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Crypto Market Watch: BCH and XRP retains a relatively stagnant position as LINK tests $14

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Cryptocurrency Market Watch

In Brief:

  • BCH found support around $309 after crossing the $305 level, and may look to break the $310 level soon.
  • XRP struggles to keep its head above the water, after failing the price test at the $0.3 level.
  • ChainLink takes the lead in crypto markets with 100℅ within a week.

As oracle tokens take over crypto markets, much attention has been shifted towards the oracle tokens in terms of substantial business propositions. 

ChainLink continues to take the lead among a good number of other altcoins, as it secures the identity of the top gaining cryptocurrency of the last two months.

Contrastingly, XRP which has been gaining valiantly in the last 3 weeks, appears to fail the price test at the $0.3 level, as it retreats to $0.29. This top altcoin is noticeably struggling to keep up as an effect of this little withdrawal.

On another hand, Bitcoin Cash overcomes the $305 level without much difficulty, and finds support around $309.

However, BCH and XRP seem to be on a gaining break when compared to the gains incurred by LINK. Bitcoin Cash is a major competition for Ethereum which has already made appealing gains along with other significant altcoins.

1. ChainLink (LINK 7.2%Gain)

On the list of today’s record of gainers is ChainLink. The top coin is still reporting more gains, even after having accomplished more than a 50% gain within the last week.

Chainlink

ChainLink is up by around 120% within the last month and over 500% in the last year. The controversial coin looks positive in the daily timeframe.

Price may act exceptionally bullish in the short term, as a considerable multitude of traders are bullish on LINK.

Technical Indicators

Next key resistance level is at $15

Next key support level is at $13.5

Prices may drive down in a likely correction, as RSI reached the 70.0 overbought conditions.

LINK is presently trading at $13.96 and its market cap is varying around $4.0 billion

2. Bitcoin Cash (BCH less than 1% Gain)

Bitcoin Cash maintains the second position on the list with a gaining record of less than 1%. 

Bitcoin Cash

In the last year, BCH has been down 2.7%, whilst the one month timeframe looks bullish at 28.4%. The coin gained around 23.6% within the last 2 weeks.

Presently, BCH is trading at $269.02 with additional upside evident in the short term.

Technical Indicators

Prices are almost above the top of the Bollinger Band Indicators. This demonstrates a bullish ride further, which may support price at the $310 level.

The Resistance Strength Index (RSI) is steady at the 60.0 level. RSI may speed further up in the short term as it approaches the overbought condition.

  • RSI is approaching 70.0
  • BCH/USD now trades above the Bollinger Band top which implies a bullish move.
  • Next major resistance level is at $310.
  • Next major support level is at $305.

3. Ripple’s XRP (XRP 1.43% Gain)

Ripple’s XRP seems to have taken a slight leap on the list of top gainers with an upward trend of 1.43%

Ripple XRP

With around 0.1% gain, XRP’s chart peaks in the one-year timeframe. Although the coin is up through 50% in the one-month timeframe, it incurred more gains within the last two weeks, at around 40%.

XRP has gained an enormous community that has consistently stayed positive about the coin, with about 62% bullish votes for the continuous trading day.

XRP is currently trading at $0.296 and its market cap continues to grow towards $10 billion.

Technical Indicators 

  • Prices failed resistance at $0.3, and will look to retest the area shortly. 
  • RSI fell below the oversold condition at 30.0
  • XRP trends above the midline of the Bollinger indicator. 

Disclaimer: The views and opinion provided in this article is for educational purposes. It’s neither financial advice nor a recommendation from Decentralize Africa. References made to any cryptocurrency or upcoming events does not constitute an endorsement or recommendation.

The cryptocurrency market is suspectible to high volatility, ensure you do your own research or consult a financial advisor before you invest your money.

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Market Watch

Jack Dorsey‘s Square to develop open source Bitcoin mining

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Jack Dorsey Bitcoin

On Friday, October 15, Twitter CEO Jack Dorsey announced that American fintech company, Square, would be looking to get into Bitcoin mining. Jack Dorsey who is also Square’s CEO announced this on Twitter which subsequently sent waves through the bitcoin market, surging its price to almost a record high, rising over $62,000 over the weekend. According to the Twitter boss, Square is looking to building an open source Bitcoin mining system that would be available to individuals and businesses.

Sharing his thoughts further on the initiative, he stated that “Mining needs to be more distributed” and that “the more decentralized [mining] is, the more resilient the Bitcoin network becomes. He also mentioned the apparent inaccessibility of mining stating that “Bitcoin mining should be as easy as plugging a rig into a power source.

Dorsey also believes that bitcoin mining “needs to be more efficient and that “clean and efficient energy use” would be undoubtedly beneficial to the digital currency in the long run.

Dorsey ended the thread by saying that a “technical investigation would be undertaken by a Square team led by Jesse Dorogusker, Square’s hardware lead. If successful, this initiative would be another of Square’s bitcoin focused projects which includes a Bitcoin hardware wallet.

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Learning Guides

Understanding Speculation and Crypto Volatility

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Everyone who dabbles in the crypto industry learns almost immediately that the market is very volatile and oftentimes things can change very quickly. That volatility is the fundamental reason why some investors make absolutely stunning gains in so short a time and others lose a lot of money as well. Trading in crypto is one of the riskiest ventures any person can undertake and as they say, it’s not for the faint of heart. The risks can be mitigated of course and sometimes depends specifically on the coin or crypto asset being traded on, barring general market trends.

Nevertheless, to get to the bottom of the volatility concept, one must understand speculation in the market. To start off, the concept of speculation isn’t limited to cryptocurrencies, on the contrary, speculation has existed for as long as economics and trading has. But it is worth saying that speculation is often a feature of novel sectors, assets, commodities and the like. So, even though cryptocurrencies have been around for more than a decade, they’re still in their infancy as far as markets go. One could say that the market is still trying to find its feet.

One of the fundamental reasons why cryptocurrencies are so volatile is that they are fundamentally backed by nothing of value outside the attention that they get. Unlike many fiat currencies which are either pegged to another currency’s value or whose value is unilaterally determined by a central authority, cryptocurrencies only derive value as a function of how many people are willing to use is to transact, i.e. trust in the asset because other people trust it. As a rule of thumb, the larger the number of people who accept the asset, the more valuable it becomes.

This is one of the hallmarks of speculative trading. In the crypto world or in any market that’s novel and untested, many people are in it to win it which means their strategies in trade has the objective of making as much profits as possible in the short term. Therefore, the market enters a subtly dangerous cycle of rapidly changing prices of assets. Basically, investors typically buy assets when prices are low and wait. As more investors are attracted to the commodity for its low prices, it sets off a cascade where more people buy in, causing the price to steadily rise. 

However, all good things must come to an end and it almost always gets to a breaking point whereupon the price gets high enough for investors to begin to sell. This reverses the earlier cascade and as more and more investors pull out, the prices can fall dramatically causing even more to sell off in fear of losing whatever investments they have left. The prices having fallen resets the game and primes investors to begin buying again.

Volatility has been one of the talking points of many critics of cryptocurrencies often comparing it to a Ponzi scheme. And in certain cases, persons of interest with large pulls and audiences can substantially affect the rate at which prices rise and fall. Other factors include government regulations. Volatility at its core reflects the often chaotic nature of trade and market interactions and human hopes and fears.

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Market Watch

What China’s crypto clampdown means for investors

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Over the weekend, China, the biggest crypto mining country once again, began to clamp down on cryptocurrency. Ten Chinese agencies including the central bank and banking, securities and foreign exchange regulators have vowed to work hand in hand to expose illegal cryptocurrency activity.

China has always placed stricter rules on cryptocurrencies but the new rule has made all crypto-related activities illegal. According to the People’s Bank of China (PBOC), it is illegal to cryptocurrency trading and anyone that does so will be severely punished; this includes those within China that are working for overseas platforms. To fully phase out the cryptocurrency mining sector, the National Development and Reform Council (NDRC) said that it would launch a nationwide crackdown on cryptocurrency.

Over the years, China does not recognize cryptocurrency as a legal tender. In 2013, the Chinese government referred to Bitcoin as a virtual commodity that individuals are allowed to freely participate in. This freedom, however, precludes banks and payment companies from providing services that are Bitcoin related.

In 2017, Initial Coin Offering (ICO) was banned. The ban was also extended to the conversion of legal tenders to cryptocurrencies by trading platforms which led most of the platforms to shut down operations in China. The crackdown led 88 trading platforms and 85 ICO platforms to withdraw from the market as of July 2018.

To China, the crackdown on cryptocurrency is necessary as the country is trying to launch its official digital currency and the need to fulfil its 2060 climate targets. The crackdown was necessary as cryptocurrency was seen as infringing on people’s properties and ‘disrupting the normal economic order.’

The statement by PBOC on Friday was unequivocal as the current crackdown is distinct from the previous ones. In his statement on Friday, PBOC called Bitcoin, Ether and Tether ‘legally irreparable’ and should not be used. The new regulations forbid financial institutions, marketing and IT providers from supporting crypto-related activities. The activities of both crypto holders and miners are now considered illegal. This is what Henri Arslanian, a PwC crypto leader termed as “No ambiguity. No room for discussion. No grey areas” in his tweet.  

What does this mean for crypto holders worldwide?

The major effect of China’s crackdown on cryptocurrency is the increase in price volatility. While volatility is a common phenomenon in the crypto world, a crackdown initiated by the world biggest cryptocurrency mining country will have a huge effect on market price.    

After the PBOC interview, Bitcoin fell by 4% within 24 hours and is currently trading at $43,320. Ethereum fell by 6% and it is currently trading at $3,036. With the Evergrande debt crisis and the huge blow bedevilling the crypto market, a clampdown by China would most likely keep the market price on the red until another good news crops up.

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