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THETA Price Jumps 29%, Rally To Continue?
Theta Network (THETA) price soared to a 12-month high of $3.08 in the last 24 hours after establishing support at an intraday low of $2.28. This rally drove THETA’s market capitalization up by 25% to $3.10 billion, while its 24-hour trading volume spiked by 351% to $548.37 million.
The strong upward momentum has sparked interest among traders and analysts, with many speculating on whether the rally will continue.
THETA Price Jumps Over $29
The THETA price has demonstrated a remarkable upward trend throughout the day, surging nearly 29% within 24 hours. The rally began after the price broke above its consolidation zone near $2.40 during the early afternoon, signalling increased buying interest.
By the end of the day, THETA had reached a daily high of $3.08, reflecting heightened bullish sentiment in the market. On the weekly basis, THETA price has exhibited steady growth, climbing from $2.10 to over $3.00, representing a 59% rise in seven days. The consistent upward movement was accompanied by a series of higher highs and higher lows, which analysts interpret as a strong indicator of continued bullish momentum.
The price has now broken past multiple resistance levels, indicating that traders are optimistic about the asset’s short-term prospects. According to on-chain data, the breakout occurred as derivatives trading volume surged by over 420% to $983.06M, reflecting renewed interest from market participants.
Additionally, open interest in THETA derivatives rose by 75.35% to $108.91 million, indicating that more traders are taking positions in the asset. This spike in activity coincided with THETA’s price moving past critical resistance levels at $2.40 and $2.50, confirming the start of a strong uptrend.
Analysts Predict Further 348% Upside
Concurrently, technical analysts are optimistic about the potential for further gains in THETA’s price. The chart provided by “World of Charts” indicates that the breakout from the descending triangle could lead to a rally targeting $9.00, a projected 348% surge from current levels. The measured move from the triangle’s base supports this bullish outlook.
Javon Marks, a market analyst, pointed out that THETA’s ability to break its long-term trendline suggests a reversal of bearish momentum. Marks noted, “The steep upward trajectory and higher highs confirm that the bulls are in control, and the rally could extend to $8.00 in the near term.”
He also highlighted that the price has yet to encounter significant resistance, which could enable continued growth in the short term.
THETA Price Technical Analysis
THETA’s technical indicators further support the bullish outlook. The MACD (Moving Average Convergence Divergence) is significantly above its signal line, confirming strong upward momentum. The widening gap between the MACD and the signal line suggests that the uptrend remains intact.
Additionally, the Money Flow Index (MFI) is at 93.69, which places THETA in the overbought zone. While this indicates strong buying pressure, analysts caution that a minor pullback or consolidation could occur before the next leg up.
Concurrently, the 50-day moving average is also approaching a bullish crossover with the 200-day moving average, signalling the potential for a “golden cross.” This technical pattern is often a precursor to sustained price increases hence backing the potential THETA price breakout.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
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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The XRP price has hit a $100 billion market cap again, further providing a bullish outlook for the crypto, which has been one of the best-performing crypto assets in recent times. Crypto analysts like Dark Defender have provided insights into what could come next for XRP.
XRP Price Could Rally To $5 Next
In an X post, crypto analyst Dark Defender suggested that the XRP price could rally as high as $5 on its next leg to the upside. This came as he noted that the first target of $1.8 for XRP in this bull run has happened, which led to the crypto hitting the $100 billion market cap mark.
With the first target out of the way, XRP could reach $5.8, which Dark Defender’s accompanying chart highlights as one of the median targets. Interestingly, the chart also highlights $18 as a median target, indicating that the crypto could reach this level at some point.
Dark Defender also recently used his Elliot Wave theory analysis to show how XRP could hit $18 in this market cycle. The chart showed this parabolic rally would occur on the Wave 5 impulsive move to the upside.
Meanwhile, in another X post, the crypto analyst warned about how critical the Fibonacci level at $1.8815 is in the short term. He noted that the XRP price touched $1.9508 and then bounced back to this Fib level. In line with this, he stated that the crypto must stay above $1.8815 for at least three candles.
According to Dark Defender, the first step is to stay 12 hours above this level, followed by a 3-day close above this level. A sustained close above this Fib level could confirm that as a significant support level and propel XRP to new highs.
Amid the recent XRP rally, it is worth mentioning that the crypto has flipped BNB to become the fifth-largest crypto by market cap. Dark Defender believes XRP could flip Solana next to become the fourth-largest crypto by market cap. The analyst had before now also boldly predicted that the crypto would flip Ethereum at some point.
Double Digits Price Target On The Horizon
Crypto analysts like Egrag Crypto and Mikybull Crypto have also suggested that a double-digit price target for the XRP price is on the horizon. In his analysis, Egrag Crypto stated that FOMO will ignite if XRP closes above the $2 level.
He added that if history repeats itself, XRP will likely trade in double digits between $20 and $27. From the accompanying chart, the analyst looks to be referring to the 2017 bull run, in which XRP recorded massive gains on its way to its current all-time high (ATH) of $3.8.
Crypto analyst Mikybull Crypto also stated in an X post that the XRP price is giving off 2017 rally vibes. Based on this, the analyst predicts that XRP will hit $2 and then experience a pullback before it continues its “vertical hated rallies” to a new cycle top of probably $10.
In another X post, he told market participants to watch what will follow after XRP breaks a new ATH. The crypto analyst added that the 2017 kind of massive rallies are about to be unveiled before everyone’s eyes. With XRP flying high at the moment, a recent CoinGape market analysis also raised the possibility of the crypto’s ATH being imminent.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
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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Despite the recent Bitcoin crash, Ethereum (ETH) price trades today at $3,675.2 as of 3 PM. Surprisingly, ETH performance during the recent crash is much better than most altcoins. Regardless, Ethereum prices today hit a daily high of $3,719.0 after 1.58% move on November 30.
Why is Ethereum Price Rising Today?
Ethereum price performance relative to its peers shows strength. While altcoins gave gains back to the market due to Bitcoin’s sudden downtrend, Ethereum price climbs higher. This strength shows a paradigm shift that hints at an end of Ether’s lackluster performance. If BTC consolidates or climbs higher, the ETH price could extend its gains. But a drop in BTC toward $90k could delay this uptrend. could drop lower or climb higher.
Ethereum Price Chart Today
*Ethereum price updated as of 3 PM.
Ethereum’s innovative smart contract technology has made it a standout altcoin since its inception in 2015. Continuous major network upgrades ensure Ethereum stays ahead in smart contract innovation. The latest upgrade, Cancun, launched on March 13, 2024.
Ethereum Price Outlook
ETH’s year-to-date (YTD) performance continues to increase and currently sits at 33%. This recent slump in Bitcoin price has affected the YTD gains, which have dropped from 50% since November 11. As of November 30, 2024, if you invested $10,000 in ETH on January 1, 2024, your portfolio, after 317 days, would be up roughly $3,317. Ethereum’s market capitalization stands at $442.7 billion.
Ethereum: The Second-Largest Crypto By Market Cap
Ethereum ranks second in market capitalization, valued at $442.7 billion, after Bitcoin’s $1.73 trillion. Together, BTC & ETH’s market capitalization constitutes 83% of the total crypto market cap.
Since its all-time high of $571 billion in November 2021, Ethereum’s value decreased by half in October, but has spiked recently due to Bitcoin’s new ATH. Still, Ethereum maintains a strong lead over other popular cryptocurrencies:
- Solana (SOL): $98.8 billion
- Ripple (XRP): $89.8 billion
- BNB (BNB): $91.0 billion
Despite this recent downtick and recovery, the 24-hour trading volume of Ethereum is $32.8 billion.
Ethereum’s Crypto Trading Volume Soars
The 24-hour trading volume of Ethereum is $32.8 billion. Binance is the largest contributor to this trading volume – about 11% is contributed by spot trading and nearly 40% from futures trading. Exchanges like OKX, Bitget, and ByBit follow Binance.
Ethereum Upgrades to Proof-of-Stake Technology
The London hard fork is a significant Ethereum blockchain upgrade. It changed the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Ethereum co-founder Vitalik Buterin recently shared his thoughts on X (formerly Twitter). He explained how Proof-of-Stake (PoS) is more decentralized than Proof-of-Work (PoW).
Notable Ethereum Blockchain Upgrades in 5 Years
Here are some key upgrades in the past five years that shaped Ethereum as the second-largest crypto by market capitalization.
Cancun-Deneb (“Dencun”): This upgrade aimed to improve Ethereum’s scalability, security, and usability, setting the stage for further enhancements.
2023:
2022:
2021:
London: Implemented the highly anticipated EIP-1559, which reformed the transaction fee market, making it more efficient and user-friendly.
2020:
How ETH Gas Affects Ethereum Price
The blockchain upgrades Ethereum receives aim to solve the trilemma of blockchain, i.e., balancing decentralization, security, and scalability. The switch to Proof-of-Stake (PoS) enhanced these aspects. Ethereum’s transaction fees (gas fees) plummeted post-upgrade, drawing more investors. Gas fees are like taxes, measured in Gwei, required for secure transactions.
As of November 30, the gas fee for a transaction on the ETH network as of 3 PM is 14 Gwei.
When Ethereum’s on-chain value grows, presenting opportunities, investors flock, driving gas fees up. This typically occurs during market upswings, peaking at all-time highs.
Ethereum Price Forecast For Next 7 Days
| Date | Price | Change |
|---|---|---|
| November 30, 2024 | 3542.91 | -1.64% |
| December 01, 2024 | 3580.56 | -0.6% |
| December 02, 2024 | 3588.80 | -0.37% |
| December 03, 2024 | 3580.10 | -0.61% |
| December 04, 2024 | 3591.00 | -0.31% |
| December 05, 2024 | 3583.54 | -0.51% |
| December 06, 2024 | 3575.13 | -0.75% |
| December 07, 2024 | 3582.58 | -0.54% |
| December 08, 2024 | 3580.90 | -0.59% |
| December 09, 2024 | 3568.73 | -0.93% |
| December 10, 2024 | 3551.28 | -1.41% |
| December 11, 2024 | 3553.33 | -1.35% |
| December 12, 2024 | 3539.50 | -1.74% |
| December 13, 2024 | 3550.54 | -1.43% |
| December 14, 2024 | 3569.57 | -0.9% |
| December 15, 2024 | 3572.79 | -0.81% |
| December 16, 2024 | 3575.23 | -0.75% |
| December 17, 2024 | 3589.17 | -0.36% |
| December 18, 2024 | 3630.48 | 0.79% |
| December 19, 2024 | 3626.42 | 0.68% |
| December 20, 2024 | 3634.97 | 0.91% |
| December 21, 2024 | 3628.19 | 0.72% |
| December 22, 2024 | 3607.07 | 0.14% |
| December 23, 2024 | 3598.51 | -0.1% |
| December 24, 2024 | 3595.97 | -0.17% |
| December 25, 2024 | 3575.34 | -0.74% |
| December 26, 2024 | 3600.43 | -0.05% |
| December 27, 2024 | 3612.94 | 0.3% |
| December 28, 2024 | 3640.13 | 1.06% |
| December 29, 2024 | 3693.56 | 2.54% |
Based on CoinGagpe’s Ethereum price predictions, investors can expect ETH to trade at around $3,373 in the next week. This is a considerate prediction and is in line with the lackluster performance seen since the start of 2024.
How High Can Ethereum Price Go Between 2025 & 2029
| January | $3,656.03 | $3,918.45 | $3,787.25 | 57.1% |
| February | $3,573.55 | $4,143.35 | $3,858.45 | 60% |
| March | $3,491.06 | $4,368.24 | $3,929.66 | 63% |
| April | $3,408.58 | $4,593.13 | $4,000.86 | 65.9% |
| May | $3,326.10 | $4,818.03 | $4,072.07 | 68.9% |
| June | $3,243.62 | $5,042.92 | $4,143.27 | 71.8% |
| July | $3,161.13 | $5,267.81 | $4,214.48 | 74.8% |
| August | $3,078.65 | $5,492.71 | $4,285.68 | 77.8% |
| September | $2,996.17 | $5,717.60 | $4,356.89 | 80.7% |
| October | $2,913.69 | $5,942.49 | $4,428.09 | 83.7% |
| November | $2,831.20 | $6,167.39 | $4,499.30 | 86.6% |
| December | $2,748.72 | $6,392.28 | $4,570.50 | 89.6% |
| All Time | $3,202.37 | $5,155.37 | $4,178.87 | 73.3% |
| January | $2,955.16 | $6,307.51 | $4,712.54 | 95.5% |
| February | $3,161.60 | $6,222.73 | $4,854.58 | 101.4% |
| March | $3,368.04 | $6,137.96 | $4,996.63 | 107.2% |
| April | $3,574.48 | $6,053.19 | $5,138.67 | 113.1% |
| May | $3,780.92 | $5,968.41 | $5,280.71 | 119% |
| June | $3,987.36 | $5,883.64 | $5,422.75 | 124.9% |
| July | $4,193.80 | $5,798.87 | $5,564.79 | 130.8% |
| August | $4,400.24 | $5,714.09 | $5,706.83 | 136.7% |
| September | $4,606.68 | $5,629.32 | $5,848.88 | 142.6% |
| October | $4,813.12 | $5,544.55 | $5,990.92 | 148.5% |
| November | $5,019.56 | $5,459.77 | $6,132.96 | 154.4% |
| December | $5,226 | $5,375 | $6,275 | 160.3% |
| All Time | $4,090.58 | $5,841.25 | $5,493.77 | 127.9% |
| January | $5,417.25 | $5,571.75 | $6,513.75 | 170.2% |
| February | $5,608.50 | $5,768.50 | $6,752.50 | 180.1% |
| March | $5,799.75 | $5,965.25 | $6,991.25 | 190% |
| April | $5,991 | $6,162 | $7,230 | 199.9% |
| May | $6,182.25 | $6,358.75 | $7,468.75 | 209.8% |
| June | $6,373.50 | $6,555.50 | $7,707.50 | 219.7% |
| July | $6,564.75 | $6,752.25 | $7,946.25 | 229.6% |
| August | $6,756 | $6,949 | $8,185 | 239.5% |
| September | $6,947.25 | $7,145.75 | $8,423.75 | 249.4% |
| October | $7,138.50 | $7,342.50 | $8,662.50 | 259.3% |
| November | $7,329.75 | $7,539.25 | $8,901.25 | 269.2% |
| December | $7,521 | $7,736 | $9,140 | 279.1% |
| All Time | $6,469.13 | $6,653.88 | $7,826.88 | 224.6% |
| January | $7,771.92 | $8,001.25 | $9,467.83 | 292.7% |
| February | $8,022.83 | $8,266.50 | $9,795.67 | 306.3% |
| March | $8,273.75 | $8,531.75 | $10,123.50 | 319.9% |
| April | $8,524.67 | $8,797 | $10,451.33 | 333.5% |
| May | $8,775.58 | $9,062.25 | $10,779.17 | 347.1% |
| June | $9,026.50 | $9,327.50 | $11,107 | 360.7% |
| July | $9,277.42 | $9,592.75 | $11,434.83 | 374.3% |
| August | $9,528.33 | $9,858 | $11,762.67 | 387.9% |
| September | $9,779.25 | $10,123.25 | $12,090.50 | 401.5% |
| October | $10,030.17 | $10,388.50 | $12,418.33 | 415.1% |
| November | $10,281.08 | $10,653.75 | $12,746.17 | 428.7% |
| December | $10,532 | $10,919 | $13,074 | 442.3% |
| All Time | $9,151.96 | $9,460.13 | $11,270.92 | 367.5% |
| January | $10,940 | $11,331.17 | $13,534.75 | 461.4% |
| February | $11,348 | $11,743.33 | $13,995.50 | 480.5% |
| March | $11,756 | $12,155.50 | $14,456.25 | 499.6% |
| April | $12,164 | $12,567.67 | $14,917 | 518.7% |
| May | $12,572 | $12,979.83 | $15,377.75 | 537.8% |
| June | $12,980 | $13,392 | $15,838.50 | 556.9% |
| July | $13,388 | $13,804.17 | $16,299.25 | 576% |
| August | $13,796 | $14,216.33 | $16,760 | 595.1% |
| September | $14,204 | $14,628.50 | $17,220.75 | 614.3% |
| October | $14,612 | $15,040.67 | $17,681.50 | 633.4% |
| November | $15,020 | $15,452.83 | $18,142.25 | 652.5% |
| December | $15,428 | $15,865 | $18,603 | 671.6% |
| All Time | $13,184 | $13,598.08 | $16,068.88 | 566.5% |
In the next year, Ethereum price could still be hovering in the current range. Based on the prediction data, ETH’s trade range extends from $3,001.19 to $4,651.84. This outlook is based on the previous data. However, if ETH breaks the trend, it could go much higher.
The long-term outlook extending from 2025 to 2029, Ethereum price could hit a high of $18,603 with the lowest point being $3,000.
Ethereum Price Forecast Between 2030 & 2050
2030
2031
2032
2033
2040
2050
| January | $16,092.58 | $16,559.25 | $19,264.08 | 699% |
| February | $16,757.17 | $17,253.50 | $19,925.17 | 726.4% |
| March | $17,421.75 | $17,947.75 | $20,586.25 | 753.8% |
| April | $18,086.33 | $18,642 | $21,247.33 | 781.3% |
| May | $18,750.92 | $19,336.25 | $21,908.42 | 808.7% |
| June | $19,415.50 | $20,030.50 | $22,569.50 | 836.1% |
| July | $20,080.08 | $20,724.75 | $23,230.58 | 863.5% |
| August | $20,744.67 | $21,419 | $23,891.67 | 890.9% |
| September | $21,409.25 | $22,113.25 | $24,552.75 | 918.4% |
| October | $22,073.83 | $22,807.50 | $25,213.83 | 945.8% |
| November | $22,738.42 | $23,501.75 | $25,874.92 | 973.2% |
| December | $23,403 | $24,196 | $26,536 | 1000.6% |
| All Time | $19,747.79 | $20,377.63 | $22,900.04 | 849.8% |
| January | $24,169.83 | $24,997.58 | $27,711.08 | 1049.4% |
| February | $24,936.67 | $25,799.17 | $28,886.17 | 1098.1% |
| March | $25,703.50 | $26,600.75 | $30,061.25 | 1146.8% |
| April | $26,470.33 | $27,402.33 | $31,236.33 | 1195.6% |
| May | $27,237.17 | $28,203.92 | $32,411.42 | 1244.3% |
| June | $28,004 | $29,005.50 | $33,586.50 | 1293.1% |
| July | $28,770.83 | $29,807.08 | $34,761.58 | 1341.8% |
| August | $29,537.67 | $30,608.67 | $35,936.67 | 1390.5% |
| September | $30,304.50 | $31,410.25 | $37,111.75 | 1439.3% |
| October | $31,071.33 | $32,211.83 | $38,286.83 | 1488% |
| November | $31,838.17 | $33,013.42 | $39,461.92 | 1536.7% |
| December | $32,605 | $33,815 | $40,637 | 1585.5% |
| All Time | $28,387.42 | $29,406.29 | $34,174.04 | 1317.4% |
| January | $33,881.25 | $35,131.33 | $42,063 | 1644.6% |
| February | $35,157.50 | $36,447.67 | $43,489 | 1703.8% |
| March | $36,433.75 | $37,764 | $44,915 | 1762.9% |
| April | $37,710 | $39,080.33 | $46,341 | 1822.1% |
| May | $38,986.25 | $40,396.67 | $47,767 | 1881.2% |
| June | $40,262.50 | $41,713 | $49,193 | 1940.4% |
| July | $41,538.75 | $43,029.33 | $50,619 | 1999.5% |
| August | $42,815 | $44,345.67 | $52,045 | 2058.6% |
| September | $44,091.25 | $45,662 | $53,471 | 2117.8% |
| October | $45,367.50 | $46,978.33 | $54,897 | 2176.9% |
| November | $46,643.75 | $48,294.67 | $56,323 | 2236.1% |
| December | $47,920 | $49,611 | $57,749 | 2295.2% |
| All Time | $40,900.63 | $42,371.17 | $49,906 | 1969.9% |
| January | $49,768.50 | $51,484 | $59,820.33 | 2381.1% |
| February | $51,617 | $53,357 | $61,891.67 | 2467.1% |
| March | $53,465.50 | $55,230 | $63,963 | 2553% |
| April | $55,314 | $57,103 | $66,034.33 | 2638.9% |
| May | $57,162.50 | $58,976 | $68,105.67 | 2724.8% |
| June | $59,011 | $60,849 | $70,177 | 2810.7% |
| July | $60,859.50 | $62,722 | $72,248.33 | 2896.6% |
| August | $62,708 | $64,595 | $74,319.67 | 2982.5% |
| September | $64,556.50 | $66,468 | $76,391 | 3068.4% |
| October | $66,405 | $68,341 | $78,462.33 | 3154.3% |
| November | $68,253.50 | $70,214 | $80,533.67 | 3240.3% |
| December | $70,102 | $72,087 | $82,605 | 3326.2% |
| All Time | $59,935.25 | $61,785.50 | $71,212.67 | 2853.7% |
| January | $72,550.17 | $75,090.58 | $85,513 | 3446.8% |
| February | $74,998.33 | $78,094.17 | $88,421 | 3567.4% |
| March | $77,446.50 | $81,097.75 | $91,329 | 3688% |
| April | $79,894.67 | $84,101.33 | $94,237 | 3808.6% |
| May | $82,342.83 | $87,104.92 | $97,145 | 3929.2% |
| June | $84,791 | $90,108.50 | $100,053 | 4049.9% |
| July | $87,239.17 | $93,112.08 | $102,961 | 4170.5% |
| August | $89,687.33 | $96,115.67 | $105,869 | 4291.1% |
| September | $92,135.50 | $99,119.25 | $108,777 | 4411.7% |
| October | $94,583.67 | $102,122.83 | $111,685 | 4532.3% |
| November | $97,031.83 | $105,126.42 | $114,593 | 4652.9% |
| December | $99,480 | $108,130 | $117,501 | 4773.5% |
| All Time | $86,015.08 | $91,610.29 | $101,507 | 4110.2% |
| January | $102,603.75 | $110,953.42 | $120,084.17 | 4880.7% |
| February | $105,727.50 | $113,776.83 | $122,667.33 | 4987.8% |
| March | $108,851.25 | $116,600.25 | $125,250.50 | 5095% |
| April | $111,975 | $119,423.67 | $127,833.67 | 5202.1% |
| May | $115,098.75 | $122,247.08 | $130,416.83 | 5309.2% |
| June | $118,222.50 | $125,070.50 | $133,000 | 5416.4% |
| July | $121,346.25 | $127,893.92 | $135,583.17 | 5523.5% |
| August | $124,470 | $130,717.33 | $138,166.33 | 5630.7% |
| September | $127,593.75 | $133,540.75 | $140,749.50 | 5737.8% |
| October | $130,717.50 | $136,364.17 | $143,332.67 | 5844.9% |
| November | $133,841.25 | $139,187.58 | $145,915.83 | 5952.1% |
| December | $136,965 | $142,011 | $148,499 | 6059.2% |
| All Time | $119,784.38 | $126,482.21 | $134,291.58 | 5470% |
Between 2023 and 2050, Ethereum’s price will most likely follow the bullish outlook and aim for the six-digit territory. The lowest price point is $16,092.58, and the highest price of Ether is $145,915.83.
Ethereum Price Analysis: ETH Rallies As Sell Signals Emerge
Ethereum price flashes a sell signal on the daily chart due to the non-conformity between the price and the Relative Strength Index (RSI). When the price produces higher highs and RSI sets up lower highs, it denotes that momentum is lacking. Such moves are often undone as reality hits. ETH is in such a situation where the hype has not died down. Most investors assume that this is a show of strength after months of lackluster performance.
While it may be true, the on-chain metric reveals that it might not be the case.
Santiment’s 30-day Market Value to Realized Value (MVRV) indicator hints that unrealized profits are climbing and could pose a threat. This index tracks the average profit/loss of investors who purchased ETH in the past month. A high positive value shows that many investors are sitting on unrealized profits, which is a sell signal. These investors cover their gains by selling, triggering a correction.
For Ethereum price, the 30-day MVRV hitting 13% to 22% is that danger zone, where price has often reversed in the past year repeatedly. Now that this indicator is inside this zone, it likely adds to the bearish divergence sell signal and hints that it could resolve, leading to a correction.
All in all, investors can expect ETH to correct in November or early December. For the rest of the year, aka in December, ETH will most likely kickstart an uptrend to $4,000 and be a top contender to most altcoins and eye a retest of $5,000.
If it is strength that ETH is displaying, then there shouldn’t be a correction and should see Ethereum price climb higher. A retest of $4,000 psychological level should be next and would invalidate this short-term bearish thesis.
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MicroStrategy has been on a Bitcoin buying spree over the past few weeks with MSTR stock skyrocketing to an all-time high of $473 in November. However, on-chain data platform IntoTheBlockchain indicates the company poses four major risks to BTC such as valuation premium, debt exposure, market volatility, and concentration risks, that investors need to take care of before taking major bets.
Key Risks Posed By MicroStrategy to Bitcoin
Earlier this week, MicroStrategy acquired 55,000 Bitcoins for a $5.4 billion investment value taking its total holdings to 386,700 BTC. This was the third consecutive strategic BTC purchase by the company following the Donald Trump victory in early November. The firm has financed these purchases majorly through corporate bonds with low interest rates.
While MicroStrategy’s aggressive BTC accumulation has positioned it as a market leader, it comes with significant risks. Here are the four major risks that the firm poses to Bitcoin, as per IntoTheBlock report.
- MSTR Valuation Premium: At one point, the MSTR stock was trading at more than 3.2x its net asset value of Bitcoins. It led to concerns about a major valuation bubble that might deflate under adverse conditions. The MSTR stock has been extremely volatile as investors start to weigh the downside risks.
- Debt Exposure: As said, MicroStrategy has been buying most of its BTC through debt issuance and has over $7 billion in convertible notes. In the case of worsening market conditions, repayment or conversion to equity could force BTC sales.
- Market Volatility: MSTR stock price is highly sensitive to Bitcoin price swings, with current volatility at 4x that of BTC and 3x Ethereum. Past episodes, such as in 2021 and 2022, saw MSTR volatility reach 200%.
- Concentration Risks: Holding 1.9% of BTC’s supply makes the company vulnerable to market shocks. Any forced liquidation could significantly affect both Bitcoin’s price and MSTR stock value.
MicroStrategy’s high-leverage Bitcoin strategy has so far paid off in a bullish market. However, the risks of debt exposure, market volatility, and concentration remain critical factors to watch.
Where’s MSTR Stock Heading Next?
After hitting an all-tiem high of $473 last week, the MSTR stock corrected over 35% thereby easing up the massive premium it commanded over BTC. After hitting a low of $355 this week, the stock has reversed its trajectory. Also, Bernstein analysts gave a massive $600 MSTR price target.
The MicroStrategy stock is already up by 58% this month and 465% since the beginning of 2024. Some market analysts have advised caution for new investors on initiating a buy position. Experts believe there are other better opportunities like Marathon Digital (MARA) to look for instead of MSTR.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
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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