝐂𝐈𝐄 | Summer of Shibarium (@LucieSHIB) September 4, 2023

The developer’s words echo an earlier post made by the lead marketer on X. According to Lucie, the only way that SHIB would be burned is if the blockchain is being used. Token burns are dependent on fees generated from transactions. So this is why the emphasis should be placed on adoption rather than straight burns. “The more you use Shibarium, the higher the traffic, which drives up gas fees,” Lucie explained in the tweet.

WE NEED TO USE #Shibarium
It won’t burn $SHIB if you don’t use it!

Onboarding millions of people to Shibarium will take time and community effort.

More information about burns will be revealed in the upcoming documentation.

BUT it has been clearly explained in… pic.twitter.com/xjo27NlPP8

— 𝐋𝐔𝐂𝐈𝐄 | Summer of Shibarium (@LucieSHIB) September 4, 2023

Lucie pointed out in a follow-up tweet that the Shiba Inu price had been able to hit its previous all-time high without any burn mechanism in place. “$SHIB will be a governance token with global adoption – the next ATH could be interesting,” she concluded.

Will A Shibarium Burn Portal Lead To New ATH?

The emphasis being placed on a burn mechanism by the community comes as a result of an expectation that lower supply leads to higher prices. While this is true for digital assets, there are other factors that contribute to a token reaching a new all-time high price.

For one, the current crypto market trend has to be considered. With a bear market still raging on, it is safe to say that tokens are not hitting ATHs anytime soon. So even if a Shiba Inu burn portal was introduced today, it would not automatically guarantee a new ATH. However, it could lead to a surge in price, even if briefly. Hence, working toward adoption rather than just burns presents a more long-lasting value addition.

SHIB’s price is currently sitting at $0.000007549 after falling 2.40% in the last day and 6.91% in the last week. It is the 16th-largest cryptocurrency with a market cap of $4.44 billion.

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Amid increased price fluctuations in the crypto market, Crypto Capital Venture founder Dan Gambardello is bullish about Cardano’s (ADA) future. In his latest YouTube video, Gambardello compared Amazon’s stock price trajectory to Cardano’s, highlighting striking similarities between both companies.

While he acknowledged ADA’s two-year-long bearish market conditions, the analyst believes that, like Amazon, Cardano has the potential for long-term growth. Since both entities’ technology differs with varying achievements, he compared the underlying principles and price action.

Cardano’s (ADA) Current Market Condition Is Similar To Amazon’s Early Years

Gambardello highlighted Amazon’s historical price performance between 1999 and 2001. According to him, Amazon stock nosedived from a $5.25 all-time high price to 30 cents between this timeframe. 

Similarly, ADA’s value, which rose above $3 during the bull market in September 2021, has now plummeted to 25 cents. Therefore, the analyst likened buying ADA in 2023 and acquiring Amazon stocks in 2001. 

This is particularly true given Cardano’s growth potential in the financial market. Moreover, Gambardello forecasted that Cardano (ADA) could become the world’s number one financial operating system. 

In addition, he mentioned that currently, ADA’s market cap is approximately $8.9 billion. That is even 90% higher than Amazon’s market cap of $2.2 billion after a similar crash in 2001.

The crypto analyst cited a letter from Jeff Bezos to Amazon shareholders during the downturn. In the letter, Bezos stressed that Amazon stood stronger despite the massive stock price drop. 

In his comparison, Gambardello drew similarities between ADA’s current position and Amazon’s during the downturn. He noted that Cardano Blockchain is more robust and better than before, citing improved smart contracts, scalability, and staking utility. 

Cardano Has Potential For Long-term Success Like Amazon

Gambardello also likened ADA to the stock market, quoting a prominent crypto investor, Benjamin Graham. He said: “The stock market is a voting machine in the short run and a weighing machine in the long term.” Also, he noted that, like Amazon, Cardano’s fundamentals are strong enough to sustain it even in harsh economic conditions.

The crypto analyst emphasized that Cardano is in the initial stages of user adoption, with several developers building on its network. It is similar to Amazon’s commitment to enhancing customer experience, which fueled its long-term growth. 

Again, Gambardello shifted focus to Cardano’s security and decentralization. He explained that Cardano’s robust security and decentralization give it an edge over other blockchain networks like Solana.

He further mentioned that several startups have adopted Cardano as of September 2023. For instance, World Mobile utilized Cardano’s infrastructure to connect the unbanked and financially underserved people. According to Gambardello, this real-world use case is a game changer and starting point for Cardano’s success.  

In conclusion, the analyst said Cardano has numerous unexplored potentials with striking similarities to Amazon’s early days. Therefore, he is confident that Cardano has a high potential for long-term success and could offer massive returns to investors bullish enough to see it.

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The Ethereum (ETH) market has been gripped by escalating bearish sentiment as the taker buy-sell ratio, a critical indicator of market dynamics, plunged to a yearly low. This downward trajectory has sparked concerns among investors and traders, highlighting the prevailing pessimism in the Ethereum futures market.

ETH’s taker buy-sell ratio, as revealed by a recent report from the anonymous CryptoQuant analyst Greatest_Trader, has been on a consistent decline over the past few months. The ratio reached its nadir at the end of the previous month, signaling a growing dominance of bears in Ethereum’s trading arena.

Greatest_Trader said:

“This consistent behavior underscores the dominant bearish sentiment among futures traders participating in Ethereum’s market.”

The dwindling taker buy-sell ratio is indicative of increased sell orders, reflecting a lack of confidence in the coin’s short-term prospects.

Google Trends Reflect A Loss Of Interest In Ethereum

Adding to Ethereum’s woes is the declining interest of mainstream internet users. Google Trends data indicates that the number of searches for Ethereum (ETH) has plummeted to levels not witnessed since November 2020. Even more strikingly, searches for “DeFi” have dipped to four-year lows. 

In the last seven days, the metric for “Ethereum” plummeted to a dismal 8/100, a level last seen during the crypto euphoria of 2021, where internet users were searching for Ethereum 12 times more frequently. This decline in interest signals a significant loss of confidence in Ethereum’s prospects among retail investors.

ETH Futures Open Interest Hits Yearly Low

The pessimism surrounding Ethereum is further underscored by an examination of its futures open interest. Currently standing at $4.67 billion, ETH’s open interest has reached its lowest point this year, marking a 36% decline since its peak on April 19. 

This drop in open interest reveals that institutional and retail traders are increasingly skeptical about the cryptocurrency’s short-term potential. As of now, Ethereum’s price hovers at $1,622.75, with a 0.6% decline in the last 24 hours and a 1.9% loss over the past seven days, according to CoinGecko.

Ethereum’s once-promising outlook is facing headwinds as bearish sentiment prevails in its futures market. The declining taker buy-sell ratio, coupled with a lack of interest from retail users, paints a somber picture for the cryptocurrency. Moreover, the dwindling open interest in Ethereum’s futures suggests that traders are hedging their bets amid growing uncertainty. 

Ethereum’s journey in the coming months will undoubtedly be a challenging one, and investors and enthusiasts alike will be keenly watching to see if it can weather this storm and regain its bullish momentum.

(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 Vauld

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The XRP token has attracted much attention, especially because of Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). This has led to speculations on whether Ripple is able to control the XRP price or not. So crypto analysts have chimed in to share their opinions.

No Ripple Effect On XRP?

Pro-XRP influencer Crypto Eri stated in a tweet that she doesn’t rely on the “efforts of Ripple” to increase XRP’s value. She suggested that the crypto company hasn’t done much to grow the token as it accounts for a “single digit impact on volume.” 

Unlike DAI, I don’t rely on the efforts of Ripple to build up the price of XRP. Never have, never will. Especially with accounting for single digit impact on volume. It’s surprising after surviving the SEC attack, anyone would subscribe to this reliance. https://t.co/XG2bA6qsva

— Crypto Eri Carpe Diem (@sentosumosaba) September 4, 2023

There is a common belief that token issuers should be able to control and drive up the price of their tokens, whether through their marketing efforts, a deflationary mechanism, or simply increasing the use cases of their tokens to send a bullish signal to the crypto community.

In Ripple’s case, Eri believes holders shouldn’t rely on the company, especially after “surviving” the SEC attack. While her stance is unclear, many may argue that Ripple’s effort in its case against the SEC shows its commitment to building the ecosystem and promoting mass adoption of its token.

Eri’s tweet came in reply to another pro-XRP influencer, Digital Asset Investor, who tweeted about why he was bullish on XRP. In contrast to Eri’s view, this influencer believes that Ripple’s efforts will greatly affect XRP’s value as Ripple promises to disrupt the global financial system, so he is bullish on the token.

 

Some would think these were things said by influencers to hype XRP. They were actually said by Ripple. This is why I’m here. I believe them.In It To Win It!
-XRP Could Help In A Systemic Risk Situation In another financial crisis
-XRP will be like a supranational…

— Digital Asset Investor.XRP (@digitalassetbuy) September 2, 2023

Has Ripple Had Any Effect On XRP?

It is worth mentioning that the XRP price experienced significant gains on the back of Judge Analisa Torres’ ruling in favor of Ripple. The token surged over 23% within hours of the decision and rose to as high as $0.9 due to the ruling. 

Furthermore, XRP became the fourth-largest token by market cap following the decision (although it has dropped to 5th since then). However, there is no denying the potential for Ripple to go head-to-head with the foremost cryptocurrencies such as Bitcoin and Ethereum.

Interestingly, there was a significant increase in daily transactions conducted on the XRP ledger, with more transactions conducted on the blockchain at the beginning of last month than leading blockchains Ethereum and Bitcoin. 

Ripple has also not rested on its efforts to develop the XRP ecosystem despite the SEC’s lawsuit against it. The crypto company is looking to expand into the tokenized assets industry by enabling trading of these asset classes on the XRP Ledger. 

There are also plans to release an upgrade for the XRP Ledger, with a notable amendment being the introduction of a novel automated market maker (AMM). This update could see XRPL become a major player in the DeFi space and increase XRP’s utility, which could trigger an increase in its value. 

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