Crypto stocks are witnessing unprecedented highs, leaving short sellers grappling with massive losses. S3 Partners, a financial data firm, reveals that short sellers have incurred over $6 billion in losses this year on 11 U.S. crypto stocks.
Image: S3 Partners
The average short interest rate for these stocks stands at a significant 18.12%, well above the U.S. average of 5.00%, indicating a widespread expectation of a market correction. Contrary to these predictions, Bitcoin has witnessed a remarkable 160% surge this year, with a 65% climb since its quarterly low in early October.
BTC/USD Daily Chart
This upward trajectory has extended to cryptocurrency stocks, with notable performances from Coinbase Global (COIN), MicroStrategy (MSTR), Marathon Digital Holdings (MARA), and Riot Platforms (RIOT).
Some Short Sellers Doubled Down on Crypto Stocks: Bad Idea
Short sellers, attempting to limit their losses, have covered $2.19 billion of their positions in 2023, predominantly in COIN and MSTR. However, some short sellers have opted to double down on their bearish bets, selling an additional $697 million of crypto stocks since September 11.
The risky strategy of short sellers is compounded by S3 Partners’ squeeze score, which gauges the likelihood of a short squeeze—a scenario where a sudden surge in stock prices forces short sellers to buy back at higher prices, intensifying demand and driving prices even higher. The average squeeze score for crypto stocks stands at an alarming 95.78, highlighting a substantial risk of a short squeeze compared to the U.S. average of 38.19.
As the crypto rally shows no signs of slowing down, short sellers could potentially face further pain and increased losses. Crypto stocks, presenting an alternative investment avenue for exposure to the booming crypto market, underscore the importance for investors—whether bullish or bearish—to be cognizant of the inherent volatility and potential rewards in this dynamic sector.
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Market Analysis – Shiba Inu Sellers Make a Draw Back
Shiba Inu (SHIBUSD) buyers still show strong momentum in the market. Shiba Inu has had an impressive week, with a strong demonstration from the buyers in the market. Crypto buyers have been maintaining high momentum for weeks, which is evident from the momentum indicator on the daily chart. Last week, buyers easily penetrated the $0.000009000 significant level and continued their bullish momentum, posing a threat close to the $0.000001060 market zone.
SHIBUSD Market Levels
Resistance Levels: $0.000001060, $0.000001130 Support Levels: $0.000009100, $0.000006600
However, the crypto price recently experienced a drawback, giving sellers a slight edge to make a comeback. Bears are making an effort to pull back, and this trend is likely to hold for a while in the Shiba Inu market. Despite this temporary setback, the overall sentiment in the crypto market still indicates further bullish action.
If buyers continue to lose, we may see a drop-down to the $0.000009100 key level. On the other hand, the bulls may decide to increase their pace and drive the market upward. Looking at the momentum indicator on the daily chart, it is currently not showing signs of declining. Additionally, the Parabolic SAR (Stop and Reverse) indicator still favors a bullish sentiment in the market.
Market Expectation
While the short-term trend indicates a bearish reversal, suggesting that sellers are still in control, the long-term trend shows that bulls pose a threat. A break above the $0.000001060 price zone could potentially lead to further bullish momentum.
Note: Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
ENJUSD Analysis – Sellers Are Looking for Penetration
Enjin Coin (ENJUSD) buyers fight to keep the bullish flow. The market has seen a stylish retreat from the buyers’ pursuit of a breakthrough at the $0.350000 significant zone. Going back to October, we witnessed a bullish emergence where the buyers were able to establish a solid stronghold against selling pressure. However, the Enjin coin has been in a bearish trend for quite some time, with sellers dominating the market since the first quarter of this year. Only recently have the buyers started to outwit the bears in the past few days.
Enjin Coin Key Levels
Resistance Levels: $0.464000, $0.350000 Support Levels: $0.2031000, $0.2503000
At the beginning of last week, the bulls ignited a flame of optimism. However, as we progress into this week, the bulls have struggled to maintain their edge as sellers make their way back into the scene. As the year gradually comes to a close, the current selling pressure is causing a market reversal.
This trend may hold if buyers continue to miss out on opportunities this week. If the $0.3401000 key zone continues to pose a challenge for buyers, we might see a price drop. The momentum in the market still lacks a solid revival that could turn the situation around. Traders must take into account the signals provided by the Parabolic SAR (Stop and Reverse) indicator before drawing any conclusions.
Market Expectation
While crypto buyers have been fueled to push the price upward, the momentum is fading. Therefore, the Enjin coin requires more buying pressure and demand to sustain its upward movement. As the battle between buyers and sellers continues, buyers need to regain their momentum and strengthen their position to keep the bullish flow intact.
Note:Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
XRP (XRP) Long-Term Analysis: Bullish The price of XRP (XRP) breaks above the 21-day SMA as it resumes buying at lower levels. At the time of writing, the cryptocurrency had reached a high of $0.64. The altcoin is rising, approaching historic highs of $0.73 and $0.74. The altcoin was repulsed at the recent high on November 6 as it slipped between the moving average lines.
Today’s upward movement is reaching the resistance level of $0.66. The bulls have the upper hand because XRP is trading above the moving average lines. If the currency breaks through the initial resistance barrier, it will return to its earlier highs. If it is rejected at the $0.66 high, XRP will drop above the moving average lines.
Alternatively, XRP/USD will have to retrace above the moving average lines in a sideways direction.
XRP/USD – Daily Chart
Technical Indicators: Major Resistance Levels – $1.00, $1.50, $2.00 Major Support Levels – $0.50, $0.30, $0.10
XRP (XRP) Indicator Analysis The cryptocurrency asset, which was earlier trapped between the moving average lines, is now above them. The altcoin is expected to rise as long as the price bars remain above the moving averages. The candlestick’s wick suggests significant selling pressure at the higher price level on November 13.
What Is the Next Direction for XRP (XRP)? The crypto asset resumes positive momentum as it resumes buying at lower levels. The altcoin is anticipated to rise as long as it remains in the bullish trend zone. The current bullish trend is taking us back to earlier highs. The current bullish momentum is meeting resistance at the $0.65 high. If it encounters repulsion at the recent high, the altcoin may restart its sideways movement.
Note: Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Solana Price Prediction – December 8 Buulls have been exerting muscles in the market of Solana against the US Dollar as the crypto-economic trade waxes higher presently, breaking resistances toward the point of $80.
The price swiftly found support near the $60 line during the most recent correctional action before continuing its northward trajectory that has brought it to $71.82, maintaining a 5.96 percentage positive rate of return. Buyers will probably add additional weights in the ensuing transactional events, which could lead to consolidation in a slow-and-steady systemic motion style. Appreciation of positions is anticipated for the majority of investors who purchased at the lower end of the Bollinger Band indications.
SOL/USD – Daily Chart The SOL/USD daily chart reveals the crypto market waxes higher, breaking resistances by stretching the upper part of the Bollinger Bands.
The Bollinger Band trend lines are in the shape of pointing toward the north, basing their lower footstep closely above the pivotal point of $50. Their upper part has been consistently pushed in a thin direction toward the resistance line of $80. Is it technically optimal to take advantage of the forces of upheaval that are currently operating in the SOL/USD market? As there has been a steady rising motion in the SOL/USD business activities up to the point of stretching northwardly alongside the upper Bollinger Band, buyers need to be extraordinarily cautious of executing fresh positions as the price waxes higher, breaking resistances.
As for now, long-term position placers must wait for a large selling candlestick formation around the upper line of the Bollinger Band to watch any likely trade event that can cause depression against long-term smooth mooning pushes before placing a short line of sales.
Additionally, as the stochastic oscillators have shown that the market’s velocity is gradually approaching the overbought area, investors may soon employ strategies for partial withdrawal of some points. Nevertheless, the line of positivity is still greater when taking into account the trend of the market’s price action, indicating that fresh selling orders typically lose money when conducting instant shorting. SOL/BTC Price Analysis In contrast, the Solana market waxes higher trading against Bitcoin, breaking resistances around the upper Bollinger Band.
There is an upward swerve in the stochastic oscillators. Additionally, their placement just beyond the 40th line suggests that a rise is likely on the horizon. The bullish flag shape of the Bollinger Band trend lines is largely being maintained. A series of pulldowns is probably going to happen on purpose to add more and more impetus to the northward movements. Investors should remain optimistic, as stronger positive forces are anticipated to manifest in the upcoming months.
Note:Cryptosignals.org is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
Securing your crypto holdings poses a significant challenge for investors. While self-management is an option, the complexities of cold wallets present their hurdles. Opting for a cryptocustodian streamlines this process.
Think of a custodian as your crypto bank, offering essential features such as secure wallets and authorization controls. These safeguards are crucial in preventing fraud or theft of your valuable cryptographic assets.
Decoding Crypto Custodians
These third-party providers specialize in holding and protecting digital assets for investors, institutions, and corporations. Choosing a custodian allows investors to sidestep the technical intricacies of self-storage, ensuring the safety of their digital assets. Custodians employ a blend of hot and cold wallets for asset protection.
A “hot wallet” stored online is akin to an online bank account—accessible but more susceptible to hackers. On the other hand, a “cold wallet” resides offline, similar to a bank vault, usually in a secure location. Most custodians adopt a mix of both hot and cold wallets for enhanced security.
Leading Five Crypto and Bitcoin Custody Providers
There are a good number of cryptocurrency custody platforms, but we shall examine only the top five for the sake of brevity.
Coinbase Custody
Established in the vibrant city of San Francisco, Coinbase unveiled its custody service back in 2012, leveraging its position as the premier bitcoin exchange in the United States. Setting itself apart, Coinbase employs military-grade cold wallets, ensuring the utmost protection for digital assets. Coinbase, a leading Bitcoin custodian, undergoes regular audits. Users can stake funds in offline wallets, earning yields similar to interest. It tops our rankings due to minimal fees, extensive insurance, and being a prominent cryptocurrency service provider supporting diverse tokens.
Ledger Enterprise
Renowned for its crypto hardware wallet, Ledger Enterprise stands out as a premier custody provider catering to businesses and institutional investors. Crafted to deliver a secure and dependable asset management solution, Ledger Enterprise seamlessly combines hardware and software components, ensuring the pinnacle of security.
Ledger Enterprise boasts a multi-layered security architecture, including dedicated hardware, secure elements, and multi-layer authentication. It offers offline storage, backup, access control, and auditable logs for a comprehensive safety framework. Additionally, Ledger integrates with third-party services, facilitating seamless trades, liquidity management, and access to crypto-related services.
Fire blocks
Established in 2018, Fireblocks emerges as a cutting-edge digital asset custody platform meticulously tailored for institutional and enterprise clients. This comprehensive platform seamlessly combines secure storage, swift transfers, and the efficient issuance of digital assets. Fireblocks employs a multi-layered security approach, incorporating biometric verification, multi-party workflows, and a blend of hot and cold wallets for secure asset handling.
It supports a diverse range of assets, offering significant insurance coverage up to $30 million. In 2022, it gained recognition as the leading digital asset infrastructure provider with an impressive $8 billion valuation.
BitGo
Pioneering the digital asset storage landscape since its inception in 2013, BitGo has solidified its global leadership position. With a portfolio encompassing over 700 digital currencies and tokens, BitGo operates as a certified custodian, adhering to institutional-grade custody policy regulations. Notably, the platform boasts robust cold storage systems and configurable multi-user accounts.
BitGo, a leading cryptocurrency custody provider, is overseen by South Dakota’s banking division. Specializing in cold-wallet custody, BitGo offers rigorously tested, reviewed, and isolated accounts for maximum user protection. Regular third-party audits uphold its commitment to top-notch security and functionality.
Cobo
Established in 2017 by crypto enthusiasts Discus Fish and Changhao Jiang, Cobo diverges from the norm by offering remarkably high-interest rates to incentivize substantial deposits. Distinctly tailored for large institutions engaged in significant crypto transactions, Cobo sets itself apart with a dedicated focus on cryptocurrency. While providing standard crypto wallet services like its counterparts, Cobo shines through its proprietary staking platform.
This unique feature allows deposited coins to accrue interest, adding an extra layer of value. Cobo excels with a portfolio of 1,800+ tokens, seamless exchange compatibility, and a strong rating. Its credibility is enhanced by its experience and versatile custody solutions.
Gemini Custody
Situated in the heart of New York, Gemini stands as a well-established digital asset exchange, offering professional clients an advanced custodial crypto service. Initially recognized as Vo1t, the project transformed under the stewardship of the Genesis Group, leading to its rebranding as Genesis Custody. This strategic move aimed to expand the scope of its digital asset servicing endeavors.
Genesis Custody excels in cold wallet custodianship, offering cost-effective solutions for Bitcoin, Ether, Litecoin, Zcash, and Bitcoin Cash in a fully regulated environment. With military-grade encryption and the strategic use of deactivated nuclear bunkers, it ensures unparalleled privacy and security for client assets.
Conclusion
As Wall Street embraces digital currencies as a viable investment asset class, an influx of Bitcoin custodian solutions is poised to emerge. Our evaluation highlights Coinbase, Ledger, and Fireblocks as the stalwarts in the crypto custody market, securing top positions in our rankings.
BitGo and Gemini Custody, though not in the top 3, have strong reputations in traditional finance and crypto. Coinbase is favored by retail investors, but the landscape foresees a rise in “bitcoin banks.”Secure crypto storage boosts industry confidence, attracting fund managers to invest in Bitcoin. The growing market signals increased institutional investment in digital currencies.
Dash 2 Trade Price Forecast: D2TUSD Price Now Trades at the Upper Resistance Levels (December 8) The D2TUSD pair is currently resisting sellers as it now trades at the upper resistance levels, and has risen significantly above the resistance trend levels. If the bulls’ pressure breaks through and above the current price at the $0.00501 upper resistance level, the coin price may rise to a $0.01000 upper high trend line, signaling a high positive turnaround for coin holders.
D2T (USD) Long-term Trend: Bullish (4H) Dash 2 Trade remains strongly bullish again today on the higher time frames. This is clear as we can see the prices trading at the upper resistance area indicating a high bullish impact on the coin market. During yesterday’s session, the high order flow of bulls to the $0.00501 upper high mark also added to this bullishness. However, the bulls are now set to further swing the coin price through the upper resistance zone.
The coin price finds strong and reliable resistance at the $0.00504 upper level above the two EMAs, resulting in intraday gains as the 4-hour chart resumes today.
Hence, staying and trading at the upper resistance territory above the resistance trend lines indicates a strong possibility for a bullish correction which could retain and replenish the recovery sentiment in Dash 2 Trade.
In addition to that, the daily stochastic indicates an uptrend, if the bulls should add more aggression to their activities in the market; the $0.01000 upper resistance level might be reached soon in its long-term perspective.
D2T (USD) Medium-term Trend: Bullish (1H) The Dash 2 Trade market also trades in a strong bullish market in the medium-term outlook. This is due to the high impact of the long-term traders on the price flow. The coin price can now be seen progressing upward at the upper resistance zone. This shows that buyers are currently gaining more strength in the market.
The bullish pressure at the $0.00501upper supply level in the past few hours has sustained the crypto price above the trend levels in its recent high.
After completing the ranging movement, additional buying pressure from the long traders pushed the price above the critical level from $0.00501 to the $0.00504 upper resistance level above the moving averages.
This will however give the buy traders the tendency to further ladder up the trend. To push the price above the current supply zone, more buyers’ participation is a prerequisite.
Notably, there is a possibility of a further increase in the price of D2TUSD, if the buy traders should increase their price actions and all the current support level holds, a psychologically key level at the $0.01000 upper resistance level might be reached soon in its medium-term time frame.
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The Arbitrum price prediction shows that ARB moves close to the resistance level of $1.20 within the channel.
ARB/USD Long-term Trend: Ranging (Daily Chart)
Key levels:
Resistance Levels: $1.35, $1.40, $1.45
Support Levels: $0.90, $0.85, $0.80
ARBUSD – Daily Chart
ARB/USD is currently trading around $1.15 with an 8.36% gain after the daily low at $1.03. According to the daily chart, the Arbitrum price may continue to fight to stay above the important level of $1.10 as it could move toward the upper boundary of the channel. However, for ARB/USD to remain above this barrier for the next few days, the bulls need to make the $1.00 support level to be strong.
Arbitrum Price Prediction: Arbitrum (ARB) May Spike Higher
At the time of writing, the Arbitrum price is seen moving above the 9-day and 21-day moving averages, and if it breaks above the upper boundary of the channel, ARB/USD could touch the nearest resistance level of $1.30. Moreover, the coin needs to claim this important resistance level to head to the upside.
However, looking at the moving averages, the 9-day MA may remain above the 21-day MA, but the recovery may not come easy, and traders must be aware that support will have to be sorted above $1.30 while other important levels could be located at $1.35, $1.40, and $1.45 resistance levels. Meanwhile, if the slides toward the lower boundary of the channel, the supports at $0.90, $0.85, and $0.80 may likely come to focus.
ARB/USD Medium-term Trend: Ranging (4H Chart)
On the 4-hour chart, the 9-day MA keeps hovering above the 21-day MA, and may likely spike to the north to begin an upward movement. However, the chart reveals that there is little retracement within the market as the technical indicator faces the upside.
ARBUSD – 4-Hour Chart
Nevertheless, if the Arbitrum price breaks above the upper boundary of the channel, it is likely for the market price to reach the potential resistance at $1.28 and above. On the contrary, if the current market value drops below the 9-day and 21-day moving averages, it may touch the support at $1.07 and below.
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LBLOCK/USD is trading above the 9-day and 21-day moving averages as the coin moves to cross above the upper boundary of the channel. Looking at the daily chart, the Lucky Block price is maintaining an upward movement as traders anticipate the current price movement indicating the upcoming price rally in the market.
Lucky Block Price Prediction: LBLOCK/USD Heads to the Positive Side
As the Lucky Block price keeps hovering above the 9-day and 21-day moving averages, the coin will claim the resistance level of $0.000075 to hit the potential resistance levels of $0.000098, $0.000100, and $0.000102. Meanwhile, as the t9-day MA hovers above the 21-day MA, the Lucky Block will continue to gain additional uptrends. But, if the bulls fail to push the coin to the north, the support levels of $0.000026, $0.000024, and $0.000022 may come into play.
LBLOCK/USD Medium-term Trend: Bullish (4H Chart)
The Lucky Block price is already hovering above the 9-day and 21-day moving averages, and the coin is likely to cross above the upper boundary of the channel. However, the 9-day MA remains above the 21-day MA as the existing buyers dominate the market.
LBLOCKUSD – 4-Hour Chart
Moreover, if the bulls push the market price above the upper boundary of the channel, the Lucky Block will hit the potential resistance level of $0.000094 and above. On the contrary, if the coin heads to the south and crosses below the lower boundary of the channel, it can locate the support level at $0.000052 and below.
