DOGE, XRP: In the danger zone?

October 23, 2024

Reading time: 5 minutes

Dogecoin and XRP lead cryptocurrency market losses amid profit-taking

Key points:

  • Dogecoin and XRP led the declines among major cryptocurrencies.

  • Profit-taking by traders followed a recent rally, contributing to market losses.

News - In the recent market downturn, Dogecoin and XRP experienced the most significant losses among major cryptocurrencies. Following a recent upward movement, traders opted to take profits, contributing to the decline.

Bitcoin, which had approached $70,000 earlier in the week, struggled to maintain its momentum as U.S.-listed exchange-traded funds recorded their first day of outflows in over a week.

What’s more? Dogecoin fell by 5%, while XRP dropped by 4%. Despite their recent highs with Bitcoin down 1%. Traders remain optimistic about a potential surge to $80,000 as the U.S. elections approach, regardless of the electoral outcome.

Market conditions for mid-cap and low-cap tokens remained largely stagnant, but smaller tokens like Bonk and APE faced significant losses, both dropping over 7%. Analysts pointed to a critical resistance level for Bitcoin and a slowdown in stablecoin issuances as factors hindering upward price movements.

The latest figures revealed that Bitcoin ETFs saw a net outflow of $80 million on Tuesday, with Ark Invest's ARKB experiencing a record outflow, while other funds had mixed results.

Nigeria drops charges against Binance executive after prolonged detention

Key points:

  • The Nigerian government has dropped all charges against Binance executive Tigran Gambaryan.

  • The EFCC cited Gambaryan's non-senior role at Binance as the primary reason for dropping the case.

News - A major development has unfolded in the case of Tigran Gambaryan, a Binance executive detained in Nigeria for over seven months. The Nigerian government has formally withdrawn all charges against him, allowing for his release.

The decision came after a hearing at the Federal High Court in Abuja, where the Economic and Financial Crimes Commission (EFCC) announced the withdrawal of the charges. The EFCC cited Gambaryan's non-senior role at Binance as the primary reason for dropping the case.

More details - However, other reports suggest that additional factors may have influenced the decision. Reuters indicated that the EFCC lawyer withdrew the case to allow Gambaryan to seek medical treatment abroad. Bloomberg Law reported that the court discontinued the case due to Gambaryan's deteriorating health.

Gambaryan's lawyer, Mark Mordi, had consistently argued for his client's release, citing his deteriorating health and the inadequacy of Nigeria's healthcare system. Despite objections from the EFCC, the court ultimately agreed to release Gambaryan.

Japan lags in approving crypto ETFs, upholds strict tax and regulatory framework

Key points:

  • Japan's regulatory landscape hinders the adoption of crypto ETFs.

  • The high tax rate on general crypto investments is a significant deterrent.

News - Japan's regulatory landscape continues to hinder the adoption of cryptocurrency-based exchange-traded funds (ETFs), despite growing global interest in these products.

While countries like the United States and Hong Kong have embraced spot Bitcoin and Ether ETFs, Japan remains cautious due to tax and regulatory concerns.

The high tax rate on general crypto investments in Japan, compared to the lower rate on traditional ETFs, has been a significant deterrent. This disparity has led to calls for a separate tax rate for crypto assets, but progress on this front has been slow.

Despite these challenges, Japanese firms have shown increasing interest in cryptocurrencies. Metaplanet, a Japanese investment company, has been actively accumulating Bitcoin, highlighting the growing appetite for digital assets in the country.

However, the lack of regulatory clarity and the high tax burden remain major obstacles in the development of a thriving crypto ETF market in Japan.

From hype to reality: Toncoin struggles as airdrop enthusiasm fades

Key points:

  • Toncoin's active addresses have declined significantly following the airdrop hype.

  • Dissatisfaction with airdrop token values and a shift in market sentiment contributed to the decline.

News - Toncoin has experienced a significant decline in active addresses following the recent surge driven by Telegram airdrops. The decline can be attributed to several factors, including dissatisfaction with airdrop token values and a shift in market sentiment.

The launch of Telegram-native meme coin DOGS and the tap-to-earn game Hamster Kombat in August and September, respectively, generated considerable excitement and led to a surge in Toncoin's active addresses.

However, many recipients of these airdrops were disappointed with the value of the tokens they received, which dampened enthusiasm for the platform.

Additionally, data analysis revealed a decline in the number of short-term holders on the Toncoin network. This suggests that many investors who were attracted to the platform by the airdrop hype may have already sold their positions, contributing to the decrease in active addresses.

The combination of these factors has created a challenging environment for Toncoin, with its price currently trading below $6.

Did you know?

  • Without informing any of his 391,000 active traders, Faruk Fatih Ozer stopped operations of Thodex, a Turkey cryptocurrency exchange. It was later discovered that the CEO had scammed his users a whopping $1.37 billion via a marketing campaign.

  • A 2023 independent investigation revealed that a Chinese group used a “pig butchering business” to scam unsuspecting cryptocurrency investors. One of the victims lost his life savings worth $2.7 million. About $90 million also flowed into the scam account between January 2021 and November 2022.

  • Hackers who identified a loophole on the Nomad bridge carted away $186 million from the platform. Though the perpetrators later returned some of the funds, it was less than 5% of what was looted.

Top 3 coins of the day

Key points:

  • At press time, LINK was trading at $11.39.

  • It was down by about 7% over the last day.

What you should know - Chainlink is currently trading at $11.38, reflecting a 4.93% daily drop. The price chart above shows that LINK has struggled to break above a descending trendline that has been in place since April, suggesting strong resistance near the $12 level. The broader trend remains bearish as LINK continues to form lower highs. Additionally, the horizontal support around $10 remains critical, having held up well in previous downturns. The RSI stands near the neutral 50 mark, indicating a lack of clear momentum. If LINK breaks above the descending trendline, it could indicate a shift toward a bullish trend. Conversely, failure to maintain the $10 support may lead to a deeper correction.

Near Protocol (NEAR)

Key points:

  • At press time, NEAR saw bearish pressure outweighing buyers.

  • Technical indicator MACD favored the sellers.

What you should know - NEAR Protocol (NEAR) is trading at $4.61, down 1.58% for the day. The price continues to trade within a descending channel, indicating persistent bearish momentum since April. NEAR recently attempted a breakout above the channel's upper boundary around the $5.50 level but failed to sustain gains. The MACD shows a slightly negative bias, suggesting weakening bullish attempts. Meanwhile, the lower channel support near $4.00 serves as a critical level to watch, as it has been tested multiple times since June. A successful break above the channel resistance could signal a bullish reversal toward $6.00, while a failure to hold above $4.00 may lead to a further decline.

Solana (SOL)

Key points:

  • At press time, SOL was trading at $168.

  • It was up by 8% over the last seven days.

What you should know - Solana is trading at $168.34, up 0.45% for the day. The recent breakout above a symmetrical triangle pattern suggests a bullish continuation, indicating potential upward momentum. SOL has successfully surpassed the $160 resistance level, turning it into new support. The MACD indicator displays a positive crossover, reflecting growing bullish sentiment and supporting further price appreciation. The next resistance zone lies around $180, which aligns with the mid-2023 highs. If SOL can sustain its upward trajectory, it could aim to test this level in the coming days. However, failure to hold above $160 could trigger a retest of the lower support around $140. The broader outlook remains optimistic, with traders monitoring the $180 resistance as a key point for potential profit-taking or further bullish extension.

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