Key Indicator Shows Ripple (XRP) Price Could be on the Verge of a Rally

The majority of the Ripple (XRP) holders were waiting for the yearly Swell conference to bring some excitement to XRP price. However, the price didn’t move at all and now Ripple is searching for annual lows on its USD pair. 

Crypto market daily performance. Source: Coin360

The question is, was it reasonable for investors to expect a vast rally before the Swell conference or should they have not expected any upward movement at all? Let’s look at the charts to see what XRP price might do in the future. 

Ripple remains in a year-long downtrend

There are some exciting things to be seen from the USD chart. The trend is quite clear and readers will notice that XRP price has continued to fall since the peak in January 2018. 

XRP USD 2-day chart

XRP USD 2-day chart. Source: TradingView

A downtrend is marked by lower highs and lower lows. Quite importantly, the price didn’t make any higher high since the peak in January 2018 and is still stuck in its downtrend. 

A positive is that  there is a remarkably healthy support level of around $0.30. It took nearly a year until the floor broke downwards and this breakdown occurred in August 2019. 

Since then, the XRP did make a few retests of this level and confirmed this level as resistance, which marked the continuation of the downward movements towards the next support area around $0.19 to $0.20.

Swell didn’t go so well

Another interesting phenomenon is the excitement of XRP investors around the time that the Swell conference is meant to begin.

XRP USD 2-day chart

XRP USD 2-day chart. Source: TradingView

Quite remarkably, the 2-day chart provides clear data regarding the impact of the past three Swell conferences on XRP price. Each time there is a surge before the actual event occurs and the price drops the moment the event starts or finishes. Is this due to unsatisfied investors selling their tokens or are they simply playing the surge provided by the event?

What can be concluded from this chart is that it’s a classic example of the buy the rumor, sell the news concept. In this concept, there’s a surge before actual events (buy the rumor), caused by hype. However, when the actual event occurs, the price drops as the hype is going away (sell the news).

This phenomenon is seen on many levels and can also be found on the last Bitcoin (BTC) halving or the previous Litecoin (LTC) halvings. 

LTC USD 2-day chart

LTC USD 2-day chart. Source: TradingView

As shown by the LTC 2-day chart, and also with the halving in 2015, we can see a price run-up before the actual halving took place. This is simply another example of the ‘buy the rumor, sell the news’ concept, one of the unique phenomena which occurs in trading and investing. 

Ripple has nearly bottomed on the BTC pair

XRP BTC 2-day chart

XRP BTC 2-day chart. Source: TradingView

The XRP/BTC 2-day chart shows XRP price hovering on a vital support area (the green box). This area provided support and resistance levels for more than four years and is a level to watch closely.

Furthermore, the price broke out of a massive falling wedge construction and marked bullish divergences alongside it, which is often seen as a sign of a trend reversal. 

XRP BTC daily chart

XRP BTC daily chart. Source: TradingView

Currently, the daily chart is providing data that XRP price is in a crucial support area. This area is a previous order block and horizontal support zone that should be kept as support if the XRP wants to maintain bullish perspectives.

Alongside that, a potential falling wedge construction is found which is similar to the one seen on the left side of the chart. If the price can maintain this support and break to the upside, then a breakout towards 3700-3750 satoshis and possibly 4800-5000 satoshis is likely. 

The case of XRP price seeing a continuation to the upside is growing more likely according to the higher timeframes. 

XRP USD 4-day chart

XRP USD 4-day chart. Source: TradingView

The higher time frame charts (4-day in this example) are showing similar signals to prior bottom formations. The last time a bullish divergence occurred on the 4-day chart, the price surged 5,500% and 180%. 

A bullish divergence is not a guarantee of any price movements, but they are seen as one of the significant indicators for a potential trend reversal.

Ripple needs to break $0.30 to flip bullish

XRP USD daily chart

XRP USD daily chart. Source: TradingView

The crucial factor for Ripple is the need to break out of the falling wedge construction. Any bullish reversal will hinge on this happening. Furthermore, if the breakout occurs, XRP price needs to push above $0.30. 

The reasoning behind that is quite simple; the $0.30 level used to be a support for a year. Through breaking that level, a potential higher high can be defined, and a new upwards trend can start. 

At the time of publishing, XRP price is still making lower highs and lower lows, so an upwards breakout is needed to speak of bullishness.

Looking forward

Holding XRP through the past two years didn’t bring a high return on investment as the price is down 93.45% since its all-time high. Does this mean that buying XRP would be a bad investment at this point? 

Not necessarily and many investors will remember a quote made famous by an 18th British nobleman named Baron Rothschild. Rothschild said, “Buy when there’s blood in the streets, even if the blood is your own.”

In that regard, if the price starts to make an uptrend, a crucial factor is a breakout of $0.30 to start an uptrend and to provide a better investment opportunity. If $0.20 to $0.21 can’t provide support, the next support level is at $0.15. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Binance Cryptocurrency Exchange Adds Support for Tezos Staking

Binance — the second-largest crypto exchange by daily trade volume — has announced support for Tezos (XTZ) staking, according to an announcement published on Dec. 3.

Starting on Dec. 4, Binance’s users will be able to trade with XTZ, with XTZ rewards to be calculated daily based on live snapshots and distributed monthly. The distribution is set to end before Jan. 20, and after that on the 20th day of each following month.

Binance said that users must hold at least 1 XTZ in order to qualify for staking rewards. Tezos is currently trading at $1.30.

Binance’s CEO Changpeng Zhao had hinted at the possibility of staking in September, when the exchange initially listed the coin with three trading pairs against Bitcoin (BTC), Tether (USDT) and Binance Coin (BNB).

Other major exchanges have added Tezos staking rewards to their available offerings. Coinbase added the feature in early November before transitioning its custody arm, Coinbase Custody, to an internationally based staking service on Nov. 21. 

Staking, in general, refers to the practice of holding a cryptocurrency in a wallet to support a blockchain network’s operations. In addition to allowing holders to vote on blockchain operations, staking also generates periodic rewards for the holder staking their funds. 

Binance’s recent additions

Tezos staking rewards come on the heels of the listing of four Russian ruble trading pairs on Dec. 2. The first trading pairs featuring the ruble include Binance Coin (BNB), Bitcoin (BTC), Ether (ETH) and XRP.

In November, Binance launched support for the Turkish lira through its local digital wallet partner Papara and also became the first exchange to add the Fiat Gateway developed by stablecoin operator Paxos.

Apart from that, Binance partnered with crypto travel startup TravelByBit to launch a rewards card that facilitates cryptocurrency payments on major travel website. The card will function like a traditional prepaid card with access to additional discounts and rewards that users will be able to load with Bitcoin, Binance USD (BUSD), Binance Coin and Ontology (ONT).

Data Shows Crypto Exchange Volume May Not Equate to Website Traffic

As a young industry, the cryptocurrency space has been like a revolving door, seeing numerous companies, projects and assets come and go with the wind. Crypto exchanges, in particular, have seen their fair share of changing tides. Outfits such as BitMEX and Binance have grown since 2017 while newcomers such as Bybit have more recently entered the spotlight. 

It is not uncommon for such exchanges to gain social media attention as various personalities promote their reference links and talk about different digital assets on crypto-Twitter and YouTube. 

BitMEX, Bitfinex, Coinbase, Binance and Bybit have each seen their share of activity on social media, each with varying amounts of trading volume, although recent data from Amazon’s analytics site Alexa shows where these five exchanges really stand in terms of traffic and engagement. High trading volume does not necessarily equate to a high website traffic and engagement ranking compared to all online websites.

1. Binance

Among the five exchanges mentioned, Binance comes in with the highest rating on Amazon’s Alexa analytics tool, ranked at 1,582 when matched against all available websites. 

As one might suspect, Google tops this list as the highest-ranked website in terms of “global internet traffic and engagement over the past 90 days,” according to the analytics page. 

Binance has grown immensely since its founding in 2017, adding numerous assets, as well as futures and margin trading features in 2019, around the same time the operation geofenced United States-based customers to the regional Binance America platform. 

Banning the U.S., however, obviously has not caused Binance’s website traffic and engagement to falter. The exchange has amassed a notable $1 billion in profit since its inception in 2017, with a record Q3 in 2019, as Cointelegraph reported in October. 

In terms of reported volume, however, Binance sits in fifth place on popular price and data website CoinMarketCap. 

2. Coinbase

Founded in 2012, the app and online cryptocurrency marketplace Coinbase made numerous headlines during the bull run of 2017. The entity ranks second among the list of mentioned exchanges in terms of overall traffic and engagement, sitting at 2,335 on Amazon’s Alexa data page. 

This ranking includes activity for both Coinbase, as well as for Coinbase Pro, the company’s more trader-centric page. 

Coinbase is the only exchange on the mentioned list that exclusively hosts spot cryptocurrency trading, meaning traders are buying and selling actual physical Bitcoin on Coinbase and not derivative products or contracts, which directly affects Bitcoin’s price. 

When compared to other cryptocurrency exchanges, this ranking is fairly high, especially when considering the amount of volume running through margin trading exchanges. One might conclude this as positive for BTC and other crypto assets available on Coinbase as such activity might mean participation from folks other than traders.  

CoinMarketCap lists Coinbase Pro as the 52nd highest volume exchange, a rather low ranking considering the platform’s Alexa ranking.  

3. Bitfinex

Controversial exchange Bitfinex is next on the list, ranked at 9,232 in terms of traffic and engagement against all other websites. 

Bitfinex has graced many headlines since its inception in 2012. Authorities have looked into the outfit numerous times, probing to see whether or not the company is running a legitimate and legal operation. Bitfinex has also seen complications due to its alleged relationship with stablecoin Tether. 

Still, the exchange posts notable traffic, although it sits below Coinbase in terms of reported volume posted on CoinMarketCap, ranked at 62. 

4. ByBit

Fourth on the mentioned list of exchanges above in terms of traffic and engagement is a newer exchange by the name of Bybit, which entered the market in 2018. 

Bybit comes in at 12,035 when compared to all websites on Amazon’s Alexa data. It surprisingly ranks higher than BitMEX by web traffic, an exchange so popular that it is known for its “overload” — a condition in which the exchange freezes and locks out users during times of high traffic. 

Bybit is not listed on CoinMarketCap, so it is difficult to gauge its comparative volume, although one reason it may currently rank higher than BitMEX in terms of traffic may be due to the exchange’s upcoming trading competition. 

Bybit is hosting a massive trading competition that started on Nov. 18, with prizes totaling up to 100 BTC. Many social media personalities in the crypto space have promoted the competition, compiling teams to enter the event. 

5. BitMEX

Last on the mentioned list of exchanges is derivative platform BitMEX. Launched in 2014, BitMEX comes in at 17,124 on Amazon’s data. 

Notably, BitMEX has the most reported volume out of any trading platform, pulling in more than double the volume seen on BKEX, a second-place exchange with an Alexa ranking of 15,693. 

Due to Bybit’s trading competition, however, traders may be heading over to Bybit to take a bite out of the action, leading to a spike in Bybit’s traffic numbers. 

Approximately 90 days ago, Amazon’s data listed Bybit at 21,313, while BitMEX held a higher ranking at 14,140. 

Other notable exchanges include OKEx with a ranking of 3,471, Bittrex at 6,084, Kraken at 9,771, Kucoin at 9,773 and Bitstamp at 14,971.

Exchange volume does not equal web traffic

Based on the above data, exchanges that posted the highest volume were not necessarily the exchanges with the most web traffic and engagement. This notion may indicate that large traders trading big positions gravitate toward exchanges with higher liquidity. It contrast, lower volume exchanges may pick up more overall traffic as a result of various promotional offers, gimmicks and other tactics getting interested less sizable folks in the door, but may not see a resulting sizeable increase in volume.   

Additionally, the traffic and engagement numbers from spot-based exchanges such as Coinbase and Binance may indicate interest from the mainstream public. (Binance hosts derivative trading, but has largely been known as a spot operation for most of its existence.) These exchanges might be hosting more traffic while yielding less volume as many nonprofessional traders interested in investing a few dollars worth of cryptocurrency engage with these platforms.  

The views and opinions expressed here are solely those of (@benjaminpirus) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Plaintiffs in Tether-Bitcoin Price Manipulation Case Will Not Drop Complaint

The plaintiffs in a class-action lawsuit accusing the Tether (USDT)-affiliated crypto exchange Bitfinex of Bitcoin (BTC) price manipulation have declined to amend their complaint.

According to a court filing dated Dec. 2, the plaintiffs declined to make amendments to their complaint as a study conducted by John Griffin and Amin Shams “still concludes that USDT was being used to manipulate Bitcoin prices.” Moreover, they state that the findings connect the manipulation to a single entity.

Last year, Griffin and Shams of the University of Texas published a paper, alleging that Tether partially caused Bitcoin’s historic high of $20,000 in 2017. The paper stated:

“Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies.”

The study claimed that “one large player on Bitfinex uses [USDT] to purchase large amounts of Bitcoin when prices are falling and following the printing of [USDT].” The plaintiffs further added that “Bitfinex executives either knew of the scheme or were aiding it.”

Bitfinex’s response to the single entity allegations

In November, Bitfinex issued a response to the paper, denying its findings and even accusing the authors of unethical motivations. The exchange said, “To obtain publication, Griffin and Shams have released a weakened yet equally flawed version of their prior article. The revised paper is a watered-down and embarrassing walk-back of its predecessor.”

Blockchain education platform Longhash released research that it claims debunks the single-whale theory of the 2017 price surge. According to Longhash, the metric measures how much Bitcoin could be bought with the entire Tether supply at any given time, pointing out that the higher the ratio, the more likely it is for Tether to potentially manipulate the markets. The researchers said:

“This suggests that even if Tether were indeed manipulating the market, its ability to do so actually is strongest when the Bitcoin price falls. This contradicts the claim that Tether issuance drove the 2017 bull market. The supply of Tether actually failed to keep up during the height of the bull market.”

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