Daily Crypto Signals: Bitcoin Faces $110K Resistance, XRP Surges on Ripple Banking License News
The crypto market experienced mixed signals this week as Bitcoin encountered bearish divergences near all-time highs while XRP rallied on
Quick overview
- Bitcoin faced bearish divergences near all-time highs, indicating potential market pullback despite reaching $110,500.
- XRP surged following Ripple Labs' application for a US banking license, with technical patterns suggesting further price increases.
- Senator Cynthia Lummis introduced a crypto tax bill that proposes significant changes to tax regulations for digital assets.
- A phishing campaign targeting Firefox users has been identified, involving over 40 fake extensions aimed at stealing crypto wallet credentials.
The cryptocurrency market experienced mixed signals this week as Bitcoin BTC/USD encountered bearish divergences near all-time highs while XRP XRP/USD rallied following Ripple Labs’ application for a US banking license. Key developments include Senator Cynthia Lummis introducing a standalone crypto tax bill and over 40 fake Firefox extensions targeting crypto wallet users in an ongoing theft campaign.
Crypto Market Developments
This week, there were big changes in the rules and safety of digital assets. Senator Cynthia Lummis of the United States published a draft bill that would make big changes to the way crypto taxes are collected. It would include a de minimis exemption for digital asset transactions and capital gains of $300 or less, with a $5,000 annual exemption ceiling. The Wyoming Senator’s bill would make it such that crypto lending arrangements and donations to charity don’t have to pay taxes. It would also put off taxes on mining and staking profits until the assets are sold.
At the same time, Koi Security, a cybersecurity company, said that there was a large-scale phishing campaign going on that was targeting Firefox users with more than 40 bogus extensions that looked like prominent wallet programs like Coinbase, MetaMask, Trust Wallet, and Phantom. The bad extensions have been around since at least April and are meant to steal wallet credentials and send them to servers controlled by the attacker.
Ripple Labs is one of many crypto companies who are trying to get traditional banking legitimacy by filing for a national bank charter from the Office of the Comptroller of the Currency (OCC). Brad Garlinghouse, the CEO, said that federal and state oversight would set a “new and unique benchmark for trust in the stablecoin market.”
Bitcoin Ready to Rally Past $110,000?
Even if Bitcoin’s price hit $110,500 on Thursday, the way it moved this week showed some worrying technical signals. There were several negative divergences on 15-minute, one-hour, and four-hour charts. Price kept going up, while momentum indicators like the relative strength index kept going down. This divergence pattern shows that bullish momentum is slowing down, which makes it more likely that the market will fall back soon. The immediate downside objectives are between $107,500 and $106,000.
The pessimistic perspective was strengthened by the US Non-Farm Payroll data on Friday, which was greater than predicted. This data first propelled BTC toward $110,000, but the breakout did not last. The rejection at this psychological level could mean that the present range highs are getting tired. Even if Bitcoin is close to its all-time high range, financing rates stay the same. This shows that traders aren’t quite sure that the breakout will last. This cautious feeling fits with the fact that there is more selling pressure in market order books around the $110,000 level.
Ethereum’s Golden Cross Formation, $3,200 Next Target?
Ethereum ETH/USD was up 9% from Tuesday to Thursday, but it couldn’t break through the important $2,600 resistance barrier. On Wednesday, traders saw a bullish “golden cross” formation, which means that short-term momentum was stronger than longer-term averages. This could mean that a bull market period is starting. Technical analysts say that this trend might push ETH up to $3,200, which is where it was in January.
But derivatives data reveals a different story: the ETH futures premium stays below the 5% neutral level even after prices went up recently. The last time this indicator revealed that people were feeling good about the market was on January 26, when ETH was worth about $3,300. Solana’s competition has gotten stronger. Data shows that Solana’s decentralized apps make $1.3 billion more in income than Ethereum’s. Also, Ethereum’s intentional shift toward layer-2 scaling solutions like Base, Arbitrum, and Polygon has produced a paradox: ecosystem expansion doesn’t lead to more ETH demand because rollup transaction fees are so cheap.
XRP Rallies After Ripple’s US Banking License Application
XRP stood out as a top performer when Ripple Labs applied for a banking license, which sparked increased interest from investors. The token bounced back from the 20-day exponential moving average at $2.19 on Wednesday and broke through the 50-day simple moving average at $2.23, which means that bulls are gaining ground. Ripple’s attempts to comply with regulations have made people feel good about XRP, which could lead to an increase in its value.
A bullish inverse head-and-shoulders pattern is building on the 4-hour chart, according to technical analysis. This pattern could finish if the price breaks and closes above the neckline. If this pattern works, XRP might go up to $2.42 and maybe even hit the pattern target of $2.76. The first level of resistance is $2.34. If the price breaks above this level, it might start a rally to the next level of resistance at $2.65. Sellers are likely to fight hard to keep the price below $2.65. If it breaks above that level, it might start a new upward move toward $3. This is an important level to watch for XRP’s next big move.
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