Monday, 1 February 2021
Binance Coin Sets New ATH As New User Registrations Surge
Binance Coin just set yet another new all-time high today, taking out resistance set back in 2019.
With the resistance level now cleared and potentially flipped to support, what are the likely targets for the native exchange token?
Binance Coin Breaks Out Alongside New User Surge
Binance made its debut just ahead of the last crypto bull market came to a conclusion. Bitcoin was quickly approaching $20,000 and altcoins everywhere were soaring.
Because the young crypto exchange was known for the largest list of exotic altcoins, alt season was especially good to the budding brand.
Binance spent the entire crypto bear market building on its brand, and becoming an innovator and leader in the space.
Related Reading | Here’s The Line Separating Bitcoin Dominance From Altcoin Season
The company introduced initial exchange offerings, and was among the first exchanges to introduce its own native cryptocurrency token, Binance Coin, aimed at reducing trading fees, offering voting power, and a variety of other benefits for holders.
As one of the few tokens with real utility and in active use today, it has held up well and was able to set a new all-time high in 2019. But after that peak was when the exchange was forced to spin off its US operations, and some of the platform’s dominance has since diminished.
IEOs mostly fell out of favor, which left BNB reeling for some time. But from the March 2020 low put in across all markets, Binance Coin is up a staggering 576%.
Over the last few weeks as the cryptocurrency market picks up in steam and begins to catch up to Bitcoin’s enormous rally, new user registrations at Binance has begun to explode much like the last bull market.
Crypto Market FOMO Helped Restore Demand For Exchange Token
The more users on Binance taking advantage of their platform’s native exchange token has created more demand for the coin, and caused it to break through high timeframe resistance.
The first new peak was set weeks ago, but resistance from its former all-time high appears to now be holding as support, signaling that Binance Coin could make a measured move higher.
Targets for BNB could reach as high as $300 per token | Source: BNBUSDT on TradingView.com
Taking the height of the bullish base and applying it to the breakout, could make targets for BNB as high as $300 per token. And with demand at the exchange soaring and spilling into the platform’s native coin itself, the results could be dramatic.
Related Reading | Robinhood Reminder: Not Your Keys, Not Your Bitcoin
Binance, like Coinbase and other platforms, have suddenly risen the ranks of the Apple App Store for iPhone. Last week at the height of the GameStop and Robinhood saga, Binance and its US counterpart app both made the top ten in “free apps.”
Featured image from Deposit Photos, Charts from TradingView.com
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source https://cryptonews.wealthsharingsystems.com/2021/02/binance-coin-sets-new-ath-as-new-user-registrations-surge/
XRP Posts Wild “Pump and Dump” as Retail Buyers Give Whales an Exit
- The Wall Street Bets phenomenon recent took a grasp of the crypto market, with an army of retail investors first targeting Dogecoin before setting their sights on XRP
- XRP saw some slow momentum at first, but rumors regarding a “pump and dump” Telegram chat looking to rocket its price quickly circulated
- This led many traders to jump into positions hoping for a quick swing trade, which further perpetuated the movement
- Its price rocketed from the upper-$0.20 region to highs of $0.75 overnight before it plummeted
- One trader is now noting that this rally provided a perfect exit pump for whales who were looking to exit in light of the recent SEC lawsuit
XRP has been one of the worst-performing altcoins in 2021, with news of the SEC’s lawsuit against Ripple catalyzing a massive selloff that sent the token plunging from nearly $1.00 to lows of $0.17.
Its price action in the time since has been quite lackluster, but it gained some massive momentum over the past couple of days that erased all of the SEC-related losses.
One trader is calling this a final exit pump for whales, noting that profits from XRP are likely to roll over into other cryptocurrencies in the near-term.
XRP Explodes Higher Before Collapsing
At the time of writing, XRP is trading down 11% at its current price of $0.44.
The cryptocurrency surged to highs of $0.75 earlier today before it lost its momentum as saw a massive decline that, for a brief period, sent it down nearly 50%.
Its price has recovered slightly in the time since, but bears are still in control as it struggles to gain any momentum.
It remains unclear as to whether or not the army of retail buyers and members of the pump and dump Telegram group will be able to spark another round of gains or if it will continue plunging from here.
Analyst: Retail Investors Give Whales a Final Exit Pump
One analyst believes that this could be a final exit pump that ends as large whales take it as their chance to get out of XRP.
It appears that this is the case, as the intense selling suggests that large holders likely exited their positions at $0.75.
“So many whales bag-holding XRP, one exit pump was not enough, they needed two. Nevertheless, a lot of money is about to flow into big-caps as soon as it’s over.”
Image Courtesy of Galaxy. Source: XRPUSD on TradingView.
The coming few days should shine some light on just how strong the army of retail investors entering the market is.
Featured image from Unsplash. Charts from TradingView.
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source https://cryptonews.wealthsharingsystems.com/2021/02/xrp-posts-wild-pump-and-dump-as-retail-buyers-give-whales-an-exit/
What short squeeze? Here’s what is really behind XRP’s recent 170% rally
Between Jan. 30 and the early hours of Feb. 1, XRP price pumped 147%, reaching $0.76 which is its highest level in two months. The move seems to have been fueled by r/Satoshistreetbets, an off-shoot of r/Wallstreetbets.
It seems that speculative social media group-based investing is becoming a trend so let’s take a look at what triggers might have catalyzed the recent surge in XRP price.
Data from TheTie, an alternative data provider focused on social analytics, shows just how significant the impact of active Twitter users has been on XRP price.
Even Gene Simmons, the legendary musician from the rock band, KISS, told his nearly 900,000 followers:
“Not recommending any of these to anyone. But yes, I also bought Dogecoin, XRP, and others. Make of it what you will.”
Was there short interest behind this move?
Knowing exactly what triggered the investors to crowd into XRP could uncover a set of criteria that may apply to other cryptocurrencies.
Hedge funds with sizeable short positions are what drew investors to GameStop and AMC stock. By coordinating a pump on these companies, buyers knew that would force short sellers to be liquidated and trigger the start of a strong rally.
Taking a look at Bitfinex’s long-to-short ratio shows that there’s currently $124 million total margin trades combining its USD and BTC based markets. Although that figure is up from $95 million a month ago, it’s more important to focus on the percentage favoring shorts.
The ratio seen on Jan. 29 favored longs by 180%, and this is the opposite of what’s necessary for a short squeeze. Moreover, in nominal terms, those $25 million margin shorts were not significant to XRP’s $1.55 billion average daily volume.
On the other hand, futures markets held a $277 million open interest, which is flat from the previous month. But unlike margin markets, buyers and sellers are matched at all times.
As depicted above, despite the liquidations caused by the recent 147% rally, XRP’s open interest surged in nominal terms due to its price appreciation. To understand whether those traders had been using excess leverage on either side, one should focus on the futures contracts funding rate.
When sellers (shorts) are the ones demanding more leverage, the funding rate goes negative. Therefore, those traders will be the ones paying up the fees.
As shown above, buyers had been using more leverage. Albeit relatively steady over the past 30 days, the last time negative funding rates occurred was Dec. 24 and Dec. 29. Both dates mark local lows after substantial price corrections caused by the SEC lawsuit against XRP.
Therefore, it is safe to assume that r/Satoshibets did not pick XRP based on margin shorts nor futures leveraged trades.
Apart from being a sub-$10 coin, XRP was one of the most distant from its all-time high. It’s also important to consider that before its recent 1,000% pump, Dogecoin (DOGE) was also trading 90% below its $0.078 all-time high.
While it is indisputable that social investing groups have played some role in the recent rallies seen from Dogecoin, XRP, GameStop and AMC, the data do not validify the narrative that r/Satoshistreetbets chose to pump XRP because of the high level of shorts on the altcoin.
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.
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source https://cryptonews.wealthsharingsystems.com/2021/02/what-short-squeeze-heres-what-is-really-behind-xrps-recent-170-rally/
Why Bitcoin Price Above $34K Could Start A Strong Surge
Bitcoin price corrected lower, but it remained well bid above $32,000 against the US Dollar. BTC is currently rising, but it must clear the $34,000 resistance for a steady increase.
- Bitcoin is slowly gaining momentum above the $33,000 and $33,200 resistance levels.
- The price is currently trading above the $33,500 level and the 100 hourly simple moving average.
- There is a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a strong upward move if it clears the $34,000 resistance level.
Bitcoin Price Is Showing Recovery Signs
There was a downside extension in bitcoin price below the $33,200 support level. BTC even broke the $32,500 support level and the 100 hourly simple moving average. However, the bulls were able to protect the $32,000 support zone.
A low is formed near $32,178 and the price is currently rising. It broke the $32,500 and $33,000 resistance levels. There was also a break above the 23.6% Fib retracement level of the downward move from the $38,612 high to $32,178 low.
Source: BTCUSD on TradingView.com
Bitcoin price is now trading above the $33,500 level and the 100 hourly simple moving average. It is testing the key $34,000 resistance zone. There is also a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair.
The channel resistance is close to the 50% Fib retracement level of the downward move from the $38,612 high to $32,178 low. A successful break above the $34,000 resistance level could open the doors for a larger increase in the coming sessions. The next major resistance sits at $35,400, followed by $36,200.
Fresh Dip in BTC?
If bitcoin fails to clear the $34,000 resistance zone, there is a risk of a fresh decline. An initial support is near the $33,000 level. The next major support is near the $32,200 level.
Any more losses could lead the price towards the channel lower trend line at $31,500. If the price fails to stay inside the channel, it could easily dive towards the $30,000 support zone.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $33,000, followed by $32,200.
Major Resistance Levels – $34,000, $35,000 and $35,400.
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source https://cryptonews.wealthsharingsystems.com/2021/02/why-bitcoin-price-above-34k-could-start-a-strong-surge/
Sunday, 31 January 2021
Bubble or a drop in the ocean? Putting Bitcoin’s $1 trillion milestone into perspective
On Feb. 19, Bitcoin’s (BTC) market capitalization surpassed $1 trillion for the first time. While this was an exciting moment for investors...
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Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst...
