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- XRP in great danger
XRP in great danger
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Cardano's bullish sentiment emerges despite recent market downturn
Key points:
Cardano's price mirrored market decline but showed signs of recovery.
Whales are accumulating ADA, potentially anticipating a price rise.
News - Cardano's price mirrored the broader market downturn over the weekend, dropping over 30%. However, as the market showed signs of recovery, ADA followed. Now, bullish signals from investors suggest the coin could be poised for a rally.
Are whales buying? Recent data revealed a potential buying spree, with whale addresses (holding 1-10 million ADA) accumulating over 30 million ADA (worth $14.6 million) in the last three days. This buying activity is pertinent for the coin's positive growth.
Further bolstering the bullish case was Cardano's current position in the market cycle. The Market Value to Realized Value (MVRV) ratio, an indicator of investor profit and loss, sat at -19%. This suggested recent buyers were experiencing losses, potentially leading to accumulation. Notably, historical recoveries for ADA have occurred within an MVRV range of -13% to -21%, signifying a potential buying opportunity.
In conclusion - If the bulls prevail, ADA could potentially reclaim support at $0.56. However, a failure to break through the resistance level at $0.50 could stall the rally and invalidate the bullish outlook. This price point has acted as both support and resistance in the past, highlighting its importance. If ADA fails to surpass this hurdle, a pullback to $0.44 or even $0.40 will be possible.
Franklin Templeton expects Runes to boost Bitcoin's fungible asset competitiveness
Key points:
Franklin Templeton sees Runes as a game-changer for Bitcoin's fungible token market.
Runes aims to address the limitations of the existing BRC-20 standard.
News - Investment giant Franklin Templeton sees a bright future for Bitcoin's fungible token market, thanks to the upcoming launch of Runes. In a recent report, the firm argues that Runes has the potential to "close the gap" with Ethereum and Solana, which currently dominate the space.
Limitations of BRC-20 standard - Franklin Templeton highlighted the limitations of the existing BRC-20 standard, which has seen some adoption for fungible tokens on Bitcoin. They criticize the BRC-20 process for creating "junk UTXOs" (unspent transaction outputs) that bloat the network and increase fees.
This criticism aligns with recent market movements. With the Bitcoin halving approaching, BRC-20 tokens like Ordi (ORDI) have seen significant price drops, potentially due to investor migration towards Runes.
What are the benefits of RUNE? Runes promises several advantages over BRC-20, like reducing reliance on off-chain data and improving privacy and compatibility with the Bitcoin Lightning Network. Earlier this month, the firm also praised Ordinals (Bitcoin NFTs) for driving a "renaissance in BTC activity."
Bearish clouds over XRP, technicals point to potential price decline
Key points:
XRP price may find support near $0.46, with a risk of falling to $0.42.
The derivatives market shows signs of a potential trend reversal.
News - XRP has been struggling to recover since the recent market crash, raising concerns among investors. The token's price has dropped over 20.56% in the last week. Recently, XRP failed to break a key technical pattern, a 6-year symmetrical triangle. This missed opportunity suggests a potential further decline in the coming days.
What do the indicators suggest? The token's MVRV ratio, a valuation metric, fell sharply, while the NVT ratio suggested that XRP may be overvalued. Additionally, a surge in on-chain transaction volume in losses revealed investors’ panic selling.
However, a glimmer of hope emerged from XRP's derivatives market. A significant drop in Open Interest and Funding Rate highlighted a potential trend reversal, hinting at a price rise soon.
Uncertainty remains, however, as the ongoing geopolitical tensions in the Middle East could further dampen investor confidence and keep crypto prices depressed in the coming weeks.
In conclusion - If XRP falls further, support may be found near $0.46. A break below this level could see the price plummet to $0.42.
Bored Ape Yacht Club suffers dramatic price drop, NFT market in flux
Key points:
The floor price of BAYC has plunged over 90% from its peak, reaching 11.1 ETH.
Some rare BAYC NFTs still sell for high prices.
News - BAYC, a collection of popular digital art NFTs, has seen its floor price plummet over 90% from its peak, reaching its lowest point since its launch. Currently, the cheapest BAYC NFT can be purchased for around 11.1 Ether (ETH), a stark contrast to the all-time high of 128 Ether (ETH) in May 2022.
This significant price drop is not unique to BAYC. NFT Price Floor reports a 50% decline in BAYC's floor price since 1 March, mirroring a broader trend of declining popularity for digital art NFTs across the industry.
What’s the catch? It's important to note that the floor price represents the cheapest available NFT in a collection, and some BAYC NFTs continue to sell for significantly higher prices. For instance, a recent sale saw BAYC #830 fetch a staggering 504.3 Ether (roughly $1.92 million at the time).
CryptoPunks, another major NFT collection by market cap, has also experienced a decline in floor price, though not as severe as BAYC's.
The recent price drops have sparked discussions about the future of digital art NFTs. Some industry experts, like Shi Khai Wei of LongHash Ventures, believe these NFTs need to integrate with other blockchain applications to offer real utility. Wei argues that NFTs on their own may not be sustainable and require a clearer vision and connection to a larger project.
More stories from the crypto ecosystem
Interesting facts
Solana, just like Ethereum, uses a proof-of-stake system. In this consensus mechanism, owners of the cryptocurrency help verify transactions and secure the network.
Shiba Inu's lead developer, Shytoshi Kusama, remains shrouded in mystery. Despite keeping his identity hidden, Kusama has been actively involved in the project's development since its launch.
ADA cryptocurrency ticker stands for Ada Lovelace, who was the English mathematician, first computer programmer, and daughter of Lord Byron.
Top 3 coins of the day
Dogecoin (DOGE)
Key points:
Dogecoin's OI-Weighted Funding Rate saw an increase after 14 April.
On 15 April, long liquidations dominated the shorts, thanks to the price decline.
What you should know - Dogecoin has been facing conflicting signals. Despite a strong 1.86% hourly gain, DOGE remains significantly down (20.26%) over the past week. This volatility was also reflected in the choppiness index hovering near 48.53. Its supply zone stood within $0.21-$0.22. If bulls dominate in the short term, this zone would act as potential support. The demand zone stood near $0.13-$0.12, signifying the high level of liquidity in that area. Of late, DOGE’s market momentum has been bearish. However, whether DOGE can sustain its gains or succumb to the broader downtrend is yet to be seen.
Cardano (ADA)
Key points:
Cardano's Fear & Greed Index stood in neutral territory over the last day.
Its social dominance metric noted an increase after 12 April.
What you should know - ADA registered a sharp decline, especially after 8 April. High trading volume alongside the price decline suggested a genuine market move that could last for days. At press time, the coin was building support near $0.4741 with bears dominating the market movement. RSI stood in the oversold territory, revealing the market could experience a short-term selling relief from the traders. At press time, however, ADA was changing hands at $0.4737 with a 3.41% fall over the last day. Bitcoin’s positive move can easily pull ADA out of bears’ clutches.
Avalanche (AVAX)
Key points:
AVAX was 75.32% low from its ATH of $144.08. However, it was 306% up from its cycle low of $8.75.
Its development activity has significantly fallen after 12 March.
What you should know - AVAX experienced a brief consolidation phase from 12 March to 1 April before initiating a downward trend. Currently, it's testing the $37 mark as resistance. In terms of technical indicators, the Moving Average Convergence Divergence (MACD) showed a bearish signal with the blue line at -3.80 and the orange line at -2.14. This suggests a continuation of the downward momentum in the short term. Traders may observe the $37 resistance level closely for any potential breakout or reversal patterns while keeping an eye on MACD for further confirmation of market direction.
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