Cryptos in danger after KuCoin insolvency rumors
- The Bitcoin price is likely to rise higher and lure investors in for a potential long squeeze.
- The Ethereum award seems to be ready for a quick run-up from a technical perspective.
- The Ripple price consolidates in a deep discount mode, which suggests a smaller uptrend.
The Bitcoin price has varied since June 18, but rumors of insolvency have spread on several popular platforms in the industry. KuCoin, the fifth largest cryptocurrency exchange in the world, is at the center of bankruptcy rumors.
A popular Twitter user with the screen name “Otteroooo” encouraged users to withdraw their money from KuCoin.
DRAW FROM KUCOIN RIGHT NOW
Not a drill
no time to thread
like and retweet to spread the word
oter hardly wrong in such cases
– otteroooo (@otteroooo) July 2, 2022
The same user has also beaten the insolvency rumors for BlockFi and Celsius well before the big media took up the news. Another popular Twitter user “beetle” as well twitret that “kucoin-branded wallets went from $ 1.8 billion to $ 10 million in one day.”
Ethereum, Polygon (MATIC), Numeraire (NMR) and Aave ((LEND) are the only coins held by the KuCoin branded wallets.
Stock Exchange’s anonymous CEO Johnny twitret in retaliation for these rumors and said that the stock exchange has no exposure to LUNA, 3AC, Babel, etc.
Being transparent is always one of our main principles. We will soon publish our review report for 2022 H1 where you can know more about our business.
For RDFs that intentionally disseminate unconfirmed information, KuCoin reserves the right to take legal action.
Not FULL, BUIDL.
– Johnny_KuCoin (@lyu_johnny) July 2, 2022
Vauld, a popular Indian crypto-lending and lending platform that recently expanded into swap services, also stopped deposits and withdrawals from July. The company stated in its latest corporate statement that it had experienced a “significant amount of customer withdrawals of over $ 197.7 million since June 12, 2022 …”
The statement added that
Our management remains fully committed to working with our financial and legal advisors to the best of our ability to explore and analyze all possible options, including potential restructuring options, that will best protect the interests of Vauld’s stakeholders.
With another potential collapse around the corner, the overall outlook for the Bitcoin price and thus Ethereum, Ripple and other altcoins is bearish. Despite the bearish backdrop, there may be attempts to trigger quick but short-lived conventions.
The Bitcoin price remains directionless
The Bitcoin price is trading well during the open second quarter of $ 19,943 and appears to be ready for a sweep of the bottom of the range of $ 18,600. Assuming this move happens, investors can expect BTC to try to follow this move with a rally and retesting the $ 20,910 range.
This move, although temporarily bullish, will give investors an opportunity to short the Bitcoin price. The resulting decline is likely to sweep the June 18 turn to a low of $ 17,578.
BTC / USD 2-hour chart
On the other hand, if the Bitcoin price produces a daily candlestick close to over $ 21,705, it will indicate that the recovery is strong and invalidate the bearish outlook. Such a development would see BTC potentially climb to the next level of interest at $ 22,837.
The Ethereum price remains optimistic
The Ethereum price shows a much higher chance of rally compared to the Bitcoin price for two reasons. The four-hour demand zone, which ranges from $ 938 to $ 1,008, serves as a support level with prospects favoring a move up to the equally high levels formed at the high of $ 1,283.
From the market makers’ perspective, a transition to the upside is also more sensible compared to a decline, which lacks liquidity. Therefore, investors can expect the Ethereum price to rise by 25%.
ETH / USD 2-hour chart
While things are looking up for the Ethereum price, a four-hour candlestick close to $ 878 will invalidate the bullish dissertation and crash ETH to the psychological level of $ 700.
Ripple price reveals a potential bullish move
The Ripple price is traded in a deep discount mode, ranging from $ 0.307 to $ 0.324, indicating that a bullish reversal is likely. The equally high peaks formed around the $ 0.386 high range give credibility to the possibility of an uptrend.
Since BTC also shows an affiliation to climb higher in the short term, and it affects the wider market, other altcoins, including ETH and XRP are likely to follow and also trend higher. When it comes to Ripple price, investors should be prepared for a 22% increase.
XRP / USD 2-hour chart
The positive outlook for Ripple Price and Ethereum is based on the assumption that BTC is leading the way. However, if Bitcoin gets a reversal, it can get ugly for all other altcoins as well.
If the XRP price produces a four-hour candlestick approaching below $ 0.286, it will create a lower low and invalidate the bullish thesis.
