A mass exodus from the most popular dollar-pegged stablecoin Tether (USDT) has led to its devaluation against peer stablecoins.USDT on Monday broke away from its historically tight link with the US Dollar to touch 85 cents across multiple crypto-exchanges. As a result, a substantial USDT volume shifted to other cryptocurrencies, including Bitcoin, raising their price in an otherwise bearish market. Among the gainers were also other stablecoins whose per token value advanced against the dollar – as well as the Tether’s USDT.USDC, TrueUSD, GUSD among GainersTraders started to flee USDT in the wake of growing skepticism against its issuers. There were doubts about whether Tether was operating a fractional reserve to inflate the Bitcoin price artificially. But traders opted to pool their crypto funds into USDT to protect themselves against the market’s trademark volatility. The faith in Tether diminished at last on Monday amid speculation over its poor financial status and alleged BitFinex’s insolvency, an exchange whose CEO is the USDT issuer.Circle USD rising against the USD-pegAt the same time, stablecoins promising lower credit risk than USDT have shown up to 10% premium in their price against the USDT. Circle and Gemini, for instance, noted an impressive surge in their stablecoin prices against the dollar. While Gemini’s GUSD token surged as high as $1.05, Circle’s USDC established its new monthly high near $1.07, according to data available at CoinMarketCap.com.TrueUSD, stablecoin, also witnessed an increase in demand against the limited supply amid Tether’s negated price action.Bitcoinland:where a simple filthy statist buck is “worth” $1.08 on an exchange… because reasons: pic.twitter.com/ktQaaLHojb— Tim Swanson (@ofnumbers) October 15, 2018TrueUSD, Gemini and Circle are US-regulated entities and are liable to issue tokens backed by real fiat funds or face severe penalties. Tether, on the other hand, has been accused of ducking independent financial audits of its balance sheets in the past, to which it reasoned that the auditing procedures were “excruciatingly detailed.”Gemini stablecoin rising as Tether dropsIt demonstrates why a growing negative sentiment in Tether market is influencing USDT holders to fly to less risky alternatives like TrueUSD, USDC, and GUSD. Alex Kruger, in his interview to NewsBTC’s Chief Editor Joseph Young, had predicted the ongoing scenario earlier.“One should expect a great percentage of all USDT (Tether) holdings to migrate to GUSD (Gemini) and USDC (Circle),” he had said.Can Tether Reclaim $1?The USDT/USD is now undergoing a reversal action, the authenticity of which cannot be verified at the time of this writing. The tether issuer would need to settle community criticism once for all by opening their doors to independent financial auditors and make their balance sheets public. Unless that happens, one cannot look at the so-called stablecoin as a haven for safe crypto parking anymore.The recent market performance of Tether’s peers has proven that the community would jump the sides than stay in the superstition of stability.
Ripple has seen a remarkable 8.15% price increase in price action over the past 24 hours of trading. This price increase will largely be attributed to the price hike seen within the BTC/USD market as price action broke bake $7000 once again. The market from XRP is currently exchanging hands at a price of $0.4533 after suffering a small -6% price decline over the past 7 trading days.
Ripple has long been the captain of processing oversees transactions for large financial institutions. THey have created the infrastructure to allow corporations to transfer finance from one location to another with minimal fees and a fast processing time. The Ripple team have developed the tools which are used by the institutions making the use of XRP an all inclusive project.
Ripple continues to hold the number 3 ranked position in terms of overall market cap across the entire industry. It has a total market cap value of $18.13 billion after seeing a 62% increase in price over the past 30 trading days. The 62 month old coin is still trading at a price that is 87% lower than its all time high value.
Let us continue to analyse price action for XRP over the short term and highlight nay potential support and resistance zones.
XRP/USD – SHORT TERM – DAILY CHART
Analysing price action from the short term perspective above, we can see that since our last article, the market had dropped slightly into our expected support at the short term .786 Fibonacci Retracement level (drawn in green) priced at $0.377. As the market approached this area we can see that the bulls started to ramp up the pressure which helped to reverse the downtrend at the $0.37 handle.
The recent market pump today, caused mainly by the increase in price of BTC, saw price action rally all the way up into resistance at the short term .5 Fibonacci Retracement level priced at $0.5280. After hitting this resistance the bears stepped back into the market and pushed price action lower toward to where it is currently trading at resistance provided by the short term .618 Fibonacci Retracement level priced at $0.4659.
Moving forward, if the bulls can remount the pressure and push price action above the resistance at $0.52 then we can expect further higher resistance to be located at the short term .382 Fibonacci Retracement level (drawn in green) priced at $0.5901 followed by the 200 day moving average which is currently hovering around the $0.65 handle.
If the bullish momentum can continue even further higher then more resistance can be found at the 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $0.68 and $0.73 respectively.
Alternatively, if the bears re-enter the market and begin to push the market further lower then we can expect immediate significant support to be located at the long term .886 Fibonacci Retracement level (drawn in black) priced at $0.40 followed by the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.3596.
If the bears can continue to push price action even further lower then more support can then be expected at the downside 1.618 Fibonacci Extension level priced at $0.26.
The RSI technical indicator is currently producing a neutral reading as it trades along the 50 handle. IF the RSI can break above the 50 handle this would indicate that the bulls are in control of the momentum and that the we could expect more bullish movement higher.
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Key PointsBitcoin price rallied above the $6,600 and $6,700 resistances and later reversed gains against the US Dollar.There was a break above a major bearish trend line with resistance at $6,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).Tether (USDT) pairs rallied above the $7,000 and $7,500, but later trimmed most of its gains.Bitcoin price broke the $6,700 resistance, but it failed to hold gains against the US Dollar. BTC/USD is back to $6,400 and it is currently under pressure.Bitcoin Price AnalysisThere was a major sell-off noted for Tether (USDT) pairs, which ignited an upward move in bitcoin price against the US Dollar. The BTC/USD pair also gained traction and moved above the 6,600 and $6,700 resistance levels. Earlier, there was a decent support base formed near the $6,150 level. The price started an upward move above the $6,300 level and the 100 hourly simple moving average.The upside move was strong as the price broke an ascending channel with resistance at $6,300. Moreover, there was a break above a major bearish trend line with resistance at $6,310 on the hourly chart of the BTC/USD pair. The pair rallied towards the $6,800 level and traded as low as $6,825. Sellers appeared and protected further upsides above $6,825. Later, there was a sharp reversal and the price trimmed most of its gains below $6,600. It even broke the $6,500 level and it is currently testing $6,400. The 61.8% Fib retracement level of the recent run from the $6,152 low to $6,825 high is also acting as a support.Looking at the chart, bitcoin price faced most of its gains above $6,600. This seems like a false break caused by Tether unwinding. Going forward, there could be range moves above $6,300 before the next leg.Looking at the technical indicators:Hourly MACD – The MACD for BTC/USD is placed in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI is currently above the 50 level.Major Support Level – $6,400Major Resistance Level – $6,520