XRP Price Shows a Confluence of Bearish Factors and Could Turn Down Again

Leonardo Perez
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XRP Price Shows a Confluence of Bearish Factors and Could Turn Down Again

After a significant drop to $0.40, Ripple’s XRP started an upward correction against the US dollar.

The Ripple’s token price is showing bearish signs below $0.580 against the US Dollar. XRP price could start another slide if it trades below $0.480. The Ripple’s token price is struggling to recover above $0.550 and $0.580 against the US dollar.

The price is now trading below $0.56 and the 100 SMA (4-hours). A major downtrend line is forming with resistance near $0.580 on the 4-hours chart of the XRP/USD pair (data feed from Kraken). The pair could start another slide if there is a break below $0.480.

Ripple’s Token Price Faces Uphill Task

The Ripple’s price rallied a few points above the $0.45 and $0.48 resistance levels, similar to Bitcoin and Ethereum. The bulls pushed the price above the 50% Fibonacci retracement level of the main dip from the $0.6654 high to $0.3995 low. The price rallied above the $0.50 level.

However, the bears are active near the $0.550 resistance zone. XRP is now trading below $0.56 and the 100 simple moving average (4-hours). There is also a major downtrend line forming with resistance near $0.580 on the 4-hours chart of the XRP/USD pair.

Initial resistance to the upside is near the $0.550 zone. The next major resistance is near the $0.565 level or the 61.8% Fibonacci retracement level of the main decline from the $0.6654 high to $0.3995 low. The main resistance is now forming near the $0.580 area and the trend line.

A successful break above the $0.580 resistance level could send the price looking towards the $0.60 resistance or the 100 simple moving average (4-hours). Any further gains could require a test of the $0.6650 resistance.

Another Drop in XRP?

If the shock wave fails to break above the $0.565 resistance zone, it could start another slide. Initial support on the downside is near the $0.500 zone. The next major support is near $0.480.

If there is a break down and a close below the $0.480 level, XRP price could extend the losses. In the indicated case, the price could retest the $0.400 support zone.

Technical analysis on the daily time frame gives a bearish outlook for XRP. The main reason behind this analysis stems from wave counting and price action.

MACD 4-Hour Technical Indicators

The MACD for XRP/USD is now losing pace in the bearish zone. 4 Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

The main support levels are $0.50, $0.480, and $0.40, while the main resistance levels are $0.550, $0.565, and $0.580.

The XRP price prediction trend is bearish, but a strong bounce at the current level could initiate a 25% rally that would take the XRP price to $0.63. However, there are no immediate signs to support this possibility.

Cryptocurrency markets are highly volatile, making it difficult to accurately forecast what a currency will be in a few hours’ time, and even more difficult to give long-term estimates. So analysts could be wrong in their Ripple XRP forecasts, and they have.

Therefore, it is always important to do your own research and consider the latest market trends, news, technical and fundamental analysis, as well as expert opinion, before making any investment decision. In addition, it is recommended to only invest capital that you are willing to lose.

By Leonardo Pérez

Binance and Latent Jitters in Cryptocurrency Market

Audy Castañeda
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Binance and Latent Jitters in Cryptocurrency Market

Binance faces turbulence with BNB’s crash and massive withdrawals, underscoring the relevance of cold wallets in crypto security.

The current cryptocurrency market landscape shows signs of instability, especially with regards to Binance’s BNB token. BNB is currently trading at a yearly low of $208, seeing a 3.2% drop in the last 24 hours.

This downward trend has continued for the last week with a 13% plunge and, over the course of the last year, it has fallen by 30%. Despite these numbers, BNB maintains its position at 4th in the global CoinMarketCap ranking.

Massive Bitcoin’s Withdrawal on Binance

A recent post on X by @healthy_pockets highlights how the BNB crash has triggered a massive Bitcoin’s withdrawal on Binance. Withdrawals are reported to have skyrocketed following BNB’s plunge below $212, with mention of the possible liquidation of the exchange’s 160 million collateral. As a result, around 4,600 Bitcoin have been withdrawn from Binance in a single day.

Limitations on Withdrawals and Deposits in Europe

On the other hand, a post by @CoinTelegraph reports that Binance is alleged to have limited withdrawals and deposits in Europe, citing problems with payment processors. This situation could be related to the current jitters and lack of users’ confidence in the platform.

The crypto exchange stated in a post on X that it does not have a specific timeline for restoring SEPA transfers and that its payment provider “can no longer support these transactions.”

The crypto exchange added that “we understand the inconvenience this has caused and are actively working to resolve this as soon as possible.”

The statement was issued in response to an alleged European Binance user who claimed to have bought a “large amount of EUR on Binance” a few days ago. Due to the suspension of his Paysafe account, the alleged client was unable to withdraw euros to his bank account or sell them on the cryptocurrency exchange. Binance Customer Support further stated the following:

“According to customer support, there is nothing you can do about it, except wait for Binance to find a new payment provider. Allowing users to buy EUR, only to immediately block them from accessing it, is what I would expect from fraudulent exchanges, not Binance.”

Following the removal of the post, the exchange informed the media that the customer support message on X was “sent in error” and that the “SEPA deposit and withdrawal service will continue until September 25 as communicated originally”. Recent crypto exchange withdrawal issues in Europe are not unusual for the exchange. The exchange suspended Bitcoin withdrawals in May, citing a significant backlog of pending withdrawals.

Reflection on Custody in Cryptocurrencies

Reflecting on these events, it is essential to understand the importance of keeping our savings in cold wallets. Exchanges are valuable tools for trading, but they should not be the main place to store our savings (Hold).

The security and autonomy offered by cold wallets guarantee greater protection against possible vulnerabilities and attacks on exchange platforms. It is critical to be proactive in protecting our digital assets and not rely solely on third party security measures.

By Audy Castaneda

The BRICS Strengthen their Financial Autonomy

Audy Castañeda
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The BRICS Strengthen their Financial Autonomy

The New Development Bank (NDB) in South Africa has just taken a significant step.

The BRICS countries no longer hide their ambitions to play a leading role in global geopolitics. They had announced their program to launch a coin that will be common to them. The idea has been in the air for some time.

The New Development Bank (NDB) carried out, on Tuesday, August 15, a bond issue in the South African bond market. The operation is historic and takes place in a context of de-dollarization. In fact, it is the first time that the community banking institution founded in 2015 has carried out a transaction of this type.

The NDB’s Unprecedented Operation in the South African Bond Market

The operation is all the more exceptional since, since its start-up, the NDB is the best qualified institution to issue in this market. An issue received favorably by investors.

They have submitted more than $2.5 billion in purchase proposals for periods spanning 3 and 5 years. That is, several institutions have shown their willingness to invest money to buy these titles.

This enthusiasm is indicative of the attractiveness of these bonds to investors. You should know that 94% of the purchase offers made by investors on these titles were at the recommended price. Some were even below.

“The order book was well supported, with more than 2,500 million euros in offers for the 3 and 5-year tranches. […] The order book was well diversified, with 71% of the offers assigned to institutional investors and the rest absorbed by local banks”, explained the NDB in its press release.

This rather positive situation indicates the high level of investor confidence and interest. Above all, there is a strong agreement between the NDB and the latter. The prices offered by the issuer and those that investors are willing to pay are very close to each other.

Given this positive reception, the NDB is considering the option of increasing the size of the operation. Thus, the institution could increase the amount of the latter from 1 to 1.5 billion dollars. A potential new transactional success that would absolutely confirm the financial agility of the institution.

A Transaction with Multidimensional Effects?

The NDB’s foray into the local currency bond market is not an irrelevant fact a priori. It attests, on the one hand, to the dedication of the community bank to the promotion of local financial ecosystems.

This fact echoes recent revelations by Russian Diplomat Roman Babouchkine. During a recent speech, the latter mentioned the abandonment by the BRICS countries of their idea of ​​a common currency. This, in favor of a new strategy consisting of relying on the local currencies of the countries of the organization to carry out cross-border transactions.

On the other hand, the resounding success of this first BND bond issue goes beyond the simple framework of financial transactions. It is the sign of a new momentum in favor of collaboration between the BRICS member states.

By becoming the highest-rated issuer in the South African market since 2015, the NDB reinforces the commitment that aimed to promote the independence of the group of countries in the field of financing for development. In this context, the objective of the community bank is clear. It wants to strengthen its presence in the financial markets of the BRIC member states.

By Audy Castaneda

China Proposes Regulating the Metaverse Through a Digital Identity System

Audy Castañeda
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China Proposes Regulating the Metaverse Through a Digital Identity System

China Mobile proposes a digital identity system to regulate the metaverse, which raises privacy concerns due to the collection of personal data. The proposed system faces criticism as it collects and stores personal information and is similar to China’s social credit system. Despite the criticism, China’s metaverse industry is projected to grow exponentially, with a projected growth of 40% by 2023.

China’s telecom operator China Mobile has launched a “digital identity system” to regulate the metaverse and prevent the spread of chaos or rumors in the digital world.

While China may have banned cryptocurrency-related activities, it is in a full stage of preparing for the metaverse. However, privacy champions have questioned the digital identity system.

China Wants to Collect Personal Data from Metaverse Users

According to Politico, China’s digital identity system for the metaverse bears striking similarities to its social credit system. The digital identity system would be designed to collect personal data from the user, such as their occupations, identifying signs and other similar data.

China Mobile has proposed a digital ID for all users of metaverses and online virtual worlds that works with “natural features” and “social features.”

According to the proposal, “to maintain the order and security of the virtual world”, the DNI would house a lot of personal information and identifying signs, including the person’s work, and suggests that these data be permanently stored and shared with the authorities.

Additionally, China Mobile has suggested that law enforcement permanently store this data to maintain a secure environment in the metaverse. It believes that personal data could help police investigate bad guys in the virtual world.

The United Nations information and communication agency, the International Telecommunication Union (ITU), launched a task force for the regulation of the metaverse in December 2022.

The Politico report mentions that the metaverse group will likely vote on China’s proposal this October. However, as the proposal has similarities with the social credit system, it has received strong criticism from experts. Chris Kremidas-Courtney from Friends of Europe said the following:

“To build a unified digital identity system, to give every human being a unique digital ID that includes social characteristics of social media and occupation, that looks a lot like China’s social credit system.”

China’s social credit system is a regulatory framework for rating an individual’s trustworthiness. A low score can lead to various blacklists, including blocking the person’s access to public transport.

Meanwhile, various forecasts show that China’s metaverse industry is on its way to exponential growth. In April, BeInCrypto reported that China’s metaverse industry is expected to grow 40% by 2023.

According to Statista, the metaverse industry will grow at least seven times by 2030. This year, the sector is worth $12.6 billion, and is projected to reach a valuation of $87.6 billion in the next few years. seven years.

Metaverse Surveillance

Not only China but several other countries are also exploring metaverse surveillance. In May 2023, Hong Kong launched CyberDefender Metaverse to address metaverse crimes such as fraud, hacking, theft, and sex crimes.

Prior to that, in October 2022, INTERPOL launched a metaverse for law enforcement around the world. And Dubai’s Ajman Police became the first police agency to serve across the metaverse.

By Audy Castaneda

Cosmos’ Discussion on Dual Signature Management

Leonardo Perez
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Cosmos’ Discussion on Dual Signature Management

The Neutron consumer chain, part of the Cosmos ecosystem, recently shared a case of ‘double signing’ by two validators.

Recent crypto news claim that the management of the ‘accidental’ double signature on the Neutron consumer chain led to a split within the Cosmos community.

According to Blockworks Research analyst David Rodríguez, this dispute could have a negative impact on the “value profile” of Replicated Security. More details are presented below.

Cryptonews for Cosmos: Potential Solutions Addressing the Complexity of Double Signing at Neutron

As anticipated, a recent controversy in the crypto space has raised eyebrows within the Cosmos ecosystem, regarding a proposal to ‘hack’ and ‘discard’ two validators via a community vote.

The Neutron consumer chain, part of the Cosmos ecosystem, recently shared a case of ‘double signing’ by two validators. Had this happened on the main Cosmos chain, it would have resulted in automatic defunding and a penalty known as ‘tombstoning’, which prevents nodes from being rejected on validation.

However, since Neutron is protected by Cosmos through the ‘Replicated Security’ mechanism, the sanctions require an ongoing community vote called Prop#818. This voting process is scheduled to conclude on August 23.

During a discussion on the 0xResearch podcast (available on Spotify and Apple), Blockworks Research analyst David Rodriguez provided some interesting insights into the ongoing debate.

Rodríguez’s Vision of the Incident and Doubts about Automated Sanctions

During a Neutron rolling upgrade, validators were required to update to the latest versions. According to Rodríguez, it seems that two validators made the mistake of ‘signing the same block twice’, that is, sending two signature messages for the same block. Obviously, this was considered a serious mistake.

In addition, Rodríguez expressed the following:

“Since it is still a very recent technology, sanctions such as cutting and permanent expulsion are not yet automated for the consumption chain. The question then arises: what would happen if the validators were accidentally cut from a consumption chain without having made a mistake?”

In this situation, the decision to cut validators or not should be made by the community within Centro Cosmos, as Rodríguez explains.

While it does not appear that any of the validators acted with “bad intent” in the double signature, some experts in the situation believe that, regardless of the intent of the act, “the code represents the law.”

“If a validator signed twice on Cosmos Hub, they would automatically be clipped and removed for permanent removal,” states Rodríguez.

Rodríguez further explains:

“Why don’t we take exactly the same approach and set exactly the same precedent for consumer chains? There are a lot of validators right now who are looking at this and saying, ‘Well, the risk reward for validating a consumer chain isn’t worth it. Validators don’t want to be penalized for inadvertently signing twice or doing anything else bad to these consumer chains.”

The Post-Cut Review and the Crypto Security Debate

Ren Yu Kong, an analyst at Blockworks Research, shares much of what Rodriguez said, suggesting that after a cut, the community could implement a review process through a veto committee, which would have the ability to ‘override’ the cut.

Rodríguez’s response is that the center has taken a trusting approach, assuming validators do not flag malicious intent. For him, it would have made more sense to take a “cut first, clean up later” approach, “If such situations had occurred in the Cosmos Hub or if a double signature had been committed by an Osmosis validator, the hack would have been applied immediately.”

By Leonardo Pérez

“A Suspicious Movement”: This is how Peter Brandt Describes the Current Price of Bitcoin

Audy Castañeda
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0
“A Suspicious Movement”: This is how Peter Brandt Describes the Current Price of Bitcoin

The current price of Bitcoin threatens to break the bullish momentum of the largest digital currency, according to analyst Peter Brandt.

According to renowned analyst Peter Brandt, the current price of Bitcoin is a dangerous sign that could point to the start of a downtrend. In his account on the social network, X, he expressed that the movement of the digital asset is “very suspicious.”

In the past few days, the most important of the cryptocurrencies in market capitalization experienced a harsh correction that made investors tremble. For Brandt, it could be the start of a break in the currency’s uptrend. So far this year, the cryptoactive maintains an ROI greater than 70%.

However, that could change if the value of BTC fails to hold above the uptrend line. Meanwhile, pulling back below $24,800 would destroy the daily and weekly charts. Thus, the expert comments that the currency is in the middle of a very dangerous crossroads.

The Danger of the Current Bitcoin Price

Brandt, who predicted the 2018 correction of the pioneer coin, believes that there is now a compromising situation for it. In that sense, the current price of BTC could erase much of the gains that give it this year a strong bullish trend that surpasses almost all financial assets.

On August 18, Brandt posted on X the following:

“The decline in Bitcoin $BTC is once again retesting the neckline on the underlying inverted H&S. A close below 24,800 (the low of the previous retest) would do damage to the daily and weekly graphs. But hey, what do I know? I am only a boomer who does charting.”

Since the end of June, the exchange value of BTC has been parked in the vicinity of $30,000 per coin. Since then, it has been in the longest period of low volatility in its history. However, that situation changed on August 16, when the currency began to fall dramatically. In fact, the collapse of BTC in recent days is the largest recorded since the fall of FTX in November 2022.

The factors that caused the fall of Bitcoin to the current price are varied. The most prominent were China’s real estate and economic situation, SpaceX’s reported BTC stock sales, and macroeconomic fears.

Current Value of BTC

The price of Bitcoin is at $26,183 per coin, according to data from CoinMarketCap. The latter represents a drop of -10.66% during the last 7 days and a slight recovery of 0.30% in 24 hours. The most optimistic in the community expect BTC to recover from the stumble after offering a very attractive low price for investors.

In the field of bulls, the pseudonymous analyst @CryptoProfe stands out, who makes some considerations from his X account. In his opinion, the recent liquidation of the coin pushed the relative strength index (RSI) to its highest level in more than 20 months. Consequently, this could refer to a possible oversold situation that would allow a rebound of +60% in the value of the digital currency.

“Every time the RSI has been less than 30, the price of BTC has risen between 28% and 60% afterwards. There is no reason to be bearish,” he wrote. With this, the expert suggests that it is a once in a lifetime opportunity to buy before the new rebound in the oldest cryptocurrency price.

By Audy Castaneda

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