Cryptocurrency
Stably releases a stablecoin on the BTC network
A few days ago, a stablecoin pegged at a 1:1 ratio to the U.S. dollar and backed by fiat was introduced on the Bitcoin network (BTC). The token, called Stably USD (USDS), was issued by a company named Stably using the Ordinals protocol.
StablyUSD is not technically a new stablecoin. It has been in existence since 2019 and was recently converted to a BRC-20 standard token on the Bitcoin blockchain. According to a recent report, Stably is issued on 11 different networks, including Ethereum, BNB Chain, and Arbitrum, with a market capitalization of $7 million.
The launch of the new stablecoin has raised several questions among community members
Firstly, according to the company’s website, USDS has a total supply of $69.420 trillion, which is more than double the U.S. national debt and is likely a reference to meme culture. Additionally, the token’s documentation includes the address of a backup wallet with a $220 balance.
Earlier, the coin’s issuer tweeted that the stablecoin is backed and redeemable 1:1 by a U.S. dollar pledge, which is managed by regulated custodian Prime Trust. Stably also claimed that the asset undergoes monthly audits to ensure the presence of reserves. However, it is more likely that Prime Trust does not hold the reserves directly, as it is not FDIC-insured and instead utilizes accounts at multiple banks.
The USDS listing on CoinGecko reveals that the token reached an all-time high price of $9.89 on November 30 and subsequently plummeted to $0.05 on December 9, 2022. The liquidity on UniSwap’s decentralized exchange (DEX) is approximately $5,000, spread across two trading pairs.
Although Stably claims that USDS is the first stablecoin on the Bitcoin network, this is not entirely accurate. USDT was originally launched on OMNI, a BTC sidechain, in 2014. There are also other USDS-backed stablecoins currently operating on the blockchain, such as DoC on Rootstock.
Whether this will be another BRC-20 trend that quickly diminishes or marks the advent of a new era of stablecoins brought about by the controversial Ordinals protocol, only time will tell.
Earlier we reported that Meta unveiled its AI processor with 128 cores.
XRP’s price action continues to show indecision.
Key Support levels: $0.48, $0.52
Key Resistance levels: $0.60, $0.68
1. Key Support Under Pressure
So far in October, XRP was unable to make new highs. This has kept the price close to the key support at 52 cents which is currently being disputed. If sellers are successful here, then the cryptocurrency could fall to 48 cents next.
2. Buyers Struggle to Maintain Control
Even if buyers show weakness, they still manage to hold XRP above 50 cents. Nevertheless, time is running against them as sellers continue to put pressure. Eventually, the key support may fall if the buy volume does not return.
3. Volume in Decline
XRP’s volume has been declining since March, with clear lower highs. Until this trend reverses, buyers are fighting an uphill battle. If nothing changes, a drop to lower support levels is likely. Watch 48 cents as the next key level.
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Cryptocurrency charts by TradingView.
Ripple’s price has been bearish over the last few weeks as it failed to continue its upward momentum. However, the momentum during the past few days has been quite tumultuous, resulting in a choppy price action that puts the trend into question.
Bitcoin Price Analysis: Technicals
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
The daily chart shows that the price has been making higher highs and lows since rebounding from the $52K support level in September. The 200-day moving average, located around the $64K level, has also been broken to the upside.
Yet, the market has not been successful in rising above the key $69K resistance level and is currently correcting lower. Therefore, a retest of the 200-day moving average would be probable in the coming days. Still, if BTC trades above $60K, the trend could be considered bullish.
The 4-Hour Chart
Looking at the 4-hour chart, the price has broken a rising wedge pattern to the downside while getting rejected from the $69K resistance zone. The RSI has also dropped below 50%, as the 4-hour momentum has shifted bearish.
Yet, even though $64K seems like a probable target, a drop toward it might not materialize, as a recovery and continuation could begin much sooner. If true, this behavior would confirm that a strong rally is starting for Bitcoin, and it would only be a matter of time before a new record high.
On-Chain Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Exchange Reserve
As BTC approaches a new all-time high, market participants are wondering whether the large investors are taking profits or still accumulating. Based on this data, the latter seems true.
This chart demonstrates the exchange reserve metric, which measures the amount of BTC held in exchange wallets. It is widely regarded as a proxy for supply because the coins kept in exchanges can be quickly sold, pushing the price lower.
As the chart suggests, the BTC exchange reserve has taken a nosedive recently, continuing its long-term decline. This clearly indicates an accumulation period, which could soon lead to supply shock and price surge, especially if the demand increases.
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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.
Ripple’s price has been bearish over the last few weeks as it failed to continue its upward momentum. Looking at the technical charts, more downsides are probable in the short term.
Ripple Price Analysis: Technicals
The USDT Paired Chart
By Edris Derakhshi (TradingRage)
Against USDT, the XRP price has recently crashed below the $0.6 level and the 200-day moving average, which is located around the $0.55 mark.
With the RSI also showing values below 50%, the momentum is clearly bearish. The market is likely to drop toward the $0.5 support level in the upcoming days and even lower toward the $0.43 support zone if the $0.5 level is broken.
The BTC Paired Chart
The XRP/BTC chart shows a similar behavior, as the price has dropped below the 850 SAT support level and the 200-day moving average, located around the same price mark.
Therefore, a further decline toward the 600 SAT area could be expected if the market does not climb above the 200-day moving average soon.
Meanwhile, the RSI is reaching the oversold regions, which could point to a potential bullish reversal or consolidation in the short term.
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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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