XRP was unable to breach the $0.3 level of resistance as it traded in the $0.28 region, even as announcements of it being delisted from popular exchanges rolled in. Tron flipped a level of resistance to support but did not possess strong upside momentum, and Dogecoin was quiet on the charts as well.
Using Gann’s rule of eighths for the range between $0.3 and $0.17 for XRP, some intermediate levels of support are highlighted. The RSI stayed below the neutral 50 value on the 4-hour charts, indicating a downtrend. However, the momentum in the short-term for XRP has been neutral.
Trading volume has been minimal over the past week, even as the price rose to test the $0.3 level of resistance multiple times.
In other news, Kraken became the latest exchange to drop support for the XRP/USD pair and announced that US residents will not be able to trade XRP from January 29th.
TRX respected the 2/1 Gann fan line as resistance but was able to flip the $0.03 level to support. The MACD showed that momentum was shifting to favor the bulls as it formed a bullish crossover and rose above the zero line.
The OBV did not show spectacular buying volumes but, throughout January, the buying volume has been on the rise. The past few days saw an equilibrium established between buying and selling, a factor that has to change if TRX is to rise toward the $0.032 level.
The 2/1 fan line can be expected to serve as resistance again – an above-average trading volume move to the upside is required to flip it to support. There is no evidence of such a move yet.
On the 1-hour chart, DOGE showed very little momentum in either direction as DOGE continued to trade sideways in the $0.009 region. Trading volume has been low.
The Bollinger bands tightened around the price and the 20 SMA (white) has been flat over the past couple of days. The Bollinger band’s width indicator was also trending lower. Even on the 4-hour chart (not shown), the volatility, over the past few days, has been falling.
Bitcoin Falls Below $1 Trillion Market Cap Following Bloody Week: The Crypto Weekly Recap
This week saw a serious correction in the total cryptocurrency market. This has resulted in Bitcoin falling below the $1 trillion market cap level. The price corrected by more than 20% at one point as it lost around $13,000 from the recent all-time high before correcting to where it currently trades at around $48K.
In all fairness, Bitcoin’s downturn followed that of the entire legacy market. As we reported earlier, NASDAQ saw the biggest slump since October last year as government bond yields gave the market a jolt, and investors favor companies that would benefit from a broader economic recovery throughout the rest of the year.
In any case, the correlation between the traditional financial markets in the face of some of the largest indices, such as the NASDAQ Composite and the S&P 500, is more than evident. Nevertheless, the cryptocurrency market, in general, took a beating over the last week as it saw more than $300 billion wiped off its capitalization.
Not every coin is in the red, though. Cardano’s ADA doesn’t seem to care much about the rest of the market and continues to increase. It managed to overtake Tether’s USDT stablecoin and became the third-largest cryptocurrency by means of market capitalization. Interestingly enough, a large Dubai-based investment fund said that it would sell $750 million in Bitcoin to buy more ADA and Polkadot’s DOT.
To no one’s surprise, MicroStrategy continues to buy Bitcoin at an accelerated rate. The company announced yet another $1 billion BTC buy this week which came after the convertible senior notes offering.
In any case, it might be the case that the recent correction was a healthy one. The truth is that this bull run had almost no serious corrections on the way up, and it’s entirely natural for investors to take profit. In addition to that, the market was overly leveraged, which caused a cascading effect of long liquidations on the way down, adding more fuel to the fire.
Let’s hope that the worst is over, and let’s see what the next week has in store!
Market Cap: $1494B | 24H Vol: 233B | BTC Dominance: 59.6%
BTC: $47,820 (-7.8%) | ETH: $1,525 (-21.3%) | XRP: $0.442 (-17.1%)
3 Possible Reasons Why Bitcoin Plunged Over 15% in 24 Hours. Bitcoin dipped by more than 15 in less than 24 hours and took the entire market down with it. With this in mind, we take a look at three of the possible reasons for the most recent downturn in the market, which resulted in the loss of more than $300 billion in its capitalization.
The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion). The laser eye meme on Twitter is spreading like wildfire as some of the most prominent crypto proponents and people outside of the industry change their profile pictures to include the beams. This might have been one of the signals that the market is in a state of euphoria.
Crypto Investment Fund to Sell $750M in Bitcoin for Cardano and Polkadot. A Dubai-based cryptocurrency investment fund that has more than $1 billion of assets under management (AUM) thinks that the value of Polkadot and Cardano will be higher than that of BTC in the years to come. It has announced that it will sell $750 million of its BTC to buy more ADA and DOT.
JP Morgan: Put 1% In Bitcoin as a Hedge as Demand is ‘Massively Outstripping’ Supply. JP Morgan has supported the narrative that investors should allocate 1% of their portfolio in BTC as a hedge. This was asserted by strategists of the multinational investment bank as more and more people seem to add fuel to the merit that bitcoin could protect assets against the inflating fiat currencies.
Someone Just Moved 100 Bitcoins Now Worth $5M That Only Cost $8 in 2010. An early bitcoin adopter who has mined 100 BTC back in 2010, which then had a face value of no more than $8, has moved them for the first time in over 11 years. Currently, the bitcoins are worth around $5 million.
MicroStrategy Completes Another $1 Billion Bitcoin Buy. MicroStrategy, the company, spearheaded by one of Bitcoin’s most vocal proponents, Michael Saylor, has bought another $1 billion worth of the cryptocurrency. This comes shortly after they conducted a convertible senior note offering to raise the money.
This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Polkadot, and Chainlink – click here for the full price analysis.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Kraken to Double its Valuation to $10 Billion via Funding Round
The veteran US-based cryptocurrency exchange Kraken is reportedly in talks to raise more than $5 billion and double its valuation to over $10 billion. Some of the giant names potentially participating in the latest funding round include Fidelity, General Atlantic, and Tribe Capital.
Kraken to Increase its Valuation to $10B?
Based in San Francisco, California, Kraken is among the oldest cryptocurrency exchange with nearly ten years of experience. The company could be on its way to more than double its valuation, according to a recent Bloomberg report.
Citing people familiar with the matter, the coverage reads that Kraken is currently in talks with prominent names such as Fidelity, Tribe Capital, and General Atlantic to secure the substantial amount.
If the exchange indeed proceeds with the funding now, this would be the first such round in almost two years. Back in 2019, Kraken employed the crypto-friendly investment platform Bank to the Future and raised more than $13 million at a $4 billion valuation. Interestingly, more than 2,000 parties participated in that round.
While Kraken reportedly dabbles with the idea of raising more money through a funding round, another giant US-based exchange, Coinbase, plans to go public through a direct listing.
Kraken to Investigate Market Price Drops
Earlier this week, BTC and the rest of the crypto market plummeted in value by 20% or more. The primary cryptocurrency dropped from a high of $58,400 to a low of $44,000 and still struggles to recover.
Ethereum also went through a significant downfall as it nosedived from $2,050 to about $1,350. However, there was a flash crash on Kraken, which saw ETH’s price dumping to approximately $700 on the exchange alone.
Naturally, Ethereum investors utilizing the platform weren’t happy as such developments could cause substantial financial losses. Kraken’s CEO Jesse Powell recently gave an interview where he addressed the situation and said that the company will investigate it:
“There were some large dips on Kraken, which we think were probably exacerbated by the availability of margin trading on Kraken and the availability of some advanced order types like stop orders, which many other exchanges don’t have.
We are not really sure why, but we are in the process of investing this – why the volume was greater on Kraken or why there was more cell pressure on Kraken relative to its peers.”
CoinShares Launches a $75 Million Physically-Backed Ethereum (ETH) ETP
A month after launching a Bitcoin ETP on Switzerland’s SIX Exchange, CoinShares has released a physically-backed exchange-traded product following the performance of the second-largest cryptocurrency – Ethereum.
- Describing itself as “Europe’s largest digital asset investment house,” CoinShares is a cryptocurrency-oriented manager with over $4 billion in AUM. The company, headquartered in London, announced the launch of its latest crypto product – a new physically-backed ETP tracking the performance of Ethereum.
- Called CoinShares Physical Ethereum, the product is already listed on the regulated SIX Swiss Exchange under the ticker ETHE and has a base fee of 1.25%. According to the company, the cost is “lower than the industry standard” of 2%.
- The statement explained that each unit of ETHE is backed with 0.03 Ether tokens at launch. Thus, it provides investors with “passive exposure to Ethereum’s native asset with the convenience of an ETP.”
“In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum. We are encouraged by our client’s trust in our team to guide them in their journey through the digital asset ecosystem, and for many, Ethereum is an important part of that journey.” – commented Chief Revenue Officer Frank Spiteri.
- It’s worth noting that this is the company’s second similar product tracking the performance of a crypto asset launched this year. Somewhat expectedly, the first one, released in mid-January, follows the largest digital asset by market cap – Bitcoin.
- CryptoPotato reported upon its launch that it started with AUM of $200 million, and each unit is backed by 0.001 BTC.
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