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What Q4 holds for XRP
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Will XRP hold on to its September gains in Q4?
Key points:
XRP concluded September with overall bullish gains.
Over the month, the altcoin saw a 31% upside, ending the month with a $0.664 monthly high.
What happened last month - Despite a bearish start in the first week of September, XRP managed to reverse its fortunes in the second week. Over the last three weeks, it experienced a strong rally, climbing 31% from its September low of $0.502 to a monthly high of $0.664.
Overall, XRP achieved a 7.6% gain from its opening to closing price for the month. This performance pushed the price back into a previously tested resistance zone, where it faced pullbacks in July and August after surpassing $0.62.
Investor behavior - While XRP’s latest surge in September exceeded its July and August highs, it raises questions about the sustainability of this bullish trend. The cryptocurrency encountered resistance at the end of the month, and the Money Flow indicator suggested potential liquidity outflows.
However, a recent 3% gain in the last 24 hours indicates that XRP holders remained optimistic about a potential bullish extension into October, aligning with the current market sentiment.
XRP’s Q4 prospect - XRP’s sentiment, both from the crowd and smart money, has been predominantly bullish over the last 24 hours. This positive sentiment helped shield the altcoin from outflows and supported its recent recovery.
This bullish sentiment could provide insights into XRP’s potential performance in the coming weeks. The altcoin is currently on the verge of breaking out from its long-term triangle pattern, which could signal further gains, potentially towards $1.
Global liquidity rises to 2022 levels, Bitcoin reaps the gains
Key points:
Global liquidity rises by 0.92% to $132.8 trillion, reaching its highest level since early 2022.
Bitcoin continues to trade at $66K, aligning with rising global liquidity.
Global liquidity affects Bitcoin - As global liquidity rises by 0.92% to $132.8 trillion, its highest level since early 2022, Bitcoin stands to gain from this trend.
The increase is driven by improved collateral values and proactive measures by China’s central bank. While the Federal Reserve has yet to introduce a stimulus, market sentiment remains positive about potential future rate cuts.
These elements indicate that Bitcoin could experience price increases, making the final quarter of the year especially bullish for the broader cryptocurrency market.
Price action - Bitcoin’s price recently rebounded from the crucial 0.786 Fibonacci retracement level to trade at $61,000. This level has consistently served as a significant indicator for both upward and downward movements throughout the year.
This pattern of respecting the 0.786 level indicates that Bitcoin is in sync with global liquidity trends. As liquidity continues to increase, Bitcoin is expected to rise further, with the next major target being new highs above $66,700.
The boost in global liquidity is likely to benefit Bitcoin, reinforcing its role as a primary hedge against monetary inflation, alongside gold.
Other factors favoring crypto - The broader cryptocurrency market is poised to benefit from favorable macroeconomic conditions, especially potential rate cuts from the Federal Reserve and the European Central Bank.
If upcoming U.S. unemployment data is lower than expected, the likelihood of these rate cuts could increase. Generally, rate cuts create a more favorable environment for risk assets like Bitcoin, potentially driving its price higher.
As DOGE gains 19% in 24 hours, should you expect more gains ahead?
Key points:
DOGE has seen a steady rise after hitting a low of $0.08 in early September.
Dogecoin has several things going right for itself, including affordability, adoption, and consistent upgrades.
DOGE’s price action - Dogecoin has shown impressive growth over the past month. After hitting a low of $0.08 in early September, it has steadily climbed.
Currently, DOGE is trading at $0.107, reflecting a 9.23% fall over the last 24 hours and a 1.70% decrease in the past week.
Descending channel - Whenever Dogecoin breaks out from a descending channel, it tends to make exponential percentage gains in each cycle. For example, during the first cycle, DOGE surged by 9363%, and in the second cycle, it increased by 29626%. Currently, it’s in the midst of cycle 3.
If this trend continues, cycle 3 could bring even more substantial gains.
Adoption and affordability - Increased adoption of DOGE has been driven by a consistent growth in transactions, which could lead to higher demand.
At the same time, the memecoins’ affordability, which is lower compared to other cryptocurrencies, makes it attractive to more investors, which could potentially broaden its investor base.
Upgrades - Technological enhancements such as faster transaction processing and improved security are likely to boost Dogecoin’s utility and attractiveness, driving adoption and demand even further.
Will Cardano’s 18M token unlock cause a price recovery?
Key points:
ADA will unlock 18.53 million tokens on the 2 October.
Though ADA’s price has increased historically, post-unlock, things currently look bearish for the altcoin.
What’s going on? Cardano will release 18.53 million ADA tokens on the 2 October, which accounts for 0.5% of the total ADA supply. This unlock is valued at approximately $7.37 million.
This event coincides with Cardano celebrating seven years of existence, even as it approaches the significant milestone of 100 million transactions.
Similarly, in September, ADA unlocked 0.5% of its total supply as well.
Although these percentages may seem minimal, they could still impact the market. However, the unlock is unlikely to cause significant price volatility, due to the relatively small portion of the circulating supply involved.
Impact on ADA - As Cardano prepares for this token unlock, market participants are closely watching its impact on ADA. However, things were not looking too great. At press time, the token was trading at $0.3503, after a 9.13% drop in the last 24 hours. This bearish trend was affirmed when looking at ADA’s action in the past seven days, as it witnessed an 8.06% decline.
More stories from the crypto ecosystem
Did you know?
Bitcoin mining consumes the same amount of electricity as a household uses in 9 to 13 years, highlighting its massive energy demands. Imagine using up electricity demands worth decades, just to mine a single BTC!
In August 2010, a bug known as the “value overflow incident” accidentally created 184 billion BTC at block height 74638. A developer fixed it within 5 hours, though, by releasing a patched Bitcoin client that ignored the excess coins. The error was quickly “forked out” and erased from the blockchain.
Carnivory is no longer just a trend in the Bitcoin community. In fact, there’s a rising wave of vegans and vegetarians among Bitcoin enthusiasts. This shift is driven by concerns over the environmental impact of meat production. The community is known for its keen interest in the environment, primarily brought about by the excess production costs of mining.
Top 3 coins of the day
FTX Token (FTT)
Key points:
FTT has broken into the limelight after rumors of FTX’s repayment plan broke.
The altcoin has risen by 25.17% in the last 24 hours.
What you should know - FTT has been in the news ever since rumors of an FTX reimbursement plan started circulating on the 29 September. On this date, FTT formed a large bullish candlestick on the daily charts, leaving investors hopeful of a rise to $3.52. The RSI supported this bullish narrative with a value of 63.30, showing that bulls have a stronghold on the market. Similarly, FTT’s 50-day and 200-day short-moving averages flashed ‘buy’ signals. If the buying pressure increases, FTT could hit $1.36 or $1.58 in the coming days. The MACD indicator shows a bullish divergence as well, spurring hopes of another price rise soon. At press time, FTT was trading at $2.31, and if the bullish trend sustains, the token could reach its December 2023 highs once again.
FLOKI
Key points:
After a week of uptrends, FLOKI witnessed a sharp drop in the early hours of the Asian trading session.
Currently, FLOKI is trading at $0.0001423 after an 11.36% rise in 24 hours.
What you should know - FLOKI’s price sloped suddenly on the 4-hour chart, resulting in a bearish flag structure. However, bulls were quick to swoop on this action, stopping the memecoin’s fall and helping FLOKI reach $ 0.000143 with a market cap of $ 1.37B USD and a 24-hour trading volume of $364.63M. The RSI and MACD indicators also supported this outlook. Following the price action, both these indicators plummeted towards the oversold territory before rising up again, slowly inching towards the neutral mark. Considering this volatile action, if FLOKI’s indicators can continue to remain neutral in the long run, then its bull run will likely continue, unhindered.
Worldcoin (WLD)
Key points:
WLD saw a 10.56% drop in the last 24 hours.
Worldcoin was previously navigating through a critical demand zone, but it may not continue for much longer.
What you should know - Worldcoin’s latest moves made investors excited for a move to $3, but now, it seems like the bears have caught on to the party. WLD fell by 10.56% in the last 24 hours, causing market tremors. Now, WLD’s market sentiment had turned bearish, as its fear and greed index sat at 42, a sign of fear. The 50-day and 200-day took a downward turn as well, raising the potential for bearish days ahead. Its RSI was in the neutral zone as well, showing that the price may navigate this same trend, moving forward. Thus, it may be a good time to HODL your WLD, as the current outlook seems bearish, or at best, neutral. However, do not take this as investment advice, and always remember to DYOR.
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