Crypto Market Review, Nov. 21

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Arman Shirinyan

Despite depression on the market, XRP has something interesting for investors


  • XRP emits hidden signals
  • Ethereum breaks record

The bloodlust of bears returned to the market as the majority of investors plunged deeper into fear following rumors of the potential insolvency of Genesis, a subsidiary of Digital Currency Group. Most assets fell further in a downtrend as assets like ADA and XRP test their local lows despite the most recent recovery.

XRP emits hidden signals

Taking a quick look at the XRP chart, the most obvious diagnosis would be a serious downtrend, with steadily increasing selling pressure pushing the price of the asset to one-year lows.

However, there is a hidden chart pattern that formed only a few days ago: an ascending triangle. When the technical analysis pattern appears on the chart, the upward breakout should be expected in the foreseeable future.

Unfortunately, the positive move would be impossible without the support of the market, which mostly pulled XRP down along with other alternative cryptocurrencies, even though it is technically in the local uptrend.

Ethereum breaks record

Unfortunately, the record we are talking about has nothing to do with the price performance of the second largest cryptocurrency on the market. According to on-chain data, Ethereum net flow on exchanges has reached a value the market has not seen for five years: -42,273.066 ETH.

The metric measures the amount of coins that have flowed into and out of centralized exchanges. When the net flow turns negative, the market loses liquidity and funding as trading platforms have no choice but to drain their hot and cold wallets to cover withdrawal waves.

Previously, on-chain data for Bitcoin showed investors actively shifting funds to self-custody instead of keeping them on centralized cryptocurrency exchanges. The reason for that, of course, is the FTX debacle which undermined market confidence in CEXs in general.

To somehow remedy the situation, exchanges said they would release a proof of reserve to prove their solvency and resilience in the event of an unusual surge in outflows. Technically, FTX’s inability to cover withdrawals was the main reason behind its implosion. However, some experts argue that even without a massive increase in withdrawals, the exchange is doomed to failure.

From a market performance perspective, Ethereum is struggling to bounce back from the 2022 low and for now is trading at roughly the price level we saw on November 10th. On November 10th, Alameda and FTX had enormous volumes of ETH on the market, trying to get as much liquidity as possible in a short period of time.

At press time, the price movement of ETH has stabilized, and it has consolidated at the $1,110 price level without making any attempts to break upwards.

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