Ripple

Ripple’s allies expand: Coinbase files amicus brief in fight against SEC

Crypto exchange Coinbase has filed documentation asking permission to help Ripple Labs in its ongoing legal battle with the SEC.

United States-based crypto exchange Coinbase has become the latest organization to stand behind Ripple Labs in its legal battle against the Securities and Exchange Commission (SEC), which could wrap up as soon as the first half of 2023.

Coinbase’s chief legal officer, Paul Grewal, said in a series of tweets on Oct. 31 that the exchange had asked the presiding judge for permission to file an amicus brief, saying the case was a “textbook” definition of “just how critical fair notice is.”

Earlier today, @coinbase asked Judge Torres for permission to file an amicus brief in the SEC case over XRP. Our point in pretty simple: this is a textbook case of just how critical fair notice is any reasonable notice of due process under law. 1/3 pic.twitter.com/qhSSGrNgJK

— paulgrewal.eth (@iampaulgrewal) October 31, 2022

An amicus brief, known as a “friend of the court,” is a legal document containing advice or information relating to a court case from an organization or individual that is not directly involved in the case.

Grewal added that a fundamental protection under the U.S. Constitution is that authorities can’t “condemn conduct as a violation of law without providing fair notice that the conduct is illegal.”

“By suing sellers of XRP tokens after making public statements signaling that those transactions were lawful, the SEC has lost sight of this bedrock principle,” he added.

If approved, Coinbase will join the ranks of the non-profit organization Investor Choice Advocates Network and crypto mobile app SpendTheBits which were granted permission to file amicus briefs in October.

The filing also comes on the same day cryptocurrency lawyer John Deaton filed a motion seeking permission to submit an amicus brief on behalf of the XRP “decentralized community,” along with briefs submitted by crypto advocacy body the Crypto Council for Innovation and venture capital firm Valhil Capital.

It also follows days after crypto advocacy group the Blockchain Association also announced its support for Ripple on Oct. 28 by announcing it had filed its own amicus brief, noting that SEC chairman Gary Gensler’s views on securities laws could have “devastating effects” on the space.

Ripple Labs has been caught up in a nearly two-year-long legal saga with the SEC that regards the sale of its XRP (XRP) tokens as unregistered securities sales.

Ripple CEO Brad Garlinghouse on an Oct. 11 panel at DC Fintech Week said he thinks the case could be wrapped up by the half of 2023 but admitted it would be hard to predict an exact end date.

Update (Nov. 1, 5:55 am UTC): Added information regarding further amicus briefs submitted supporting Ripple Labs.

Blockchain Association throws support behind Ripple in SEC duel

Blockchain Association has filed an amicus brief, also known as “friend of the court” to stand with Ripple Labs.

United States-based crypto advocacy group Blockchain Association has come out in support of Ripple Labs amid its ongoing legal battle with the Securities and Exchange Commission (SEC), claiming the case could be very important for the future of the crypto industry.

In an Oct. 28 post, the advocacy group announced it will “stand” with the American crypto economy by filing an amicus brief, also known as “friend of the court,” in the SEC enforcement action against Ripple.

Nearly two years ago, the SEC announced they were suing Ripple, former CEO Christian Larsen and current CEO Brad Garlinghouse in Dec. 2020 for allegedly raising $1.3 billion through unregistered securities sales through XRP (XRP).

“This case, which is just one in a long line of SEC efforts to regulate by enforcement, highlights the SEC’s efforts to cement and legitimize its overly broad interpretation of the Howey test,” wrote the association.

The Howey test determines what qualifies as an investment contract and is therefore what is subject to U.S. securities laws.

In their brief, the Blockchain Association outlined why in their view, the SEC and Chairman Gary Gensler’s views of securities laws could have “devastating effects” on the crypto industry.

They argue blockchain technologies have many uses across the crypto industry; tokens can be used to pay for goods and services, conveyance of intellectual property rights, inventory tracking and for a specific purpose in a given blockchain project.

“Applying the securities laws to those tokens – whether or not through the prism of the Howey test – would significantly restrict those networks from functioning.”

The association also claims the SEC is disregarding clear Supreme Court and Second Circuit precedents stating transactions aboard are beyond the jurisdictional reach of the SEC:

“Though the blockchain industry is global in nature, the federal securities laws are not. The Second Circuit has repeatedly re-emphasized the Supreme Court’s lesson on this subject.”

“Accordingly, both for liability and (if necessary) damages purposes, this Court should be mindful of the limits of the securities laws,” it added.

Kristin Smith, executive director of the Blockchain Association, believes this case could have wide-reaching ramifications for the future of crypto, calling the SEC’s interpretations of the securities laws, “the single greatest threat to the future of this rapidly growing industry.”

“By erratically applying these outdated standards to a modern and innovative technology, the SEC continues its ‘regulation by enforcement’ pattern, punishing crypto companies with little justification or warning,” she said.

The Blockchain Association said the case gives the industry the chance to push back against what they see as the “SEC’s regulation by enforcement agenda” and potentially open the door to modernized standards for the industry.

A new definition of crypto comes from the IRS — Law Decoded, Oct. 17–24

IRS broadens the classification of crypto, Ripple gets another point in a case against SEC and Hong Kong considers its own regulatory framework in opposition to China.

No matter how much attention the United States Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission gets in the crypto industry, for individual traders and investors, it often comes down to the Internal Revenue Service’s (IRS) position — and how much tax one owes.

Last week, the IRS last week released a draft bill featuring a well-defined digital assets section that outlines if and how taxpayers will account for the use of cryptocurrencies, stablecoins and nonfungible tokens (NFTs).

Page 16 of the draft defines digital assets as any digital representations of the value recorded on a “cryptographically secured distributed ledger or any similar technology.” 2021’s tax form required taxpayers to indicate whether they had received, sold or exchanged in “virtual currency” — with this term changing in the yet-to-issued 1040 tax form for 2022.

Taxpayers are required to answer the digital assets section of their income tax return whether or not they have engaged in digital asset transactions during the tax year. A number of situations will require American taxpayers to indicate yes to the question on digital assets of Form 1040 or 1040-SR. This includes receiving as a reward, award or payment for property or services or sold, exchanged, gifted or disposed of a digital asset in 2022.

New amendment provides regulation for crypto activities in the U.K.

An amendment to the Financial Services and Markets Bill now before the United Kingdom’s parliament could extend the law’s powers to regulate financial promotion and other activities to crypto assets. According to the explanatory statement accompanying the amendment, the new bill would “clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets.” In a letter from Aug. 9, the Financial Conduct Authority stated that it would publish final rules for the promotion of crypto assets once the Treasury formalizes legislation to bring these into its remit.

Hong Kong reportedly wants to legalize crypto trading

Hong Kong is taking action to regain its status as a global cryptocurrency hub by launching several legal initiatives related to the crypto industry. The government of Hong Kong is considering introducing its own bill to regulate crypto in its own China-free way, according to Elizabeth Wong, head of the fintech unit at the Securities and Futures Commission (SFC). One of the SFC’s initiatives is allowing retail investors to “directly invest into virtual assets,” which would mark a significant shift from the SFC’s stance over the past four years.

Ripple continues to gain points in case against SEC

Ripple seems to be inching closer to victory in its ongoing battle with the SEC. The company’s general counsel, Stuart Alderoty, confirmed on Twitter that the firm finally has a set of elusive documents after “18 months and 6 court orders,” though noted they remain confidential at the SEC’s insistence. “It was well worth the fight to get them,” he said, adding: “I’ve always felt good about our legal arguments, and I feel even better now. I always felt bad about the SEC’s tactics, and I feel even worse about them now.”

The fought-over documents relate to a 2018 speech by former SEC division director William Hinman regarding the status of Ether (ETH), with the financial regulator seemingly pulling out all the stops to keep the documents under wraps.

‘Well worth the fight’ — Ripple counsel confirms Hinman docs are in their hands

The truth will be shameful and shocking for the SEC, according to Ripple boss Brad Garlinghouse.

San Francisco-based fintech firm Ripple has inched closer to victory in its ongoing battle with the United States Securities and Exchange Commission (SEC).

On Oct. 21, Ripple general counsel Stuart Alderoty confirmed on Twitter that they finally have the elusive documents after “18 months and 6 court orders,” though noted they remain confidential at the SEC’s insistence.

“It was well worth the fight to get them,” he exclaimed, adding:

“I’ve always felt good about our legal arguments, and I feel even better now. I always felt bad about the SEC’s tactics, and I feel even worse about them now.”

In late September, U.S. District Court Judge Analisa Torres overruled the SEC’s second attempt to withhold the documents.

At the time, he stated that ETH was not a security and Ripple considers this a key argument in its case against the regulator, which has accused it of conducting an unregistered securities sale of its native token XRP (XRP).

Over 18 months and 6 court orders later, we finally have the Hinman docs (internal SEC emails and drafts of his infamous 2018 speech). While they remain confidential for now (at the SEC’s insistence), I can say that it was well worth the fight to get them.

— Stuart Alderoty (@s_alderoty) October 20, 2022

Partner at Hogan & Hogan Jeremy Hogan commented that these are the briefs “where we’ll really see how strong each position is,” while posturing how the SEC will respond. He added that the briefs will be made public on Oct. 24.

Ripple CEO Brad Garlinghouse vented on Twitter, claiming that the SEC’s behavior was shameful and shocking:

“The SEC wants you to think that it cares about disclosure, transparency and clarity. Don’t believe them. When the truth eventually comes out, the shamefulness of their behavior here will shock you.”

XRP prices don’t appear to have reacted to the latest development. Over the past 24 hours, the token has lost 3.2% in a fall to $0.446 at the time of writing, according to CoinGecko.

However, Ripple’s momentum has been strong over the past month or so as the case inches toward closure, but XRP is still down 87% from its January 2018 all-time high of $3.40.

Price analysis 10/19: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

Bitcoin and most altcoin prices have turned down and look to retest underlying support levels.

The lack of a decisive catalyst and the strength in the United States Dollar Index (DXY) has kept the recovery of risky assets under check. Bitcoin (BTC) remains stuck inside a tight range, searching for that elusive breakout. The longer the time Bitcoin spends inside the range, the greater will be the eventual breakout from it.

The short-term uncertainty in cryptocurrencies does not seem to have altered the long-term view of institutional investors. BNY Mellon CEO Robin Vince said that a survey commissioned by the bank showed that 91% of institutional investors were keen to invest in some type of tokenized assets in the next few years.

*Daily cryptocurrency market performance. Source:* *Coin360*

Although some believe that institutions have been slow to move into crypto, Coinbase senior adviser John D’Agostino thinks otherwise. While speaking in an interview with SALT, D’Agostino said that “institutional inertia is a very real thing” but in the case of digital assets, institutional adoption has been “moving very, very fast.”

What are the important support levels the bulls need to defend to avoid a collapse in Bitcoin and select altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

The bears successfully defended the 50-day simple moving average (SMA) ($19,659) on Oct. 17 and 18. The failure to clear this hurdle may have tempted the aggressive bulls to book profits and the bears to initiate short positions, which pulled the price back below the 20-day exponential moving average (EMA) ($19,384) on Oct. 18.

The sellers will once again try to challenge the immediate support at $18,843. If this level breaks down, the selling could pick up and the BTC/USDT pair could drop to the critical support zone between $18,125 and $17,622. The bears are expected to defend this zone with all their might because a break below it could start the next leg of the downtrend.

The first sign of strength will be a break and close above the downtrend line, which could attract further buying and push the price to $20,500. The bulls will have to overcome this obstacle to signal a possible short-term trend change. The pair could then climb toward the next resistance at $22,800.

ETH/USDT

Ether (ETH) re-entered the symmetrical triangle pattern on Oct. 17 but the bulls could not sustain the recovery. The price turned down on Oct. 18 and the bears are trying to pull the price to $1,263.

The gradually downsloping 20-day EMA ($1,320) and the RSI in the negative territory suggest that bears are at a marginal advantage. If the price slips below $1,263, the ETH/USDT pair could drop to $1,190.

Conversely, if the price turns up from the current level or the support at $1,263, it will indicate that lower levels are attracting buyers. The bulls will then attempt to push the price above the resistance line of the triangle.

If they manage to do that, the pair could rise to the downtrend line of the descending channel. A break above this resistance could suggest the end of the downtrend.

BNB/USDT

Although BNB (BNB) has been consolidating between $258 and $300 for the past several days, the bears are trying to gain the upper hand by defending the moving averages.

The sellers will now try to pull the price to the support of the range at $258. The repeated retest of a support level within a short time tends to weaken it. If this level gives way, the BNB/USDT pair could plummet to the next support at $216. The gradually downsloping 20-day EMA ($275) and the relative strength index (RSI) near 45 suggest that bears have a slight edge.

Contrary to this assumption, if the price turns up and breaks above the moving averages, the pair could extend its stay inside the range and rise to the overhead resistance at $300.

XRP/USDT

XRP (XRP) recovered and closed above the 20-day EMA ($0.47) on Oct. 17 but the bulls could not build upon this advantage. This shows that bears are selling on rallies.

The price turned down sharply and slipped below the 20-day EMA on Oct. 18. The selling intensified and the XRP/USDT pair dropped to the support line of the triangle. This is an important level to watch out for in the near term because a break below it could sink the pair to $0.41.

On the upside, the first sign of strength will be a break and close above $0.49. The bulls will then try to drive the price to the overhead zone between the resistance line and $0.56. A break and close above this zone could indicate the resumption of the uptrend.

ADA/USDT

In a strong trend, the relief rally usually lasts between one to three days and that is what happened in Cardano (ADA). The price turned down after a two-day recovery on Oct. 18 indicating that bears are selling on every minor rally.

The bears will try to build upon their advantage and sink the ADA/USDT pair to the support line of the falling wedge. If this support also cracks, the selling could accelerate and the pair may plunge to $0.30.

If bulls want to avert a collapse, they will have to quickly push the price above the 20-day EMA ($0.39). The pair could then rise to the resistance line of the wedge. A break above this level could point to a potential trend change.

SOL/USDT

The bulls could not push the price to the downtrend line as the bears stopped the recovery at the 20-day EMA ($31.40) on Oct. 18. Solana (SOL) has dropped back to the strong support zone between $30 and $29.42.

If the price rebounds off the current level, the bulls will again try to propel the SOL/USDT pair to the downtrend line. Buyers will have to overcome this barrier to open the doors for a possible rally to $35.50.

However, the bears may have other plans. They will strive to sink the price below $29.42 and challenge the intraday low of $27.87 made on Oct. 13. This level is likely to attract strong buying by the bulls but if bears manage to break the support, the next stop could be $26.

DOGE/USDT

Dogecoin (DOGE) pierced the 20-day EMA ($0.06) on Oct. 18 but met with stiff opposition at the 50-day SMA ($0.06). This suggests that the sentiment remains negative and traders are selling on minor rallies.

The bears will try to sink the price to the support near $0.06. The bulls had successfully defended this level on two previous occasions; hence, they will again try to repeat their performance.

If the price rebounds off the support, the pair could again rise to the moving averages. Buyers will have to overcome this barrier to set up a rally to $0.07.

On the contrary, if the price breaks below the support, the DOGE/USDT pair could drop to the June low near $0.05. The bulls are expected to defend this level with all their might.

DOT/USDT

Buyers failed to push Polkadot (DOT) above the 20-day EMA ($6.27) on Oct. 17 and 18, indicating that the bears are vigorously defending this level.

The sellers will try to further cement their advantage by pulling the price below the vital support at $6. If they succeed, the selling could accelerate and the DOT/USDT pair could decline to $5.68. If this level also cracks, the next stop could be $5.36.

Alternatively, if the price rebounds off $6 with force, it will indicate that the bulls are accumulating on dips. Buyers will then again try to clear the overhead hurdle at the 20-day EMA and push the price toward $6.64.

MATIC/USDT

Polygon (MATIC) broke and closed above the downtrend line on Oct. 17. This indicates the start of a sustained recovery in the near term.

The MATIC/USDT pair could rise to $0.94 where the bears may mount a strong defense. If the price turns down from this level but rebounds off the 20-day EMA ($0.81), it will suggest that the sentiment has turned positive and traders are buying on dips. That could improve the prospects of a rally to $1.05.

Alternatively, if the price turns down and breaks below the moving averages, it will suggest that the recent breakout may have been a bull trap. The pair could then decline to $0.69.

SHIB/USDT

Shiba Inu’s (SHIB‘s) recovery fizzled out near the 20-day EMA ($0.000011) and the price has declined to astrong support at $0.000010.

The downsloping moving averages and the RSI below 37 suggest that bears have the upper hand. If the price breaks below $0.000010, the SHIB/USDT pair could drop to $0.000009 and thereafter to the crucial support at $0.000007.

If bulls want to prevent the pair from going downhill, they will have to quickly push the price above the 20-day EMA. The pair could then rise to the 50-day SMA ($0.000011) and thereafter to $0.000014.

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

Ripple’s $250M fund backs Web3 projects focused on ‘entertainment and media’

A Ripple executive said the company believes that tokenization can transform the creator economy and create new business models.

In September 2021, enterprise blockchain and crypto solutions company Ripple launched the Ripple Creator Fund, a $250 million initiative committed to providing creators with the financial, creative and technical support needed to create nonfungible tokens (NFTs) and other tokenization projects on the XRP Ledger.

On Oct. 18, Ripple disclosed the second wave of creators to receive funding for their NFT projects through Ripple’s Creator Fund. This round of funding was awarded to independent creators focused on building functional use cases in gaming and the Metaverse, as well as music and media on the XRP Ledger. This round of recipients included companies like 9Level9 Productions, Anifie, Capital Block, NFT Avatar Maker, NFT Master, SYFR Projects and ThinkingCrypto.

Speaking with Cointelegraph, Markus Infanger, vice president of RippleX Growth, shared that Ripple chose projects that brought life to tokenization use cases — in particular, projects that provide functional utility, such as access rights, ticketing and phygital items. According to the vice president, Ripple looked for ideas, teams and visions that best aligned with bringing innovation and creativity to NFTs that go beyond digital art .

Infanger also shared that, although Ripple’s Creator Fund is open to all types of NFT projects, each wave of funding has a theme. He shared:

“This wave is focused on entertainment and media, specifically music. We want to provide support to indie creators with the technical, financial, and co-marketing support necessary to engage with their communities through NFTs.”

Infanger confirmed that Ripple’s Creator Fund has received over 4,000 applicants to date.

Ripple is investing $250 million in creators within the Web3 Industry because it believes that a tokenized future can transform the creator economy, create new business models and deepen creators’ relationships with their communities.

The vice president also shared that Ripple is prioritizing NFT projects because “We see a tokenized future quickly becoming reality. In fact, the World Economic Forum projects that 10% of the world’s GDP will be tokenized by 2027—just five short years from now!” He added that Ripple’s Creator Fund can help accelerate adoption by attracting a broader community of creators to participate in and benefit from NFTs.

He said Ripple has taken a “no smart contract needed” approach to make it easier and faster for any developer to access all essential NFT functionality natively on the XRP Ledger through basic API calls, including minting, burning, exchanging and assigning royalties.

Ripple hopes to position the XRP Ledger as a premier platform for minting and managing NFTs, and a place where creators and developers can continue to explore utility in NFTs through use cases such as asset ownership and interactive experiences that will help bring about a tokenized future.

Interest in Ripple’s Creator Fund comes around the same time that the company is engaged in a legal battle with the United States Securities and Exchange Commission (SEC). On Sept. 29, Cointelegraph reported that Ripple Labs had scored a victory in its continuing legal battle with the SEC after U.S. District Court Judge Analisa Torres ordered the release of documents written by former SEC Corporation Finance Division director William Hinman. The documents relate predominantly to a speech Hinman delivered at the Yahoo Finance All Markets Summit in June 2018.

The crypto industry fights regulators in the courts: Law Decoded, Oct. 10–17

Grayscale and Ripple against the SEC, Coin Center versus the Treasury — it’s a hot season in the U.S. courts.

Perhaps one of the most captivating signs of the industry’s maturity is the increasing amount of court cases in which crypto companies fight back against perceived regulatory abuses. Last week saw some major advancements in that direction.

Digital asset manager Grayscale has filed its opening brief against the United States Securities Exchange Commission to challenge its decision denying Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin exchange-traded fund (ETF). According to Grayscale, the SEC must submit its brief by Nov. 9.

A U.S.-based crypto policy advocacy group, Coin Center has followed through with its intention to take the Treasury Department’s Office of Foreign Asset Control, or OFAC, to court over sanctioning cryptocurrency mixer Tornado Cash. Lawyers for Coin Center as well as crypto investor David Hoffman, an anonymous human-rights advocate known only as John Doe, and software developer Patrick O’Sullivan filed a joint complaint against the OFAC, Treasury Secretary Janet Yellen and OFAC Director Andrea Gacki. The complaint alleged that sanctioning Tornado Cash was “unprecedented and unlawful,” in part, due to privacy concerns over crypto transactions.

Meanwhile, Ripple CEO Brad Garlinghouse revealed that he expects the long-drawn-out battle between Ripple and the SEC to end in the first half of 2023. “Federal judges work at their own pace,” he stated, before adding, “Optimistically, we’re talking about three to four months. Pessimistically, it could be longer than that.” The fintech boss said that Ripple would consider a settlement with the SEC, providing that XRP is not classified as a security.

MiCA passes through the European Parliament Committee

Members of the European Parliament Committee passed the key crypto framework policy, Markets in Crypto-Assets (MiCA), in a vote of 28 in favor and one against, with a final vote expected in a full European Parliament session soon. Following the MiCA vote, members of the EU Parliament also overwhelmingly approved a provisional deal on the Transfer of Funds Regulation, legislation aimed at having compliance standards for crypto assets in an effort to crack down on money laundering. The two regulatory frameworks, if given final approval, would apply to member states with the EU but potentially serve as an example for global lawmakers on crypto. Following all the procedures and checks, the crypto policies could go into effect starting in 2024.

OECD’s framework to combat international tax evasion using digital assets

The Organisation for Economic Cooperation and Development (OECD) has published a framework aimed at helping tax authorities achieve greater visibility on crypto transactions and the users behind them. The crypto tax framework proposes automatically exchanging information on crypto transactions between jurisdictions annually, given a rise in the number of unregulated exchanges and wallet providers. If approved, the framework would likely facilitate information sharing on crypto transactions between the OECD’s 38 member countries — a list that includes the United States, Japan, South Korea and many nations within Europe.

Portugal proposes 28% tax on crypto profits

Long considered a cryptocurrency tax haven, Portugal’s government has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year. The government’s 2023 State Budget document featured a short section addressing the taxation of cryptocurrencies, which, to date, have been untouched by the Portuguese tax authorities, given that digital assets were not recognized as legal tender.

A proposed income tax from operations involving cryptocurrencies through activities such as mining, trading and capital gains was put forward in the 444-page document. The State Budget also proposes a 4% taxation fee for free transfers of cryptocurrencies in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector.

Price analysis 10/17: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

These altcoins are carving out gains as Bitcoin price continues to trade within a tightening range.

The United States equities markets have made a bullish start to the new week. The S&P 500 is up about 2.60% and the Nasdaq Composite has rallied more than 3%. This indicates that the markets have shrugged off September’s high inflation reading and shifted focus onto the third-quarter earnings.

The stock market’s recovery could pave the way for Bitcoin (BTC) to break out of the range it has been stuck in for the past several days. A positive sign for the bulls is that the amount of Bitcoin held in cold storage or lost has risen to a five-year high, according to Glassnode data.

While long-term investors do not seem to be in the mood to sell their holdings at lower levels, smaller investors appear to be making the most of the depressed prices. Glassnode data shows that the number of wallets holding one whole Bitcoin or more has risen sharply in 2022.

What are the levels to watch on the upside that could signal the start of a sustained recovery in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin broke above the 20-day exponential moving average ($19,410) on Oct. 17, and the bulls are trying to extend the recovery above the zone between the 50-day simple moving average ($19,691) and the downtrend line.

If they succeed, the BTC/USDT pair could rise to the stiff resistance at $20,500. This level has acted as a strong barrier since Sept. 14. Therefore, a break and close above $20,500 could indicate that the selling pressure could be reducing. The pair could then sprint to $22,800, as there is no major resistance in between.

This positive view could be invalidated in the near term if the price turns down from the downtrend line and plummets below $18,843. Such a move will indicate that bears continue to sell at higher levels. The pair could then drop to the strong support zone between $18,125 and $17,622.

ETH/USDT

Ether’s (ETH) recovery has reached the breakdown level from the triangle. The 20-day exponential moving average ($1,323) is located close to this level. Hence, the bears are expected to defend the level aggressively.

If the price turns down from the current level and breaks below $1,263, the ETH/USDT pair could retest the Oct. 13 intraday low at $1,190. A break below this level could pull the pair to the support line of the descending channel.

On the contrary, if buyers drive the price above the overhead resistance at the 20-day EMA, the pair could rise to the downtrend line of the channel. This is an important obstacle for the bulls to overcome if they want to signal a potential trend change.

BNB/USDT

BNB (BNB) has been consolidating between $258 and $300 for the past several days. The bulls are trying to push the price above the moving averages on Oct. 17.

If they can pull it off, the BNB/USDT pair could attempt a rally to the resistance of the range at $300. The bears are likely to defend this level with all their might. A strong rejection at this level will indicate that the pair may remain stuck inside the range for a while.

The bears will have to sink the price below $258 to gain the upper hand. If they do that, the pair could decline to the next support at $216. Contrarily, if buyers propel the price above $300, the pair could rise to $338.

XRP/USDT

The price action of the past few days has formed a large symmetrical triangle for XRP (XRP). Buyers tried to push the price toward the resistance line of the triangle on Oct. 14, but the long wick on the candlestick shows aggressive selling at higher levels.

If the price sustains below the 20-day EMA ($0.47), the XRP/USDT pair could slide to the support line of the triangle. This level could attract buyers, and a strong rebound off it will suggest that the pair may continue to trade inside the triangle. On the other hand, a break below the support line could sink the pair to $0.41.

Trading inside a triangle is usually random and volatile. Although a triangle usually acts as a continuation pattern, it is better to wait for the price to break above the triangle before placing large bets.

ADA/USDT

Cardano (ADA) has formed a falling wedge pattern. The price bounced off the support line of the wedge on Oct. 13, and the bulls are attempting to push the price to the 20-day EMA ($0.40).

In a downtrend, the bears try to vigorously defend the 20-day EMA. If the price turns down from this resistance, the ADA/USDT pair could again drop to the support line. The downsloping moving averages and the relative strength index (RSI) in the oversold territory indicate that bears are in control.

To gain the upper hand in the near term, the buyers will have to push the price above the 20-day EMA. The pair could thereafter reach the downtrend line. This level could act as a strong resistance, but if bulls push the price above it, the pair could soar to $0.52.

SOL/USDT

Solana (SOL) dipped and closed below the $30 support on Oct. 15, but the bears could not capitalize on this weakness. This suggests that selling dries up at lower levels.

Buyers pushed the price back above the breakdown level of $30 on Oct. 16 and are attempting to extend the recovery to the downtrend line. The bears are likely to mount a strong defense at this level.

If the price turns down from the downtrend line, the SOL/USDT pair could drop to $29.42. A break below this level could pull the pair to $27.87. On the upside, if buyers thrust the price above the downtrend line, the pair could rally to $35.50.

DOGE/USDT

Dogecoin’s (DOGE) recovery is nearing the moving averages. This is an important level for the bears to defend because a break above the 50-day SMA ($0.06) could clear the path for a potential rally to $0.07.

If the price turns down from $0.07, the DOGE/USDT pair could again drop to the support near $0.06. That could keep the pair stuck between these two levels for a few more days. The flattening 20-day EMA ($0.06) and the RSI just below the midpoint suggest a consolidation in the near term.

If bulls pierce the overhead resistance at $0.07, the pair could attempt a rally to $0.09. Such a move will bring the large $0.05 to $0.09 range into play. Another possibility is that the price turns down sharply from the moving averages. If that happens, the bears will make one more attempt to pull the pair to the support at $0.05.

DOT/USDT

The failure of the bears to sustain Polkadot (DOT) below $6 on Oct. 13 started a recovery that has reached the 20-day EMA ($6.29) on Oct. 17. This level is likely to witness a tough battle between the bulls and the bears.

If bulls come out on top, the DOT/USDT pair could pick up momentum and rally toward the overhead resistance at the 50-day simple moving average ($6.69). This level could again attract strong selling by the bears. If the price turns down from this resistance, the pair could extend its stay inside the $6-to-$6.64 range for some more time.

The next trending move is likely to begin after the bulls push the price above the 50-day SMA or bears sink the pair below $6. If the price slips below $6, the decline could extend to $5.36.

MATIC/USDT

After several unsuccessful attempts in the past few days, the bulls have finally managed to push Polygon (MATIC) above the downtrend line on Oct. 17. This is the first sign of a potential trend change.

The MATIC/USDT pair could first rise to $0.86 and, if this level is crossed, the relief rally could reach $0.94. Although the flattish moving averages suggest a balance between supply and demand, the RSI in the positive territory suggests that the momentum could be turning in favor of the bulls.

Contrary to this assumption, if buyers fail to sustain the price above the downtrend line, it will suggest that bears are active at higher levels. The sellers will have to sink the price below $0.75 to gain the upper hand in the near term.

SHIB/USDT

Shiba Inu (SHIB) is attempting to bounce off the support at $0.000010, but the recovery lacks strength. This suggests that traders are in no hurry to buy at the current levels.

Both moving averages are sloping down and the RSI is in the negative territory, indicating advantage to sellers. If the price turns down from the current level or the moving averages, the bears will again try to sink the SHIB/USDT pair below $0.000010. If they manage to do that, the selling could intensify and the pair may drop toward the vital support at $0.000007.

Alternatively, if buyers drive the price above the moving averages, the pair could rise to the overhead resistance at $0.000014. A break above this level could suggest that the bulls are on a comeback. The pair could then rise to $0.000018.

3 signs suggesting the XRP price boom can continue in Q4 2022

A mix of on-chain, fundamental and technical indicators hints at a big XRP price rally in the works.

XRP (XRP) has made considerable gains over the past month as traders continue to shower confidence on Ripple’s potential legal win against the United States Securities and Exchange Commission (SEC).

For instance, the XRP price gained 25% thirty days after Ripple and the SEC filed for an immediate ruling on whether or not XRP sales violated U.S. securities laws. In comparison, Bitcoin (BTC) and Ether (ETH) are down 4% and 11% over the same period, respectively.

*XRP/USD versus BTC/USD and ETH/USD daily price chart. Source: TradingView*

Now, a flurry of indicators, ranging from on-chain to technical, hints XRP can continue its uptrend going into 2023.

XRP price “bull pennant”

Bull pennants are bullish continuation patterns that form as the price consolidates in a triangle-like range after a strong upside move. In other words, they resolve after the price breaks out in the direction of its previous uptrend.

On the daily chart, XRP has been trending inside a similar technical structure since late September, as shown below. While at it, the token has also attempted to break above the pennant twice, albeit to no success. It now eyes another breakout in the coming days.

*XRP/USD daily price chart featuring bull pennant. Source: TradingView*

Theoretically, a bull pennant breakout increases the price by as much as the size of the previous uptrend. Therefore, XRP’s bull pennant breakout can push the price toward $0.63 in Q4 2022.

That would mean a 35% price rally.

Strong accumulation detected

XRP’s bullish technical setup receives further cues from on-chain data, showing accumulation is underway.

Notably, XRP’s mean coin age — the average age of all tokens on the blockchain measured by the purchase price — has been rising since September, according to data from Santiment. The metric theoretically suggests that XRP users have been increasingly holding the tokens.

*XRP mean coin age (red) versus price (green). Source: Santiment*

In addition, data tracker Whale Alert detected millions of dollars worth of XRP withdrawals across Bitstamp, Bitso and other crypto exchanges, reducing the supply that can be potentially sold.

Notably, investors have moved a total of $126 million worth of XRP from exchanges to unknown wallets since Oct. 14. In comparison, $78.99 million worth of XRP was deposited into these exchanges.

65,200,000 #XRP (31,260,398 USD) transferred from #Bitso to unknown wallethttps://t.co/uZcv8p7bcD

— Whale Alert (@whale_alert) October 13, 2022

A legal win for Ripple?

The root of all bullishness for XRP over the past few months is Ripple’s potential to win against the SEC.

One of Ripple’s core arguments is a speech by former SEC director William Hinman at the Yahoo Finance All Markets Summit in 2018. Hinman said Ethereum was not a security despite conducting an initial coin offering (ICO) round to raise funds.

Ripple’s defense is that the SEC should treat XRP like Ether. And, many believe the argument will guarantee a win for the company. For example, Seeking Alpha Contributor The Digital Trend stated:

“The news that the court has rejected SEC’s objection to disclosing more documents linked to Hinman’s 2018 speech led to a surge in XRP price on September 30; XRP rallied by 12% in twenty-four hours […] These post-hearing rallies might just be a taste of what is to come if XRP wins the case.”

Ripple CEO Brad Garlinghouse anticipates the case to conclude in the first half of 2023. However, he admitted that the results of the case is hard to predict.

Price analysis 10/12: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

Bitcoin and most altcoins are likely to witness a pick in volatility following the CPI print on October 13.

The United States Federal Reserve has been aggressively hiking rates in an attempt to cool down inflation and that has kept the U.S. equities markets under pressure. Investors have been watching the inflation figures closely for early signs of topping out but to no avail.

Wholesale prices rose 0.4% in September, exceeding the Dow Jones’ estimate for a 0.2% gain. This suggests that inflation is yet to respond to the Fed’s monetary tightening. All eyes will now be fixed on the Consumer Price Index data to be released on Oct. 13.

Equity traders can expect volatility to pick up following the release of the numbers but for the crypto traders, it is difficult to predict whether this trigger is sufficient for Bitcoin (BTC) to break out of the $18,500 to $24,500 range it has been stuck in for the past several days.

What are the critical levels on the upside and downside that could signal the start of a trending move in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin is attempting to bounce off the first support at $18,843 but the relief rally is likely to hit a wall at the 20-day exponential moving average (EMA) ($19,482). If the price turns down from this resistance, it will suggest that bears are selling on rallies.

A break and close below $18,843 could pull the price to the $18,125 to $17,622 support zone. Bulls are expected to defend this zone with all their might because if they fail to do that, the BTC/USDT pair could resume its downtrend. The pair could then drop to $15,800 and later to $15,000.

The first sign of relief for the bulls will be a break above the downtrend line and the recovery could pick up steam after the pair rises above $20,500. That could set the stage for a possible rally to $22,800.

ETH/USDT

Ether (ETH) slipped below the symmetrical triangle on Oct. 11 but a positive sign is that the bulls purchased the dip and are trying to push the price back into the triangle on Oct. 12.

The 20-day EMA ($1,339) is sloping down and the relative strength index (RSI) is in the negative territory, indicating that bears are in control. The sellers will try to stall the recovery at the 20-day EMA.

If the price turns down from the current level or the 20-day EMA and breaks below $1,267, it will suggest the resumption of the down move. The ETH/USDT pair could then decline to the next support at $1,109.

The first sign of strength will be a break and close above the triangle. That could pave the way for a possible rally to the resistance line of the channel.

BNB/USDT

BNB formed a Doji candlestick pattern on Oct. 11, suggesting indecision among the bulls and the bears. Buyers are attempting to start a rebound from the support at $266.

The bounce is likely to face stiff resistance at the moving averages. If the price turns down from the current level or the moving averages, the BNB/USDT pair could drop to the strong support at $258. The bulls are expected to vigorously defend this level because a break and close below it could sink the pair to $216.

Another possibility is that the price turns up and breaks above the moving averages. That could clear the path for a potential rally to the stiff overhead resistance at $300.

XRP/USDT

XRP’s (XRP) failure to clear the overhead hurdle at $0.56 on Oct. 9 may have attracted profit-booking by the short-term traders. That pulled the price to the 20-day EMA ($0.47) on Oct. 11.

If the rebound fails to climb above $0.51, it will suggest that the bulls are not viewing the dip as a buying opportunity. That could increase the odds of a break below the 20-day EMA. If that happens, the selling could intensify and the XRP/USDT pair may drop to the breakout level of $0.41. The bulls are likely to forcefully defend this level.

Contrary to this assumption, if the price turns up and rises above $0.51, the bulls will again strive to drive the pair above $0.56. If they can pull it off, the pair could rally to $0.66.

ADA/USDT

Cardano (ADA) turned down sharply and broke below the critical support of $0.40 on Oct. 10. That was followed by further selling on Oct. 11, which pulled the price to $0.38. The break and close below $0.40 signal the start of the next leg of the downtrend.

Buyers have an opportunity to salvage the situation by quickly pushing the price above the breakdown level of $0.40. That could trap the aggressive bears and the ADA/USDT pair could rally to the 20-day EMA ($0.42).

Conversely, if the price turns down from $0.40, it will suggest that bears have flipped the level into resistance. That could enhance the prospects of the continuation of the downtrend toward the next major support at $0.33.

SOL/USDT

Solana (SOL) rose above the moving averages on Oct. 10 but that proved to be a bear trap. The price quickly turned down and dipped below the support at $31.65 on Oct. 11.

Buyers purchased the drop and are attempting to push the price back above the breakdown level of $31.65. If they manage to do that, the SOL/USDT pair will again rise to the moving averages. The bears may again try to stall the recovery at this level.

The downsloping moving averages and the RSI in the negative territory suggest that bears have the upper hand. A break and close below the support at $30 could increase the likelihood of a drop to the vital support at $26.

DOGE/USDT

Dogecoin (DOGE) dropped close to the support line on Oct. 11. This attracted buying by the bulls as seen from the long tail on the candlestick. Buyers are trying to push the price back above the moving averages on Oct. 12.

If they succeed, the DOGE/USDT pair could rise to the overhead resistance at $0.07. This level may again act as a strong barrier but if bulls overcome it, the pair could pick up momentum and rise toward $0.09.

Alternatively, if the price turns down from the moving averages, it will show that the bears continue to sell on rallies. That could again pull the price toward the support below $0.06. If this level gives way, the pair could rest the June low near $0.05.

DOT/USDT

Polkadot (DOT) nudged above the 20-day EMA ($6.40) on Oct. 10 but the bears sold aggressively at higher levels. That pulled the price below the immediate support at $6.25.

The bears will now attempt to sink the price to the critical level of $6. This is an important level for the bulls to defend because if the support cracks, the DOT/USDT pair could signal the resumption of the downtrend. The next support on the downside is $5.36.

The 20-day EMA remains the short-term resistance to watch out for on the upside. If bulls push the price above this obstacle, the pair could rally to the overhead zone between $6.64 and the 50-day simple moving average (SMA) ($6.79). A break above this zone could lead to a strong recovery.

MATIC/USDT

Polygon (MATIC) failed to break above the downtrend line on Oct. 10, indicating that bears continue to defend the level with vigor. That may have attracted profit-booking by short-term traders, which pulled the price below the 20-day EMA ($0.80) on Oct. 11.

Buyers are trying to arrest the decline and push the price back above the moving averages. If they do that, the bulls may make one more attempt to clear the overhead hurdle at the downtrend line. The repeated retest of a resistance level tends to weaken it.

If the price breaks and sustains above the downtrend line, the MATIC/USDT pair could attempt a rally to $0.94. On the other hand, if the price turns down from the moving averages or the downtrend line, the pair could drop to $0.75 and then to $0.69.

SHIB/USDT

Shiba Inu (SHIB) turned down sharply from the 20-day EMA ($0.000011) on Oct. 10 and slipped below the immediate support at $0.000010 on Oct. 11. A minor positive is that lower levels attracted buying.

The 20-day EMA is sloping down and the RSI is in the negative territory, indicating advantage to bears. The current rebound could again face strong selling at the 20-day EMA. If the price turns down from this resistance, the possibility of a break below $0.000010 increases. The SHIB/USDT pair could then start its decline toward $0.000007.

To avoid this bearish view, buyers will have to push and sustain the price above the moving averages. That could open the doors for a possible rise to $0.000014.