A new Ethereum-based (ETH) altcoin is seeing a colossal spike in price after ETH co-creator Vitalik Buterin joked on social media about its potential creation. Last week, Buterin made a Twitter joke that someone should create a project called “THE protocol” to take advantage of how common the word “the” is used. “Someone should make […]
The post New Ethereum-Based Altcoin Explodes 119,118% After Vitalik Buterin Jokes About Creation of Crypto Protocol appeared first on The Daily Hodl.
On-chain Cardano metrics show a decline in transactional activities on the network.
Cardano (ADA) price is in the process of painting its seventh red monthly candle in a row as the token fell to its lowest level since February 2021.
The trend saw ADA's price rising nearly 800% to $3.16 between February 2021 and September 2021, followed by a complete wipeout of those gains entering October 2022. Amusingly, the entire price action took the shape of the "Burj Khalifa," the world's tallest skyscraper in Dubai.
Ada Khalifa pic.twitter.com/KE2SxTO3bN
— Trader_J (@Trader_Jibon) October 19, 2022
The ADA price correction began primarily in the wake of a similar downtrend across the cryptocurrency market, led by the Federal Reserve's aggressive interest rate hikes to tame rising inflation.
Even an optimistic Cardano network upgrade dubbed Vasil was not enough to bring its buyers back to the market.
Notably, ADA's price has dropped by nearly 20% since the Vasil hard fork nearly a month ago — an update aimed at improving its network's scalability and smart contract capabilities.
Moreover, the ADA/USD pair also broke below a key support level that may lead to another major crash ahead in Q4.
The said support level at around $0.42 constitutes a descending triangle, a continuation pattern. In other words, ADA's potential to continue its prevailing downtrend becomes higher if it forms and breaks out of a descending triangle to the downside.
Meanwhile, as a rule of technical analysis, a descending triangle breakdown during a downtrend typically pushes the price lower to a level at length equal to the pattern's maximum height. Therefore, ADA risks dropping toward $0.248, or by 35%, if the descending triangle breakdown plays out.
$ADA now losing the lights out level and going to the place where coins go when they die. Prob got a -50% in it from that breakdown level imo
— Pentoshi (@Pentosh1) October 19, 2022
And I'm by no means picking on it. I posted charts for almost several alts like this including $SOL and $ETH in Dec-Jan pic.twitter.com/Of0TNZfXKK
Conversely, a retest followed by a close above the triangle's lower trendline as resistance raises ADA's possibility to invalidate the bearish outlook. In doing so, it could trigger a descending channel setup forming simultaneously with the ascending triangle, as shown below.
The descending channel setup sees ADA bouncing from its lower trendline to test the upper trendline near $0.45 as its immediate upside target. In other words, a 30% interim price rebound.
Overall, Cardano continues to tread ahead under macro risks, primarily after September's 8.2% inflation reading, which raised the possibility of the Fed continuing its rate hike spree for the remainder of 2022.
Risk assets across the board have witnessed a decline in individual investors' enthusiasm, which was instrumental in pushing thcryptocurrency prices higher in 2020 and 2021. For instance, Robinhood CEO Vlad Tenev noted:
"2020 and 2021, people were really interested in investing in stocks. There was widespread participation in the stock market. Now people are talking about gas prices and inflation.”
ADA, whose positive correlation coefficient with the U.S. benchmark S&P 500 has remained above $0.80 for most of 2022, also witnessed a sharp decline in its daily active addresses (DAA) since November 2021's market top.
Related: Cardano founder points out flaws in Ethereum and Bitcoin
Notably, its 30-day DAA average dropped to 165,000 on Oct. 19, its lowest level in two years, data from Santiment shows.
On a brighter note, the number of Cardano addresses holding 100–1,000 ADA and 1,000–10,000 ADA tokens has increased during the bear cycle, hinting at potential accumulation by large investors, or so-called whales.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
QNT whales have started securing profits after the token's 450%-plus price rally since June 2022.
The price of Quant Network (QNT) eyes a sharp reversal after an impressive 450% rally in the past four months.
QNT's downside outlook takes cues from a flurry of technical and on-chain indicators, all suggesting that investors who backed its price rally have likely reached the point of exhaustion.
Here are three reasons why it could be happening.
Interestingly, the period of QNT's massive uptrend coincided with similar upticks in its number of daily active addresses (DAA). This metric represents the number of unique addresses active on the network as a sender or receiver.
As of Oct. 17, the Quant Network's DAA reached an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. Its upsurge during the QNT price uptrend shows traders were net buyers.
However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT's price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.
The profit-taking in the Quant Network market comes as its daily relative strength index (RSI) crossed above 70 on Oct. 17, hinting that the asset is overbought.
An overbought RSI does not necessarily mean a strong bearish reversal, however. Instead, it shows that the price has moved upward too quickly and, thus, a correction is becoming increasingly likely before the uptrend could resume.
QNT's daily RSI corrected to 65 on Oct. 17. Simultaneously, the token's price dropped toward $185, coinciding with its 0.236 Fib line of the Fibonacci retracement graph shown in the chart below.
The $185-level was instrumental as support in August 2021. But given the existing profit-taking sentiment, the level may not hold for long, which could result in an extended decline toward the $137-$150 support range.
The area falls between QNT's 0.382 and 0.5 Fib lines and further coincides with its 50-day exponential moving average (50-day EMA; the red wave in the chart above), creating a strong support confluence. Therefore, a break below $185 could have QNT bears eye $137, a 25% drop, as the ultimate downside target by the end of the month.
The period of Quant Network's 450% price rally heavily coincided with the increase in the number of addresses holding between 100 QNT and 1,000 QNT tokens, dubbed as "whales" by Santiment.
Related: Institutions 'moving very, very fast' into Crypto: Coinbase exec
However, the whale count started dropping on Oct. 16, a day before QNT's price and DAA topped out. Meanwhile, addresses holding between 1,000 QNT and 10,000 QNT tokens also fell, suggesting that the plunge in the 100-1,000 QNT cohort was due to token distribution, not accumulation.
In other words, QNT whales have started selling their holdings near the token's potential price top, raising possibilities that the decline could continue toward the technical targets, as mentioned above.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
A mix of on-chain, fundamental and technical indicators hints at a big XRP price rally in the works.
XRP XRP has made considerable gains over the past month as traders continue to shower confidence on Ripple's legal win against the U.S. Securities and Exchange Commission (SEC).
For instance, XRP price has gained 25% thirty days after Ripple and the SEC filed for an immediate ruling on whether or not XRP sales violated U.S. securities laws. In comparison, Bitcoin BTC and Ether ETH are down 4% and 11% over the same period, respectively.
Now, a flurry of indicators, ranging from on-chain to technical, hints XRP can continue its uptrend going into 2023.
Bull pennants are bullish continuation patterns that form as the price consolidates in a triangle-like range after a strong upside move. In other words, they resolve after the price breaks out in the direction of its previous uptrend.
On the daily chart, XRP has been trending inside a similar technical structure since late September, as shown below. While at it, the token has also attempted to break above the pennant twice, albeit to no success. It now eyes another breakout in the coming days.
Theoretically, a bull pennant breakout increases the price by as much as the size of the previous uptrend. Therefore, XRP's bull pennant breakout can push the price toward $0.63 in Q4 2022.
That would mean a 35% price rally.
XRP's bullish technical setup receives further cues from on-chain data, showing accumulation is underway.
Notably, XRP's mean coin age — the average age of all tokens on the blockchain measured by the purchase price — has been rising since September, according to data from Santiment. The metric theoretically suggests that XRP users have been increasingly holding the tokens.
In addition, data tracker Whale Alert detected millions of dollars worth of XRP withdrawals across Bitstamp, Bitso, and other crypto exchanges, reducing the supply that can be potentially sold.
Notably, investors have moved a total of $126 million worth of XRP from exchanges to unknown wallets since Oct. 14. In comparison, $78.99 million worth of XRP was deposited into these exchanges.
65,200,000 #XRP (31,260,398 USD) transferred from #Bitso to unknown wallethttps://t.co/uZcv8p7bcD
— Whale Alert (@whale_alert) October 13, 2022
The root of all bullishness for XRP over the past few months is Ripple's potential to win against the SEC.
One of Ripple's core arguments is a speech by former SEC director William Hinman at the Yahoo Finance All Markets Summit in 2018. Hinman said Ethereum was not a security despite conducting an initial coin offering (ICO) round to raise funds.
Related: Federal regulators are preparing to pass judgment on Ethereum
Ripple's defense is that the SEC should treat XRP like Ethereum. And many believe the argument will guarantee a win for the company. For example, Seeking Alpha Contributor The Digital Trend stated:
"The news that the court has rejected SEC's objection to disclosing more documents linked to Hinman's 2018 speech led to a surge in XRP price on September 30; XRP rallied by 12% in twenty-four hours [...] These post-hearing rallies might just be a taste of what is to come if XRP wins the case."
Ripple CEO Brad Garlinghouse anticipates the case to conclude in the first half of 2023. However, he admitted that the results of the case is hard to predict.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
HT price makes further gains as Huobi Global opens SEAN spot trading, but the rally might be short-lived as technicals flip bearish.
Huobi Token (HT) has been up 12% in the last 24 hours and is one of the few cryptocurrencies bucking the general downtrend.
Trading at over $7, HT's price is up over 80% since the beginning of this week, which is also its best weekly performance since February 2021.
HT's intraday gains coincide primarily with crypto exchange Huobi Global announcing the opening of Starfish Finance (SEAN) spot trading on its platform.
Additionally, HT's impressive weekly gains were related to About Capital Management. On Oct. 8, this Hong Kong-based investment firm announced purchasing Huobi Global, one of the leading cryptocurrency exchanges by volume.
HT serves as a utility token inside the Huobi Global ecosystem. Justin Sun, the founder of the Tron blockchain project and reportedly the core backer of About Capital, said on Oct. 10 that they would empower HT to boost Huobi Global's brand and business endeavors.
今天是我入职Huobi第二天，我代表Huobi Global顾问委员会发言，我们深知振兴Huobi的关键就是赋能HT，HT兴火币才能兴！未来将有许多大动作围绕HT展开，包括品牌升级，重磅赋能，商务合作，我们会团结一切能团结的力量，共同把@HuobiGlobal 做好！
— H.E. Justin Sun (@justinsuntron) October 10, 2022
Nevertheless, the HT price rally has exposed it to potential profit-taking scenarios, per a mix of technical indicators.
On the daily chart below, HT's relative strength index (RSI) has crossed above 70, which is considered an "overbought" signal. That typically follows with the price entering a consolidation or correction period.
Similarly, the HT price rally witnessed this week accompanies a drop in trading volumes, suggesting traders have been growing doubtful about the longevity of the uptrend. Again, it could result in a price correction in the coming days.
The third bearish signal comes from HT's weekly chart.
Notably, HT's price now tests a resistance confluence made up of its 50-week exponential moving average (50-week EMA; the red wave), the 0.786 Fib line near $7.30, and a horizontal level near $7.40 that has historically served as support but now acts as a price ceiling.
Related: Crypto markets to see ‘explosive volatility’ soon: Arcane Research
The event of a pullback from this resistance confluence could have HT drop toward the $3.4-$3.8 area by the end of this year, a 50% price decline.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
XRP investors are hopeful that a potential court victory against the SEC could send the altcoin price at least 50% higher.
XRP is hoping that the token could see a massive price rally in 2022 based off the fingers-crossed assumption that Ripple will win its long-running legal battle against the U.S. Securities and Exchange Commission (SEC).
On Sept. 29, the district court judge in the case, Judge Analisa Torres, ordered the commission to release the documents penned by William Hinman, the former director of the corporation finance division at the SEC.
Hinman may have written about Ether (ETH), the native token of the Ethereum blockchain, not being a security in the concealed documents, believes Ripple. That is primarily because Hinman had proclaimed the same in his speech at the Yahoo Finance All Markets Summit in June 2018.
#XRPCommunity #SECGov v. #Ripple #XRP 1/4 Some thoughts on the next steps in the quest for the Hinman documents. The SEC has a number of procedural cards they can play to try to further delay complying with the order to produce the Hinman documents.
— James K. Filan 118k (beware of imposters) (@FilanLaw) September 30, 2022
Ripple's defense could use Hinman's writing as evidence that its blockchain's native token, XRP, should not be treated as a security, which is the opposite of what the SEC claimed in the lawsuit filed in December 2020.
XRP has since been ousted from many regulated crypto exchanges, including Coinbase and Bitstamp. As a result, it is now among the only top cryptocurrencies that have neither reclaimed nor established a record high during the 2020–2021 crypto market boom, reflecting caution from investors.
Some might argue, that from the vantage point of technical analysis, XRP price remains undervalued compared to other top-ranking cryptocurrencies. And a Ripple win might change that, given the token rallied 20% in a day after Judge Torres's order.
$XRP is on a mission to save the markets pic.twitter.com/zxBQLP1iBs
— Teddy (@TeddyCleps) September 30, 2022
Ripple going to go full send mode $XRP pic.twitter.com/276BsCVlSf
— Johnny (@CryptoGodJohn) September 29, 2022
Related: CFTC commissioner proposes office focused on retail crypto investors
From a technical standpoint, XRP is one breakout away from posting a 50% price rally.
Notably, the token now tests a resistance confluence of one multi-year descending trendline resistance, a flipped support bar and a Fibonacci line — all pivoting near $0.57. A Ripple win could help XRP break decisively above this confluence.
Such a breakout could have XRP eye a run-up toward the next Fib line near $0.72, up over 50% from Oct. 's price. Conversely, a pullback could crash XRP to its previous support level of $0.31, down 35% from the current price levels.
"$XRP is basically a court case play," noted independent market analyst DonAlt, adding:
"If they win the whole case $XRP giga pumps. if they lose it’ll be a nice -50% candle. Also, an $XRP loss would make other cryptos more vulnerable to attack, so you better cheer them on."
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Analysts fear NEXO price could come under pressure if regulatory action in the United States begins to intensify.
Crypto lending firm Nexo is at risk of losing half of the valuation of its native token by the end of 2022 as doubts about its potential insolvency grow in the market.
For the unversed: Eight U.S. states filed a cease-and-desist order against Nexo on Sep. 26, alleging that the firm offers unregistered securities to investors without alerting them about the risks of the financial products.
In particular, regulators in Kentucky accused Nexo of being insolvent, noting that without its namesake native token, NEXO, the firm’s “liabilities would exceed its assets.” As of July 31, Nexo had 959,089,286 NEXO in its reserves — 95.9% of all tokens in existence.
“This is a big, big, big problem because a very basic market analysis demonstrates that Nexo would be unable to monetize a significant chunk of these tokens,” noted Mike Burgersburg, an independent market analyst and author of the Dirty Bubble Media Substack, adding:
“Given that fact, the true value of the $NEXO tokens on Nexo’s balance sheet is likely close to $0.”
NEW: “IS NEXO NEXTO?”
— dirtybubble.usd (@MikeBurgersburg) September 28, 2022
According to state regulators, Nexo is insolvent without counting $NEXO tokens on their balance sheet.
This is the same situation Celsius Network was in… and basic market analysis suggests real value of their $NEXO is ~$0 https://t.co/txt1kOSydH
Burgersburg also alleged that Nexo faces insolvency risks because it holds the vast majority of NEXO’s token supply on its platform. He drew comparisons to Celsius Network, a now-defunct crypto lending firm that owned more than 50% of its native token, CEL.
Celsius ended up holding over 90% of the total CEL tokens in circulation after attracting deposits and collateral from customers. This made CEL extremely illiquid and, thus, volatile. In other words, CEL became a deeply imperfect asset for patching Celsius’ troubling balance sheets.
“NEXO token is even more illiquid than the bankrupt Celsius Network’s CEL token,” warned Burgersburg, noting that the token’s average daily trading volume comes to less than 1% of its market capitalization.
However, a Nexo spokesperson denied the allegations, clarifying that the data they provided to Kentucky regulators was for one of the Nexo Group’s entities.
“We can confirm that on a consolidated basis, NEXO tokens represent less than 10% of the company’s total assets,” they told Cointelegraph, adding:
“That, in return, exceeds the company liabilities even when excluding the company’s net position in NEXO tokens.”
As to why Nexo holds more than 90% of the NEXO supply, the firm’s spokesperson cited the token’s economics and utility, saying that they create natural incentives for clients to keep their tokens on the platform.
“In addition to earning higher interest rates on their digital asset balances by holding NEXO tokens on the Nexo platform, clients can use NEXO tokens as collateral, earn interest on them and exchange them directly on the Nexo platform,” they explained, adding:
“The same is true for the tokenomics of companies with similar value propositions such as FTT, BNB and CRO, held predominantly on FTX, Binance and Crypto.com, respectively.”
The fear, uncertainty and doubt surrounding the rumors of market volatility or stringent regulation against crypto lending platforms could create negative investment sentiments toward NEXO. Unfortunately, the token’s technical setup suggests the same.
Related: Nexo acquires stake in US chartered bank
Notably, NEXO’s price has been forming what appears to be an ascending triangle on its longer-timeframe charts since June 12. Ascending triangles are considered bearish continuation patterns in a downtrend, which makes NEXO susceptible to extreme price declines.
By the rule of technical analysis, an ascending triangle resolves after the price breaks below its lower trendline and continues falling in the same direction until it reaches the level that is at length equal to the triangle’s maximum height.
This setup is illustrated in the chart below.
In the event that the pattern confirms, the price of NEXO could fall toward $0.47, down about 50% from its current price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
One Ethereum (ETH)-based altcoin is surging by nearly 30% this week as it outpaces both the king crypto and the overall digital assets market. Interoperable blockchain network Quant (QNT) has sparked a rally over the last seven days, going from $103.14 on September 14th to $133.34 at time of writing, a nearly 30% gain. QNT […]
The post Ethereum-Based Altcoin Soars 30% in One Week, Massively Outpacing Bitcoin and Overall Crypto Market appeared first on The Daily Hodl.
How can you add years to your life, and life to your years? Longevity science can help — and this is a concept that's of particular interest to crypto pioneers.
It's a question that's infatuated scientists for decades: how can we prolong life expectancy — giving humans everywhere more years of good health?
This field is known as longevity science, and within this industry, experts argue care which regards ageing as a normal but treatable ailment are rare — and of the approaches available, they can only be accessed by those who are highly educated and privileged.
Just some of the key tenets that govern this approach to medicine involve therapeutics, personalized medicine, predictive diagnostics and artificial intelligence. The goal is to eliminate a "one size fits all" attitude toward treatment, and ensure that therapies are customized to an individual's unique medical profile. This can matter in many different ways — to the best method for tackling cancer, to the food we eat and our risk of heart disease.
And while predictive diagnostics offers an existing way of unlocking better patient outcomes, this often hinges upon using large amounts of anonymized data to determine what's happened in the past, and how greater levels of success are achieved in the future.
Bizarrely, there are parallels between cryptocurrencies and longevity science. You could argue that this approach to medicine is currently where digital assets were back in 2013 — a time when crypto discussion was confined to online message boards, niche group chats and convoluted whitepapers. Longevity researchers are excitedly sharing their findings with one another — and collaboration is taking place across sectors. Experts are keen to ensure that anyone with an interest in this nascent field can get involved and contribute.
As in the crypto industry, a big challenge that longevity science faces is education — and simply explaining this concept to the public. This is a journey that takes time, effort, money and patience.
Because of this, a dedicated event has been established so this cutting-edge concept can be discussed in an open forum. The Longevity Investors Conference is set to take place in Switzerland from Sept. 28-30. It's being sponsored by Credit Suisse, and tickets can be paid for in cryptocurrency.
It's being organized by Marc P. Bernegger. He's a founding partner of Maximon — a Swiss company that invests and builds in longevity-focused companies. Bernegger explored Bitcoin in 2012 and told Cointelegraph: "There is room for everyone. We can all travel the same path but take different approaches. It's still the same narrative."
Just some of the items on the agenda include exploring the scientific meaning of longevity — and how this will affect individuals around the world in the long run. Discussions will also be held on how to cultivate investment in this fledgling space, and according to Bernegger, this is a field that's of great interest to crypto enthusiasts.
The conference aims to build bridges, and highlight how scientists play a vital role in ensuring that we can all benefit from longer lifespans and a healthy retirement. While there are business opportunities to be found, investors face a challenge because they're not from a scientific background. Likewise, bright minds often need an entrepreneurial perspective in order to bring their genius concepts to market.
Bernegger added: "There are a number of different perspectives — the entrepreneurs, the scientists, investors who bring money. They need a combination of everything. This sector appreciates new players. The more money there is, the more smart and serious people you have, the better. The industry is still finding itself. It is accessible now, and people are happy to help."
It's the science element that's attracting early adopters of cryptocurrency to this space. The reason is simple: because many of these enthusiasts are forward looking, open minded and technology driven.
Describing the initial days of crypto, Bernegger explained: "They were all in for the technology. It was not just speculative. They saw the potential of a peer-to-peer solution, and now they see the potential with regard to ageing."
Indeed, blockchain technology also has the potential to enhance the quest to achieve longevity. Decentralized autonomous organizations (DAOs) have already been established that are funding research to support and commercialize therapeutics. This approach also ensures that donors can vote on the future direction of research projects.
Even though the bear market has cast a long shadow over the crypto sector, many of those in this industry are firmly in the "BUIDL" phase. They're using this opportunity to innovate, cultivate new products, and develop the trends that will drive the next bull run. Longevity science can be one of them — and according to Bernegger, pioneers know that paying close attention to health is far more important than the value of any token.
We already know that the rate of ageing can be controlled, to some extent, by genetic pathways and biochemical processes. But in the coming decades, there are still so many questions to be answered — and dots to be connected — in the quest to improve our quality of life, and ensure that anyone can access it.
The Longevity Investors Conference says attendance will be strictly limited to 100 hand-picked delegates, and they'll be able to benefit from the insights of over 30 outstanding speakers. It's a compelling opportunity to get to know the industry inside and out, all while establishing meaningful contacts with the best people in the field.
It's going to take place in Gstaad, one of the most exclusive Swiss mountain resorts, in a "one-of-a-kind setting" within a plush, five-star hotel, and world-class speakers flying in to attend and present. This includes members of the Longevity Science Foundation Visonary Board.. This nonprofit recently entered into a partnership with The Giving Block — tapping into a vital stream of crypto philanthropy.
If you want to know how to add years to your life, and life to your years, this could be the most important conference you ever attend.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.
The XRP price rally appears to be driven by a "buy-the-rumor" frenzy in a potential lawsuit win for Ripple versus the SEC.
XRP price posted a sharp rally against Bitcoin (BTC) on continued optimism about a potential settlement between Ripple, a San Francisco-based blockchain payment firm, and the U.S. Securities and Exchange Commission (SEC).
On Sept. 23, the XRP/BTC pair surged to 0.00002877 — its best level in 13 months — from 0.00002132, a 35% price rally versus Bitcoin in one day. Meanwhile, the same timeframe saw XRP rising as much as 42% against the U.S. dollar.
The big price leaps in the XRP market started appearing after Ripple and SEC filed motions for a summary judgment with the court on Sept. 12 regarding their ongoing legal battle over allegations that Ripple hcommitted securities fraud.
In other words, Ripple and SEC agreed that the court should use the available evidence to reach a verdict on whether the blockchain firm illegally raised funds by selling XRP by December 2022, and thus avoid a trial.
XRP's price has boomed approximately 75% and 60% versus Bitcoin and the dollar, respectively, since Ripple's court filing, fueled by optimism of a possible win for Ripple.
The buying accelerated further after Ripple CEO Brad Garlinghouse suggested the same in his recent interview with Fox Business on Sept. 22.
BREAKING: Ripple CEO @BGarlinghouse Appears on Fox Business Amid $XRP Price Surge Approaching $0.50
— HeadlineHunter!U.S. (@HHunter_US) September 22, 2022
pic.twitter.com/wg6a3QeSly
Garlinghouse:
"People realize that the SEC is really overreaching and they are not following a faithful allegiance to the law in pursuit for an outcome [...] The SEC has kind of lost its way."
The price surge also comes amid the consistent accumulation of XRP tokens by rich investors csince May.
The percentage of entities holding between 1 million and 10 million XRP tokens — known as sharks and whales — has risen as a whole to 6.35% on Sept. 23, 2022, up from 5.43% on Dec. 31, 2020, according to data from Santiment, which noted:
"Active shark & whale addresses holding 1m to 10m $XRP have been in an accumulation pattern since late 2020."
Meanwhile, the given period also witnessed entities with over 10 million XRP tokens reaching an all-time low 70.75% of the current supply.
It appears that traders have been buying the rumor in the run-up to the Ripple vs. SEC verdict. But while it remains to be seen if this will then turn into "sell the news," depending on the outcome of the ruling, XRP's technicals are hinting at a potential correction.
Notably, XRP has already become an overbought asset versus Bitcoin and the dollar.
Related: Total crypto market cap shows strength even after the Merge and Federal Reserve rate hike
The relative strength index (RSI) for XRP/BTC reached almost 85 on Sept. 23, way above the overbought threshold of 70 that typically precedes a strong price correction or consolidation.
XRP/BTC has already corrected by nearly 10% from its 13-month peak, as shown in the chart below. The pair now tests 0.00002601 as its short-term support, which, if broken to the downside, could have it test 0.00002079 as its primary downside target or a 20% drop from current levels by the end of the year.
Meanwhile, XRP eyes a similar sharp correction versus the dollar after crossing paths with a multi-month descending trendline resistance, as shown below.
An extended pullback from the trendline resistance could see XRP test its near-term horizontal trendline support as its next downside target. In other words, the XRP/USD pair could drop to $0.31 by the end of 2022, down almost 40% from Sept. 23's price.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
