According to crypto analyst Arman Shirinyan, MATIC and SHIB show suspiciously similar patterns. Analyst Ali Martinez warns of potential downside for XRP’s price. Bloomberg Strategist Mike McGlone says Ethereum’s dismal technical ground will hinder growth. EGlassnode says more short-term holders are transferring their BTC to exchanges.
MATIC and SHIB show similar models
Polygon (MATIC) and Shiba Inu (SHIB) exhibit very similar trading patterns. Both of these coins have reached their respective key support levels of $0.76 for MATIC and $0.0000079 for SHIB, sparking curiosity among investors and analysts alike. Added to this parallel is the technical signal known as the “death cross,” a bearish indicator that occurs when a short-term moving average breaks below a long-term moving average. Both MATIC and SHIB have experienced this horrible phenomenon recently. Also, the relative strength indices (RSI) fell below 30. This indicates that assets may be oversold.
Source: TradingViewHowever, despite these common technical patterns, the two digital assets fundamentally diverge. MATIC is showing impressive growth. Polygon continues to announce new partnerships and integrations. Thus, it contributes to its usefulness and adoption. It recently launched a $100 million fund for online games in collaboration with community games. Such developments reinforce the positive long-term perspective for MATIC despite the current bearish price action.
The meme coin, Shiba Inu, on the other hand, lacks such tangible foundations. SHIB’s growth is driven more by social media buzz and the whims of individual traders than intrinsic value or utility. Therefore, the current price drop lacks the basic support cushion that MATIC has.
This sign is not good for XRP!
cryptocoin.com As you follow, it has filed a lawsuit against major crypto exchanges Binance and Coinbase by the US Securities and Exchange Commission (SEC). Following these lawsuits, the price of XRP remained above $0.50 in contrast to the drop that shook most other altcoins. However, crypto analyst Ali Martinez points to the rise in social media mentions about Ripple. The analyst states that this points to a lack of confidence in XRP’s price performance. That’s why he’s voicing his concerns about the state of XRP.
$XRP remains above $0.50 after the @SECGov sued @binance and @coinbase, while most #altcoins dipped.
Although this may seem like a sign of strength for #Ripple, the crowd is well aware of it as mentions on social media surged. This isn't good for the price of #XRP. pic.twitter.com/96n8jywOg8
— Ali (@ali_charts) June 8, 2023
The SEC’s legal actions against Binance and Coinbase have created shock waves in the crypto market. Because the regulator has added a dozen more altcoins to the list of assets it considers ‘securities’. This event turned the crypto market upside down. Most tokens were traded in red. However, XRP managed to hold its value above the $0.50 mark, which can be seen as a positive sign. It is important to note that the SEC does not mention XRP in the lawsuits.
Despite XRP’s apparent strength, the analyst highlights a potential downside for the altcoin. In this context, the analyst said, “While this seems like a sign of strength for Ripple, the crowd is aware of it as mentions are increasing on social media. This is not good for the XRP price,” he comments.
Negative Fed policies could drive ETH price down
Bloomberg Strategist Mike McGlone says negative Fed policies and Ethereum’s dismal technical ground will hinder growth. Ethereum (ETH) is not having its best week after the industry’s upset as the US SEC filed securities infringement charges against Binance and Coinbase Exchanges, respectively.
Commenting on Ethereum’s outlook, Bloomberg Intelligence’s Senior Macro Strategist Mike McGlone points to key protocol metrics that can boost cryptocurrency, and often negative sentiments that can slow growth. However, McGlone states that Ethereum currently has a dwindling supply. He says this is a good feature for the protocol.
Solid Ethereum Supply/Demand vs. Fed, Weak Technicals: BI Crypto. Demand and adoption appear to be low and rising vs. diminishing supply, which is positive for the #Ethereum (ETH) price, but an unfavorable Fed and technical backdrop at the start of June may keep a lid on prices pic.twitter.com/CFKoADdk5N
— Mike McGlone (@mikemcglone11) June 8, 2023
Short-term holders send their BTC to exchanges
Glassnode data shows that more short-term holders are transferring their Bitcoins to exchanges. In a Twitter post, he reveals that the current login metric on Glassnode has registered a value of 0.82%. This is the highest value it has reached since the beginning of April 2023.
When assessing the percentage of the Short-Term Holder #Bitcoin supply sent to Exchanges, we note that the current inflow is elevated at 0.82%.
However, this remains quiet when compared to the peak inflow volume observed across the LUNA/FTX capitulation period, as well as the… pic.twitter.com/IdXUZurSn8
— glassnode (@glassnode) June 8, 2023
The other period when the short-term holder balance sent to exchanges increased significantly was during a relief rally in March 2023. Then, Bitcoin rallied to a year high before retreating to consolidation. When short-term holders send their Bitcoins to exchanges, it signals an impending liquidation. Oftentimes, traders exchange their Bitcoins for stablecoins to escape anticipated volatility or prepare for an altcoin season.
The last Glassnode tweet was silent on why short-term holders are sending their BTC to exchanges. However, it’s possible that the FUD from the SEC’s recent moves is playing a major role. However, blocks continue to result normally on the Bitcoin network. Therefore, there is currently no significant impact from FUD.
