Ripple (XRP)

XRP has broken a multi-month descending trendline, gearing up for a rally to reclaim the $1 amid signs of the ASO indicator moving closer to a bullish cross.

The recent breakout was highlighted by XRP Captain, a pseudonymous XRP analyst, in a recent analysis. In the accompanying chart, he identified a bearish downtrend that had plagued XRP since the July 13 rally that saw it reclaim $0.9380 on the back of the lawsuit victory.

After reclaiming $0.9380, XRP started witnessing intermittent drops, forming lower lows and lower highs. This bearish pattern resulted in the formation of a downtrend.

XRP Captain confirmed that XRP has finally broken out of this multi-month descending trendline. The asset broke above the downtrend amid a 3-day winning streak on Sept. 14. However, it sealed this breakout by closing above the trendline on Sept. 15.

XRP Daily Chart | XRP Captain

Following the break, XRP Captain believes XRP could be gearing up to reclaim the much-coveted $1 price in the short term. He advised calm in the market, expressing confidence in the asset’s trajectory.

Analyst JD confirmed this bullish atmosphere, calling attention to a longer trendline. The analyst noted that XRP has continued to retest a 2-year trendline that it has traded below since 2021. Per JD, a rally would ensue once the asset breaks above this trendline.

XRP’s Long-Term Direction

Adding weight to this bullishness, EGRAG, another notable analyst, provided an update to his Average Sentiment Oscillator (ASO) setup. The Crypto Basic previously highlighted this setup in an earlier report.

Notably, EGRAG’s ASO setup contains light blue and pink lines. The analyst highlighted that whenever the light blue line crosses above the pink line, XRP engineers a monumental rally. This pattern played out in 2017 and 2021.

Interestingly, XRP is on the verge of repeating this bullish crossover. EGRAG first identified this in his earlier analysis. The analyst’s latest update on the setup shows that the two lines are closer to converging, having continued moving toward each other after a pause period.

#XRP ASO "Average Sentiment Oscillator-UPDATE":

Don't forget to review the post from July 8th for a clearer picture of the ASO's shape! https://t.co/d4elni4IEc

Presently, the ASO (Awesome Oscillator) has shifted its course, resembling small white circles, and is gradually… pic.twitter.com/447KCv0Dg6

— EGRAG CRYPTO (@egragcrypto) September 9, 2023

For the long term, EGRAG previously posited a 28,250% rally for XRP. Note that the 2017 crossover resulted in a 55,000% rally, while the 2021 cross led to a 1,500% surge. Should XRP appreciate by 28,250%, it could skyrocket to the $140 region.

XRP is changing hands at $0.4973 as of press time, up 0.97% today. The recent drop below $0.50 came from a two-day losing streak. However, the asset has shown resilience over the past month, with a meager 30-day loss of 1.84%.

Following recent reports on the exit of Binance US chief executive officer Brian Shroder on September 13, 2023, the entity’s chief legal officer Norman Reed was said to have taken over the role in the interim. However, recent reports reveal that the company has proposed to name Reed as the permanent replacement for the CEO position. Also, Norman Reed is said to have had a long history with Ripple $XRP that dates back to 2015.

Also Read: “Expect Some Fireworks” at Next Binance Vs SEC Hearing: Ex-SEC Official\

Norman Reed And Links To Ripple $XRP

Reed, how has been an official with the US SEC as well as the Federal Reserve Bank of New York, had also worked in a key legal capacity for Ripple. According to attorney John Deaton, who represents XRP token holders in the SEC lawsuit, revealed that Reed had worked as the General Counsel of Ripple.

Norman Reed used to be the General Counsel of Ripple. His signature is on the 2015 FinCEN DOJ settlement with Ripple, which classified XRP as a “convertible virtual currency.”

Today’s General Counsel, a content platform for legal practitioners, confirms Reed’s appointment with Ripple on February 25, 2015.

US SEC Lawsuit To Intensify?

The exit of around 100 employees from Binance US comes at a time when the US Securities and Exchange Commission (SEC) appears to have intensified its efforts in the lawsuit. In a lawsuit filed in early June 2023, Binance, the company’s cofounder Changpeng Zhao, and Binance.US have been accused of mishandling customer funds, misleading investors and regulators, and violations of securities regulations.

Earlier in the week, CoinGape reported that the US SEC filed a memorandum in the Court in support of its motion to compel the exchange to submit documents related to the US customer assets.

As of the latest data, XRP is trading at approximately $0.497. The crypto landscape is ever-shifting, and XRP is no exception. With active addresses on the network taking a nosedive and the price moving below both the 21 and 200 EMAs, let's delve into three possible scenarios for XRP's near-term price action.

Scenario 1: Bullish reversal

The first scenario is a bullish reversal. Despite the descending volume and the EMAs converging — often a sign of an impending volatility surge — XRP could defy the odds. If the active addresses count starts to climb and the volume picks up, we could see a bullish divergence. This would be a classic case of the market sentiment turning positive, potentially pushing the price above the EMAs and averting the looming death cross.

Scenario 2: Bearish continuation

The second scenario is less rosy. With the active addresses count plummeting and the EMAs converging, a bearish continuation is entirely plausible. If the death cross occurs, where the 21 EMA crosses below the 200 EMA, it could trigger a sell-off. The descending volume would add fuel to the fire, possibly pushing the price down further.

Scenario 3: Sideways drift

The third scenario is a bit of a wild card: sideways movement. Sometimes, when indicators give mixed signals, the market chooses the path of least resistance, which is often sideways. If the active addresses count stabilizes and the volume remains low but consistent, XRP could enter a consolidation phase. This would mean the price would hover around the current levels, giving both bulls and bears a momentary breather.

In summary, XRP's future seems to be at a crossroads. The dwindling active addresses and converging EMAs suggest a volatility surge is on the horizon. Whether that surge will be to the upside or downside remains to be seen. But one thing is certain: With a death cross looming, investors might be waiting for the right moment to unleash their holdings on the market.

Shiba Inu's trading volume plummets

Shiba Inu, the meme coin that took the crypto world by storm, is showing some perplexing signs. As of the latest data, the SHIB token is trading at a price of $0.0000073. While the price has been on a gradual decline, what's more intriguing is the sudden drop in trading volume.

So, what does this mean for Shiba Inu? Well, the dwindling trading volume could be a harbinger of a fading rally. It's like the calm before the storm, but in reverse. The market seems to be holding its breath, waiting for the next move. On the flip side, Shiba Inu's profitability has seen a recent uptick. It's as if the market is giving mixed signals, leaving investors scratching their heads.

Technically speaking, Shiba Inu has been distancing itself from the 21 EMA level. For those not in the know, the exponential moving average (EMA) is a key indicator that traders use to gauge market trends. A retraction from the 21 EMA level usually spells caution. Add to that the fact that the trading volume is plummeting, and you've got a recipe for a potential reversal.

But here's the kicker: Despite these cautionary signals, Shiba Inu's profitability has actually increased. It's like the market is playing a game of red light, green light. One moment it is telling you to stop, and the next it is urging you to go. This duality could be attributed to the market being heavily oversold, which often leads to a rebound.

So, is this a sign of reversal for Shiba Inu? The answer is not straightforward. The market is a complex beast, influenced by a myriad of factors. What we do know is that the current landscape is rife with uncertainty. Investors would do well to tread carefully and keep a close eye on further developments.

David Schwartz, Ripple's chief technology officer, has stepped up to address some criticism from the community. The executive recently took to X (formerly Twitter) to respond to accusations that the company has not done enough to dispel misleading information surrounding Ripple and XRP.

Schwartz's take on misinformation

Schwartz engaged in a candid Twitter exchange with a user who criticized Ripple for "letting people suffer" while disseminating misleading price projections and maintaining a luxurious lifestyle. "It's a lot harder than you think," Schwartz wrote, clarifying the challenges of dealing with false information.

"We don't know everything, and even a small chance we 'debunk' something true is worrisome." Schwartz added that taking a stance on every piece of false information could create legal risks for the company and paint it as an enforcer of what might or might not be fake news.

Recently, a social media video featuring Ripple founder Chris Larsen flaunting his$2 million Porsche attracted some criticism online. Schwartz hasn't directly addressed it.

"Get suffering, guys!"

Schwartz retweeted a statement by billionaire property developer Tim Gurner, who recently sparked outrage for suggesting that unemployment should rise 40-50% to remind workers they are subordinate to employers. Gurner later apologized, stating his comments were "deeply insensitive to employees, tradies, and families." Schwartz's tweet cited Gurner's statement and sarcastically noted, "Others must suffer so I can live just a bit more luxuriously. This is not parody or sarcasm. Get suffering, guys! Chop, chop."

For those who keep an eye on crypto prices, it was yet another fairly uneventful week as market leaders Bitcoin and Ethereum—and most other leading cryptocurrencies—barely budged.

Among the top thirty cryptocurrencies, Stellar’s XLM was the only one to post notable losses. Last week, XLM rallied 10% off the back of a tweet promising “something cool” in ten days. Lo and behold, ten rotations of the earth later, on Tuesday, and Stellar delivered a high-budget commercial with Idris Elba. While the production is faultless, several saw it as a piece of non-news.

Waste of time , I was waiting from past 10 days —- where is the news 🗞️??

— Milan D (@MMAA_KD) September 12, 2023

Contrary to the team’s intentions, XLM’s price has dropped 11% since last week. Evidently, it was all too tempting a case of “buy the rumor, sell the news” for investors to pass by.

On Monday, Bitcoin fan Udi Wertheimer warned customers of Swan to pull out their money after he noticed that a hack recently targeted the Bitcoin-exchange’s stash held by Fortress Trust. Many felt that the hack explained Ripple’s sudden acquisition of Fortress.

CONFIRMED: Swan Bitcoin’s custodian “Fortress” was HACKED

CUSTOMER FUNDS WERE LOST

Ripple had to step in and acquire Fortress to COVER CUSTOMER LOSSES

Did Ripple just bail out Swan?

Why is the Swan team silent about this?

Anyone with funds at Swan should withdraw IMMEDIATELY pic.twitter.com/if14PibxfM

— Udi Wertheimer (@udiWertheimer) September 11, 2023

Jameson Lopp, CTO of self-custody solution Casa, pointed out the discrepancy between Ripple’s narrative and Fortress’.

🚩🚩🚩Ripple (which now owns Fortress) says there was a loss of funds even though Fortress explicitly said there were no funds lost. 🚩🚩🚩https://t.co/0hQ3xXzF8R

— Jameson Lopp (@lopp) September 11, 2023

CZ announced that he was donating $3 million to Moroccan Binance users from the earthquake-stricken Marrakesh-Safi Province who completed their Proof of Address before September 9.

Our hearts go out to the people in Morocco🇲🇦#Binance to donate $3,000,000 in #BNB to our users in Morocco🇲🇦

We standby our users in times of need. Stay strong. 🙏https://t.co/lQzLvhuuQ3

— CZ 🔶 Binance (@cz_binance) September 11, 2023

Journalist Matthew Russell Lee, who tweets as @InnerCityPress, was present at the sentencing of OneCoin co-founder Karl Sebastian Greenwood. OneCoin was a $4 billion scam enticing people to invest in a cryptocurrency for a blockchain that didn’t exist. Lee live-tweeted some choice moments from the trial for his followers. The judge sentenced Greenwood to 20 years for fraud.

Folly: Greenwood targeted the unbanked. Then in private he called them idiots. Money was drawn from college funds. It was laundered.
[Mark Scott still out of jail; Armenta light sentence with much sealed and redacted]
Folly: The Scott trial showed the maze

— Inner City Press (@innercitypress) September 12, 2023

More Ethereum spot ETF applications keep coming in every week, says Bloomberg ETF analyst James Seyffart. His colleague Eric Balcunas then provided a breakdown of the current state of play.

Re live ETF filings, there's now 15 Eth Futures, 12 spot bitcoin, 3 spot Eth and a partridge in a pear tree. https://t.co/e8p4pK1hqk

— Eric Balchunas (@EricBalchunas) September 12, 2023

On Tuesday, Google Cloud engineer Sam Padilla was very excited to share a teaser about his company’s new collaboration with interoperability protocol LayerZero. Google Cloud is now LayerZero’s default oracle operator, meaning dApps on the protocol will have their transactions automatically verified using Google Cloud.

So freaking excited to put this one out there.

Shoutout to the entire @LayerZero_Labs team and our team @GoogleCloud that made this possible.

The future is multichain! https://t.co/QGlBpIkuzm

— Sam Padilla (@theSamPadilla) September 12, 2023

Crypto analyst Adam Cochran offered a stark glimpse of the future of Binance. This week, the exchange—which is currently facing litigation from the SEC for a litany of alleged securities laws violations—turned heads when the CEO of U.S. arm Briah Schroder resigned on Wednesday amid news of a new round of layoffs; he was replaced this weekend by former Ripple/SEC and First Reserve Bank man Norman Reed.

I’ve been saying if Binance blows up, we’ll be fine in no time.

Got a tip that I’ve not yet been able to fully verify but I would lean towards it being true on… and if it’s true it’ll be a longer more painful ride than I thought.

And life behind bars would be the good outcome…

— Adam Cochran (adamscochran.eth) (@adamscochran) September 13, 2023

Seyffart tweeted more bad omens for Binance on Thursday.

Well... this cannot be a good sign for whatever is going on with Binance h/t @NYCStein

Reporting by @Vlajournaliste pic.twitter.com/ik7fpDX1of

— James Seyffart (@JSeyff) September 14, 2023

Speaking of layoffs, SuperRare CEO John Crain had an announcement of his own on Friday.

Very sorry to share that today we had to let go of a number of valued @SuperRareLabs team members and friends, everyone who has been a part of our journey has been instrumental in our success and we thank you all.

— SuperRare John 💎 (@SuperRareJohn) September 15, 2023

Crypto data tracker Whale Alert reports a substantial amount of XRP being moved in the last 24 hours. The move that drew attention was made to a Ripple wallet.

According to Whale Alert, 100 million XRP worth $49,977,350 were transferred from an unknown wallet to Ripple.

🚨 🚨 100,000,000 #XRP (49,977,350 USD) transferred from unknown wallet to #Ripplehttps://t.co/NzPgkKiviq

— Whale Alert (@whale_alert) September 16, 2023

While the rationale behind the move remains unknown, it might be a wallet reshuffle. Since the move was done from an unknown wallet to a named wallet, this might be the case. Another speculation might be an OTC trade that happens outside a traditional crypto exchange setting.

XRP, the fifth-largest cryptocurrency by market cap, is utilized by Ripple to move money across borders. Ripple's ODL is a cross-border payment solution that leverages the XRP cryptocurrency as a bridge asset.

As reported, Ripple's Vice President Emi Yoshikawa clarified the decision to "consolidate" ODL services under the moniker "Ripple Payments," adding that ODL may be difficult for outsiders to understand at first glance.

XRP targets next major move

At the time of writing, XRP was marginally down in the last 24 hours to $0.497.

Largely, the XRP price fluctuated between $0.436 and $0.558 in recent weeks. After four days of positive price action, the XRP price recovered to a high of $0.508 on Sept. 15. On the upside, the daily MA 200 barrier at $0.517 remains a key level to watch going forward in the short term.

If buyers push the price above the MA 200, it might imply that selling pressure is easing. This might spark a strong rally targeting the overhead barrier of $0.56. This level may once again pose a stumbling obstacle.

If the price falls below $0.56, it might suggest that range-bound price activity may continue for a little longer. The next major move might commence in either of these scenarios: if the XRP price sustains above $0.56 or if there is a drop in the XRP price below $0.41.

XRP Ledger is steadily approaching a significant milestone with nearly 5 million accounts, currently numbering 4.78 million. According to data from XRPL Services, these accounts collectively hold a substantial 58.682 billion XRP, which translates to 58.68% of the total token supply.

What stands out prominently in this burgeoning XRP ecosystem is the fact that out of these millions of accounts, only a meager 1,115 of them boast a zero balance. This implies that the vast majority of XRP accounts are actively used, either holding XRP as account reserves or owner reserves.

This refers specifically to the number of XRP holders in the XRPL blockchain directly, without taking into account various kinds of wrapped variations and accounts on centralized exchanges. For example, the number of tokens offered on decentralized platforms is 17.2 trillion.

Ripple and XRP

The remainder of the digital asset, approximately 41.3 billion XRP, remains securely held in Ripple's escrow accounts. Importantly, these holdings are being managed in accordance with established regulations, aimed at reducing their size.

As it stands, there are currently 10,141 such escrow accounts in operation. This prudent management of XRP holdings plays a crucial role in maintaining market stability and instilling confidence among XRP investors.

The steady increase in the number of XRP Ledger accounts reflects growing interest and participation in the XRP ecosystem. As the community continues to expand, the broader cryptocurrency market is keeping a close eye on XRP, which has established itself as a prominent player in the digital asset space. Especially after the favorable ruling in the SEC v. Ripple court battle.

VanEck’s monthly crypto market recap reveals that trading volumes of centralized exchanges declined to $52.8 billion in August, representing a 15.5% decrease compared to July.

Bitcoin (BTC) and Ethereum (ETH) faced a challenging month, recording 9% and 10% losses, respectively.

VanEck: Crypto markets hit lows

In August, as reported by VanEck, the trading volumes of digital assets hit a two-year low, coinciding with an all-time low in their volatility.

According to the analysis, this decline was attributed to waning investor interest. The analysts attributed the declining investor interest to the allure of beach vacations in the U.S. and the U.S. 10-year treasury bond, whose yield reached its highest level in 15 years in August.

The report also revealed a substantial decrease in venture capital funds allocated to blockchain projects, with only $500 million deployed in August 2023, representing a significant drop from the $1.9 billion and the $2.7 billion recorded in August 2022 and 2021, respectively.

Simultaneously, crypto Exchange-Traded Products (ETPs) also experienced substantial redemptions.

The report also indicated various factors that may have contributed to the negative price action in the cryptocurrency market. Firstly, concerns were raised about the solvency of Binance, one of the prominent cryptocurrency exchanges.

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Another noteworthy event was the liquidation of a $200 million position by an individual exploiting vulnerabilities on the BNB DEX Venus, which added to the negative sentiment. Additionally, exploits were observed on fundamental Ethereum DeFi applications like Balance and Curve, further eroding confidence in the ecosystem.

Curve’s heist raised the possibility of liquidating Michael Egorov’s substantial $168 million CRV position, which represented a significant 34% of the total CRV supply, making it a focal point of concern within the crypto community.

Rumors also circulated regarding the potential arrests of executives at Huobi in China and the potential insolvency of the Huobi exchange. These speculations added an extra layer of uncertainty to the cryptocurrency landscape.

Furthermore, Bitstamp’s decision to suspend trading of altcoins for users in the United States also had a noticeable impact on market dynamics during this period. There were also significant outflows totaling $260 million from cryptocurrency ETPs in August, indicating a broader trend of investors exiting the market.

Despite these challenges, it’s important to note that none of the SCPs (Smart Contract Platforms) featured tokens that experienced price increases in August.

Bitcoin and Ethereum experienced losses during this same month, dropping their values by 9% and 10%, respectively. These declines starkly contrasted with the Nasdaq Composite, which saw a relatively modest decrease of 2%. This marked the second consecutive month in which cryptocurrencies underperformed compared to traditional financial indices.

According to researchers, the best-performing assets during this challenging period on the platform were Ethereum, which saw an 11.3% decrease in price, and Tron (TRX), with a more modest decline of 1.6%.

Conversely, the month’s biggest underperformers included ATOM, with a 21.9% decline; MATIC, down 19.3%; and AVAX, which saw a substantial drop of 22.1%. These numbers underscore the overall bearish sentiment that characterized the cryptocurrency market during the month.

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A gloomy August

August unfolded as a turbulent month; many factors, including regulatory developments, smart contract vulnerabilities, solvency concerns, and apprehensions of potential liquidations, buffeted cryptocurrency markets.

The conclusion of July had brought renewed optimism to the crypto sector, thanks to Ripple’s partial victory against the U.S. Securities and Exchange Commission (SEC).

Grayscale was also seeking permission to transform its Bitcoin Investment Trust into a spot Bitcoin ETF, and there was hope for the approval of other similar ETFs. Additionally, there were hints from the SEC that they might allow the launch of Ethereum Futures ETFs.

However, as August progressed, these hopeful expectations took a disappointing turn. None of the anticipated ETF approvals happened, leaving many disappointed. To compound the uncertainty, the SEC made an announcement that they intended to challenge the court’s decision in the Ripple case. This decision added another layer of doubt and unpredictability to the world of cryptocurrencies.