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XRP faces bearish threats after 300% rally: Whales begin selling |
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Key points: |
XRP's price has surged 300% over the past two months, recently trading at $2.10 as of December 27. Warning signs include bearish technical patterns and increasing whale distribution, hinting at a potential 25% price correction.
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News - XRP has been a standout performer in recent months, recording over 300% gains since late October. However, bearish signals are emerging that could dampen investor optimism going into early 2025. With its price trading at $2.10, analysts point to both technical and on-chain data indicating a potential reversal. |
Bearish indicators suggest price correction - XRP's price action is showing a descending triangle pattern—a bearish formation that typically signals further declines. The structure comprises a series of lower highs capped by horizontal support at $2.10. A decisive breakdown below this level could send XRP down to $1.64 in January 2025, marking a 25% drop. |
On the on-chain front, whale distribution is compounding bearish sentiment. Wallets holding over 1 million XRP have shed 180 million tokens since early December, while mid-tier holders (100,000 XRP balances) reduced their supply by 170 million during the same period. This increased selling pressure is likely contributing to the recent 26% pullback from XRP's local top of $2.90. |
Exchange reserves add to bearish momentum - XRP reserves on Binance have steadily risen since mid-December. Such accumulation on exchanges is often viewed as a bearish indicator, suggesting that holders are preparing to sell rather than hold. |
What's next? - Unless these trends reverse, XRP could face sustained selling pressure. A break below $2.10 support would confirm the descending triangle breakdown, paving the way for a significant price drop. Investors should monitor whale activity and exchange reserve levels for signs of changing sentiment. |
While XRP remains a key player in the cryptocurrency market, the short-term outlook suggests caution is warranted. |
Bitcoin holds strong after $14B options expiry, targets $110K |
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Key points: |
Options expiry impact - Despite $14.2 billion worth of Bitcoin options expiring on December 27, Bitcoin held strong, peaking at $97,330 an hour after the event. ETF inflows - Spot Bitcoin ETFs recorded $475 million inflows on December 26, ending a 4-day losing streak and adding bullish momentum.
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News - Bitcoin weathered its final options expiry of the year, which held a "max pain" point at $85,000, without significant downside pressure. Instead, BTC saw a peak at $97,330 shortly after the expiry. The event marked the largest options expiry of 2024, with a total of $18 billion worth of Bitcoin and Ethereum options expiring across markets. |
Bitcoin ETFs also showed recovery, with net inflows of $475 million on December 26, breaking a four-day negative streak. The inflows reinforced Bitcoin's bullish sentiment, bolstering its trajectory as the holiday period winds down. |
What's next? - Bitcoin faces a key resistance at $98,000. A breakout above this level could trigger a liquidation of $885 million in leveraged short positions, adding fuel to BTC's upward movement. Based on global liquidity trends, analysts predict a potential peak at $110,000 in January 2025, followed by a correction. |
Long-term outlook - Optimism surrounds Bitcoin's 2025 trajectory, with predictions of a rally to $160,000 supported by macroeconomic improvements and anticipated pro-crypto policies under the incoming Trump administration. Institutional liquidity returning post-holiday could further bolster Bitcoin's price momentum as traders position themselves for the new year. |
SHIB whales signal bullish momentum with $60M accumulation |
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Key points: |
Whale activity surge - Shiba Inu whales purchased $60M worth of SHIB in 24 hours, signaling potential bullish momentum. Crucial resistance level - SHIB must breach $0.00002341 to initiate a 50% recovery, with $0.00002093 as critical support.
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News - Shiba Inu (SHIB) is struggling to recover recent losses, with its price currently well below previous highs. However, renewed interest from whale investors is offering a glimmer of hope for the meme coin's recovery prospects. |
In a notable transaction, large holders accumulated 2.79 trillion SHIB, worth over $60 million, within 24 hours. This accumulation marks one of the most significant whale activities for SHIB this month, reflecting growing confidence in its upward trajectory. Whale activity often signals the potential for bullish price movement, as major investors anticipate a positive price shift. |
Bearish momentum weakens - Technical indicators suggest the bearish momentum for Shiba Inu is fading. The Average Directional Index (ADX) stands at 25.0, indicating weakening selling pressure. A dip below this level could confirm the end of the bearish trend and create a pathway for recovery. |
The alignment of increased whale activity and a weakening bearish trend may foster a more favorable outlook for SHIB. For the bullish momentum to gain traction, SHIB must attract additional buying support from both retail and institutional investors. |
What's next? - To recover and establish a bullish trajectory, Shiba Inu must break through its resistance at $0.00002341 and target $0.00003306, representing a potential 50% increase from current levels. Achieving this would require SHIB to also flip $0.00002976 into a support level. |
Failing to overcome the $0.00002341 resistance could leave the meme coin trapped in a consolidation phase, with $0.00002093 acting as crucial support. A dip below this support would invalidate the bullish outlook, raising the likelihood of further losses. |
Outlook - With substantial whale activity and weakening bearish momentum, Shiba Inu is positioned for potential recovery. However, breaching critical resistance levels will be vital to initiating significant upward movement. Investors should monitor key price thresholds to gauge the direction of SHIB's price action in the coming weeks. |
Bitwise and Strive file for innovative Bitcoin-focused ETFs |
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Key points: |
Bitwise's Bitcoin Standard Corporations ETF - Targets firms holding at least 1,000 BTC in their reserves. Includes additional financial criteria such as $100M market cap and $1M daily liquidity. Strive's Bitcoin Bond ETF - Focuses on convertible bonds issued by companies using proceeds to acquire Bitcoin.
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News - Bitwise Asset Management has filed with the US Securities and Exchange Commission (SEC) to launch the "Bitcoin Standard Corporations ETF," a fund aimed at investing in companies with substantial Bitcoin reserves. The ETF will focus on firms meeting stringent criteria, such as holding at least 1,000 BTC, having a market capitalization above $100 million, and maintaining daily liquidity of at least $1 million. |
This filing coincides with Strive Asset Management's application for a Bitcoin Bond ETF, which will invest in convertible bonds issued by companies allocating the proceeds to Bitcoin purchases. The new offering emphasizes the growing adoption of Bitcoin as a corporate treasury strategy. |
Bitcoin treasury adoption trend - The trend of corporations incorporating Bitcoin into their reserves is accelerating. Data from BitcoinTreasuries shows publicly listed companies now account for 49% of all entities holding Bitcoin, with these firms collectively holding 587,687 BTC, representing 20% of all Bitcoin held by entities. Over the past two months, publicly traded companies have increased their BTC holdings by 60%. |
Non-crypto companies like Rumble, Anixa Biosciences, and Cosmos Health have joined this trend, boosting their stock values following Bitcoin purchase announcements. Nate Geraci, President of The ETF Store, referred to this phenomenon as the "BTC treasury operations virus." |
What's next? - If approved, the Bitcoin Standard Corporations ETF could provide investors a unique way to gain exposure to Bitcoin through equities. Similarly, Strive's Bitcoin Bond ETF may offer an alternative route for those seeking indirect exposure to Bitcoin via corporate bonds. These developments signal continued institutional interest in integrating Bitcoin into mainstream financial products. |
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More stories from the crypto ecosystem |
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Crypto scams uncovered |
BitConnect lured users with promises of high returns on unbeatable trading but turned out to be a $4 billion Ponzi scheme. Users lent crypto, received investment payments, and then watched it all crash. They even launched a second scam, BitconnectX, before disappearing. My Big Coin was touted as a revolutionary cryptocurrency, attracting over $25 million in investments. However, it was exposed as a fraudulent scheme, with its founder charged with wire fraud in 2018. The "coin" was revealed to have no actual value. Plustoken claimed to offer high-yield investment opportunities, but it was revealed to be a Ponzi scheme, defrauding investors of nearly $3 billion. The founders disappeared in 2019, leaving behind a trail of empty promises and stolen funds.
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Top 3 coins of the day |
Virtuals Protocol (VIRTUAL) |
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Key points: |
At press time, VIRTUAL was trading at $3.40. It gained approximately 3.09% over the last 24 hours, making it the biggest gainer on CoinMarketCap.
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What you should know: |
The 4-hour chart for VIRTUAL indicated a bullish momentum. The price recently breached the upper Bollinger Band, suggesting strong upward pressure and potential overbought conditions. Moreover, the Directional Movement Index (DMI) showed the +DI significantly above the -DI, confirming bullish dominance, while the ADX indicated a moderately strong trend. Additionally, there was a notable rise in volume, reinforcing the bullish sentiment. Support is visible near the $3.00 mark, while immediate resistance lies at $3.50, the recent intraday high. A breakout beyond this resistance could signal further upward movement, while a retracement might bring the price closer to the support region. |
Pudgy Penguins (PENGU) |
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Key points: |
At press time, PENGU was trading at $0.034767. Declining by approximately 1.79% over the last 24 hours, it was the biggest loser according to CoinMarketCap.
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What you should know: |
The 2-hour chart highlighted a bearish trend for PENGU. The Parabolic SAR dots positioned above the price action indicated a continued downtrend. Moreover, the RSI was at 41.56, suggesting a leaning towards the oversold territory and signaling weakened buying momentum. Volume showed a slight decline, reflecting reduced market activity and investor interest. The $0.034000 level serves as a key support, while the $0.040000 level acts as resistance. A sustained move below the support could accelerate the bearish momentum, whereas breaking above the resistance might signal a potential reversal. |
Ethereum (ETH) |
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Key points: |
At press time, ETH was trading at $3,387, reflecting a 1.65% increase over the last 24 hours. It was one of the top trending cryptocurrencies on CoinMarketCap.
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What you should know: |
The daily chart for Ethereum indicated a cautiously optimistic outlook. The price was slightly below the 9-day Simple Moving Average (SMA), which stood at $3,403, suggesting short-term resistance. A sustained move above this SMA could signal bullish momentum. The Awesome Oscillator (AO) displayed weakening bearish momentum, with diminishing red bars, potentially indicating an upcoming reversal if green bars emerge. Trading volume was at 12.26K, reflecting steady market activity, though not significantly high, implying cautious participation from traders. Immediate support is identified near $3,315, aligning with the recent low, while resistance is observed around $3,438, the intraday high, which could pose a challenge for further upward movement. |
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