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Prospects for Ethereum Classic. Why the cryptocurrency rose in price

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ethereum classic a good investment

Experts talked about investing in ETC and assessed the likelihood of miners switching to mining “classic” Ethereum. Based on the information below, you will be able to understand whether ethereum classic is a good investment or not. 

Is ethereum classic a good buy?

Is ethereum classic a good buy? The cryptocurrency Ethereum Classic (ETH) is showing significant growth, having risen by 45% in the last month alone. On July 28, the rate of ETH reached $34, gaining more than 23% in one day. Ethereum Classic is currently ranked 20th in cryptocurrency capitalization at $4.61 billion with a daily trading volume of $5.26 billion.

The ethereum classic chart’s rise began after the announcement that the network would switch to a new operating protocol (Proof-of-Stakes) at the end of September. This transition will mean the end of ETH mining. Due to this event, and because the blockchain uses the same mining algorithm, ETH miners may start switching to ETC.

ETC appeared in 2016 because of the hard fork of the main Ethereum network. The reason for the blockchain branching was the hacking of The DAO investment project and the theft of about 3.6 million Ethereums from it, which amounted to about $60 million at the time (at the rate of July 28, 2022 – $5.76 billion). The developers of the Ethereum Foundation project have done a blockchain split to make up for the losses.

After the hardfork, the old network and cryptocurrency were renamed. The classic cryptocurrency community approved the basic principles of the altcoin, such as keeping the blockchain in its original form and decentralized. The project was first supported by major mining pool MinerGate; then cryptocurrency exchanges began to add the ETC altcoin gradually: Poloniex, Bitfinex, Kraken and others.

The interest of major players

ETC began to appreciate after the announcement that ETH would switch to the Proof-of-Stake (PoS) protocol in the fall. Token will remain the only major blockchain with smart contracts running on classic PoWand the Ethash mining algorithm after the core network moves to a different algorithm. 

Miners will migrate to the ETC network because of the characteristics of the ASIC chips. The migration will theoretically strengthen the security of the network, which has been attacked several times. The developers of the fork are counting on the growing interest of smart contract holders, who will not want to migrate to PoS.

The Ant pool mining pool, affiliated with mining equipment maker Bit main, has invested $10 million in the ecosystem. It also intends to accept ETCs for payment for its products.

Thus, the industry partially moves its capacities to the assets, which will be “pumped”. It won’t be a surprise if in a bull market the price of ETC, supported by corporations, reaches $100+ and goes to historic highs.

For the near term

For holders of large-scale crypto farms, the “classic” PoW algorithm is more profitable than the new PoS to which the mainstream network is migrating. Traders consider in their assessments of the cryptocurrency that there are no plans to migrate to PoS in ETC and that mining in this system will be beneficial for the older people of the market.

There is a chance that investing in Ethereum Classic in the next 4-6 months will be profitable. However, according to Deyev, there is not enough data to analyze a longer period, despite the efforts of the creators of the crypto-monet to maintain it and attract computing power from other projects. 

Ethereum Classic crypto price prediction: Waiting for the transition to PoS

It’s too early to talk about the mass transition of miners, but interest in ETC has clearly appeared. This is shown by the local maximum hash rate of the network.

Ethereum Classic crypto price prediction: now is a “great time” to enter mining profitably, but the demand for equipment at the moment is low, says the expert. According to him, only professional large miners are increasing their capacity, while the prices of video cards and ASIC miners are low.

Such mining has clear advantages over bitcoin mining: the net profit is higher due to lower power costs compared to ASIC equipment, especially during a bear market.



Cryptocurrency

Dogecoin (DOGE) Rally or More Pain for the Bulls: What’s Next for the Meme Coin

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TL;DR

  • Dogecoin (DOGE) has dropped to around $0.14, a 12% decline in a week, but some analysts expect a potential price surge based on technical patterns.
  • Market analysis shows DOGE has strong support at $0.115 and resistance at $0.16, with an RSI of 48 indicating it is neither overbought nor oversold.

Where’s DOGE Headed?

The largest meme coin in terms of market capitalization – Dogecoin (DOGE) – has been heavily affected by the recent market decline. Its price tumbled to approximately $0.14, representing a 12% plunge on a seven-day scale. 

DOGE Price
DOGE Price, Source: CoinGecko

Despite the downtrend, many X users expect new explosive moves from DOGE. An example is CryptoJack, who anticipates a substantial uptick once the asset’s price breaks out from a certain descending pattern. He envisioned a 55% increase to as high as $0.22, promising to enter a long position.

Trader Tardigrade speculated, too, claiming that DOGE has been following a specific bullish parallel channel that could eventually lead to a price surge of over $12. The trader paid particular attention to the $1.40 resistance level, which might be reached sometime next year. 

The market intelligence platform IntoTheBlock recently suggested that the meme coin is positioned “above a significant on-chain support level.” The entity estimated that 45 million assets were accumulated at an average price of $0.115, “indicating a strong demand zone that could prove important if the market shows weakness.” 

“On the upside, DOGE may face resistance around the $0.16 level, where 20 billion DOGE is presently held at a loss,” IntoTheBlock added.

Previous Predictions and On-Chain Metrics

Altcoin Sherpa and KALEO are also among those who recently forecasted a bright future for DOGE. The former expects the meme coin “to do something stupid later this year, and there’s nothing you can do about it.” The analyst claimed that dealing with it is one of “the safest trades” during the next bull cycle.

KALEO went even further, assuming that DOGE may outperform Bitcoin (BTC) due to the assumption that the industry is in a “meme super cycle.” 

One essential on-chain indicator that signals a resurgence for the asset is the Relative Strength Index (RSI). This technical analysis tool determines whether the cryptocurrency is overbought or oversold. It ranges from 0 to 100, and a ratio above 70 suggests a selling opportunity. The RSI currently stands at 48 and has not crossed the aforementioned level since May 21.

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Bitcoin Struggles at $67K as Polkadot (DOT) Tests $6.5 Resistance (Market Watch)

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The cryptocurrency market has been trending sideways for the past few days, following the considerable declines from earlier in the week. It appears that traders are now looking for a direction, and major cryptocurrencies trade around important levels.

Let’s start with Bitcoin.

Bitcoin Struggles at $67K

Bitcoin’s price seems incapable of moving past the $67K definitively, having dropped toward it earlier in the week. At the time of this writing, BTC is right around that level, trading at a 1% loss for the past 24 hours.

btc_price_chart_1406241
Source: CoinGecko

As seen in the chart, the price did attempt to move above $68K yesterday, but the sellers intercepted the move and prevented any further increase.

The predominant action remains rather choppy, catching many over-exposed leveraged positions and liquidating them. In fact, around $110 million worth of leveraged positions were wiped out throughout the past 24 hours alone, with BTC accounting for almost $30 million of that. This is what the liquidation heatmap looks at the time of this writing:

liquidation_heatmap
Source: CoinGlass

Altcoins Also Unable to Progress

The altcoin market is also failing to progress, with most of the cryptocurrencies from the top 100 by means of total capitalization unable to chart any gains.

heatmap_1406241
Source: Quantify Crypto

Solana is down 2.6% and currently trading below $15, while XRP fell below the critical level of $0.5 and is now down 1.5%. Polkadot, albeit down 1.4% on the day, is now testing the important $6.5 level, and if it breaks to the upside, the bulls may attempt to spark an uptrend.

Binance Coin is trading mostly flat on the day, which is more or less true for Ethereum (ETH) as well.

Meme Coin Outlook

It’s safe to say that meme coins have become an important part of the broader market in 2024. However, this week’s downturn didn’t exactly spare them either.

Here’s what their performance looks like over the past 24 hours:

  • DOGE lost 0.4%
  • SHIB is trading flat
  • PEPE is down 4,8%
  • WIF is down 3.9%
  • FLOKI lost 3.1%
  • Book of Meme (BOME) exploded by 10%

The reason behind BOME’s impressive performance is that Coinbase – the leading US-based cryptocurrency exchange – announced support for it.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Ripple (XRP) v. SEC Lawsuit Update June 14th: Company Lawyer Says $10 Million Fine is Appropriate

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TL;DR

  • Ripple contends that the SEC’s proposed $2 billion penalty is excessive, suggesting a fine of no more than $10 million.
  • The company’s CEO anticipates a resolution by summer 2024, though the complex legal process could cause delays.

Ripple’s Arguments

The legal spat between Ripple and the US Securities and Exchange Commission (SEC) has been ongoing for more than three years, recently entering its trial phase. The lawsuit resolves around the regulator’s accusations that the company and some of its executives conducted an unregistered securities offering by selling its XRP token. 

Earlier this year, the SEC sought a $2 billion penalty on the firm alleging the aforementioned violations. Ripple did not welcome the idea, with chief legal officer Stuart Alderoty arguing the fine should not exceed $10 million. 

Most recently, the company’s lawyers doubled down on the request, comparing the case with the one between the Commission and Terraform Labs. Recall that the defunct crypto firm agreed to pay a $4.47 billion fine for its fraudulent activity. The amount includes $3.6 billion in disgorgement, $466 million in prejudgment interest, and a $420 million civil penalty.

The defense said the SEC has previously agreed that civil penalties should range from 0.6% to 1.8% of the defendant’s gross revenue, claiming that Terraform Labs “fits that pattern.” As such, the attorneys concluded that an “appropriate” fine for Ripple would be no more than $10 million.

In addition, the lawyers noted that a jury in Manhattan found Terraform Labs and its co-founder Do Kwon liable on civil charges and “recklessly orchestrating one of the largest securities frauds” in US history. In contrast, they added, there are no direct allegations of fraud in the case between Ripple and the SEC.

Is the Lawsuit Nearing a Resolution?

Despite being in its trial stage, the legal battle may drag on for years due to the complexity of the process and possible delays and appeals from both parties. According to Ripple’s CEO Brad Garlinghouse, though, the resolution may occur as soon as this summer. 

“My estimation is sometime before the end of the summer. Somebody asked me about the end of August, but I pointed out that September 21 is the end of the summer,” he recently said.

Another person who believes the case may officially end in the next few months is the American lawyer Jeremy Hogan. He envisioned a $100 million settlement:

“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.”

Some might view the SEC as the underdog in the lawsuit, considering the company’s three partial court wins secured throughout 2023. XRP’s price reacted positively after each triumph, meaning a decisive victory may once again cause a substantial rally. Those willing to learn more about the legal battle and its impact on Ripple’s native token, feel free to take a look at our dedicated video below:

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