This Week in Crypto: Ripple Fined $125M, Market Crashes and Recovers

Key Takeaways

• Ripple vs the SEC appears to be over after a judge ordered the crypto company to pay a $125 million fine.
• The market crashed on Monday, but had largely recovered by Friday.
• New cryptos include SCF, ATX and WBC.
• APT, SAND, STRK and ROSE are among the upcoming unlocks.

There have been seven days of drama in crypto this week. One of the industry’s longest running sagas seems to have come to an end, while the market collapsed, and recovered.

Let’s take a look at some of the news from the last week and see what coins and tokens are performing notably.

This Week’s Crypto News: Ripple Claims Victory, Market Fights Back After Collapse

The long-running court case between the United States Securities and Exchange Commission (SEC) and Ripple seemingly came to a conclusion on Wednesday. Judge Analise Torres fined Ripple $125 million after she found that the company had violated securities laws 1,278 times by selling to institutional investors.

Despite the significant fine, Ripple boss Brad Garlinghouse spun Judge Torres’ decision as a victory, saying, “This is a victory for Ripple, for the industry, and for the rule of law. The SEC’s obstacles against the entire XRP community are gone.”

However, the SEC, led by crypto’s bete noir Gary Gensler, could still appeal the ruling. It had wanted the court to fine the company $1 billion. 

Before that, though, Monday, Aug. 5, saw the crypto market suffer a significant crash. Bitcoin fell below $50,000 for the first time since February, as the overall market cap dropped to around $1.76 trillion. The drop was, apparently, down to a number of factors, including Jump Crypto selling significant amounts of Ethereum, as well as worsening global economic conditions and escalating geopolitical tensions. 

However, crypto proved to be rather resilient and, by Friday, Aug. 9, it was back to around $2.15 trillion. At the same time, Bitcoin was back over $60,000. 

Crypto Market Technical Analysis

The crypto market capitalization (TOTALCAP) has fallen under a descending parallel channel since a yearly high of $2.72 trillion in March. 

Both the channel’s support and resistance trend lines have been validated numerous times, most recently this week (white icon). 

This week’s movement is especially interesting since the Aug. 5 decline took TOTALCAP well below the channel’s support trend line. 

But, the decline did not persist and TOTALCAP created a very long lower wick, signifying buying pressure. On top of this, TOTALCAP returned above the channel’s support trend line, negating the breakdown. 

This price action is considered bullish. 

Furthermore, the three-day RSI and MACD have both generated bullish divergences (green). The previous time this happened was in November 2022, when the entire upward movement was just starting. 

This means the outlook for the TOTALCAP is decisively bullish. As it stands, it seems that the bottom is in and a sharp upward movement will follow, lasting several months. 

The first target for the top of the increase is at $3.34 trillion, created by the 1.61 external Fibonacci retracement resistance level.

This week, the Bitcoin Dominance Rate (BTCD) broke out from the 0.5 Fibonacci retracement resistance level.

After doing so, it reached its highest level since April 2021.

Despite this climb, the price action has become an ascending wedge, often occurring during top formations and considered a sign of a bearish trend. 

[BTCD-Movement] BTCD 3-Day Chart | Credit: Valdrin Tahiri/TradingView

The fact that the wedge is forming inside the 0.5-0.618 Fibonacci area makes it even more likely that BTCD could top.

Additionally, the RSI and MACD have generated bearish divergences (green). So, even though the BTCD is trending upward, there are signs of weakness that could lead to a market top soon.

Crypto On-chain Analysis This Week

On-chain readings for Bitcoin imply that the market cycle has not ended yet. Rather, the decrease over the weekend that worsened on Monday, Aug. 5 is a temporary correction on the way to the all-time high price. 

The MVRV Z-Score indicator perfectly illustrates this. In the two previous Bitcoin market cycle highs, the indicator reached overbought territory above seven. This has not happened this year and the indicator has barely moved above three. 

The second high from the previous cycles was lower than the first, so it’s possible to connect them with a descending resistance trend line. 

Even if we do this, there is more room for growth, since the trend line is near four.

Rather, the decline is similar to the final correction before the BTC price rallied parabolically to new highs. This happened in 2012, 2016, and 2020 (black circles). 

[MVRV-Historical] Bitcoin MVRV Z-Score | Credit: Valdrin Tahiri/Glassnode

So, the only question left based on MVRV is if BTC will continue retracing or if the bottom is already in.

Based on the indicator, the ongoing correction is already lengthier than the ones in 2012 and 2016, but shorter than the one in 2020. 

At the time, the MVRV returned to oversold territory below 0 before resuming its upward movement. 

Since this has never happened before in any market cycle, it is more likely that the bottom is in.

Crypto Market Drivers This Week

It’s been an intense week for financial markets and crypto hasn’t avoided the rollercoaster performance also seen in stock and bond markets. Bitcoin’s stratospheric rise hit a sudden halt on July 29, leading to a 15% drop on August 5 – the largest single-day decline since November 2022. This abrupt fall has left traders anxious, wondering if the bull run that began in March has ended. After reaching a low of $49,647, Bitcoin rebounded to $60,000 by August 9, 2024.

Ripple’s XRP also made headlines this week, following the conclusion of the SEC vs. Ripple case. Despite Ripple’s $125 million fine, XRP’s price surged above $0.60, attempting to break out from a long-term resistance trend line.

Meanwhile, POPCAT, a Solana-based memecoin, saw a 49% daily increase on August 7, contributing to a 65% surge over the past month. The token’s rise was accompanied by a spike in social media mentions, hinting at potential reasons behind the rally.

Ethereum (ETH) has struggled, experiencing a 40% decline over the last three weeks, hitting a low of $2,111 on August 5. Despite this, ETH has since bounced back to $2,524, although it remains well below its yearly high of $4,093.

Pendle also gained attention this week as South Korean exchange Upbit announced trading support for PENDLE, leading to a 40% surge in its value within 24 hours, defying the broader market slump.

Additionally, Grayscale introduced two new crypto funds featuring SUI and Bittensor (TAO), both of which have recovered from the August 5 decline. TAO, in particular, broke out from a descending resistance trend line and hit a high of $367.

Toncoin continues to be a breakout star in 2024, soaring by more than 170%. TON’s recent listing on Binance, along with deepening ties with Telegram, has fueled speculation of another all-time high, potentially marking the fourth wave in its ongoing five-wave increase that began in June 2022.

New Cryptos This Week

• Smoking Chicken Fish (SCF): This is the governance token for the decentralized Church of the Smoking Chicken Fish, a legally recognized church in Texas. With a market cap of $60.7 million, SCF has a circulating supply of 999.9 million, reflecting its entire issuance.
• Automatix (ATX): Automatix is a cloud-based platform which provides scalable cloud infrastructure, eliminating the need for costly hardware and complex installations. Automatix (ATX) has a market cap of $2.1 million, with a circulating and total supply of 10 million ATX tokens.
• WorldBrain Coin (WBC): WorldBrain is an advanced artificial intelligence (AI) system modeled after the human brain. Founded by the OpenAI subsidiary Worldbrains Foundation, it builds on ChatGPT’s database to form a “World Model” that mimics human brain functions. WorldBrain (WBC) has a market cap of $36.4 million with a circulating supply of 177.5 million tokens.
• Portal Network (POE): The project aims to create a profitable business model for developing electric vehicle charging infrastructure in Russia and beyond. It uses a token on the TON network, linked to charging station installations. These stations not only charge vehicles but also mine tokens. Once the project scales, token emissions will stop. POE has a market cap of $1.9 million, with a circulating supply of 1.3 million out of 500 million total.
• Argocoin (AGC): Devolved AI, launched in June 2023 by Nathan Peterson, aims to revolutionize artificial intelligence through decentralization and community governance. The project uses blockchain technology to ensure AI training processes are secure, transparent, and efficient. Argocoin (AGC) tokens allow holders to participate in governance, fostering collaboration. AGC has a market cap of $1.5 million, with a circulating supply of 8.1 million tokens.

Crypto to Look Out for This Week

Token Unlocks

Credit: TokenUnlocks 

Upcoming Events

Star Atlas (ATLAS)

Airdrop to Ship Holders – August 9, 2024 

The largest airdrop in Star Atlas history. Ship holders receive an airdrop for every ship they own.

Ontology (ONT)

Weekly Community Catch-Up – August 9, 2024 

A weekly event where the community discusses updates and projects and shares ideas.

SafePal (SFP)

SafePal App V4.76 – August 9, 2024 

The latest version of the SafePal app introduces a Fixed Rate Mode for Changelly Swap, allowing users to exchange cryptocurrencies with a guaranteed, stable rate during transactions.

Bitget Wallet

USDT on TON – August 9, 2024 

Bitget Wallet launches USDT support on the TON blockchain. The update allows users to store, transfer, and manage USDT on the Ton network through the Bitget Wallet.

Aleph Zero (AZERO)

Aleph Zero EVM Mainnet – August 12, 2024 

Launch of the EVM-compatible mainnet for Aleph Zero.

ETHWomen

ETHWomen – August 13, 2024 to August 14, 2024 

A female-focused event held in Toronto, Canada, ETHWomen will take place on August 13 and 14, 2024, as part of the Blockchain Futurist Conference. It features workshops, mentorship, and conferences, with both in-person and virtual participation. The event includes a hackathon, various workshops, and notable speakers from the blockchain industry. Participants can register for free, and the hackathon submissions are due by August 21.

Neutron (NTRN)

Liquidity Vote – Last day August 13, 2024 

The proposal seeks approval for joint liquidity provisioning for the $MARS and $NTRN tokens on Astroport, with $200k in total liquidity. The Mars Protocol and Neutron Foundations will contribute $100k each in their respective tokens. A multi-sig DAO will manage the liquidity deployment, and the LP tokens will eventually be controlled by the respective DAOs.

Flow (FLOW)

Crescendo Testnet Upgrade – August 14, 2024 

The Crescendo network upgrade for Flow is scheduled for August 14 on Testnet and September 4 on Mainnet. This upgrade brings full EVM equivalence and Cadence 1.0, enhancing scalability and decentralization. Developers must stage and validate their smart contracts on Testnet to ensure smooth migration. The Testnet will be down for approximately six hours during the upgrade. Resources and support are available through Flow’s Discord and developer programs.

Cronos (CRO)

zkEVM Mainnet Alpha – August 15, 2024 

Cronos’ zkEVM public mainnet (alpha) is set to launch on August 15. Users can connect their wallets, bridge funds, and use various dApps starting from that date. The last chance to participate in the Cronos zkEVM Passage, which offers eligibility for rewards and loyalty points, is August 9 at 12pm UTC. After the mainnet launch, the Pioneer Program will introduce new “Mainnet Missions” for users to continue earning loyalty points and rewards.

Efinity (EFI)

Etherscape Launch – August 16, 2024 

Etherscape is launching on Epic Games on August 16, 2024. The game introduces a new in-game currency called Enjinite, which can be earned by defeating bosses and used in the marketplace. Players can convert Enjin Coin (ENJ) to Enjinite for free and vice versa for a small fee. Etherscape also supports Enjin Multiverse NFTs, allowing players to use them for rewards in the game.

Crypto Market Sentiment This Week

The crypto market fear & greed index was at 48 as of Aug. 9, 2024. This reflected a neutral market. However, since the indicator has been in extreme fear recently, the move to neutral is a positive development.

The specific sentiment depends on the asset. That regarding Bitcoin has turned largely positive since the entire decline from the weekend has already retraced. The massive long lower wick is an extremely bullish sign and has previously often led to sharp upward movement.

Sentiment regarding Ethereum is more bearish. This is partly due to its relative underperformance compared with both Bitcoin, as seen in its over 1,200-day lows in the ETH/BTC pair, and Solana, since the SOL/ETH pair reached a new all-time high. 

Another reason for the negative sentiment comes from comments of the community, more notably Péter Szilágyi, team lead at Ethereum. His disillusionment with crypto  and the perceived lack of use cases have caused holders and traders to worry.

Finally, the fact that the supply has turned inflationary since the Dencun upgrade in April is worrisome, leading some to believe that with the reduced fees for Layer 2-s Ethereum itself is losing its purpose , and there is significantly less burn because of lower activity.

Additional reporting by Valdrin Tahiri, Giuseppe Ciccomascolo and Toghrul Aliyev. 

About the Author

Peter Henn

Peter Henn has been a journalist since 2005. In that time, he has written for a variety of publishers including the Mail on Sunday and the Daily Express. He has previously covered the world of cryptocurrency for Currency.com and Capital.com, and has also written for ECigIntelligence.com and CBD-Intel.com. A graduate of the University of Liverpool, he is based in the United Kingdom. His hobbies include music, horse racing and performance art.

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