The XRP community will no doubt be buoyed by this recent analysis of an early Bitcoin investor who predicts that the XRP price could see a swift move to the upside soon enough. The crypto analyst also seemed to have taken a position in the crypto token in anticipation of this upward move. 

XRP Price To Hit $1.33

In a video posted on his YouTube channel, Davinci Jeremie mentioned that XRP is going to see another pump, which will see it move to “$1.33 pretty fast.” Once that happens, he foresees the token retracing to $1 and consolidating there for some time. What is interesting is the fact that Jeremie suggested that this pump will be manipulated.

This is interesting because of XRP’s tepid price movement for some time now and the fact that many continue to say that XRP’s price is suppressed. The crypto analyst further stated that this price manipulation is what happens “every single time.” He alluded to the fact that the XRP price always pumps out of nowhere and without any logical explanation for such a rally. 

Meanwhile, Jeremie also highlighted fundamentals that are bullish for the XRP price. This includes Ripple’s major wins in the regulatory environment like the victories against the Securities and Exchange Commission (SEC). Ripple also gained major approvals in Singapore and Dubai this year. 

Bitcoin Could Be Headed To $47,000

Jeremie also commented on Bitcoin and its future trajectory. Analyzing the charts, he stated that he expects Bitcoin to hit $47,000 if it stays above the support level of $43,700 but has so far failed to happen, considering that Bitcoin is currently trading below that price level.

The crypto analyst also took a look at the Ethereum chart and mentioned that it wasn’t bullish, considering that it failed to stay above support levels that he considered bullish. He further questioned the possibility of Ethereum bringing Bitcoin down with it. However, many will feel confident in that not happening, considering that Bitcoin has mostly led altcoins and not the other way around.  

Meanwhile, Jeremie predicts Bitcoin will see a “Santa Claus rally” before things possibly cool off. Historically, Bitcoin is known to see some gains between Christmas and the new year. It remains to be seen what impact the potential approval of a Spot Bitcoin ETF in January could have on Bitcoin’s price.

Some predict that Bitcoin’s price will likely decline once that happens while others project that it would further spark a surge in the crypto token’s price. Crypto financial services firm Matrixport, in particular, stated that Bitcoin will rise to $50,000 on the back of this development. 

On-chain data suggests the Dogecoin adoption has been picking up recently as a large number of new addresses are popping up on the network.

Dogecoin Is Observing A High Number Of Daily New Addresses Currently

In a new post on X, analyst Ali talked about how the Dogecoin network activity has been looking like recently in terms of new address creation. A “new address” is one that has taken part in some kind of transaction activity for the first time.

Some of the new addresses that pop up on the network every day belong to the existing users, who may be creating additional addresses for privacy purposes or simply moving to a different wallet.

The rest of the new addresses, though, are being created by fresh investors entering into the market, so the daily total value of the new addresses can provide hints about how the adoption of the meme coin is coming along.

The below chart shows the trend in this metric for Dogecoin over the last couple of months:

As displayed in the above graph, the daily number of new Dogecoin addresses started spiking last month and has since been consistently setting new highs as the metric continues in an overall upward trajectory. This would suggest that the network has been receiving a consistently high influx of new investors recently.

Adoption is always a constructive sign for any cryptocurrency, as fresh hands can help build a solid foundation that future uplifts in the price can sustainably grow off. Thus, it’s crucial for assets to continue to look attractive to new users, something that Dogecoin appears to have been doing fine recently.

Any positive effects on the price that come through adoption, though, generally only appear in the long term. Rather, depending on the nature of the adoption, it can in fact impart a negative influence on the cryptocurrency in the short-term.

This happens when too many new users join the blockchain in a short amount of time, only buying into the asset due to FOMO. Recently, the on-chain analytics firm Santiment also discussed this fast pace of address creation on the Dogecoin network, noting that Bitcoin (BTC) is also displaying a similar trend.

“Though network growth is a great sign long-term, this rapid rate of new wallets is a FOMO sign to be slightly cautious of,” explained the analytics firm in the post.

From the chart, it’s visible that Cardano (ADA) is the only asset among the top cryptocurrencies by market cap that’s not displaying any sort of address growth at all.

DOGE Price

Since the rally Dogecoin observed during the starting third of the month, the asset has gone rather stale, as its price has continued to move sideways around the $0.093 level during the last two weeks.

Solana recently reached a new milestone in December, as the crypto continues its trend of massive gains this year. Solana’s price has almost doubled its price at the beginning of the month, increasing appeal among users. In line with this trend, the Solana blockchain has attracted an extraordinary increase in user engagement this month. 

Although there is still one week remaining in the month, the monthly activity level of Solana’s addresses has surpassed its previous greatest point this year, reaching a new milestone of over 16.45 million in December. 

At the same time, on-chain data reveals the blockchain has broken past 7.23 million new addresses created this month alone. This surge of new users flocking to the network could be a sign that SOL’s price may be heading to $200 soon.

Solana’s Growing Activity And Network Usage

Solana’s popularity has grown this year than most would expect. As a result, Solana grew in market cap, displacing both XRP and BNB in the top crypto rankings in quick succession. 

According to on-chain data from The Block, Solana’s active addresses have been growing since October, reaching a yearly high of 981,380 daily transactions on December 21. Meanwhile, transactions in December are now at a yearly high of 16.45 million, already surpassing January’s count of 15.24 million. 

Solana’s trading volume this month is now at $183.99 billion, a 111% increase from the $86.86 billion trading volume in November. The blockchain also recently surpassed Ethereum in 7-day DEX volume for the first time in history. DeFiLlama puts the total value locked on Solana’s DeFi protocols at $1.492 billion, a 580% increase from $210.47 million on January 1.

How Increased Network Usage Could Impact The Solana Price

With more people interacting with the network each day, Solana’s popularity and value are skyrocketing. As the active addresses perform transactions, stake SOL, and interact with dApps on the blockchain, it boosts Solana’s utility and makes the SOL token more useful and valuable. 

This growth is particularly evident in BONK, Solana’s first dog-themed meme token, whose price has grown 314% in a 30-day timeframe. Solana, on the other hand, recently reached a yearly high of $117. 

Reaching $200 would be a huge milestone for SOL, as the crypto hasn’t reached this price level since November 2021. However, while the current metrics point to increased activity to reach this price point soon, the first resistance is at the $116 price level and the next around $136. 

A strong break over $136 and a strong general crypto market bullish sentiment in 2024 would give Solana free rein to continue climbing higher.

Another year, another Crypto Christmas special for our team at NewsBTC. In the coming week, we’ll be unpacking 2023, its downs and ups, to reveal what the next months could bring for crypto and DeFi investors.

Like last year, we paid homage to Charles Dicke’s classic “A Christmas Carol” and gathered a group of experts to discuss the crypto market’s past, present, and future. In that way, our readers might discover clues that will allow them to transverse 2024 and its potential trends.

Crypto Christmas: What’s Behind The Bitcoin Rally, And Which Coin Has The Most Potential?

This year, we kicked off this special with JLabs Digital, formerly Jarvis Labs. One of the most prominent crypto analytics firm in the nascent sector. Their insight into the market dynamics has been popular due to their use of solid data and easy-to-follow style.
Since 2022, the team at JLabs Digital has been expanding as they bring in new analysts, educational tools, and new ways to share their insights. Last year, we spoke to one of its founders, Ben Lilly, who was betting on crypto becoming “better” and more mature due to the lessons left by the fall of FTX and others.
JJ walked us through the differences between this rally and previous years, the most undervalued coin in the sector, the potential twists in the market, and more.

Q: In light of the prolonged bearish trends observed in 2022 and 2023, how do these periods compare to previous downturns in severity and impact? With Bitcoin now crossing the $40,000 threshold, does this signify a conclusive end to the bear market, or are there potential market twists investors should brace for?

JJ:

So with Bitcoin now crossing over the $40,000 threshold, does this signify a conclusive end to the bear market (…) I’m leaning towards the twist portion of that. I think most of this rally was really driven by disbelief and people shorting it to each pump, especially as we neared $30K, there was just a huge washout of shorts that had ated over the past year between options and derivatives. So that forced buying is really what set us up over $40,000 in my opinion. So now to sustain this, there’s going to have to be continued spot buying to see the price above, say $48,000 to $52,000.
I think it’s possible we get up to that range, but I don’t think we’re just going to get to that range and keep ripping. I think sooner or later we’re going to come back down and retest that $30,000 mark. So that’s an eye investors and traders should have their eye on into 2024. I do think you’ll inevitably get that large leverage washout as is very typical in Bitcoin.
Q: Right now, we are seeing Bitcoin reach new highs. Do you think we are in the early days of a full bull run? What has changed in the market that enabled the current price action; is it the Bitcoin spot ETF or the US Fed hinting at a loser policy or the upcoming Halving? What is the big narrative that will go on in 2024?
JJ:
I do think we’re entering a new bull market, but that said, there’s always going to be twists and turns and leverage liquidations. Keep that level in mind. $28K to $32K, think will be as good an entry as any if we get that opportunity in 2024.
Anytime we see those big breakouts we saw in October, it’s just so typical Bitcoin to come back and retrace it. But what it first wants to do is engineer liquidity. So you have to realize the people that paint these charts are very sophisticated and they want to make you enter at less than optimal prices and sell less than optimal prices. So how they do that, they kind of coax you into buying at $40K. (They make you think) It’s never going to go back down again. And then next thing you know you’re holding onto those buys and it’s at $28,000 and you’re being forced to sell.
I think this (rally) is much different. Basically if you look at 2021, we had (Microstrategy’s Michael) Sailor and Tesla buying (BTC), but outside of that, as we know, it was a lot of leverage to (investors) such as Three Arrows Capital, Grayscale, the Digital Currency Group that was overlooking it. All these people were getting access to massive amounts of leverage due to how cheap it was to borrow the dollars at the time, due to the interest rates being zero, they were using that to leverage themselves and basically pump Bitcoin artificially. And then we all saw that washout last year and as opposed to what we see now, this is actual institutional buying.
So there’s been no doubt that I’m sure BlackRock, Fidelity, et cetera, they’re not buying now, they were buying below $20,000, they were buying throughout the $20,000 range. They’re not buying above $35,000 to $40,4K. So we do see a bit more strength at the bottom of the market, which is going to form a better base for 2024.
But that said, there’s always going to be those ups and downs, but I think long-term, the fact that we saw that capitulation from kind of the leverage deigns to institutional players who know how to organize and manage these trades more efficiently, I think it’s very bullish for Bitcoin and definitely regime shift.
I think it’s kind of forming. I mean as of right now, the future’s kind of unpredictable, but the things I see, we have this ETF coming. Do I think it’s going to be like the moment it’s approved, Bitcoin’s just going to take off? No, there’s a lot of complications with that. Like the Grayscale BTC trust, I think they hold over 600,000 BTC that’s going to have to get distributed. I’m not sure that there’s enough demand as of yet to just soak up all that supply that’ll be coming onto the market. But as we go down the line a few months later, these ETFs are rolling. BlackRock has their team of thousands of advisors out there selling this because they’re incentivized to. And at the same time we have “The Halving” where supply cuts down on the amount of emissions miners able to readily sell as supply.
So you’ll have this massive influx. It’s very hard to be overstated the amount of new demand that will be coming online because of the ETF. At the same time we have “The Halving” event which is going to cut down on the amount of supply available for sale. I think that’s kind of forming a perfect storm in of itself. And then you look at the dollar, the DXY index, this is something I hit on a lot in my articles and the videos that we do on YouTube, and you see it’s (the DXY) been on a downtrend throughout 2023. It looks like it’s getting worse into 2024.
We just had the Fed signaling that they’re thinking about rate cuts, which is usually as good a sign as any that those rate cuts will be happening. So the dollar will be weakening. At the same time we have this massive new demand for Bitcoin. At the same time the supply of Bitcoin’s dropping down. So you can see that all the stars are aligning for new all time highs, a hundred thousand plus targets. But it’s going to be a tricky road there.
Like I said, I think we’re going to inevitably go back down to that $28 to $30K range, and then probably in the second half of the year we’ll really see it defy expectations to the upside.
Q: Last year, we spoke about the most resilient sectors during the Crypto Winter. Which sectors and coins will likely benefit from a new Bull Run? We are seeing the Solana ecosystem bloom along with the NFT market; what trends could benefit in the coming months?

JJ:
It’s hard to say. As of right now, the narratives that’ll take hold, there’s going to be some crazy pumps on things and there’s going to be wild narratives like we saw with DeFi in 2021, what those are right now, we could guess, but there’s nothing definitive in my mind that it seems like, I think a lot of it’s being priced in now, actually. You see kind of these wild altcoin pumps over the past month. I don’t know how sustainable that is over the near term, but I think one thing people are overlooking is if this BTC ETF gets approved, we’ve kind of set the legal precedent that what the SEC did in approving the Bitcoin ETF, the futures ETF, but not approving the spot was illegal.

They’ve already approved Ethereum futures ETFs and now there’s a bunch of spot Ethereum ETFs open for application. So I think it’s inevitable that those will get approved and I think Ethereum is wildly underpriced. Not to say we won’t get pullbacks from here, but those are pullbacks you should be looking to buy because I think an Ethereum spot ETF is almost a hundred percent likely in the second half of 2024. And I think we’ll see some coins that were probably overpriced compared to Ethereum. If you factor that in, and I think we’ll see Ethereum and its use cases really start to take life in 2024. You see a flight to value at some point there, rather than the wild speculation that happens on other alts.

Cover image from Unsplash, chart from Tradingview

The Shiba Inu burn initiative begins the week with a positive sentiment as the project has witnessed a significant increase in its token burn rate over the last 24 hours.

Shiba Inu Burn Rate Sees Notable Uptick

On Monday, December 25, over a 5,000% increase in the last 24 hours has been observed in the Shiba Inu burn rate. According to data from Shibburn – the platform that tracks SHIB token burns, the burn rate recorded a substantial 5,043% increase.

The tracker reveals that over 53.13 million SHIB tokens have been burn over the past 24 hours. The surge in burn rate was due to two substantial transactions that consisted of over 20,000,000 SHIB each.

Data from Shibburn shows that the address 0x6081258689a75d2…887239fe80 sent a total of 20,000,000 Shiba Inu tokens to the SHIB burn wallet. Meanwhile, the second transaction which was carried out by the same address saw about 25,000,000 SHIB sent to the burn wallet.

The Shiba Inu burn rate has been witnessing significant surges over the past few days. The rise in burn rate appears to have generated a wave of speculative excitement throughout the cryptocurrency market.

Despite the increase in burn rate, the Shiba Inu price is currently experiencing a bearish price action. The token is currently down by 1% in the last 24 hours, according to CoinMarketCap.

The recent rise in burn rate coincides with a massive whale transaction reported by on-chain tracker Whale Alert. The on-chain tracker revealed that the transaction saw a whopping 4.25 trillion SHIB being transferred to an unknown wallet.

Whale Alert reported that the wallet address identified as 0x3ce6bed2…87d896c59f sent the aforementioned SHIB to the unknown wallet address 0x9c570088…a22fd8b51b. Another aspect to identify is the low gas fee used to initiate this huge transaction, which was less than $3.

The Project’s Team Made Another Massive Burn

On Friday, December 22, a report revealed that the Shiba Inu team burned a massive 8.47 billion SHIB. Currently, the total number of SHIBs burned by the team has reached a whopping 33.8 billion SHIBs.

It is worth noting that the team had previously burned another 8 billion SHIB hours before on the same day.

Earlier that day, the team sent approximately 8,533,564,693 SHIB valued at $90,285 as of that time, to a dead wallet. The total number of SHIB tokens burned by the team that day was approximately 17 billion.

The most recent burn marks the fourth time this month alone that the crew has carried out a burn this size. The overall supply of SHIB is beginning to feel the weight of these systematic burns. 

This has also been confirmed by Lucie, the marketing head and part of the project’s team, on X (formerly Twitter). The most recent burn was shared by Lucie in her post, highlighting that it was the fourth instance of the procedure. 

Shiba Inu is currently trading at $0.000010, with its trading volume also declining by over 30% to approximately $184.65 million. Meanwhile, its market cap is also down by 1% to $6 billion as of the time of writing.

The Shiba Inu faithful have reason to wag their tails. Over the past few days, the meme coin has witnessed a surge in buying pressure, hinting at a potential bull run. But should investors unleash their inner Doge and start digging for bones, or is this just a fleeting frenzy?

Crypto analyst Ali underscores a noteworthy development in the Shiba Inu (SHIB) ecosystem—a massive 8 trillion token exodus from exchanges since November. This signals investors’ inclination to retain SHIB in private wallets, reducing selling pressure and potentially paving the way for price appreciation.

This strategic move reflects a growing confidence in SHIB’s long-term prospects, creating an environment where the diminished circulating supply may contribute to significant market movements and capitalize on the anticipated bullish momentum.

#ShibaInu | Since November, there’s been a massive withdrawal of over 8 trillion $SHIB from known #crypto exchange wallets – that’s valued at approximately $88 million! pic.twitter.com/RLFA8N0dLI

— Ali (@ali_charts) December 24, 2023

Further fueling the fire is the unwavering loyalty of the “shrimp and fish,” small-time investors steadily accumulating SHIB. Their growing numbers are reflected in the rising number of addresses holding modest amounts of the coin.

But a closer look reveals cracks in the bullish facade. Metrics like the MACD hint at a possible bearish crossover, suggesting a potential pullback. And while social buzz remains high, technical indicators like RSI and MFI hint at some choppy waters ahead.

NewsBTC also examined Santiment’s statistics. According to our research, the Supply on Exchanges for SHIB dropped sharply last month, even if its price rose.

Adding to the uncertainty is the recent price rally, which could simply be a natural correction after a sharp dip. Investors should remember that past performance is not necessarily indicative of future returns, and chasing momentum can be a recipe for disaster.

So, where does this leave us? While the recent buying spree and reduced exchange reserves are undoubtedly positive developments, a cautious approach is warranted. Investors should keep a close eye on technical indicators and market sentiment before diving headfirst into the SHIB whirlpool.

Here are some key takeaways:

Reduced exchange supply: A positive sign, indicating less selling pressure.
Strong retail interest: Shrimp and fish are accumulating, boosting long-term prospects.
Technical indicators mixed: Potential for a pullback before further gains.
Beware of chasing momentum: Don’t be swept away by hype.

The price of SHIB was $0.000010 at press time, up 12% in the last seven days. Its market cap rose to 16th place thanks to a 32% rise in value over the last month. That Shiba Inu had come back from a long-term downturn was also clear.

As Shiba Inu marks a solid climb on Christmas Day, the crypto landscape is left to ponder whether this surge is the herald of a brewing bull run or a fleeting false dawn.

Featured image from Freepik

The XRP price is on a war path today and has already begun to rally. Interestingly, this rally is coming at a time when the rest of the crypto market is seeing a slowdown with spots of losses here and there. So what is driving the XRP price rally?

Ripple Seeing Some Positive Upsides

A lot of the positive sentiment that has triggered the XRP price rally can be traced back to its parent company, Ripple. Ripple which has had a rally outstanding year continues to seem more upside, especially in the FTX bankruptcy case.

In a new development, a court filing showed that Ripple is set to claim around $11 million in the wake of the FTX collapse. The claim is actually being made by Ripple Singapore against Alameda assets. So in the event of a distribution, Ripple will be receiving a payout from FTX.

Additionally, Ripple has received support from Kraken, one of the largest crypto exchanges in the world, in an ongoing lawsuit. The lawsuit titled Zakinov v. Ripple is a battle that encompasses the security status of the XRP token.

As a result, the Kraken crypto exchange, as well as others in the country, are being asked to submit data on customers who traded XRP. However, the exchanges are fighting back and Kraken has backed Ripple in the lawsuit, citing that sharing customers’ data could be interpreted as the exchange siding with the plaintiff (Zakinov).

A Bullish Month For XRP Price

In addition to the positive news that has emerged around Ripple recently, the XRP price has also entered a period that is considered to be incredibly bullish for its price. According to historical data, December has always been the best-performing month for XRP.

The highest average monthly returns for the XRP price over the years have seen December emerge at more than 100% of the performance across other months. So if this holds, the altcoin’s price could continue to rally as the year runs to a close.

Q4 is also the best quarter for the coin, no doubt as a result of the outperformance that has been recorded by the coin, especially in the month of December. Thus, it is not out of the ordinary that the XRP price is surging today while other cryptocurrencies are down.

There have also been talks of a possible burn of all of the XRP tokens held by Ripple in escrow. Naturally, a burn of this magnitude would cause XRP’s price to explode. But the speculation continues to drive the price for now.

At the time of writing, XRP is trending at $0.64 after rising around 4% in the last 24 hours.

XRP has been under a cold spell in December for years, with red charts and cold winds every year. Some buyers are still scared about the market because they remember the 66% drop in 2021. The sounds of 2018, a year with an amazing 800% rise, sound like a faraway Christmas carol.

They remind the XRP community of a time when XRP believed in the magic of year-end wonders. Even though December charts used to be full of holiday cheer, XRP was stuck by the shadow of past trends, hoping that its luck would improve by the end of the year.

Will This Month Be Different For XRP?

While it’s cold outside in December 2023, there are hints of hope for change in the air. The big question is whether this month will be different, and whether XRP can finally break free from the Scrooge-like grip that has been limiting its year-end results.

CryptoRank’s data, which is often like a Grinch to XRP’s holiday mood, still shows a sad picture of past December coming back. There is a cemetery of red bars across the chart (below).

Each one shows a year of loses at the end of the year. In the middle of this cold landscape, though, sits a defiant evergreen: 2017. Its shimmering 818% gains serve as a reminder of XRP’s hidden potential.

The averages for XRP in December on the crypto market show two parts of the story. A 75% average return shines like a holiday ornament, a memory of times when the market was rising around this time of the year.

A (minus) 4% median, on the other hand, forms a shadow, a lump of coal that shows how volatile XRP’s December performances have often been. Still, this December feels different. There’s a soft hint of change in the air, like a mistletoe of promise.

When you look at XRP’s past of chilly Decembers, even a small 2% rise that might not seem important in other situations feels like a big deal. Even though the wins in December might not last, the bigger picture shines with newfound warmth.

With a respectable 20.4% quarterly gain, the fourth quarter of 2023 has been very good. It was the second-best quarter of the year and the first positive Q4 since 2017.

But the rumors about December are more than just changes in prices. Technical indicators are pointing to a possible bull run, which would be very different from the normal drop at the end of the year. There will be some hard times ahead for XRP.

Hope Lingers For XRP

Three important barrier levels—$0.63, $0.66, and $0.70—will stand in the way of its possible upward trend. For XRP to break free from its past limits, it needs to take over these points that were once battlegrounds between bulls and bears.

Even though the road is steep, it’s not impossible. It’s still not clear what will cause such a change, but the technical signs and resistance seen this month are a sign of hope. If XRP can break through these levels of resistance, it could be on track for a big rise, possibly hitting the all-time high of $1 before the current year ends.

This is more than just a story of numbers and charts; it’s a story of strength, going against the grain, and a glimmer of hope in the cold grip of December. In this story, XRP, which was dormant at one point, wakes up full of promise.

The rumors from December make one thing clear: the winter blues might be melting away and a better future could be on the horizon. Only time will tell if 2024 is the spring of a new XRP.

Featured image from Freepik

Ethereum price is correcting gains from the $2,350 resistance zone. ETH could start a fresh increase if it stays above the $2,200 support zone.

Ethereum started a downside correction from the $2,350 resistance zone.
The price is trading near $2,275 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could attempt a fresh increase unless there is a close below $2,200.

Ethereum Price Remains Supported

Ethereum price failed again to gain pace for a move above the $2,350 level. ETH formed a short-term near $2,350 and recently started a downside correction, like Bitcoin.

There was a move below the $2,320 and $2,300 levels. The price even spiked below $2,250. A low was formed near $2,247 and the price is now correcting higher. There was a move above the $2,265 level. The price climbed above the 23.6% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low.

Ethereum is now near $2,275 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,285 level. There is also a key bearish trend line forming with resistance near $2,285 on the hourly chart of ETH/USD.

The trend line is close to the 50% Fib retracement level of the downward move from the $2,326 swing high to the $2,247 low. A close above the $2,285 resistance could send the price toward $2,350.

Source: ETHUSD on TradingView.com

A clear move above the $2,350 zone could start a major increase. The next resistance sits at $2,420. Any more gains could start a wave toward the $2,500 level, above which Ethereum might rally and test the $2,550 zone.

More Losses in ETH?

If Ethereum fails to clear the $2,285 resistance, it could continue to move down. Initial support on the downside is near the $2,220 level.

The first key support could be the $2,200 zone. A downside break and a close below $2,200 might send the price further lower. In the stated case, Ether could revisit the $2,170 support. Any more losses might send the price toward the $2,120 level in the coming sessions.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $2,200

Major Resistance Level – $2,285

The LUNC community has received a proposal from Genuine Labs, a group of experienced developers who aim to contribute to the Terra Classic ecosystem, something that could help revive the USTC and LUNC tokens. 

What The Latest LUNC Proposal Is About

According to the proposal titled ‘Genuine Labs Terra Classic Development Proposal,’ the developers who boast extensive experience in Cosmos stacks aim to work with L1 teams to improve the IBC Hooks and Packet Forward Middleware (PFM) features. They will also enhance the “end-to-end testing and interchain testing for the fee tax charging mechanism.”

These plans, if implemented, apparently come with a lot of benefits for the Terra Classic ecosystem. For one, the IBC Hooks is said to be capable of enhancing liquidity and cross-chain DeFi applications. IBC-hook token transfers will also help facilitate direct dApp interaction. Meanwhile, the PFM will enable multi-hop transfers and robust interchain applications.

Improving and integrating testing mechanisms also comes with its benefits. This will ensure that the tax mechanism is efficient and reliable and developers will be able to simulate real-world scenarios for thorough testing. Lastly, implementing this will also help accelerate development in the Terra Classic ecosystem. 

If the proposal gets approved, Genuine Labs will carry out these plans in two phases. The developers also mentioned that implementation will last for for six weeks and will cost $16,000. So far, most validators seem to be in support of the proposal, as 57.32% of the total votes cast have voted in support of it. 

The quorum is, however, yet to be met as just over 8% of those meant to vote have actually voted. Voting for the proposal will end on December 30. Therefore, there is still enough time for the proposal to scale through. 

Update On The Plan To Burn 800 Million USTC

Bitcoinist had previously reported the LUNC community’s proposal to burn 800 million USTC from the Luna Classic treasury. Voting on the proposal had begun, and then, it looked more likely than not that the proposal was going to scale through. However, things have taken a drastic turn since then. 

Data from the voting forum shows that more validators have voted against the proposal since then. In fact, some of these validators have gone as far as voting against the proposal with their veto power. This is significant as the veto votes currently stand at 24.55% of the total votes cast so far, and the veto threshold is 33.40%. 

Validators seem to be against this move due to the legal repercussions. This proposal was said to have legally absolved them, but they might still not think so and are choosing to be cautious. Voting ends on December 27, and it will be interesting to see how that plays out.