Amid a Slow Recovery, the Price of Solana Might Rise to USD 18

Alexander Salazar
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<strong>Amid a Slow Recovery, the Price of Solana Might Rise to USD 18</strong>

The AO indicator showed a positive signal, suggesting that investors might obtain higher profits. If the bulls break above USD 15.1 and USD 16, the next resistance level will be USD 18.8.

The price of Solana (SOL) recently recovered by more than 9% after a period of slow action. Despite its slow rise, the altcoin might show a rebound in the coming trading sessions.

The slow re-entry of buyers into the market indicates an accumulation of SOL, but capital inflows were low. A constant bullish price action will allow for a positive change in the influx of funds.

After making small daily gains, the next resistance level for SOL is USD 15. If the price of the cryptocurrency breaks above USD 15, it can go as high as USD 18.

Although the price of SOL has recovered, it is not yet possible to tell whether it is out of danger. The bears might cause the altcoin to drop to its nearest support level.

The Technical Analysis Indicates the Price of SOL Might Rise

In November, the price of Solana suffered a considerable drop, entering the oversold region twice. However, there has been an increase in demand for the cryptocurrency recently.

The Relative Strength Index (RSI) showed a rebound, gradually approaching the 40 mark, denoting an increase in accumulation. The price of SOL also broke above the 20-day SMA, indicating optimism among buyers.

SOL has been a mundane performer regarding institutional interest for months. Despite its recovery, its capital inflows have been low due to the weakness in the market.

The Chaikin Money Flow (CMF) indicator was below the midline, revealing that outflows exceeded inflows. Meanwhile, the Awesome Oscillator (AO) showed a positive signal related to buying the altcoin, suggesting further gains for investors.

The Analysis of Solana Suggests It Might Reach USD 18.8

As the price of Solana changes direction, daily actions suggest a lack of trading activity. If the cryptocurrency behaves like it did earlier this month, it might reach around USD 5 before recovering.

The validation of a correction before buying would only be possible if it rises above the USD 16 level. A considerable adjustment above USD 20 might create a test of the USD 25 breakout level before falling again.

Although the price of SOL remains in a neutral-bearish trend, the bulls need to break above USD 15.1 and USD 16. If they do, the next resistance level will be USD 18.8, while the next resistance will be USD 23.3.

If SOL continues to drop over the next seven days, the support at USD 11 will be crucial for the bears. Given that scenario, the support level to watch is USD 8, followed by a possible bottom at USD 5.

Solana is trading at around USD 13.85 and has accumulated a 0.4% gain over the last 24 hours. While its daily trading volume is above USD 331.27 million, its market capitalization is about USD 5.03 billion, according to CoinGecko.

Investors should research SOL or any other cryptocurrency before buying it to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing where the market will take the value of that crypto asset.

By Alexander Salazar

Janet Yellen Compares the Collapse of FTX to the 2008 International Monetary Crisis

Alexander Salazar
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<strong>Janet Yellen Compares the Collapse of FTX to the 2008 International Monetary Crisis</strong>

The former president of the SEC said they had urged closing the regulatory gap, adding that the FTX collapse is a clear example. Yellen commented that the exchange owes its 50 largest creditors over USD 3 billion while many customers lost billions of US dollars.

The US Treasury secretary, Janet Yellen, recently compared the FTX catastrophe to the collapse of Lehman Brothers in 2008. The government official explained that the situation is big enough to impact traders and people uninformed about the risks.

The value of the subprime mortgages contained in the stability sheet of Lehman plummeted with the stock market swing. That created a ripple effect in the global economy, which caused trillions of US dollars in assets to evaporate. When that happened, Lehman was the fourth-largest American financial institution, whose assets amounted to USD 650 billion.

Although the FTX issue is not as bad as the Lehman Brothers case, it is also worrisome. The former president of the SEC said they had urged closing the regulatory gap, adding that this experience with Sam Bankman-Fried is a clear example.

During the Terra-LUNA crisis in May, the Treasury Department and the Financial Stability Oversight Council suggested applying the current financial laws to cryptocurrencies. FSOC also wants the National Assembly to approve a new law to address potential vulnerabilities regarding arbitrage.

Yellen also reiterated that the lack of publicity for crypto assets in the banking sector is a good indicator. She said those financial institutions have been careful to set clearly-stated regulations.

Yellen Says the FTX Collapse Implies the Need for Crypto Regulation

The US Treasury Secretary said it is necessary to apply for proper crypto regulation after the collapse of FTX. In that context, she said she has been skeptical about the cryptocurrency industry.

While highlighting the importance of adequate customer protection, the Treasury secretary noted the relevance of financial innovations. She said the latter should include tools to help lower cross-border transaction costs and improve financial inclusion.

Yellen commented that bankrupt cryptocurrency exchange FTX owes its 50 largest creditors over USD 3 billion. Besides, she explained that around 1 million customers and other investors face the loss of billions of US dollars.

The official also revealed that the US government is discussing the regulations on cryptocurrencies with its allies. She pointed out that protecting customer assets and segregating them is a priority.

According to Yellen, the collapse of FTX has led her to reiterate the need for careful regulation of cryptocurrencies. She said that this event shows the weaknesses of the crypto industry, as many customers lost their deposits on the bankrupt exchange.

Cryptocurrencies have become increasingly relevant in the global economy, which regulators have not overlooked. The authorities have taken the FTX collapse as an excuse to tighten their control over the industry. However, some experts consider that this event does not imply that crypto assets are the problem but those mismanaging that company.

By Alexander Salazar

Jerome Powell Anticipates Reducing Interest Rate Hikes Starting in December and Cryptos Celebrate

Audy Castañeda
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<strong>Jerome Powell Anticipates Reducing Interest Rate Hikes Starting in December and Cryptos Celebrate</strong>

The president of the Fed reiterated that he will maintain the restrictive tone until inflation drops to 2%. Cryptocurrencies celebrated Powell’s statement; rose between 3 and 5%, while Ethereum rose as much as 5.66%.

The president of the United States Federal Reserve (Fed), Jerome Powell, announced that he will reduce interest rate hikes starting at his next meeting on December 13 and 14, after four systematic increases of 0.75 percentage points.

The statements came to place during a presentation made by Powell before the Brookings Institution think tank in Washington, where the main executive of the Fed shared a part of what the agency has been doing, as well as the measures they are considering taking for the future.

Powell warned that the fight against inflation was still far from over and that there is still no clarity on the level to which interest rates will rise and for how long they will be maintained.

Powell revealed that he will moderate his monetary policy, although interest rates will remain high “for a while” to contain inflation. His statements were celebrated by the market, as the Dow Jones, Nasdaq, and S&P 500 gained 2.18, 4.41, and 3.09%, respectively.

Market Anticipation: Expectations for Powell’s Speech

It is timely to remember the jump in futures markets, in anticipation of Powell’s speech, with futures for the Dow Jones Industrial Average rising 38 points or 0.14%. Meanwhile, futures for the S&P 500 and Nasdaq 100 rose 0.2% and 0.4%, respectively.

Crypto markets seem even more positively biased to the Fed Chairman’s comments; for example, Bitcoin rose more than 2% in the last 24 hours, while Ethereum saw an increase of almost 4%. XRP. Dogecoin and Cardano also posted gains of 1.5%, 1%, and 0.85%, respectively.

In this anticipatory scenario, the overall cryptocurrency market capitalization rose 1.7% to $888 billion.

Cryptocurrencies Maintain Positive Streak

In addition, Powell reiterated that monetary policy will continue to be restrictive until the interest rate falls to 2%. Meanwhile, cryptocurrencies rose between 3 and 5%, Bitcoin passed the floor of $17,000 and Ethereum rose 5.66% to $1,300.

“It is likely that restoring price stability will require keeping policy tight for some time. History strongly cautions against premature relaxation of policy. We will stay the course until we finish the job.”

Before Jerome Powell’s speech, cryptocurrencies predicted an announcement to reduce interest rate increases. Bitcoin is up more than 2% in the last 24 hours, while Ethereum saw an increase of almost 4%. XRP, Dogecoin, and Cardano also posted gains of 1.5%, 1%, and 0.85%, respectively.

Meanwhile, the overall cryptocurrency market capitalization rose 1.7% the day before to $888 billion.

By Audy Castaneda

BlockFi is Bankrupt, Where Did It All Go Wrong?

Audy Castañeda
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<strong>BlockFi is Bankrupt, Where Did It All Go Wrong?</strong>

BlockFi’s bankruptcy was a long time coming, as the company was bailed out by a $400 million credit line from FTX earlier this year.

In a move that everyone saw coming, BlockFi filed for bankruptcy on Monday.

Court records for the distressed cryptocurrency lender reveal it has more than 100,000 creditors and blame “significant exposure” on insolvent exchange FTX. This is another dark mark in the cryptocurrency notebook, which is quickly running out of space.

Imminent and Inevitable Bankruptcy of BlockFi

BlockFi had suspended withdrawals, following the FTX collapse nearly three weeks ago. As investors on Celsius, Voyager Digital, and many other platforms can assert, it’s usually the last straw. It’s hard to gain the trust of customers when they are not allowed to take their money.

Thus, this week’s presentation is not a surprise. BlockFi said it expected a resurgence. It has disclosed cash of $257 million, which it says is enough to get through bankruptcy proceedings, allowing it to avoid debtor-in-possession financing.

It is difficult to understand, under these circumstances, how the company is recovering from this. BlockFi adviser Mark Renzi claimed that BlockFi is “well positioned to move forward despite 2022 being a particularly terrible year for the cryptocurrency industry.”

How customers will ever trust BlockFi with their funds again remains to be seen, not to mention that big glaring hole in their balance sheet and the small matter of literally declaring bankruptcy.

BlockFi Sues FTX

BlockFi is suing FTX to seize the Robinhood shares that the lender says Sam Bankman-Fried pledged as collateral against the loans he has now defaulted on. Bankman-Fried had bought 7.6% of Robinhood’s shares earlier this year.

Much of this has to do with Luna’s collapse earlier this year, which was supposed to be when FTX’s sister trading firm, Alameda, took out a lot of loans, after getting caught up in the fray. FTX shipped client assets from the exchange, with the now-defunct FTT token, created by FTX, as collateral.

BlockFi had its own problems, being forced to sign an agreement with FTX for a credit line of 400 million dollars, in order to keep the doors open. The deal also gave FTX the right to acquire BlockFi at any time through July 2023.

Ironically, it’s Sam Bankman-Fried who is now unleashing the latest batch of contagion, having said that’s exactly what he was trying to counter with all his bailouts earlier this year. This time, BlockFi fell.

Unfortunately, customers are now facing a long wait. It is becoming more obvious by the day that the cryptocurrency space needs a complete regulatory overhaul.

At this point, a little common sense would also be nice.

By Audy Castaneda

Cybercriminals Continue Moving the Funds Stolen from Bankrupt Cryptocurrency Exchange FTX to Launder them

Alexander Salazar
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<strong>Cybercriminals Continue Moving the Funds Stolen from Bankrupt Cryptocurrency Exchange FTX to Launder them</strong>

According to ZachXBT, the hackers received funds from a Bitcoin mixer that used a protocol that connects different blockchains. John Ray confirmed that USD 372 million left FTX without authorization and said nobody knows where those assets are.

The cybercriminals who stole over USD 600 million from FTX continue moving the funds to launder them. The theft occurred on November 11th, a few hours after the cryptocurrency exchange filed for bankruptcy protection.

ZachXBT, a pseudonymous blockchain analyst, said the hackers had transferred part of the stolen funds to OKX using a Bitcoin mixer. The expert reported that they had sent about 225 BTC, equivalent to more than USD 4.1 million, to the cryptocurrency exchange.

The cybercriminals started to deposit BTC into the mixer on November 20th after using a protocol that connects different blockchains.

According to ZachXBT, there was a pattern with wallets that received funds from the Bitcoin mixer. He said each wallet withdrew 50% from the mixer and deposited 50% on the OKX cryptocurrency exchange.

FTX Owes over USD 3 Billion to Its Largest Creditors

Afterward, the director of OKX stated they were aware of the situation and would investigate the transaction flow.

During the hack against FTX, the stolen funds went to two wallets on Solana and Ethereum. Since then, the addresses of the cybercriminals have moved the funds to blockchains like Binance Smart Chain, Polygon, and Avalanche.

The effects of the collapse of FTX have spread to the overall crypto market, causing leading cryptocurrencies to lose value. The prices of Bitcoin (BTC) and Ether (ETH) have dropped significantly and are struggling to recover their bullish trend.

Meanwhile, Bitcoin is trading around USD 16,924 and has accumulated a 2.4% gain over the last 24 hours. While its daily trading volume is above USD 26.49 billion, its market capitalization is about USD 325.26 billion, according to CoinGecko.

Inexperienced, Unsophisticated, and Potentially Compromised People Cause FTX to Collapse

John Ray, a bankruptcy specialist who took over as CEO of FTX, said this is an unprecedented situation. He said in a US court filing that there was faulty regulatory oversight and a lack of corporate control.

FTX filed for bankruptcy protection in the United States on November 11th amid the crash of the crypto industry. Before that, investors withdrew their holdings from the cryptocurrency exchange in less than three days, and Binance abandoned a bailout agreement.

The new CEO of FTX said he had never seen a failure of corporate controls and an absence of reliable financial information like those before. He added that this is an unprecedented situation as few inexperienced, unsophisticated, and potentially compromised people concentrated control.

The bankruptcy specialist did not mention the names of any specific regulators in his 30-page presentation.

Ray confirmed that USD 372 million left FTX without authorization after filing the bankruptcy protection. Besides, he pointed out that no one knows the exact positions of those stolen assets. However, the expert said they were working with some restructuring consultants to deal with that situation.

By Alexander Salazar

The Price of Ether Might Rise Again after the Current Bullish Trend Ends

Alexander Salazar
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<strong>The Price of Ether Might Rise Again after the Current Bullish Trend Ends</strong>

The Ether price might suffer further losses if it does not break above the USD 1,280 resistance zone. Since investors can accumulate more tokens amid the bearish market, this is an excellent opportunity to buy.

The price of Ether (ETH) has struggled to break above the crucial resistance level between USD 1,230 and USD 1,250. Considerably bullish momentum led the price to trade as high as USD 1,280 to consolidate gains close to USD 1,265.

The bulls remained active above the 23.6% Fibonacci retracement level of the recent rise from the USD 1,150 low. The hourly chart shows that the price of Ether also formed a short-term upward trend line with support near USD 1,230.

Ether is trading above USD 1,230 and the 100-hour simple moving average (SMA), while its immediate resistance is near USD 1,280.

The first key resistance is near the USD 1,300 level, from which the price might start another upward wave. The price might rally toward the USD 1,380 resistance zone, sending it toward USD 1,420.

Ether Might Suffer Further Losses If It Falls below USD 1,230

If the price of Ether does not break above the USD 1,280 resistance, it might drop. Its immediate bearish support is near the USD 1,250 level.

The following crucial support is close to USD 1,230 and the trend line. The price might test the USD 1,200 support, allowing the bulls to emerge if it drops below USD 1,230. Further losses might lead to another decline toward the USD 1,150 support zone.

While the Moving Average Convergence/Divergence (MACD) indicator is losing bullish traction, the Relative Strength Index (RSI) is above 50.

The crucial support level is USD 1,230, with a crucial resistance level of USD 1,280.

Predictions about the Price of Ether for December 2022

Since the price of Ether has historically risen around December holidays, it might increase slightly again. It might reach above USD 1,500 in the first half of 2023, as the market could be similar to 2019.

However, Ether might rise by 10% to 20% to as high as USD 1,500 in the coming 4 to 5 weeks. Since a further drop below USD 1,100 seems unlikely, the price should be between USD 1,200 to USD 1,500 in December.

It Is Worth Investing in Ether for the Long Term

Although Ether has dropped considerably, it might be worth it to investors in the long term. Next year, there might be significant increases in the price of the second-largest cryptocurrency by market capitalization.

Amid the current bearish market, investors may accumulate more tokens with regular US dollar investment. Therefore, this is an excellent opportunity to buy Ether before it rallies again in the following months.

Meanwhile, Ether is trading around USD 1,274 and has accumulated a 5.5% gain over the last 24 hours. While its daily trading volume is above USD 8.34 billion, its market capitalization is about USD 253.67 billion, according to CoinGecko.

However, investors should research Ether before buying it to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing where the market will take the value of that crypto asset.

By Alexander Salazar

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