Monero fails to build on Bitcoin’s momentum; one-year range holds

  • XRM/USD keeps trading in a range
  • Bearish momentum persists
  • A stronger dollar pressures most cryptocurrencies

Bitcoin rallied at the start of this week, triggering much-needed enthusiasm among crypto investors. However, the so-called “crypto winter” is still visible in other crypto markets, such as XMR/USD. 

Monero failed to capitalize on Bitcoin’s strength. Some other times, whenever Bitcoin rallied, other cryptocurrencies followed. 

Only this time is different. Therefore, one may argue that other cryptocurrencies lag and will jump, too, following Bitcoin’s lead. But another take is that Bitcoin gains will disappear, and a stronger US dollar will emerge. 

One thing is for sure, though – Monero’s technical picture is not encouraging. 

Monero chart by TradingView

The one-year-long range keeps Monero at bay

Monero’s underperformance this year might be viewed in two ways – one bullish and one bearish. 

The bullish view is that Monero is building energy, forming a contracting triangle that will break to the upside. And, on its way up, the market will break horizontal resistance given by the previous support area. 

The bearish view is that the one-year-long triangle is a bearish continuation pattern. If that is the case, the US dollar will keep gaining against its fiat peers and cryptocurrencies. 

$100 and $200 are key levels to watch for XRM/USD. Until any of them is broken, the range might continue still. 

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Bitcoin diverges from fiat currencies and makes a new high for the year; is this bullish?

  • Bitcoin breaks horizontal resistance at the $32k area
  • The rally extended above $35k
  • Bulls should be worried because Bitcoin diverges from the US dollar

Bitcoin investors are thrilled to see the cryptocurrency jumping to a new high for the year. More precisely, Bitcoin traded above $35k for the first time in over a year. 

It did so by tripping stops seen in the $32k area. This area provided resistance for quite some time, and Bitcoin finally broke above. 

That is the good news for bulls. 

The bad news is that in doing so, Bitcoin diverges with the rest of the fiat currencies. More precisely, while Bitcoin gained against the US dollar, the greenback rallied against its peers. 

It may or may not be something to worry about. But if I were an investor in Bitcoin (which I’m not), I would worry. Here is why. 

Bitcoin chart by TradingView

Bitcoin and the US dollar have diverged since Q1 2023

The problem for Bitcoin is that the dollar strengthened since Q1 2023 against its peers. Two examples are the EUR/USD and AUD/USD exchange rates, which peaked in the year’s first quarter. 

EUR/USD, for instance, peaked at 1.12 and now trades around 1.06. AUD/USD erased almost all its gains from the lows in October 2022.

Bitcoin is the last one standing against the dollar. While bulls may say that it is only normal because Bitcoin is not correlated with macro risks and positioning, I beg to differ. 

Since Bitcoin is part of many institutional portfolios, it does react to macro. Therefore, the rally we see here would likely be reversed unless the US dollar strength dissipates. Only if the dollar starts weakening it makes sense to cheer for a Bitcoin rally. 

Until then, caution is needed.

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Ripple drops another 2% today: a descending triangle points to more downside

  • Ripple’s bearish momentum continues
  • A descending triangle points to a drop to $0.4
  • A head and shoulders pattern paints a gloomy picture for Ripple

There is no break from the bearish momentum in the cryptocurrency market. Unless you are invested in Bitcoin, the suffering from being on the long side of any other coin has been tremendous. 

Take Ripple (XRP/USD), for example. 

After spiking close to $1 during the summer, it quickly returned all its gains. Basically, a classic pump-and-dump price action, enough to attract late newcomers to the party, only to see their investment quickly disappear. 

More problematic is the recent price action. It gives no signs of the bearish pressure easing anytime soon. 

Just the opposite, as the market appears to form a bearish continuation pattern – a descending triangle. 

Ripple chart by TradingView

Descending triangle points to a quick move to $0.5

As a bearish continuation pattern, a descending triangle hints at more downside to come. Its measured move equals the length of the longest segment of the triangle – in this case, it signals a drop to $0.4. 

The main feature of such a triangle is the fact that bounces from horizontal support are smaller and smaller until, eventually, support gives way. 

On an even bigger scale, the descending triangle might just be the right shoulder of a head and shoulders pattern. If that is the case, the spike during the summer months close to the $1 area would be the head of the pattern. 

If a head and shoulders pattern does materialize, Ripple has much more room to the downside than bullish investors would want to assume now. 

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Bitcoin ETF may be a ‘limited’ benefit for Coinbase stock: Barclays

  • Mike Novogratz expects SEC to approve a Spot Bitcoin ETF this year.
  • Barclays analyst does not expect that to be a huge benefit for Coinbase.
  • Coinbase stock is currently down over 30% versus its year-to-date high.

Mike Novogratz – the Chief Executive of Galaxy Investment Partners expects the Securities & Exchange Commission to approve a Spot Bitcoin ETF by the end of this year.

Here’s what Mike Novogratz said today on CNBC

Last week, the U.S. regulator refrained from appealing a court’s ruling that said it did not have sufficient reason to block Grayscale from converting its flagship trust to an exchange-traded fund.

Note that Galaxy itself has filed for a Spot Bitcoin ETF in collaboration with Invesco. On CNBC’s “Squawk Box”, Novogratz said today:

Dialogue with SEC is heading in right direction. It is no longer talking how Bitcoin works. It’s just a recognised macro asset and that’s a huge psychological shift.

The billionaire investor expects a positive news on the ETF front to lead the market higher. Still, Barclays is not entirely convinced that it will be a material catalyst for Coinbase Global Inc.

Barclays analyst shares his view on Coinbase stock

Analyst Benjamin Budish told clients in a research note today on Wednesday that approval of a Spot Bitcoin ETF will likely be a “limited” benefit for Coinbase.

It is not clear how successful ETF launches would translate into a meaningful P&L benefit for Coinbase despite it being an integral service provider.

He agreed that the Nasdaq-listed firm will serve as custodian for four BTC exchange-traded funds (at least) but said it is unlikely to earn significant custodial and prime brokerage fees.

Barclays has an “underweight” rating on Coinbase stock with a price target of $70 that suggests another 6.0% downside from here. Earlier this week, Cathie Wood – the Founder of Ark Invest also took a positive tone on a Spot Bitcoin ETF approval.

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Shiba Memu’s investment gold rush as the countdown to presale close begins

  • Shiba Memu presale is nearing its conclusion, with 13 days left.

  • The price of Shiba Memu has increased consistently each day on presale.

  • The value of Shiba Memu could be unlocked from post-listing liquidity in Q3 2023.

With millions raised in presale, investors hold high hopes for a new token sensation, Shiba Memu. The meme token has enjoyed a stellar presale, with daily price increases the icing on the cake. Now, FOMO could be gripping investors, as increased buying takes the presale to almost $4 million raised. The presale is on a 13-day countdown to close, after which the token could rise massively on the listing.

About Shiba Memu presale

Shiba Memu (SHMU) opened its presale in July, initially set to be an 8-week process. However, high demand and investor requests prompted the team to extend the presale by another 60 days. The extended presale concludes on October 31st, paving the way for the next step, listing.

Since launching the presale, Shiba Memu has generated value for its early backers. From an initial price of $0.011125, the token is now valued at $0.034750. The gains have been made possible by the project tokenomics. The tokenomics allow the Shiba Memu price to increase automatically daily at 6 PM GMT. The price is expected to rise further within the 13-day window to the end of the presale. 

Once the presale ends, Shiba Memu will be listed on major centralised exchanges. The team has earmarked the last quarter of 2023 as the time for listing. Debuting on the best exchanges is expected to unlock utility and facilitate the price discovery for Shiba Memu.

Why has Shiba Memu attracted such a high demand?

The speculative value of Shiba Memu is huge, considering the amounts raised in presale. This is one of the critical ingredients of meme cryptocurrencies, as their value is driven mainly by hype. However, Shiba Memu’s ability to convince investors of its market potential has got many talking.

Boosting cutting-edge AI technology, Shiba Memu aspires to be a leader in the meme sector. The project uses AI to self-promote on social forums and dominate online chatter. Shiba Memu can write its own social copy and marketing materials using AI. It then self-publishes the content across social media platforms to gain traction.

The AI and marketing prowess make Shiba Memu an ingenious and highly sustainable project. It doesn’t depend on temporary social media hypes to dominate. With this capability, Shiba Memu has been hailed as one of the most innovative meme projects. Investors also earn yields from staking, which lets them commit some tokens to the project’s growth.

Shiba Memu also taps into the power of a dedicated community to achieve success. The project team has allocated 85% of its 1,000,000 tokens in supply for the presale. Once the project is launched, Shiba Memu will engage its community through an AI dashboard. Users can channel their market insights into conversations through the dashboard. They can query the AI and get up-to-date answers on marketing strategies and advertising trends.

Is Shiba Memu worth buying in the presale?

Meme cryptocurrencies always generate FOMO due to the ability to return massively after listing. Reflecting on some of the top meme coins like PEPE, gains have exceeded 10,000%. Others, like meme leader Dogecoin, have hit a market cap that justifiably puts them on the top ten list. 

Shiba Memu carries the same potential owing to the early demand and investor enthusiasm. Investors could see a potential 10x gain or higher if the token replicates the returns of its meme peers.

Shiba Memu is only on a presale, and post-listing gains could be a little distant. The presale has 13 more days to run, with gains made each day. Investing in the presale is advantageous in maximising organic profits. Presale backers will also carry a better chance of riding an uptrend once the token is listed. 

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