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XRP's market woes
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Will Bitcoin reach $100,000 this year? Share your thoughts in our quick 2-minute survey and help us understand market sentiment.
Bitcoin price down, but holders’ confidence high: Is now the time to buy?
Key points:
At press time, Bitcoin’s Reserve Risk was 0.002 indicating that holders were confident in its price.
Bulls have to come to BTC’s rescue as selling pressure has been intense of late.
News - Bitcoin [BTC] has ended the month of April with a negative price return. According to data from CoinMarketCap, Bitcoin’s price was $59,893 at press time. This represented a 13% decrease in the last 30 days.
What does May hold for BTC? To check Bitcoin’s next move, an assessment was done using the Reserve Risk metric. This metric measures the confidence of long-term investors relative to the price.
If the price is high and confidence is low, it means Bitcoin might not offer a great risk to reward. On the other hand, a declining value and rising confidence suggest that the price could have a chance of appreciating.
At press time, the Reserve Risk was 0.002, indicating that holders were confident in the price of BTC. Also, with the price decreasing in the last 30 days, it could be a signal for holders to start accumulating before BTC moves up again.
Binance founder Zhao sentenced to four months in prison
Key points:
CZ stepped down as CEO because of the charges brought against him and Binance in Q4, 2023.
U.S. prosecutors had recommended a 36-month sentence for Zhao.
News - Binance’s billionaire founder Changpeng Zhao, popularly known as CZ, was sentenced to four months in prison on Tuesday, after pleading guilty to charges of enabling money laundering at the crypto exchange.
Zhao is accused of willfully failing to implement an effective anti-money laundering program as required by the U.S. Bank Secrecy Act. He was also charged for allowing Binance to process transactions involving proceeds of unlawful activity, between Americans and individuals in sanctions jurisdictions.
The DoJ claimed that this was done to “attract users, build his company, and line his pockets.”
What’s more? Furthermore, prior to the hearing today, the former CEO had expressed his remorse over his lack of action to the overseeing Judge. In a letter, he said, “I apologise for my poor decisions and accept full responsibility for my actions. In hindsight, I should have focused on implementing compliance changes at Binance from the get-go, and I did not. There is no excuse for my failure to establish the necessary compliance controls at Binance.”
XRP’s market woes continue as prices drop by more than 20%
Key points:
XRP was trading at $0.4885 at press time, down 10% in the last 7 days.
The velocity of XRP has also trended downward since mid-March.
News - XRP was recently classified as a “zombie token” and criticized for being overvalued. The price of the token has continued to drop and has decreased by 20% in the last 30 days.
The latest 24-hour drop came despite an important partnership announced by Ripple Labs, the company behind XRP and XRP Ledger (XRPL). Ripple Labs entered into a deal with HashKey DX and SBI Holdings to provide supply chain finance solutions to the Japanese market.
More details - However, the news of the institutional adoption failed to lift XRP out of the woods.
Separately, the number of large transactions exceeding $100,000 has been on the decline in the last two weeks, suggesting lower engagement from whale investors.
If accumulation picks up, then maybe XRP’s price will take a U-turn ending the bearish streak.
Why BNB holders should be prepared for a move below $500
Key points:
BNB’s futures open interest fell by 23% in two weeks.
BNB was trading at $554 at press time, down 9% in the last seven days.
News - BNB may decline below the $500 price mark as its price attempts to fall below its moving averages. AMBCrypto’s readings of BNB’s 1-day price chart showed the coin’s price inching closer to its 20-day and 50-day moving averages (MAs).
What’s more? The 20-day and 50-day moving averages are used to identify trends. If an asset’s price falls below its 20-day and 50-day MAs, it signals a shift in momentum from bullish to bearish. When accompanied by a decline in buying pressure, it confirms that the market is in a downtrend.
If bearish sentiment spikes and BNB falls below these MAs, the coin’s price could descend to exchange hands at the strong support price level of $495.
An assessment of the BNB futures market revealed a decline in its open interest since 11 April. At $592 million at press time, the coin’s futures open interest has since fallen by 23%.
An asset’s futures open interest refers to the total number of the coin’s futures contracts that have yet to be settled or closed.
When it declines in this manner, it indicates an increase in the number of market participants exiting their positions without opening new ones.
More stories from the crypto ecosystem
Interesting facts
Dogecoin utilizes a unique mining mechanism called merged mining, which allows it to be mined simultaneously with Litecoin. This means that miners can mine both Dogecoin and Litecoin at the same time without any extra computational effort.
Ethereum has its own "ghost towns" in the form of abandoned smart contracts. These contracts, though defunct, remain immutable, potentially locking away Ether or tokens indefinitely.
Back in 2018, someone paid 600 ETH for a CryptoKitty Dragon. At the time of the sale, 600 ether was worth about $170,000. The price of ETH is now $2884.
Top 3 coins of the day
Pepe (PEPE)
Key points:
At press time, PEPE noted a drop of 12% over the last 24 hours.
PEPE’s Futures Open Interest rallied by 79% in the last ten days
What you should know - The crypto market has started the month of May in red. Top coins like Bitcoin and Ethereum have dropped by more than 6% in the last 24 hours. PEPE was no different as its price dropped to $0.000006165, at press time. PEPE was attempting to break above the $0.000000689 resistance at the time of writing. If bulls gain momentum, then PEPE can cross $0.00000763 before jumping as high as $0.00000819 in the days to come. The RSI of 45 gave a neutral outlook to PEPE’s next move.
Shiba Inu (SHIB)
Key points:
SHIB prices continued to drop with the rest of the market.
Technical indicators showed that bears are in control.
What you should know - Shiba Inu, in tandem with big coins like Bitcoin and Ethereum, experienced a big plunge this week. Its price dropped by 22% in the last 7 days. In its downtrend, SHIB also lost one of its key support levels. The price fell below the support level of $0.00002417. It seems the recently liquidated long positions also contributed to the drop. The RSI at 34 did not help the situation as it confirmed the bearish momentum. The Awesome Oscillator, with red bars below the zero line, showed that bears were in control at press time.
Solana (SOL)
Key points:
Solana was trading at $122 at press time having lost 5% in the last 24 hours.
Solana attracted more than $4 million in inflows last week.
What you should know - After its drop from the $160 resistance, Solana has been on a downtrend. Solana’s RSI has been below 50 for most of April, reinforcing the bearish structure. At press time, the OBV was also in a downtrend. The technical indicators point towards a drop below $100 in the short term. Traders can take this opportunity to buy the dip as there is a possibility of SOL prices moving to $160. To the north, the psychological $150 level and the $160 level were the magnetic zones for bulls to take profits.
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