Flash loans are DeFi-specific crypto loans in which large amounts of capital can be borrowed with little collateral, provided the loan is paid back within the same transaction.
While typically used by traders, hackers have demonstrated success in being able to trick a protocol’s smart contract into manipulating prices and then taking over the liquidity pool’s assets.
This is a so-called “flash loan attack”, a technique utilised by the exploiter in this latest incident, confirmed by security firm PeckShield:
3/ The hack is made possible due to the price oracle manipulation, which misuses the balances of assets in the pool to directly calculate the LP token price. It is greatly facilitated by the flashloan to skew the reserves in the pool. pic.twitter.com/NxurMnMF7W
On-chain data reveals that the culprit flash-borrowed 27,000 wrapped bitcoin from lending protocol Aave to conduct the attack. The funds were subsequently routed through swap service Curve for various stablecoins before being used to remove DOLA, a stablecoin, from Inverse Finance pools.
Evidence of the flash loans. Source: Etherscan
In total, the exploiters managed to steal more than 53 bitcoin, worth US$1.1 million, and 10,000 tether (USDT). As a result, Inverse implemented a temporary pause on its lending:
Inverse has temporarily paused borrows following an incident this morning where DOLA was removed from our money market, Frontier. We are investigating the incident however no user funds were taken or were at risk. We are investigating and will provide more details soon.
Since the exploit, an address tagged “Inverse Finance Exploiter” has apparently been sent 900 ETH, worth around US$1 million, to Tornado Cash, a privacy mixer often used when attackers wish to conceal their funds.
‘Generous Bounty’ Offered
In a post-mortem, Inverse Finance encouraged the person(s) behind the incident to return the funds for a “generous bounty”. And to mitigate the risk of further incidents, it added that it had retained the services of security experts to not only further understand the breach, but also to prevent further such instances in the future.
Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
BTC finally retested the all-time high from 2017 and from here it’s very simple: we either confirm a new floor or break through it to US$12,000.
BTC weekly chart
For the US$20,000 level to be confirmed as the bottom, it takes more than just a few candles. We need to see solid market structure with volume behind it. This will take a little time for the market to produce, and could take days or even weeks.
Once again, however, my opinion is we have more red to come (sorry! I know it’s been six months of bearish bias!). That said, we may see a relief rally to around US$28,000 and should that happen I plan to add to my short position and perhaps we visit US$12,000. If we don’t get a pullback in PA, then I’ll continue to ride my open shorts.
BTC trade action plan
I still very much believe the entire bear flag I wrote about on April 11 will play out to the end at minimum. And dare I say we may even go further if the world economic climate doesn’t see a vast change in the coming months. How does buying BTC at US$6,000 sound?
Image from Apr 11 article
Current BTC 3D chart
Even if we zoom in on the 1H charts for our day traders, we see a failure to break and hold above 100 EMA confluent with the peak of a 1H rising wedge (bearish candlestick pattern).
This Week’s Trades
Because I still have a bearish outlook on the market, entering long trades or buy orders on ALT coins is high-risk and short-lived. So instead, what I’m looking for is ALTs that have seen a significant pump and in turn yield higher percentage gains if the market dumps again. Remember, you can still make serious ROI in a downtrending market.
Setups similar to the below chart of SNX is what I’m looking for – a clear retest and rejection from a new level of resistance (previously support). There are a few ALT setups like this already in play.
To enter before BTC decides if it’ll dead-cat bounce has higher risk and far more aggressive entries. Best practice would be to “wait and see”. If BTC pulls back – find entries. If BTC doesn’t – do nothing.
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Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Cardano (ADA)
Cardano ADA is a proof-of-stake blockchain platform whose stated goal is to allow “changemakers, innovators, and visionaries” to bring about positive global change. The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals”, helping to create a society that is more secure, transparent, and fair. Cardano is used by agricultural companies to track fresh produce from field to fork, while other products built on the platform allow educational credentials to be stored in a tamper-proof way, and retailers to clamp down on counterfeit goods.
ADA Price Analysis
At the time of writing, ADA is ranked the 7th cryptocurrency globally and the current price is US$0.4913. Let’s take a look at the chart below for price analysis:
From its March high to early May, ADA dropped nearly 68% before finding support near $0.4549. The price has been consolidating since it set this low and is currently testing support near $0.4549. This level has held as support despite the larger market’s sharp downturn since mid-June.
It’s reasonable to expect the price to briefly drop through this level to run bulls’ stops below the swing lows at $0.4206 and $0.4019 before any potential rally. If so, an old accumulation and inefficiently traded area on the weekly chart near $0.3972 could provide support.
If this region holds as support, bulls might find the first resistance near $0.5610. Here, the 40 EMA and an inefficiently traded area converge in the upper half of the local range.
A break of this resistance may retest resistance just above the June monthly open, near $0.6696. This level holds many bears’ stops, is near old broken support, and is inefficiently traded on the monthly and daily charts.
However, bulls should be cautious of the bearish market conditions and a potential hardfork delay. A break of the two closest support levels could lead to a much more significant drop near $0.2288. This level, near the 2021 yearly open, is inefficiently traded on the monthly and weekly charts.
2. Internet Computer (ICP)
The Internet Computer ICP is the world’s first blockchain that runs at web speed with unbounded capacity. It also represents the third major blockchain innovation, alongside Bitcoin and Ethereum – a blockchain computer that scales smart contract computation and data, runs them at web speed, processes and stores data efficiently, and provides powerful software frameworks to developers. By making this possible, the Internet Computer enables the complete reimagination of software, providing a revolutionary new way to build tokenised internet services, pan-industry platforms, decentralised financial systems, and even traditional enterprise systems and websites.
ICP Price Analysis
At the time of writing, ICP is ranked the 36th cryptocurrency globally and the current price is US$5.67. Let’s take a look at the chart below for price analysis:
ICP has dropped 53% from its most recent June high as it continues its nine-month downtrend.
The edge of the recent swing’s lower candle bodies could provide the closest support, near $5.15. This level overlaps with the 100% extension of June’s opening rally.
Currently, the price is testing possible resistance near $5.43. This level has confluence with the 9 EMA. It is unclear if it will hold as resistance, but it’s reasonable to anticipate a run above bears’ stops at $6.06.
If the price breaks through this resistance, it may find its next resistance near $6.59. This level is near the midpoint of May 12’s swing low and the midpoint of an inefficiently traded area on the weekly chart.
A rally this high may reach slightly higher, near $6.82. This area formed the base of the June opening rally, shows inefficient trading on the daily chart, and is at the low end of May’s accumulation range.
Below, there is no historical price action to suggest possible support. The next downside targets may be near $4.00 and $2.80. These approximate levels are near the 150% and 200% extensions of June’s opening rally.
3. Meta Connect (MXC)
Meta X Connect MXC is a utility token allowing for the increased frequency of data transactions and idiosyncratic data flows within the AI and blockchain markets. The MXProtocol ensures networks are created and connected via a decentralised and robust protocol using an interchain data market, encouraging participation via Proof of Participation (“PoP”) Mining. The mechanism also allows for the provisioning of any tangible smart Internet of Things (IoT) devices with minimal cost, creating a framework for data providers and receivers to produce their own GDPR-safe AI and blockchain NFTs.
MXC Price Analysis
At the time of writing, MXC is ranked the 132nd cryptocurrency globally and the current price is US$0.06589. Let’s take a look at the chart below for price analysis:
MXC bulls suffered a sharp 51.65% drop during the second week of May. Since then, the price has consolidated in the lower half of the range created by this drop.
A level near $0.06508 has been providing support on each recent retest. This level has confluence with the bottom of the candle bodies created in May’s significant swing low. It could continue to provide support for a run to or beyond the closest resistance.
Bulls may find their next resistance near $0.06938. Here, a recent swing high, an inefficiently traded area on the daily chart, and the 9 EMA could attract the price.
A break through this level may find its resistance in the upper half of the local range, near $0.07631. This level contains the 40 EMA and previously supported the price as it formed the base of late May and early June’s rally.
A significantly higher move could retest resistance near $0.09245. This level shows inefficient trading on the weekly and daily charts. It also provided support during March and April’s consolidation. A run to this level would sweep many bears’ stops above the swing high at $0.09245.
An eventual move below the 2022 yearly open into a zone from $0.05245 to $0.04329 is reasonable to expect. Moving to this zone would sweep bulls’ stops under two relatively equal major swing lows. This level also saw accumulation before December’s rally.
If the downtrend resumes, bears might next target possible support near $0.03428. This level is near the midpoint and lower half of 2021’s massive consolidation. It would also provide bears with a shot at bulls’ stops under the significant swing low at $0.03229.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
For the first time since December 2020, bitcoin dropped below US$20,000 as crypto markets tumbled this past weekend amid US$600 million being liquidated within 24 hours.
Despite some panicking, others took a more sanguine approach:
Five years from now, the world won’t remember this bitcoin crash. It’ll be just another blip on the chart.
Unlike prior cycles, bitcoin is well and truly integrated within the broader global macroeconomy. Against a backdrop of US inflation hitting a 40-year high, coupled with an aggressive rates rise by the Fed, all risk assets were inevitably going to feel the pain.
With the market in full fear mode, dialled up in part thanks to Celsius halting withdrawals, the broader crypto market was already well-poised for a breakdown. Fear, coupled with the sector’s affinity for leverage, and suddenly you had a situation where bitcoin and crypto fell off a cliff.
ETH dropped below US$950 and BTC broke the previous cycle’s all-time high, collapsing to US$17,500. All over Twitter, commentators spoke how it was now official that “all models are broken”:
#Bitcoin dropping below the previous 2017 cycle high ($19,600) is unprecedented and breaks all models.
The silver lining: next cycle we won't rely on phony models, but rather on fundamental comparative advantages, which are real and are not going away: pic.twitter.com/9hISWqXPei
— WMA Investment Advisors (@WilliamsMktAnyt) June 17, 2022
Slight Recovery
As bitcoin slid below US$19,000, commentators were left wondering when the carnage would end. Glassnode’s on-chain analyst Checkmate highlighted bitcoin’s difficulty regression model being priced at US$17,600, that being the cost to mine BTC, as a possible bottom.
Not long after, BTC bounced off the difficulty regression model, providing some temporary relief:
#Bitcoin prices bounced perfectly off the Difficulty Regression model at $17,600.
This reflects the best estimate, all-in-sustaining-cost to mine $BTC.#Bitcoin returned to test its cost of production, as all commodities do in bears.
BTC has since regained some of the losses, clawing its way back up above US$20,000, however it remains almost 25 percent down over the past week.
BTC weekly performance. Source: Coinbase
ETH has similarly recovered somewhat, following in BTC’s steps, and at the time of writing was trading at just over US$1,100, close to 24 percent down on the week:
Ethereum weekly performance. Source: Coinbase
For long-term holders with high levels of conviction, now may be as good a time as ever to gain exposure. However, the market remains riddled with fear, suggesting that few are likely to dive in. Market psychology is indeed a strange thing …
Crypto market fear and greed index. Source: @BitcoinFear
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Uniswap (UNI)
Uniswap UNI is a popular decentralised trading protocol known for its role in facilitating the automated trading of decentralised finance (DeFi) tokens. Uniswap aims to keep token trading automated and completely open to anyone who holds tokens while improving the efficiency of trading versus that on traditional exchanges. Uniswap creates more efficiency by solving liquidity issues with automated solutions, avoiding the problems that plagued the first decentralised exchanges.
UNI Price Analysis
At the time of writing, UNI is ranked the 21st cryptocurrency globally and the current price is US$4.00. Let’s take a look at the chart below for price analysis:
UNI‘s 70% retracement from its April highs set a low near $3.65 during its consolidation that began in early May.
Relatively equal highs near $4.46 could be the current target if the price breaks through resistance beginning near $4.97. Bullish continuation might reach through the next significant swing high near $5.26 into the daily gap near $5.47.
If bullish strength continues, the zones just below the monthly open near $5.88 and $6.11 could halt any retracement.
A bearish shift in the market might seek the relatively equal lows near $3.90 into possible support near $3.62. If this down move occurs, the swing low near $3.43 and possible support near $3.12 may be the primary objective.
2. Tezos (XTZ)
Tezos XTZ is a blockchain network that’s based on smart contracts in a way that’s not too dissimilar to Ethereum. However, there’s a big difference: Tezos aims to offer infrastructure that is more advanced – meaning it can evolve and improve over time without any danger of a hard fork. This is something both Bitcoin and Ethereum have suffered since they were created. People who hold XTZ can vote on proposals for protocol upgrades that have been put forward by Tezos developers.
XTZ Price Analysis
At the time of writing, XTZ is ranked the 38th cryptocurrency globally and the current price is US$1.32. Let’s take a look at the chart below for price analysis:
XTZ‘s 70% drop since April saw a second leg after last month’s market-wide drop ran the previous consolidation’s stops.
The level near $2.10 is providing some resistance. However, continuation through the monthly high at $2.18 is not out of the question. Aggressive bulls might bid in the current region near $1.40.
If the price runs the recent swing low, bulls might bid in the gap near $1.20. A deeper retracement could reach near the early monthly level and a gap near $1.00. The region near $0.93 and $0.84 may also provide some support during a deeper retracement.
3. VeChain (VET)
VeChain VET is a blockchain-powered supply chain platform. VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem that solves some of the major problems with supply chain management. The platform uses two in-house tokens, VET and VTHO, to manage and create value based on its VeChainThor public blockchain. The idea is to boost the efficiency, traceability and transparency of supply chains while reducing costs and placing more control in the hands of individual users.
VET Price Analysis
At the time of writing, VET is ranked the 31st cryptocurrency globally and the current price is US$0.02281. Let’s take a look at the chart below for price analysis:
VET‘s 50% move during late Q1 ran into resistance near $0.08120, at the 35% extension of the Q1 swing.
An old high and the 18 EMA have provided support near $0.02283 and may give support again on a retest. This area also has confluence with the 55% and 68.9% retracements of November’s swing.
Just below, near $0.02043, the 50.8% retracement of the current Q1 swing might also mark an area of support.
If the market turns bearish, $0.01742 is unlikely to be revisited but could see interest from bulls during any deeper retracement.
An area near $0.02948, at the 50% extension of the last week swing, could see some profit-taking if bulls break the current resistance near $0.03478. Above, old consolidations near $0.03825 and $0.04372 may also provide some resistance before another round of price discovery.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
The US Federal Reserve (Fed) has raised interest rates by 75 basis points, the biggest rate hike since 1994, as part of an ongoing effort to tackle soaring inflation.
💥BREAKING: Fed raised rates by 0.75% – the largest hike since 1994!
This past week saw crypto markets plummet in the face of US inflation hitting its highest level in 40 years. With a Federal Open Market Committee (FOMC) meeting scheduled for later in the week, commentators speculated that the record 8.6 percent inflation print would likely force the Fed to aggressively raise rates. And it turns out, they were correct.
At a meeting of the FOMC, members took the decision to raise rates by 0.75 percent to 1.75 percent, with Fed chair Jerome Powell commenting:
Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common.
Jerome Powell, Fed chair
Powell added, though, that he expects the July meeting to see an increase of 50 or 75 basis points too, though any decisions would be made “meeting by meeting”. Continuing, he said: “We [Fed] want to see progress. Inflation can’t go down until it flattens out. If we don’t see progress, that could cause us to react. Soon enough, we will be seeing some progress.”
While there were references to soaring energy costs amid the Ukraine/Russia conflict and lockdown-induced supply chain woes out of China, no mention was made of the impact of a 50 percent increase in broad money supply since 2020.
Going forward, FOMC members indicated a much stronger path of rate increases to help the Fed arrest inflation and achieve a 2 percent target which, according to its statement, it is “strongly committed” to.
Crypto Market Rallies Briefly in Response
Crypto markets arguably had a sense of impending doom going into June 15’s FOMC meeting, expecting the worst. Surprisingly however, it appears as if the bad news were already priced in as the digital asset market rose more than 10 percent on news of the Fed’s increased rate:
Crypto market capitalisation. Source: CoinGecko
Ethereum rose from US$1,075 to US$1,240, compared to bitcoin which saw an increase of over 10 percent from a low of close to US$20,000 up over US$22,500.
The gains have, however, been trimmed back a touch, and bitcoin is currently exchanging hands at US$22,100.
For all the talk of “uncorrelated assets” and a “supercycle”, 2022 has shown that the digital asset market is intrinsically tied to the broader macro environment. Conditions remain uncertain for now and, therefore, continued volatility ought to be anticipated.
The European Central Bank’s executive board member Fabio Panetta has announced that the ECB will limit the digital euro to a maximum supply of 1.5 trillion euros.
Panetta appeared before the European Parliament’s Committee on Economic and Monetary Affairs to report on the development of a digital euro as the program reaches the one-year mark:
Since the eurozone’s central bank initiated a two-year investigation into a possible digital currency in July 2021, Panetta has said he was optimistic that a central bank digital currency (CBDC) would be ready for launch within four years. Panetta told the committee that should a digital euro be issued, it would be capped at 1.5 trillion euros as a major concern with a CBDC is that consumers might keep all their money in digital format, which would in effect mean depositing their entire savings with the central bank and starving consumer banks of the funds they need to lend to businesses and individuals.
Panetta said in a statement: “Keeping total digital euro holdings between one trillion and one-and-a-half trillion euro would avoid negative effects for the financial system and monetary policy.” He added: “As the population of the euro area is currently around 340 million, this would allow for holdings of around 3,000 to 4,000 digital euro per capita.”
Panetta continued by saying that many Europeans are “not enthusiastic, to put it mildly, about the digital euro”. This, he said, was partly due to the fact that very few people understand what a digital euro is because “it’s complicated”.
Have a favourite NFT you want to show the world? TAG Heuer is giving consumers the opportunity to wear their NFTs on their wrist. The update follows the luxury watchmaker brand’s recent acceptance of cryptocurrency as payment in its American online store:
TAG Heuer announced its Connected Calibre E4 smartwatch this week. The exciting part? The watch will allow consumers to display their NFTs on its face, as the digital wallet on an NFT owner’s phone can be synched with the smartwatch to display hexagonal JPEG and GIF versions of any NFT.
For interested consumers who don’t have NFTs to display, the watch face can also frame standard digital images.
Gm. You can now buy a TAG Heuer watch on our US website with 10 different cryptocurrencies. The beginning of a journey ! https://t.co/bg78njox95
The move from TAG Heuer reportedly follows discussions with blue-chip NFT communities such as Bored Ape Yacht Club (BAYC) and CryptoPunks. It also comes shortly after the watchmaker’s announcement that it will now accept Bitcoin, Dogecoin, Ethereum, Litecoin, and nine other cryptocurrencies as payment on its US website.
Putting NFTs on Display
There has been an increase in interest of late from NFT owners eager to display their prized art, and several companies are working on solutions to meet this desire. In January, Netgear came forward with plans to alter its Meural digital art frames so they might cater to NFTs. Originally conceived to display personal digital photos, the technology behind the Meural canvases will be modified so NFT owners can display their purchases on the virtual walls of their space.
More recently, Sony entered a partnership with Theta Labs to bring interactive 3D NFTs to life. The project will be executed via a decentralised video streaming/delivery network. The network will be accompanied by its own native crypto asset (THETA) and will also function for 2D NFTs.
The future of Singapore-based crypto venture capital firm Three Arrows Capital (3AC) has been blunted by rumours it faces insolvency after being liquidated on several fronts by its lenders to the tune of around US$400 million.
After a three-day social media silence, co-founder Su Zhu has addressed the rumours with the following, perhaps intentionally vague statement on Twitter:
We are in the process of communicating with relevant parties and fully committed to working this out
Sources say 3AC – which includes troubled financial services company BlockFi among its venture bets – is working on a way to repay lenders post-liquidation, the latest disaster for an investment firm that has backed the likes of Avalanche, Polkadot and Ether, down 57 percent, 38.8 percent and 47 percent respectively in the past 30 days.
3AC itself sustained significant losses during the collapse of the Terra ecosystem last month after investing heavily in its native token, LUNA. Insolvency rumours escalated when Zhu removed 3AC’s investment profile from his Twitter bio, retaining only a mention of Bitcoin.
Luke Davies (left) and Su Zhu, co-founders of Three Arrows Capital. Source: bloomberg.com
Then both he and Three Arrows Capital co-founder Kyle Davies went conspicuously quiet:
3AC in trouble? rumors swirling
– Kyle and Zhu havent tweeted or liked anything in days – Zhu took every coin and # tag out of his bio – Zhu deleted his instagram – an hour ago they dumped 30k stETH and reduced all AAVE positions
Meanwhile, DeFi banking platform Celsius has been shoring up positions to avoid liquidations and this week was positioned for a buyout by crypto services business Nexo after pausing withdrawals in an attempt to stave off insolvency.
Celsius funds account for a significant proportion of the total value locked in various platforms in the DeFi ecosystem, while 3AC is a major borrower. The collapse of either or both would have significant implications for the entire space.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Litecoin (LTC)
Litecoin LTC is a cryptocurrency designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology. The cryptocurrency was created based on the Bitcoin protocol but it differs in terms of the hashing algorithm used, hard cap, block transaction times, and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.
LTC Price Analysis
At the time of writing, LTC is ranked the 18th cryptocurrency globally and the current price is US$45.81. Let’s take a look at the chart below for price analysis:
After setting a low last week, LTC kicked off a with recovery trend to break the weekly highs.
The following 70% plummet found support near $40.36, sweeping under the 40 EMA into the 61.8% retracement level before bouncing to resistance beginning at $52.73.
This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $60.12, where aggressive bulls might begin bidding. The level near $69.18, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $75.13.
However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $40.18 could provide at least a short-term bounce. If this level fails, the old monthly lows near $37.23 may also give support and see the start of a new bullish cycle after retesting these support levels.
2. Avalanche (AVAX)
Avalanche AVAX is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol. Avalanche is also low-cost, and green. Any smart contract-enabled application can outperform its competition on Avalanche. AVAX is the native token of Avalanche. It is a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche.
AVAX Price Analysis
At the time of writing, AVAX is ranked the 16th cryptocurrency globally and the current price is US$16.27. Let’s take a look at the chart below for price analysis:
AVAX‘s gains in Q2 ended with an almost 71% retracement as the rest of the altcoin market dropped from early this month. Bulls stepped in near the 62.8% retracement of Q2’s move, creating a consolidation that ended with the bullish impulse to resistance near $34.35.
With the 9, 18 and 40 EMAs stacked bullish and a bullish higher-timeframe trend, it’s reasonable to anticipate retracement to possible support before further bullish expansion.
Near the 40 EMA, a broad zone from $19.15 to $17.45 could see interest from bulls before further expansion. Bears might capitalise on any sharp moves down in Bitcoin, aiming for possible support near the 75% retracement, at $16.70, and potentially lower to a higher-timeframe support zone between $14.42 and $13.80.
If the higher-timeframe recovery trend resumes and the current resistance near $22.35 breaks, the wicks near $26.84 and the new monthly highs may see profit-taking.
3. Ripple (XRP)
Ripple XRP is the currency that runs on a digital payment platform called RippleNet, on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and not based on a blockchain, but rather the aforementioned distributed ledger database.
XRP Price Analysis
At the time of writing, XRP is ranked the 8th cryptocurrency globally and the current price is US$0.3199. Let’s take a look at the chart below for price analysis:
XRP printed some gains during Q1 and Q2 after moving sideways for the past few weeks. The price is in a downtrend, with the 9, 18 and 40 EMAs providing resistance on each attempt to rally.
However, bulls are showing some interest at the 80.6% retracement, near $0.3472. If this level breaks, a move into possible support – just below the lows near $0.2952 – seems likely.
If the price does rally through the swing high at $0.3855 – perhaps triggered by a sudden surge in Bitcoin – bulls might find some resistance at the 61.8% retracement level near $0.4150.
Overlapping swing highs and lows near $0.4526 might provide the next target, where bears immediately forced the price down in late December.
More bullish market conditions could shift targets up near the midpoint of Q1’s consolidation, near $0.5017, where higher timeframes show an inefficiently traded zone.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
