• Institutions have been buying cryptocurrency following the recent market slump, according to data from FalconX.
• Bitcoin trading volume is almost three times higher than Ethereum’s among institutional investors.
• Various types of institutional investors, including proprietary trading desks, hedge funds, and venture funds, were net buyers during the dip.
• The crypto market recovery coincides with a broader market sell-off that affected major stock indices.
• FalconX’s head of research, David Lawant, indicates that institutional investors see a positive medium and long-term outlook for crypto assets despite short-term volatility.

In the wake of a significant cryptocurrency market correction that wiped out approximately $230 billion in value, institutional investors have emerged as key players in buying the dip.

This trend, highlighted by crypto trading and institutional brokerage firm FalconX, suggests a strong belief in the long-term potential of digital assets despite short-term market turbulence.

According to FalconX, interest in Bitcoin “remains elevated” among institutional investors, with trading volume for the leading cryptocurrency nearly tripling that of Ethereum. This disparity in trading volumes indicates a clear preference for Bitcoin among institutional buyers during market downturns.

1/3 As one of the most active institutional desks in crypto, the past few days have been busy. Here is a high-level color of our flows over the past few weeks and today.

TLDR: Institutions are buying the dip.

— FalconX (@falconxnetwork) August 6, 2024

David Lawant, head of research at FalconX, told Decrypt,

“The overall mood among institutional investors is that, despite the many short-term crosscurrents, the outlook for the asset class remains very positive in the medium and long terms.”

This sentiment is reflected in the buying patterns observed across various types of institutional investors.

FalconX’s data reveals that proprietary trading desks represented 57% of total buy-side flows, while hedge funds accounted for 63%. Venture funds and retail aggregators also showed significant buying activity, at 61% and 72% respectively. These figures demonstrate a broad-based institutional interest in accumulating crypto assets during price dips.

The recent crypto market downturn occurred against the backdrop of a broader sell-off in global financial markets. Major stock indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, experienced their worst performance since September 2022. This market-wide volatility was primarily attributed to disappointing U.S. jobs data and reduced manufacturing activity, which intensified recession fears.

Despite these challenging market conditions, the crypto market has shown signs of recovery. Bitcoin, for instance, has rebounded by approximately 13% from its Monday lows, trading at around $56,400 as of the latest data from CoinGecko. This recovery, coupled with institutional buying activity, suggests a level of resilience in the crypto market.

Lawant pointed out that last week’s buy/sell ratios among institutional cohorts had dipped below 50%, indicating more sellers than buyers. However, this trend reversed sharply during the recent dip. “The numbers today are way above that,” Lawant stated, emphasizing that “Institutions buying the dip has been a clear trend during this correction.”

This institutional behavior aligns with the “buy the dip” strategy often observed in traditional financial markets. It reflects a belief that the current lower prices represent a buying opportunity, based on expectations of future price appreciation.

The strong institutional interest in cryptocurrencies, particularly during market downturns, could have significant implications for the broader adoption and stabilization of the crypto market. Institutional investors typically bring larger capital inflows and can potentially reduce market volatility over time through their long-term investment strategies.

The post Smart Money: Data Shows Institutions ‘Buying the Dip’ After Recent Price Crash appeared first on Blockonomi.

• Ethereum’s price has started a recovery wave, rising above $2,350 after dropping to a low of $1,910.
• Technical indicators suggest ETH could climb higher if it clears the $2,680 resistance zone.
• Ethereum’s rebound shows similarities to a pattern from October 2023 that preceded a 178% price rally.
• On-chain metrics like the MVRV Z-Score and STH-NUPL indicate ETH may have hit a bottom.
• Some analysts predict ETH could potentially rally 100% or more before the end of the year if historical patterns repeat.

Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of a robust recovery after experiencing a significant price drop. The digital asset’s price has bounced back from a low of $1,910, climbing above the $2,350 resistance zone and sparking optimism among investors and analysts alike.

Technical analysis suggests that Ethereum (ETH) could be poised for further gains if it manages to clear key resistance levels. The price is currently trading below $2,640 and the 100-hourly Simple Moving Average, with a bullish trend line forming support at $2,440 on the hourly chart. If ETH can surpass the $2,680 resistance zone, it could potentially trigger a steady upward movement.

The current rebound bears a striking resemblance to a pattern observed in October 2023, which preceded a substantial 178% price rally. This similarity has led some analysts to speculate about the possibility of another significant price surge in the coming months.

On-chain metrics are also providing encouraging signals for Ethereum’s price outlook. The Market Value to Realized Value (MVRV) Z-Score, a key indicator for identifying market tops and bottoms, has dropped to 0.52. Historically, when this metric reaches such low levels, it has often signaled a market bottom and preceded notable price increases.

Another on-chain indicator, the Short-Term Holder-Net Unrealized Profit/Loss (STH-NUPL), has entered the capitulation region, suggesting a prevalence of fear in the market. Paradoxically, such extreme fear has often marked the beginning of price rallies in previous market cycles.

Based on these technical and on-chain indicators, some analysts are making bold predictions about Ethereum’s potential price movement. There’s speculation that ETH could potentially double its value before the end of the year, with some forecasts suggesting a possible rally to around $4,000 or even higher.

From a fundamental perspective, anticipated U.S. Federal Reserve rate cuts could potentially boost demand for Ethereum and other cryptocurrencies. As traders seek higher returns from riskier assets, they may move away from lower-yielding options like government bonds, potentially benefiting the crypto market.

The scenario draws parallels to March 2020, when the market sharply rebounded following the Fed’s intervention in response to the COVID-19 market crash. Current market data shows increasing probabilities of three rate cuts by 2024, which could create a favorable environment for crypto assets.

For Ethereum specifically, the next major hurdles on its potential upward trajectory include resistance levels at $2,680 and $2,720. A clear break above these levels could potentially open the path towards the $2,860 and $2,920 resistance zones. Some optimistic projections even suggest that ETH could approach the $3,000 mark if the bullish momentum continues.

If Ethereum fails to maintain its current momentum and falls below key support levels, particularly the $2,365 zone, it could trigger another decline, potentially pushing the price back towards the $2,250 or even $2,120 levels.

The post Ethereum (ETH) Price Shows Signs of Recovery: Analysts Eye Potential 100% Rally appeared first on Blockonomi.

• Solana (SOL) price has recovered significantly, rising over 35% in less than 48 hours.
• SOL reached $149.61, up from a low of around $110 earlier in the week.
• The SOL/ETH ratio hit a new all-time high, with SOL outperforming ETH in recent price recovery.
• Analysts attribute the recovery to overall market sentiment improving after recent sell-offs.
• Solana’s ecosystem growth and upcoming upgrades are cited as bullish factors for the cryptocurrency.

Solana (SOL), the native token of the high-performance Solana blockchain, has demonstrated a remarkable recovery in the past 48 hours, surging over 35% and outpacing many of its cryptocurrency peers, including Ethereum (ETH).

This swift rebound comes after a sharp market-wide sell-off earlier in the week that saw SOL drop to nearly $110.

As of the latest data, SOL reached $149.61, marking a significant turnaround from its recent lows. The cryptocurrency’s impressive rally has caught the attention of investors and analysts alike, with many pointing to both market-wide factors and Solana-specific developments as drivers of this growth.

One of the most notable achievements during this recovery is SOL’s performance against Ethereum. The SOL/ETH ratio hit a new all-time high, reaching 0.061. This metric, which measures the value of one Solana token against one Ether, indicates that SOL has been outperforming ETH in the recent market rebound. While ETH has seen a 9.68% increase from its yearly low, SOL has managed a more than 30% jump in the same period.

Analysts attribute this strong recovery to several factors.

Tim Enneking, managing partner of Psalion, suggests that the recent price movements are largely driven by shifts in market sentiment.

“This pricing roller coaster, of which Solana is only one, albeit prominent example, is due purely to fiat markets acting with irrational fear one day and irrational relief the next,” Enneking stated.

Beyond general market trends, Solana-specific factors are also playing a role in its strong performance. Pat Doyle, blockchain researcher for Amberdata, highlighted Solana’s robust fundamentals.

“Key metrics such as the growth in active users, increased dex volumes, and overall ecosystem expansion reflect the underlying strength of the platform,” Doyle noted.

He also pointed out that compared to Ethereum, Solana’s market cap (currently at 22% of Ethereum’s) suggests potential for further growth.

Seth Ginns, managing partner at CoinFund, emphasized upcoming developments in the Solana ecosystem.

“Solana is benefiting from a number of tailwinds. Onchain activity has been strong, and there’s an expectation for new features and upgrades to ship between now and the big Solana developer conference Breakpoint next month,” Ginns explained.

From a technical analysis perspective, SOL has broken above several key resistance levels. The price moved past the $135 and $140 marks, surpassing the 50% Fibonacci retracement level of the recent downward move from $184 to $109. The next major resistance is seen near $155, coinciding with the 61.8% Fibonacci retracement level.

While the current trajectory is bullish, analysts caution that the market remains volatile. If SOL fails to break above the $155 resistance, it could face a pullback. Support levels to watch include $140 and $135, with a break below potentially leading to a retest of the $122 area.

The broader cryptocurrency market has been mirroring trends in traditional financial markets, with both experiencing sharp sell-offs followed by robust recoveries. This correlation highlights the increasing integration of digital assets into the wider financial ecosystem.

The post Solana (SOL) Price Surges 35%: Reaches All Time High Against Ethereum appeared first on Blockonomi.

• Bitcoin is approaching a “death cross,” where the 50-day simple moving average (SMA) crosses below the 200-day SMA.
• The death cross is often seen as a bearish signal, but historically it has not always led to long-term price declines.
• Bitcoin recently dropped to around $49,577 before rebounding to about $56,386.
• Some analysts suggest the death cross could be a lagging indicator and may not accurately predict future price movements.
• Comments from Bank of Japan governor Shinichi Uchida about maintaining easy monetary policy have helped boost risk assets, including Bitcoin.

Bitcoin, the world’s leading cryptocurrency, is approaching a technical pattern known as a “death cross,” causing some concern among traders and investors.

This ominous-sounding term refers to when the 50-day simple moving average (SMA) crosses below the 200-day SMA, often interpreted as a bearish signal in technical analysis.

As of the latest data, Bitcoin’s price stands at approximately $56,386, with the 50-day SMA at $62,488 and the 200-day SMA at $61,664. The recent price action has seen Bitcoin drop to a low of $49,577 before rebounding, marking a significant 30% decline from its July 29 peak.

While the death cross traditionally signals potential bearish momentum, many seasoned crypto traders and analysts caution against overreaction

Historical data shows that death crosses don’t always lead to long-term price declines. In fact, the last Bitcoin death cross occurred in September 2023, after which the cryptocurrency’s value surged by 190% over the following six months.

Matt Hougan, CIO of Bitwise, commented on the current market sentiment: “If you are like most crypto investors, you’re cycling through a brutal swing of emotions, including fear and despair. For many, the emotion that strikes hardest is anger. I feel those emotions too. But I feel something else too—something born from six-plus years of managing money in crypto full-time: Opportunity. Because I’ve seen this movie before.”

1/ History suggests that this weekend's sell-off is a buying opportunity.

A thread on why.

[Note: Not investment advice. Just my opinion.]

— Matt Hougan (@Matt_Hougan) August 5, 2024

The significance of a death cross can vary depending on which moving averages are used. For instance, exponential moving averages (EMAs), which give more weight to recent price action, present a different picture, suggesting the current situation might be a reaction to a dip rather than a long-term bearish trend.

Adding to the complexity of the market analysis, recent comments from Bank of Japan (BOJ) governor Shinichi Uchida have introduced a new factor. Uchida stated that the central bank wouldn’t hike borrowing costs when markets are unstable, potentially weakening the case for continued unwinding of “yen carry trades” and resulting risk aversion in assets like Bitcoin.

“As we’re seeing sharp volatility in domestic and overseas financial markets, it’s necessary to maintain current levels of monetary easing for the time being,”
Uchida said in a speech to business leaders.

This statement has led to a weakening of the Japanese yen and a boost in risk assets, including Bitcoin and stock futures. The cryptocurrency briefly topped $57,300 following Uchida’s comments, while Japan’s Nikkei index rose 4%, signaling a potential risk reset.

Market observers note that the death cross could end up being a lagging indicator, as it’s based on past data. In some cases, it can even be a false signal if there’s no decisive bearish reversal. For example, Bitcoin recorded a death cross in March 2020, only to hit a new all-time high later that year.

The post Bitcoin (BTC) Price Volatility Increases as Death Cross Looms appeared first on Blockonomi.

• Bitcoin experienced a steep fall from $65,000 to $49,000 in early August 2024, triggered by various factors including Mt Gox sales and interest rate decisions
• The price has since rebounded above $55,000, showing signs of recovery
• Some analysts see similarities between this crash and the 2020 Covid crash, as well as patterns from the 2016 halving period
• The Crypto Fear and Greed Index entered “Extreme Fear” territory with a score of 17 out of 100
• U.S. Bitcoin ETFs saw outflows of $168.4 million amid negative market sentiment

Bitcoin, the world’s largest cryptocurrency, has shown signs of recovery after a dramatic price drop in early August 2024. The digital asset, which fell from $65,000 to a low of $49,000, has since rebounded to trade above $55,000, sparking discussions about market patterns and investor sentiment.

The recent price action has drawn comparisons to previous market events, including the March 2020 crash triggered by the COVID-19 pandemic and the period following the 2016 Bitcoin halving.

Veteran trader Peter Brandt noted similarities between the current situation and the post-2016 halving period, which preceded the historic bull run of 2017.

Please note that $BTC decline since halving is now similar to that of the 2015-2017 Halving Bull market cycle pic.twitter.com/cIm3WKzBog

— Peter Brandt (@PeterLBrandt) August 5, 2024

The steep decline was attributed to a combination of factors, including the sale of Bitcoin by Mt Gox creditors and the German government, as well as monetary policy decisions by major central banks.

The Federal Reserve’s indication that it would not cut rates in September and the Bank of Japan’s decision to raise interest rates by 15 basis points to 0.25% contributed to the market turbulence.

Despite the severity of the drop, the current situation differs from the 2020 COVID crash in several ways. Trading volumes during this decline, while significant, have not reached the levels seen during the pandemic-induced sell-off. On August 5, 2024, the BTC/USDT trading pair on Binance recorded a volume of 125.5k BTC, compared to 402.2k BTC during the height of the March 2020 crash.

The market’s recovery has been supported by increased institutional involvement and growing retail interest, factors that were less prominent during previous downturns. The approval of Bitcoin and Ethereum ETFs has provided additional avenues for investment and potentially greater market stability.

Technical analysis suggests that Bitcoin has formed a descending broadening wedge pattern on the daily chart, similar to the formation seen before the recovery in 2020. As of the latest data, $51,200 represents a critical support level that Bitcoin must maintain to preserve the integrity of this pattern.

While the price has rebounded, market sentiment remains cautious. The Crypto Fear and Greed Index, a popular measure of market sentiment, plunged to 17 out of 100, indicating “Extreme Fear” among investors. This marks the lowest level for the index since July 12, 2022, reflecting the uncertainty pervading the market.

The negative sentiment has been reflected in fund flows, with U.S. spot Bitcoin exchange-traded funds experiencing outflows of $168.4 million. This suggests that some investors are taking a risk-off approach in response to the recent volatility.

As Bitcoin attempts to regain lost ground, it faces several resistance levels. The area around $58,000 is seen as a key hurdle, with the $60,000 mark representing a significant psychological barrier. A breakthrough above these levels could potentially reignite bullish momentum.

On the support side, levels around $55,000, $53,500, and $52,000 are being closely watched by traders and analysts. A failure to hold these supports could lead to further downside, with some suggesting that a retest of the $50,000 level is possible.

The post Bitcoin Recovers to $55,000 Following Crash: What’s Next for BTC? appeared first on Blockonomi.

• XRP has been consolidating within a symmetrical triangle pattern for the past six years
• The cryptocurrency’s monthly volatility has dropped to record lows, similar to conditions before its 60,000% rally in 2017-2018
• Analysts suggest a potential breakout could occur if XRP surpasses $0.90
• Some predict extremely bullish targets, with one analyst suggesting an “ultimate breakout” target of $18.23
• On-chain data shows increased accumulation by wallets holding at least 10,000 XRP

The XRP market has been garnering attention from analysts and investors alike as it shows signs of a potential major price movement after years of consolidation. Technical analysis and market indicators suggest that XRP may be on the verge of a significant breakout, reminiscent of its historic rally in 2017-2018.

According to crypto analyst Ali Martinez, XRP has been consolidating within a symmetrical triangle pattern for the past six years. This pattern began forming after XRP reached its all-time high of $3.40 in early 2018, followed by a bearish run that bottomed out at $0.11 in 2020. Since then, the price has been characterized by a series of lower highs and higher lows, resulting in the observed symmetrical triangle.

$XRP has been consolidating within a symmetrical triangle for 6 years! A bullish breakout could occur if #XRP surpasses $0.90. pic.twitter.com/YzW3jDuvF9

— Ali (@ali_charts) July 30, 2024

The critical breakout point for XRP is around $0.90, according to Martinez. Surpassing this level could potentially trigger a substantial upward trend. This analysis aligns with the observations of other market watchers who have noted similarities between current market conditions and those preceding XRP’s monumental 60,000% price rally in 2017-2018.

One significant indicator drawing attention is the Bollinger Band Width (BBW) on XRP’s monthly chart, which hit a new low in July. This reflects years of the XRP/USD trading pair moving within a narrower trading range. Historically, such periods of low volatility often precede major price movements. The current BBW reading is even lower than it was during the 2016-2017 session, which was followed by the 66,000% price breakout.

Some analysts are presenting extremely bullish scenarios for XRP’s future price. Crypto analyst Dark Defender has outlined a series of potential price targets, with the most optimistic being an “ultimate breakout” target of $18.23. This projection is based on a technical analysis of XRP’s 3-month chart, which shows a symmetrical triangle pattern nearing its apex.

Red Alert!

3-monthly candle (Jul-Aug-Sep) update

No further comments.https://t.co/tTL2Rln7kL pic.twitter.com/I5pKeOjQET

— Dark Defender (@DefendDark) July 29, 2024

Dark Defender suggests that a significant price movement could occur before the end of September 2024. The analyst identifies several key resistance levels, including $0.66, $0.93, $1.88, and $5.85, before reaching the ultimate target of $18.23.

On-chain data provides further insights into the growing optimism around XRP’s future performance. According to data from Santiment, there has been a notable increase in wallets holding at least 10,000 XRP over the past five weeks. The number of these “shark and whale” wallets has grown to around 279,400 addresses, suggesting increased accumulation by larger investors.

While the technical indicators and on-chain data paint a potentially bullish picture for XRP, it’s crucial to consider the broader context. The cryptocurrency market remains highly volatile and subject to various external factors, including regulatory developments and macroeconomic trends. The ongoing legal battle between Ripple and the SEC continues to be a significant factor influencing XRP’s price movements.

As of August 2024, XRP is trading at approximately $0.57. Whether it will break out of its long-term consolidation pattern and reach the ambitious targets set by some analysts remains to be seen. Investors and traders are closely watching key resistance levels, particularly the $0.90 mark, for signs of a potential breakout.

The post Bullish XRP Price Targets: From $0.90 Breakout to $18 Ultimate Goal appeared first on Blockonomi.

• Bitcoin traders predict the next price top could be between $95,000 and $120,000
• Bitcoin’s hash rate is approaching an all-time high, indicating miner confidence
• Miner profitability is improving, potentially reducing selling pressure
• Analyst Willy Woo predicts Bitcoin could eventually reach $700,000 if it captures 3% of global wealth assets
• Bitcoin adoption is currently at 4.7% and may reach 16-50% for major price increases

As Bitcoin’s price hovers around $64,000, traders and analysts are speculating about its next potential price top. Some predict Bitcoin could reach between $95,000 and $120,000 in the near future.

Crypto trader Mikybull believes Bitcoin is “getting ready for the next wave of rally which will bring it to $120k+ level.” Meanwhile, analyst Mags expects a more conservative target of $95,700, based on technical chart patterns.

#Bitcoin

BTC is still trading within a descending broadening wedge pattern.

The price is consolidating near the upper resistance line, a breakout could lead to a massive upside rally.

The technical target for this pattern is $95,700. pic.twitter.com/q35KSaMwGl

— Mags (@thescalpingpro) July 31, 2024

For Bitcoin to confirm its next upward move, popular analyst Rekt Capital suggests it needs a weekly close above $71,500. However, he notes that Bitcoin may consolidate for several more weeks before making a significant move.

The cryptocurrency faces resistance at $67,000 and $67,500. If Bitcoin breaks above these levels, it could trigger substantial liquidations of short positions. Data from CoinGlass shows that a move above $67,000 would liquidate over $940 million worth of cumulative leveraged short positions.

On the mining front, Bitcoin’s hash rate is approaching an all-time high, signaling renewed confidence among miners. This comes after a period of difficulty for miners, when some were forced to shut down operations due to lack of profitability.

The improving hash rate is contributing to increased miner profitability. According to data from CryptoQuant, miners have transitioned from being “extremely underpaid” to “underpaid.” This shift could reduce selling pressure on Bitcoin, as miners may not need to sell as much of their mined Bitcoin to cover operational costs.

Looking further into the future, on-chain analyst Willy Woo has made a bold prediction about Bitcoin’s potential value. Woo suggests that if Bitcoin captures 3% of global wealth assets, it could reach a price of $700,000 per coin.

Woo bases this prediction on the total value of global wealth assets, estimated at $500 trillion. He argues that a 3% allocation to Bitcoin is a “sensible allocation” based on current recommendations from wealth management firms.

However, Woo notes that this price target depends on Bitcoin adoption reaching between 16% and 50% globally. Currently, Bitcoin adoption stands at 4.7%, according to Woo’s estimates.

Nobody knows what the ultimate price of #Bitcoin will be but simple maths can give us an upper bound. All wealth assets is $500T, if BTC captured all of this (never gonna happen) it's $24m per coin (today's value before future inflation adjustment).

The question is what will be…

— Willy Woo (@woonomic) August 1, 2024

The analyst uses an adoption S-curve to compare Bitcoin’s potential growth to that of the internet. This model is often used to track how quickly people adopt new technologies.

Woo also speculates that once Bitcoin’s market cap exceeds all fiat currencies, investors may shift their focus to investments that can outperform Bitcoin. He suggests that companies storing their profits in Bitcoin, like MicroStrategy, could be attractive to investors in this scenario.

In the short term, traders are watching key resistance levels and waiting to see if Bitcoin can sustain a weekly close above $71,500. Meanwhile, the improving situation for miners could potentially provide some stability to the market.

The post Bitcoin Price Predictions: Analysts Eye $95K to $700k, What’s Next for BTC? appeared first on Blockonomi.

• Analysts predict Solana (SOL) could reach price targets between $500-$1000 in the coming months.
• SOL recently rejected the $190 level and may retest support around $150 before continuing upward.
• Solana broke out of a reaccumulation structure, which some analysts see as bullish.
• The token is currently trading around $182, with mild gains in the past week.
• Open interest in cryptocurrencies has surged to $3.25 billion, potentially signaling market optimism.

Solana (SOL), the fourth-ranked cryptocurrency by market cap, is drawing interest from analysts who foresee significant price increases in the coming months. SOL has seen modest gains recently, but some experts believe much larger moves could be on the horizon.

Several cryptocurrency analysts have shared bullish predictions for Solana’s future price action. Trader Yoddha suggests SOL could potentially reach $1,000 in this market cycle, representing a 455% increase from current levels. This prediction is based on historical price patterns, including a 96% drop from the previous all-time high, followed by a 343-day accumulation period and a 600% surge earlier this year.

Another analyst, known as Crypto Jelle, sees Solana potentially reaching $600. Jelle notes that SOL has broken out of a reaccumulation structure, similar to one that preceded its previous all-time high.

He expects Solana to enter a “mania-like stage” once it gains momentum, though he disagrees with predictions above $1,000.

$SOL broke out from the re-accumulation structure — and looks ripe to push higher.

Once this gets moving, it likely soon enters a mania-like stage.

Will be scaling out aggressively once this breaks above ATHs — final target $600. pic.twitter.com/KgyZhcQ32l

— Jelle (@CryptoJelleNL) July 31, 2024

However, not all forecasts are immediately bullish. Analysts Inmortal Crypto and Poseidon suggest SOL may need to retest lower support levels before continuing upward. They point to a rejection at the $190 level and predict a potential drop to around $150 before resuming the climb.

The varied predictions highlight the uncertainty and volatility in cryptocurrency markets. While some see imminent large gains, others anticipate a period of consolidation or pullback before any major moves.

Solana’s recent performance and ecosystem developments have contributed to the positive outlook. The network recently ranked as the second-largest revenue-generating crypto project, generating $940,000 in a 24-hour period.

The U.S. Securities and Exchange Commission (SEC) amended a complaint regarding the classification of SOL, which some view as a positive development.

The broader cryptocurrency market is showing signs of optimism. Open interest in cryptocurrencies has surged to $3.25 billion, its highest point since April 1st. This increase in open interest often signals growing market participation and could potentially lead to price increases for assets like Solana and Bitcoin.

Technical indicators for Solana are mixed but lean bullish. The Relative Strength Index (RSI) sits at 56.90, suggesting neutral to slightly bullish momentum. The 50-day Exponential Moving Average (EMA) at $183.77 provides nearby support. An upward price channel has formed, with key support around $187.50.

Solana’s price movements in the near term will likely depend on broader market trends, Bitcoin’s performance, and developments within the Solana ecosystem. Traders and investors should conduct thorough research and consider their risk tolerance before making investment decisions.

The post Bullish Solana (SOL) Price Predictions: Analysts Eye $500-$1000 Target appeared first on Blockonomi.

• Ethereum’s price is currently battling resistance around $3,300-$3,400 after a recent downward correction.
• ETH is down about 6.5% since the launch of spot Ethereum ETFs on July 23, but ETF flows recently turned positive with $33.67 million in net inflows on July 30.
• The ETH/BTC pair has gained 3.5%, suggesting potential for an altcoin season.
• Analysts are watching for a potential breakout above $3,400 that could push ETH towards $4,000.
• Market uncertainty remains due to factors like US government Bitcoin transfers and the upcoming FOMC meeting.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently locked in a battle with key resistance levels as investors and analysts watch for signs of a potential breakout. As of July 31, 2024, ETH is trading around $3,312, down about 1% in the past 24 hours.

The cryptocurrency has faced downward pressure since the launch of spot Ethereum ETFs on July 23, with the price dropping approximately 6.5% since then. This decline was primarily fueled by initial capital outflows from these new investment products. However, recent data suggests a potential shift in momentum.

According to Farside Investors, the nine U.S. spot Ethereum exchange-traded funds saw net inflows of $33.67 million on July 30, ending a four-day streak of negative flows. This positive turn in ETF flows could signal renewed investor interest in Ethereum, potentially supporting its price in the near term.

From a technical analysis perspective, Ethereum is currently grappling with resistance in the $3,300-$3,400 range. This area is significant as it coincides with both the 50-day and 100-day exponential moving averages (EMAs). A daily close above $3,400 could pave the way for ETH to challenge the psychologically important $3,500 level, with some analysts eyeing a potential run towards $4,000.

However, the market remains cautious. The Relative Strength Index (RSI) on the daily chart is hovering around 49, suggesting that market conditions are currently neutral to slightly bearish. If Ethereum fails to breach the $3,330 resistance, it could face further downside pressure, with support levels identified at $3,250 and $3,230.

Adding to the market dynamics is the performance of the ETH/BTC pair, which has gained 3.5% to reach a ratio of 0.0491. This strengthening of Ethereum against Bitcoin has led some traders to speculate about a potential “altcoin season” on the horizon.

The broader cryptocurrency market has been influenced by several external factors. Bitcoin, the largest cryptocurrency, recently touched $70,000 before correcting to around $66,000. This correction coincided with news of the U.S. government transferring 29,800 Bitcoin confiscated from the Silk Road dark web marketplace, sparking concerns of a potential sell-off.

The crypto market is bracing for the upcoming Federal Open Market Committee (FOMC) meeting, which could impact investor sentiment and market direction.

For Ethereum specifically, on-chain data from Santiment indicates growing interest in ETH along with Bitcoin and Solana, compared to more speculative assets like meme coins. While this focus on top-tier cryptocurrencies often precedes price increases, some analysts caution that it could also be a sign of market caution.

Looking ahead, traders are closely watching technical indicators for signs of Ethereum’s next move. The Moving Average Convergence Divergence (MACD) indicator on the ETH/BTC chart is approaching a potential buy signal, which could drive further upside if confirmed. On the ETH/USD chart, a bullish MACD crossover in positive territory suggests the path of least resistance may be upward.

Ethereum bulls will need to overcome significant resistance levels to confirm a broader uptrend. A breakout above the inverse head-and-shoulders pattern on the ETH/BTC chart and a breach of the 50-day and 200-day EMAs on the ETH/USD chart would be seen as strongly bullish signals.

The post Ethereum (ETH) Price Battles Resistance: Is a Breakout Coming Soon? appeared first on Blockonomi.

• A U.S. government-associated crypto wallet transferred $2 billion worth of bitcoin to an unidentified wallet on July 29, 2024.
• The transferred bitcoin is believed to be part of funds previously seized from the dark web market Silk Road.
• The transfer was followed by a drop in Bitcoin’s price, falling below $67,000.
• The U.S. government still holds over $12 billion in seized bitcoin, according to Arkham Intelligence.
• The transfer comes shortly after Donald Trump’s promise to create a “strategic national bitcoin stockpile” if re-elected.

A wallet associated with the U.S. government transferred approximately $2 billion worth of bitcoin on July 29, 2024. The transfer, involving nearly 28,000 bitcoins, was tracked by blockchain analytics firm Arkham Intelligence and is believed to be connected to funds previously seized from the now-defunct dark web marketplace, Silk Road.

UPDATE: The U.S. Government has split the $2B Bitcoin into two addresses:

10,000 BTC ($669.35M): bc1qlap8hkt9genaljz5nt2zlehhudx63zlahr2zek
19,800 BTC ($1.33B): bc1qngydl7hmgdtmuqjmtsyj3pcwszv0yn5mj6kz4c

We believe this represents a 10,000 BTC deposit to an institutional… https://t.co/0aULBXGd8P pic.twitter.com/RTwtaqvMmM

— Arkham (@ArkhamIntel) July 29, 2024

The massive transfer occurred in two stages. Initially, the bitcoin was moved to an unidentified wallet. Shortly after, it was split into two separate addresses: one containing 19,800 bitcoin (valued at about $1.3 billion) and another holding 10,000 bitcoin (worth approximately $670 million). Arkham Intelligence suggested that the latter transfer might represent “a deposit to an institutional custody/service.”

This significant movement of funds had an immediate impact on the cryptocurrency market. Bitcoin’s price, which had been hovering near $70,000 earlier in the day, tumbled below $67,000 following the transfer. This 5% drop from the day’s high sparked concerns among investors about potential selling pressure from government-held bitcoin.

The timing of this transfer is particularly noteworthy, coming just two days after former U.S. President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville.

During his speech, Trump promised to create a “strategic national bitcoin stockpile” if re-elected, a statement that had initially buoyed market sentiment.

The U.S. government’s bitcoin holdings stem from various seizures, with the Silk Road case being one of the most significant. In late 2023, a U.S. appeals court finalized a mandate formalizing the forfeiture of 69,370 bitcoin and other cryptocurrencies connected to Silk Road. The government’s crypto portfolio, even after this transfer, still holds more than $12 billion in bitcoin, according to Arkham Intelligence.

This is not the first time the U.S. government has moved large amounts of seized cryptocurrency. In April, a government crypto wallet sent nearly 2,000 BTC to a Coinbase Prime hot wallet. This transfer was linked to the U.S. Marshals Service’s $32.5 million contract with Coinbase for custodial services.

The government’s handling of seized cryptocurrencies has been a topic of interest and debate. While some view these holdings as a potential windfall for the U.S. Treasury, others express concerns about the market impact of large-scale selling. The government’s approach to managing and potentially liquidating these assets could have significant implications for the broader cryptocurrency market.

Adding another layer of complexity to the situation, Trump reiterated over the weekend his willingness to commute the sentence of Silk Road founder Ross Ulbricht if re-elected president. This statement, coupled with his promise of a national bitcoin stockpile, highlights the increasing prominence of cryptocurrency issues in U.S. political discourse.

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