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Bitcoin rallies, McAfee compares prison to Hilton, digital yuan airdrop

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Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!

 

Top Stories This Week

 

$12,000 Bitcoin price back on the table after BTC rallies above $11,400

At last. Bitcoin rallied to $11,448 on Friday, finally breaking above the symmetrical triangle where the price had been compressing for the past 30 days.

Earlier in the week, BTC had dropped to $10,528 when Donald Trump suggested negotiations on a second stimulus package wouldn’t happen until after the election.

But there were reasons to be cheerful. In a surprise move, Square announced it had acquired 4,709 BTC, describing it as an “instrument of economic empowerment.” This helped Bitcoin turn bullish — bringing $12,000 back into view.

DeFi tokens followed BTC’s bullish trend, with Yearn.finance surging by 58% in a 72-hour period. Also this week, Wrapped Bitcoin topped $1 billion in total value locked after a 900% increase in two months.

All eyes now are on the U.S. election, and whether it’ll impact Bitcoin’s price. One trader, “BigCheds,” told Cointelegraph a clear winner won’t affect crypto too much, but he believes “we should see a bounce in risk-off assets like gold and Bitcoin” if the result is contested.

 

SEC’s conservative approach to crypto needs to change, “Crypto Mom” says

Hester Peirce — the SEC commissioner affectionately known as “Crypto Mom” — has said the regulator’s conservative attitude to crypto needs to change.

In an interview with Cointelegraph, she admitted that the Securities and Exchange Commission has been “very slow” in giving guidance, even though interest in digital assets is growing.

“I think we’re going to be forced to confront that more and more in the coming years,” Peirce said.

In other regulation news, U.S. Attorney General William Barr published official guidelines for keeping crypto markets accountable and said the space could “fundamentally transform” society. His framework gives examples of crypto being used legitimately and illegally and sets out a game plan for the future.

Meanwhile, the Department of Justice said it has jurisdiction over foreign crypto companies that touch U.S. servers and warned “rogue states” such as Russia, Iran and North Korea could use crypto to fund cyberattacks designed to undermine national security.

You can watch Hester Peirce’s interview with Cointelegraph here.

 

BitMEX founder and ex-CTO out on $5 million bail bond until court appearance

BitMEX’s former chief technical officer, Samuel Reed, has been released from custody after signing a $5-million bond.

He was arrested on Oct. 1 after being accused of flouting money-laundering rules in violation of the Bank Secrecy Act, as well as illegally offering derivatives trading to U.S. retail customers.

Reed has deposited $500,000 in cash with the court as part of the agreement, and his bond will be forfeited if he fails to appear in court or doesn’t surrender to serve any sentence the court may impose. His passport has also been seized.

His fellow co-founders and colleagues — Arthur Hayes, Ben Delo and Gregory Dwyer — are all indicted with the same charges and remain “at large.”

BitMEX announced sweeping changes to its top leadership this week, meaning the exchange’s three co-founders will no longer hold executive roles. But David Carman, a former Chicago Board Options Exchange trader, told Cointelegraph that the damage may already have been done, and the legal drama could scare off mainstream institutions.

Shenzhen to hand out 10 million digital yuan in currency giveaway

Even central bank digital currencies can have an airdrop.

The Chinese city of Shenzhen is distributing 10 million digital yuan (worth $1.5 million) to 50,000 lucky recipients through a lottery system.

Winners will have one week to spend their prize at more than 3,300 merchants in the city’s Luohu District.

All of this comes as the Chinese government continues to promote the digital yuan to the public — and a pilot program is currently taking place in nine cities.

In other CBDC news this week, seven central banks joined the Bank for International Settlements in producing a report that sets out how these digital assets should be designed

But in a rather curious development, BIS admitted that none of the central banks involved in the research have actually decided whether they’ll issue a CBDC of their own.

John McAfee arrested in Spain on tax evasion charges

John McAfee has been arrested in Spain on tax evasion charges, and he is now awaiting extradition to the United States.

He faces five counts of tax evasion covering the years 2014 to 2018, and if convicted, he could face a sentence of five years in prison and a $250,000 fine for each count. McAfee has also been charged with five counts of willful failure to file taxes.

On the same day, the U.S. Securities and Exchange Commission filed a suit against McAfee for allegedly promoting ICOs without disclosing he had been paid to do so. It’s claimed that he earned $23 million as a result.

In a message conveyed through his wife, Janice, McAfee said: “Hello from prison my friends. I am having a fascinating time. Spanish prison is not that bad. We can wear whatever clothes we want. We can smoke and socialize. It’s like the Hilton without turn down service.

Winners and Losers

 

 

At the end of the week, Bitcoin is at $11,372.62, Ether at $373.51 and XRP at $0.25. The total market cap is at $358,488,544,443.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are UMA, Ren and Storj. The top three altcoin losers of the week are PumaPay, Hyperion and SushiSwap.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis

Most Memorable Quotations

 

“If we have a clear winner and an easy transition of power, I do not see much of an impact on the price per coin. On the other hand, if we have a close and/or contested election, we should see a bounce in risk-off assets like gold and Bitcoin.”

BigCheds, trader

 

“Some are betting on blue, some betting on red, and I’m betting on gold.”

Frank Holmes, U.S. Global Investors CEO

 

“Andre said he won’t be tweeting anymore. People got what they asked for … Crypto community at large has always been childish and irresponsible, which is the reverse of what Andre has been preaching. This witch hunt is something else, the last week has been very demoralizing.”

Banteg, Yearn developer

 

“There are many reasons why the price of Bitcoin can rise or fall, but S2F is not one of them.”

Charlie Morris, ByteTree co-founder

 

“There is more hype around NFTs right now. To some extent it’s an extension of the DeFi excitement. We have seen with DeFi that once a trend starts it creates a snowball effect.”

Ilya Abugov, DappRadar project manager

 

“The crypto market has been engulfed in a sea of red this week, with most DeFi blue chips recording double digit losses over the past 7 days.”

Santiment

 

“What’s BitMEX thinking of? What are any of these companies thinking of that they can operate like this and not be above board and be honest and have a high level of integrity, and be transparent. What do they think is going to happen here?”

David Carman, former CBOE trader

 

“I’ve never been this excited about the potential of #Bitcoin for significant price appreciation in the short term (less than 18 month time frame.)”

Bill Barhydt, Abra CEO

 

“Conservative. I’d say #bitcoin likely sees $1 trillion market cap within 2 years, probably sooner. $1 trillion is about BTC $50k.”

Adam Back, Blockstream CEO

 

Prediction of the Week

Bitcoin pioneer predicts $1 trillion Bitcoin market cap by 2022 or “sooner”

Adam Back has said it is “conservative” to think that Bitcoin will hit a $1-trillion market cap by 2025 — and believes it could happen within two years.

This would result in Bitcoin surging to a price of approximately $50,000 per coin.

For the Blockstream CEO’s prediction to come true, Bitcoin’s market cap would need to increase by almost 400%, given how it currently has a valuation of about $210 billion.

Other crypto executives also believe there’s a lot to get excited about.

Bill Barhydt, the CEO of the payments gateway Abra, tweeted this week: “I’ve never been this excited about the potential of #Bitcoin for significant price appreciation in the short term (less than 18 month time frame.)”

He believes that we could see a retest of all-time highs at $20,000 — sparking “a run to $50,000 and beyond.”

FUD of the Week

 

Coinbase hemorrhages employees following controversial culture stance

At least 60 Coinbase employees are planning to leave the exchange after controversial adjustments were made to the company’s policies.

Coinbase’s CEO, Brian Armstrong, had said that staff would be expected to avoid political and social distractions and focus on building “an open financial system for the world.” Employees who felt uncomfortable with this direction were invited to accept a “generous exit package” worth between four and six months’ pay.

Armstrong has now revealed that about 5% of Coinbase’s workforce has decided to accept the offer, and additional workers have expressed an interest in leaving as well.

Some had feared that the cultural shift would affect the company’s “under-represented minority population.” But according to Armstrong, people from such groups have not taken the severance package in disproportionate numbers.

In an email to the staff left standing, he wrote: “While having team members leave is never easy, I think we will emerge as a more aligned company from this. From time to time we need to rearticulate and clarify our cultural norms as we continue scaling.”

Multimillionaire Dick Smith threatens to sue The Guardian over Bitcoin scam ads

One of Australia’s best-known entrepreneurs has threatened to sue The Guardian after it hosted ads that linked to fake articles suggesting he is promoting a fake Bitcoin investment scheme.

Dick Smith has vowed to start defamation proceedings against the media outlet within 14 days unless his legal team receives a satisfactory response.

Although The Guardian has been taking down ads once notified, Smith’s lawyer warned “that does not prevent Australian readers from falling victim to this prolific cryptocurrency scam.”

Smith has been battling the ads on various platforms for months. In his case, the fake articles were about “how to make money easy” and “get rich in a few days” using cryptocurrency.

Several high-profile individuals — including the Dutch billionaire John de Mol and the British financial expert Martin Lewis — have also taken legal action after scam ads featuring their image were found on Facebook.

 

75 crypto exchanges have closed down so far in 2020

Crypto exchanges are disappearing at a fast rate this year. At least 75 of them have shut down due to hacks or scams, with some simply vanishing into thin air.

According to research by the Crypto Wisser Exchange Graveyard, five of the exchanges are believed to have been scams, four were hacked, 31 were shut down voluntarily, and 34 were labeled “MIA” for disappearing with no explanation. Two were shut down by governments.

There are some macro trends that help explain why so many smaller exchanges are failing. The growth of DeFi and the rise of decentralized exchanges in 2020 have put the final nail in the coffin for many smaller operations.

Regulatory pressure has also increased since the early days of the industry, and many exchanges simply haven’t been able to keep up with the requirements. 

 

Best Cointelegraph Features

 

North Korean crypto hacking: Separating fact from fiction

How do North Korea’s hacking groups operate, how serious is the issue, and what can be done to stop them? Cointelegraph Magazine’s Alex Cohen takes a look.

 

These are the end days for crypto criminals, and good riddance

Nobody who believes in crypto wants it to be a sector beholden to criminality or poor commitment to security, Paul de Havilland argues.

 

NFTs take on DeFi? Nonfungible tokens push to be the next crypto craze

NFTs have been gaining traction in the background, but where is the industry headed? António Madeira takes a look. 



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Law Decoded: E Pluribus SHA-256

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New developments at the state level in the U.S. defined this week’s regulatory news.



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Big Bitcoin prediction, OKEx spooks markets, Ripple exec’s big mistake

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Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!

 

Top Stories This Week

 

Calm before the storm? Analyst says $20,000 Bitcoin is possible in three months

Bitcoin volatility has fallen to a 16-month low, indicating that a sharp move is on the horizon.

Large fluctuations tend to follow prolonged periods of consolidation, and according to a Bitazu Capital founding partner, Mohit Sorout, BTC could reach its previous all-time high if it was to break out today.

There are other factors at play. The U.S. dollar has been weak recently, and traditionally, this leads to strength across other “safe haven” assets. Bitcoin exchange reserves have also continued to plummet, indicating there’s a shortage of sellers… or a lack of trust in centralized platforms.

Cointelegraph analyst Michaël van de Poppe says BTC must hold $11,000 for October’s rally to continue — paving the way for a retest of $12,000 in the short term. Meanwhile, a report by Stack Funds suggests BTC has support to climb all the way to $15,000 if historic trends repeat themselves this year.

But this optimism isn’t universal. JPMorgan Chase experts believe Bitcoin is slightly overvalued and think the asset could see selling pressure ahead.

 

BTC and OKB plunge after OKEx suspends withdrawals

OKEx, a major crypto exchange, spooked the markets this week by announcing that it had suspended withdrawals.

The company said one of its private key holders was “cooperating with a public security bureau” concerning ongoing “investigations.”

In the immediate aftermath of Friday’s statement, Bitcoin fell nearly 3%, while OKEx’s native token, OKB, crashed 15%.

According to Caixin, OKEx founder Mingxing Xu — also known as Star Xu — was the executive who was questioned by authorities. The Chinese news agency also reported that he was investigated “at least a week ago” and had been absent at work for some time.

Industry executives have expressed surprise at how events unfolded. The Bitcoin Association’s president, Leo Weese, wrote: “That one person sits in China holding the keys to an entire offshore cryptocurrency exchange is probably the most surprising thing about this industry I learned this year. That customers don’t demand transparency about key management comes in at a close second, though.

Armstrong says “silent majority” supports Coinbase apolitical stance in leaked audio

Staff at Coinbase fear that the exchange’s leadership are watching their every move and monitoring their messages, it has been reported.

According to Motherboard, the exchange’s newfound “apolitical” stance has led to allegations of surveillance and censorship, but in a leaked recording of an ask me anything session, CEO Brian Armstrong said the “silent majority” supported the move.

Elsewhere, it was claimed that Coinbase’s management had “stunted internal discussion” and forced employees to delete political Slack messages. The exchange responded to Motherboard’s claims by describing the accusations as “quite extreme and absolutely false.”

During an AMA back in June, Armstrong had reportedly resisted the idea of making a public statement in support of Black Lives Matter following the killing of George Floyd by police. However, he later backtracked and posted a series of tweets in support of BLM.

Coinbase has been hemorrhaging employees of late, with at least 5% of its workforce opting to take an exit package if they were unwilling to avoid political and social issues at work.

 

Following whipsaw launch, Filecoin looks to weeklong conference for stability

It’s been a wild ride for the FIL token following Filecoin’s long-awaited launch.

FIL initially rocketed by 118% before plunging by 80% as the cryptocurrency was listed on major exchanges — three years after the project’s ICO was held.

Now, the blockchain-based data storage platform is hoping to right the ship through a weeklong digital conference that begins on Oct. 19.

“Filecoin Liftoff Week” is going to be centered on education, infrastructure, interoperability, and future plans, with each day focusing on a different theme.

Despite the recent plunge in FIL’s value, the Filecoin team remains optimistic about the project’s future prospects: “This is only the beginning for the Filecoin network.”

 

Ripple’s CTO sold 40,000 Ether for just $1 each

And we end our news roundup with a painful story courtesy of Ripple’s chief technology officer David Schwartz.

He revealed that he and his wife came up with a “derisking plan” for their crypto investments in 2012 — and missed out on millions of dollars in profit as a result.

Schwartz sold 40,000 ETH for $1 each at the time — a stash that would be worth more than $15.5 million at today’s prices.

The Ripple executive also sold a significant sum of BTC for $750 apiece, and a large trove of XRP for $0.10.

He described himself as a “risk averse person with people who depend on me financially and emotionally” but admitted that selling his crypto at this bargain basement prices “hurt.”

 

Winners and Losers

 

Gainers and losers

At the end of the week, Bitcoin is at $11,435.68, Ether at $375.90 and XRP at $0.24. The total market cap is at $359,603,174,619.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are ABBC Coin (77.11%), Filecoin (44.49%) and Waves (28.70%). The top three altcoin losers of the week are Arweave (-32.22%), OKB (-23.80%) and Crypto.com Coin (-21.98%).

For more info on crypto prices, make sure to read Cointelegraph’s market analysis

 

Most Memorable Quotations

 

“All your funds and assets are safe. The investigation concerns a certain private key holder’s personal issue only.”

Jay Hao, OKEx CEO

 

“That one person sits in China holding the keys to an entire offshore cryptocurrency exchange is probably the most surprising thing about this industry I learned this year. That customers don’t demand transparency about key management comes in at a close second, though.”

Leo Weese, The Bitcoin Association president

 

“The Chinese government is cracking down on money laundering using cryptocurrency for telecom fraud, and centralized exchanges are in a very dangerous state.”

Colin Wu, crypto reporter

 

“I do believe we’ll be seeing a relatively boring and corrective quarter on the cryptomarkets. In history; $ETH frequently bottoms out in December, to start running the quarter after. $BTC dominance to run up, to have an altseason in Q1 2021. Continuing the patience.”

Michaël van de Poppe, Cointelegraph analyst

 

“You can only try to win the hand with the high hand: gold, silver and Bitcoin. You can’t win playing the low hand unless you’re a sovereign state or a major investment bank, and that’s the game today.”

Max Keiser, broadcaster

 

“We’d like to keep tabs on what other central banks are doing and learn from them, not just from China but from other countries.”

Kazushige Kamiyama, Bank of Japan’s CBDC head

 

“Our eyes are peeled on the $12,000 key resistance level, as we expect further consolidation around current levels going into the elections before breaking into the upside going forward.”

Stack Funds

 

“So if I am to buy the dip, where would the perfect dip be? Well, the perfect dip would be… around $11,000.”

Tone Vays, trader

 

“It’s definitely sending a message to the crypto world that when there are U.S. users of a product or a service, there’s going to be enforcement of U.S. laws.”

“Crypto Mom” Hester Peirce, SEC Commissioner

 

 

Prediction of the Week

Could there be a massive Bitcoin shortage?

Rapid growth of institutional investments in crypto has prompted 10T Holdings co-founder Dan Tapiero to warn that shortages of Bitcoin could be on the horizon.

He warned: “SHORTAGES of Bitcoin possible. Barry’s Grayscale Trust is eating up BTC like there is no tomorrow. If 77% of all newly mined turns into 110%, it’s lights out. Non-miner supply will get held off market in squeeze. Shorts will be dead. Price can go to any number.”

Institutional demand surged rapidly after March when Bitcoin suffered one of its steepest falls in recent history. This indicates that big players see staying power in the world’s biggest cryptocurrency. 

The speculation about a potential supply-side crisis around Bitcoin also coincides with the post-halving cycle. Bitcoin went through its third halving on May 11, and historically, halvings lead to extended bull runs in the two years that follow.

Bitcoin may fall upwards

FUD of the Week

 

G7 will oppose Libra launch until regulations in place

The G7 has warned that it will initially oppose the launch of Facebook’s Libra project.

In a statement that pulled few punches, the Group of Seven wrote: “The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.”

The statement was co-authored by central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy and the United Kingdom.

The G7 has previously raised concerns over how to ensure digital assets comply with Anti-Money Laundering laws, consumer protection rules and other regulatory matters.

Last October, one of its reports also warned that global stablecoins pose a threat to the global financial system.

G7 issues warning to stablecoins

16 countries join forces to clamp down on money laundering crypto criminals

Europol has announced that 20 individuals suspected of working for the “QQAAZZ” criminal network have been arrested in an operation that spanned 16 countries.

The organization is accused of laundering tens of millions of euros for top cybercriminals since 2016. About 40 homes were searched as part of “Operation 2BaGoldMule,” with arrests made in Australia, the U.S, the U.K, Portugal, Spain, Latvia and Poland.

On the same day, a 40-year-old man was arrested in New Zealand for using cryptocurrency to launder more than $2 million for criminals — as well as by purchasing luxury vehicles including a Lamborghini and Mercedes G63.

And in the U.S, six individuals have been charged for their participation in a conspiracy to “launder millions of dollars of drug proceeds on behalf of foreign cartels.”

 

Deadline for Mt. Gox trustee rehabilitation plan extended again

The trustee of the now-defunct Japanese cryptocurrency exchange Mt. Gox has obtained another approval to extend the deadline for submitting a rehabilitation plan — this time to Dec. 15.

As reported by Cointelegraph, Nobuaki Kobayashi received a number of similar deadline extensions in March 2020 and April 2019.

The Mt. Gox crypto exchange is known for encountering the largest cryptocurrency hack in history. The exchange lost a total of 1.35 million Bitcoin in two hacks in 2011 and 2014.

Despite the hacks happening years ago, Mt. Gox customers have still not received compensation for their stolen funds. 

Kobayashi, a Japanese lawyer who was appointed to oversee the civil reimbursement process, reportedly has 150,000 BTC to repay users, but the refund process has been delayed multiple times since 2019.

 

Best Cointelegraph Features

 

The curious case of Coinbase — Employees driven out by “apolitical” stance

Coinbase’s new “apolitical” culture has led to some employees taking severance packages, as the crypto community reacts with ambivalence.

 

The next big treasure: Corporations buy up Bitcoin as a treasury reserve

The entry of firms like Square, MicroStrategy and Stone Ridge may open the BTC floodgates and provide “confidence for the rest to follow,” writes Andrew Singer.

 

Game theory meets DeFi: Bouncing ideas around tokenomic design

Andrew Fenton talks to Jack Lu about his new DeFi platform Bounce, which has been described as a decentralized version of eBay, Sotheby’s or Christie’s.



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BTC, NEO, XMR, ADA, LINK

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The total crypto market capitalization has recovered from the Sep. 6 lows near $314 billion but it is struggling to sustain above the $350 billion mark, which shows that higher levels continue to attract sellers.

Bitcoin’s (BTC) dominance fell from above 68% in mid-May to about 56% in the first half of this month as DeFi tokens embarked on a strong bull run. 

However, in the past few days, the DeFi assets have witnessed sharp corrections and their volatility has increased. This could possibly shift traders’ attention back to Bitcoin. It’s also possible that Bitcoin’s inability to hold above the $11,000 level could also be negatively weighing on the confidence of altcoin and DeFi-token traders.

Crypto market data daily view. Source: Coin360

Although Bitcoin has been struggling to find momentum, a positive is that the volume of Bitcoin futures trading on Bakkt has been increasing and the exchange whale ratio is near yearly lows. This suggests accumulation by the whales and institutional traders.

Currently, most major cryptocurrencies are not following a general trend as the price action has been mostly coin specific. This has opened up opportunities both on the short side and the long side. Hence, in today’s list, two short ideas have been discussed for the traders who are bearish on the crypto markets.

BTC/USD

The relief rally in Bitcoin is facing stiff resistance near the 50% Fibonacci retracement level of $11,147.60. This shows that the bears have used the current relief rally to initiate short positions.

BTC/USD daily chart

BTC/USD daily chart. Source: TradingView

If the bears can sink the price below the uptrend line and the $10,625 support, it will signal weakness. If the BTC/USD pair sustains below $10,625, it will increase the possibility of a retest of $9,835.

However, if the pair rebounds off the $10,625 support sharply, this will be the first sign that the correction might be over. Trading momentum is likely to pick up after the rally breaks above the downtrend line.

If the price closes (UTC time) above the downtrend line, the possibility of a rally to $12,460 increases. Even though there is resistance at $12,000 it seems likely that it will be crossed.

BTC/USD 4-hour chart

BTC/USD 4-hour chart. Source: TradingView

The pair is currently attempting to rebound off the uptrend line, which suggests that the bulls purchased the dip to this support. The buyers will now make one more attempt to push the price above the $11,147.60 resistance.

If the bounce fizzles out and the bears sink the pair below the uptrend line, a drop to $10,625 could occur. This is an important support for the bulls because selling is likely to intensify if this level breaks down.

If the pair rebounds off $10,625, a few days of range-bound action is possible. The flattening moving average on the 4-hour chart suggests a balance between supply and demand. 

NEO/USD

NEO is currently facing stiff resistance at $25.23, which shows that the bears are aggressively defending this resistance. However, as it is in an uptrend, traders are likely to view the dips as a buying opportunity. 

NEO/USD daily chart

NEO/USD daily chart. Source: TradingView

The immediate support on the downside is at $23 and below that at the 10-day simple moving average ($22.26). If the NEO/USD pair rebounds off either support, it will indicate that the bulls are not waiting for a deeper fall to buy which is a positive sign.

If the bulls can push the price above the $25.23–$25.78923 resistance zone, the uptrend is likely to resume. The next target on the upside is $29.

A break below the 10-day SMA will be the first sign that the momentum is weakening and a drop below $20.9633 will signal a possible change in trend.

NEO/USD 4-hour chart

NEO/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls pushed the price above the $25.23 resistance twice but they could not sustain the higher levels. This shows that the bears are attempting to stall the rally at this resistance. 

However, on the downside, the bulls have not allowed the price to sustain below $23, which shows that the buyers are accumulating on every minor dip. 

This could keep the pair stuck between $23 and $25.50 for a few more days. The moving averages have flattened out, which suggests a balance between supply and demand. 

XMR/USD

The recovery in Monero (XMR) from the Sep. 5 low of $74.1012 has been strong and the bulls have pushed the price back above the moving averages, which increases the possibility that the correction might be over. 

XMR/USD daily chart

XMR/USD daily chart. Source: TradingView

However, the bears are unlikely to give up without a stiff fight at the $97.4615 resistance. If the XMR/USD pair turns down sharply from the current levels and breaks below $84, a drop to $74.1012 is possible.

Conversely, if the bulls can arrest the next dip at the 20-day exponential moving average ($89), it will increase the possibility of a breakout of $97.4615. Above this resistance, a move to $105.9131–$107.3742 is possible. A break above $107.3742 can result in a rally to $120.  

XMR/USD 4-hour chart

XMR/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the recovery from $74.1012 has been gradual. Although the bears broke the pair below the 30-EMA on several occasions, they could not capitalize on it and intensify the selling. 

This shows that the bulls are accumulating on dips. Currently, the price has again dipped back below the 30-EMA. If the pair rebounds off the current levels, the bulls will try and drive the price above the overhead resistance at $97.4615.

The short-term momentum is likely to weaken if the bears can break and sustain the price below the immediate support at $87.5629. 

ADA/USD

The relief rally in Cardano (ADA) from the lows of $0.0855982 on Sep. 6 hit a stiff resistance at $0.0997444 on Sep. 13. The moving averages are sloping down, which suggests that the bears are in command.

ADA/USD daily chart

ADA/USD daily chart. Source: TradingView

In a downtrend, the bears short on pullbacks to resistance levels as that improves the risk to reward ratio of the trade. Currently, if the bears can sink the ADA/USD pair below the $0.0855982 support, the decline might resume.

Traders can consider taking positions on the short side with an appropriate stop-loss to benefit from the likely down move. The next support on the downside is at $0.074 but if this support fails to hold, the drop can extend to $0.05. 

This bearish view will be invalidated if the pair rebounds off $0.0855982 and the bulls drive the price above $0.10. Such a move will suggest that the downtrend might be over. 

However, it is not necessary that a new uptrend starts as soon as a downtrend ends because many times, the price remains range-bound as it tries to form a bottom. 

Therefore, traders can step aside and wait for a new bullish setup to form if the price breaks above $0.10.

ADA/USD 4-hour chart

ADA/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been gradually declining towards the critical support at $0.0855982 and a close (UTC time) below this level is likely to start the next leg of the down move.

However, if the pair rebounds off $0.0855982, the bulls will make one more attempt to propel the price above $0.10. If they succeed, a quick relief rally is possible.

Conversely, if the price again turns down from $0.10, the pair might remain range-bound for a few days.

LINK/USD

Chainlink (LINK) is in a downtrend and it has been making a lower high and a lower low pattern for the past few days, which shows that the bears are using the relief rallies to sell. 

LINK/USD daily chart

LINK/USD daily chart. Source: TradingView

The down sloping moving averages suggest that the trend favors the bears. If they can sink the LINK/USD pair below $9.65, a drop to $9 is likely. This is an important support to watch out for because a break below this level is likely to resume the downtrend.

The next support on the downside is $7. Therefore, traders can consider benefiting from the possible down-move.

This bearish view will be invalidated if the pair turns up from the current levels or rebounds off sharply from the $9 levels and breaks above the downtrend line. 

LINK/USD 4-hour chart

LINK/USD 4-hour chart. Source: TradingView

On Sep. 5 and 6, the bears were unable to sustain the price below $10.50, which shows that the bulls were attempting to defend this level. 

However, during the current fall, the price has been sustaining below $10.50 for the past two days, which suggests that the buying has dried up.

The moving averages are sloping down gradually and the price is below the averages, which suggests that the advantage is with the bears.

A break above the 30-EMA will be the first sign that the bears are losing their grip. Until then, the path of least resistance is to the downside. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.



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