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CryptoQuant CEO Warns Not To Short XRP Due To Insider Whales

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XRP has experienced an extraordinary surge in recent weeks, with its price skyrocketing by 380% over the past 23 days. In just the last four days, the price jumped 75%, reaching a peak of $2.87 on December 2. This rapid ascent appears to be fueled by significant buying activity from large investors, commonly known as “whales.”

Ki Young Ju, CEO of on-chain analysis firm CryptoQuant, highlighted that these whales are primarily operating through the US based exchange Coinbase. On December 2, he pointed out that “Coinbase whales are driving this XRP rally,” noting that Coinbase’s minute-level price premium ranged from 3% to 13% during the surge.

In contrast, Upbit—a Korean exchange with more XRP investors than Binance—showed no significant premium, suggesting the buying pressure is predominantly originating from the United States.

XRP price premium on Coinbase and Upbit
XRP price premium on Coinbase and Upbit | Source: X @ki_young_ju

On his alternative X account (@kate_young_ju), Ki Young Ju hinted at possible insider activity influencing the market dynamics, stating, “Someone knew something.”

Today, he cautioned traders against shorting XRP. “Shorting XRP right now seems risky, imo. $25B XRP deposit before the pump might look like market manipulation but could simply be front-running. This insider whale might know something extremely bullish about XRP, such as spot ETF approval,” he speculated.

XRP Ledger Exchange Inflow Value Bands
XRP Ledger Exchange Inflow Value Bands Binance | Source: X @kate_young_ju

He further shared a chart “XRP: Retail Activity Through Trading Frequency Surge (Spot & Futures), which indicates that retail trading activity for XRP has surpassed the highs of 2021 and is nearing levels last seen in January 2018, when XRP reached its all-time high of $3.92.

Observing the one-year cumulative volume delta (CVD) of taker buy/sell volume, he remarked: “1-year CVD of Taker Buy/Sell Volume for XRP shows a historic rebound. Whales are aggressively using market orders, driving overwhelming demand.”

A 700% Rallye Incoming For XRP Against BTC?

From a technical analysis perspective, crypto analyst Jacob Canfield emphasizes the importance of examining the XRP/BTC pairing. He notes that XRP is currently at a critical resistance zone on the BTC pair chart (XRPBTC), having just reached the $2.75 level on the USDT pair—a resistance point since December 2019.

Canfield suggests that a breakout here could signal a potential 240% move back to key resistance zones from 2017, 2018, and 2019. “If we get real FOMO, then we could be setting up for another 700% move to all-time high against Bitcoin,” he commented, acknowledging the “two of the strongest monthly candles for XRP that we’ve seen in over 5 years.”

XRP price vs BTC
XRP/BTC, 1-month chart | Source: X @JacobCanfield

Looking at shorter time-frames of the XRP/USD pair, Canfield highlights the utility of support and resistance levels to identify new entry points in these time frames. “In bull markets, you need to use low time frame support/resistance to find new entries. 5 min/15 min are the best. XRP as an example – $2.20 was the clear S/R invalidation. Base of the biggest green candle = base of impulse. Usually the best place to re-enter a trade.”

At press time, XRP traded at $2.63.

XRP price
XRP price, 1-week chart | Source: XRPUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com



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24/7 Cryptocurrency News

Altcoin Season To Face Challenges Ahead, CryptoQuant CEO Predicts

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1 day ago

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December 3, 2024

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The altcoin market is entering an unusual phase, with independent trends emerging as Bitcoin drifts away from the broader crypto ecosystem. CryptoQuant CEO predicts a challenging altcoin season where only a few tokens will thrive.

Bitcoin’s dominance is being reshaped by its paper-based Layer 2 ecosystem, including ETFs and funds, limiting its interaction with alternative cryptocurrencies. These assets must innovate by building real Internet money ecosystems or adopting similar paper-wrapped models to attract fresh liquidity.

Altcoin Season Faces Uncertain Path as Market Dynamics Shift

The altcoin market is evolving rapidly, presenting unique challenges for investors. According to Ki Young Ju, CEO of CryptoQuant, this alt season is unlike any before. In his recent X post, he highlighted how Bitcoin’s ecosystem is increasingly detached from the alternative crypto, with paper-based Layer 2 systems like ETFs and funds dominating its growth. This separation has left alternative coins to navigate a different path, requiring either innovative use of stablecoins or similar paper-wrapped structures to secure liquidity.

The alternative cryptocurrencies, once moving in tandem with Bitcoin, are now displaying independent trends. With limited new liquidity entering the market, only a select few coins are expected to thrive. Ki Young Ju emphasized the need for investors to identify tokens capable of sustaining long-term value in this uncertain environment.

The leading alternative crypto, Ethereum, has gained traction among institutional investors during the shifting market trends. Last week, CoinShares reported $634 million in inflows into Ethereum investment products, boosting its year-to-date inflows to $2.2 billion. In contrast, Bitcoin saw $457 million in outflows, marking its first major decline since September. This trend highlights Ethereum’s rising appeal as Bitcoin faces profit-taking after surpassing the $100,000 milestone.

Binance Founder CZ’s Cryptic Tweet Fuels Cryptocurrency Speculation

Binance founder Changpeng Zhao, known as CZ, ignited the crypto community with his cryptic tweet. The riddle quickly sparked discussions on social media. Many believe it subtly hints at the ongoing altcoin season. Zhao’s enigmatic tweets often spark speculation. They align with the market’s current focus on the growing influence of alternative coins in a shifting ecosystem.

Moreover, Binance’s native cryptocurrency, BNB, has also showcased robust performance, reflecting its role as one of the top altcoins. Trading at $651, BNB price saw a 3% increase over the past 24 hours, a 4% rise over the week, and a notable 17% surge over the past month. With a market cap of $93 billion, it ranks sixth among all cryptocurrencies. Its 24-hour trading volume of $2.5 billion highlights strong demand. The coin’s steady growth emphasizes its relevance as the alternative cryptocurrencies continue to reshape investor sentiment amidst evolving market dynamics.

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CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Bitcoin

Bitcoin to Enter Final Bull Phase? Key Indicator Hints at Major Price Movement

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2 days ago

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December 3, 2024

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Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.



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Bitcoin

Bitcoin Buying Pressure Rises, But Here’s Why A Pullback Could Be Coming

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3 weeks ago

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November 12, 2024

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A recent analysis from BaroVirtual, a CryptoQuant analyst, offers a nuanced perspective on the current state of the Bitcoin market.

According to the analyst, fluctuations in the Coinbase premium—a key metric that tracks the price difference between Bitcoin on Coinbase and other exchanges—can offer significant insights.

Retail Leverage And Premiums: A Double-Edged Sword

Rising or elevated Coinbase premiums typically suggest intense buying pressure, indicating strong medium-term sentiment for Bitcoin. However, BaroVirtual warns that in the short term, these high premiums may present a double-edged sword, as they often precede a localized downward movement in Bitcoin’s price.

This phenomenon stems from market dynamics, as high premiums reflect surges in demand that can lead to overheating. When this occurs in combination with a high volume of leveraged retail positions and an excessive number of long contracts, the risk of a market pullback increases.

Bitcoin Coinbase Premium Index.

Notably, BaroVirtual pointed out that this scenario has been evident in some Asian exchanges, where traders’ aggressive positions and leveraged setups further amplified market vulnerabilities.

The analyst’s observations extend beyond the Coinbase premium to the broader market context. When premiums soar, they signal strong demand and positive sentiment among investors. This can provide a floor for Bitcoin’s price, strengthening support levels and creating a bullish sentiment over the medium term.

However, in the short run, the influx of highly leveraged retail positions can destabilize market balance, leading to sharp corrections. High leverage implies that even minor price swings can force liquidations, exacerbating downward price movements.

The CryptoQuant analyst emphasized leverage dynamics’ major role in determining bullish trends’ sustainability. Retail traders’ aggressive positioning on some Asian exchanges reflects a growing risk appetite, which may lead to sudden market shifts if sentiment turns or if premiums dip.

Bitcoin Nears $100,000

After previously trading just above $83,000 earlier today, Bitcoin’s price has now pushed further. So far, BTC has achieved a latest all-time high of (ATH) of $84,929 less than an hour ago. However, the asset has seen a slight correction with a current trading price of $84,929, at the time of writing.

Bitcoin (BTC) price chart on TradingView

Regardless of this slight pullback, with the current bullish momentum in Bitcoin, it is evident that the asset could continue this rally and rise above $85,000 soon, bringing it closer to a six digit ATH of $100,000 and beyond.

Renowned crypto analyst known as Javon Marks on X has highlighted that Bitcoin still has “more upside coming” especially since it recently broke above a descending broadening wedge pattern.

Featured image created with DALL-E, Chart from TradingView





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