Breaking
Unseen Profit
Author

admin

Browsing
Stocks

Aston Martin raises £125 million amid US tariff fears, China slowdown

Aston Martin has secured over £125 million ($161.9 million) in new funding to stay on track amid deepening financial pressures and shifting global demand.

The luxury carmaker, known for its James Bond legacy, announced fresh capital through a combination of investment by its chairman and the sale of a stake in its Formula One team.

The company has struggled with weak demand from China, ongoing delivery delays, and the fallout from supply chain disruptions.

Monday’s announcement marks the sixth time Aston Martin has raised capital since Lawrence Stroll took control in 2020.

Formula One team stake sold to unlock capital

Aston Martin will generate part of the funds by selling a portion of its holding in the Aston Martin Aramco Formula One team.

While the company did not name the buyer, it confirmed that the deal would help unlock a premium to the current book value of around £74 million.

This stake sale is a strategic step to convert a non-core asset into liquidity, as the business recalibrates its global expansion and manufacturing plans.

The carmaker has not disclosed the size of the stake being sold.

The Formula One unit, which has gained visibility in recent seasons, remains partly owned by Chairman Stroll.

The sale is expected to boost Aston Martin’s financial flexibility as it confronts a volatile global environment marked by tariff uncertainty and slowing sales in key international markets.

Stroll’s stake rises to 33%

Chairman Lawrence Stroll’s Yew Tree Consortium will invest a further £52.5 million ($68.0 million) by purchasing 75 million Aston Martin shares at 70 pence each, a 7% premium to Friday’s closing price of 65.4 pence.

The new deal lifts Yew Tree’s stake from about 27.7% to approximately 33%, crossing the 30% threshold that typically requires a shareholder to offer to buy out remaining investors under UK listing rules.

To avoid that requirement, Yew Tree will seek a waiver from regulators.

Aston Martin confirmed that Yew Tree has shown interest in potentially raising its holding further, up to 35%.

Stroll has already invested close to £600 million ($778 million) in the company since 2020, making him one of its most influential stakeholders.

Delivery delays and China demand weigh on forecasts

The funding comes as Aston Martin faces ongoing operational challenges.

The company has struggled to meet delivery timelines, and its performance in China, a major luxury vehicle market, remains underwhelming.

Supply chain problems, combined with macroeconomic pressures, have pushed the carmaker to implement cost-saving measures, including a 5% workforce reduction.

On Monday, Aston Martin revised its 2025 guidance, saying it now expects only “modest growth” in annual car volumes.

This is a downgrade from its earlier forecast of mid-single-digit percentage growth.

The adjustment is partly due to new US tariff threats under the Trump administration, which could impact the pricing and competitiveness of British-made luxury cars in the American market.

Despite the financial pressures, Aston Martin shares rose 5.7% to 69 pence in early trading after the announcement.

Investor sentiment appears buoyed by the fresh capital and Stroll’s continued commitment.

However, the company’s underlying financial health remains strained, and the need to raise funds for the sixth time in under five years signals persistent structural issues.

The latest round of capital injection may ease short-term liquidity concerns, but questions remain about Aston Martin’s long-term strategy amid fierce global competition, rising regulatory hurdles, and macroeconomic headwinds in key markets.

The post Aston Martin raises £125 million amid US tariff fears, China slowdown appeared first on Invezz

Keep Reading
Stocks

Top reasons why Alibaba stock price is about to explode higher

Alibaba stock price has stalled this month as the recent surge faded. BABA dropped to $132.45 on Monday, down by 11% from its highest point this year, meaning that it has moved into a technical correction. This article explores the technical and fundamental reasons why the BABA stock may be on the cusp of a strong surge.

Alibaba stock price has strong technicals

The first main reason why the BABA stock price will likely surge is that it has strong technicals. The daily chart shows that the BABA stock bottomed at $65.50 in 2024 and then surged to a high of $148.15. 

It has moved above the 50-day and 100-day moving averages, a sign that the uptrend is still strong. Most importantly, there are signs that the Alibaba share price is slowly forming a bullish flag pattern. This pattern comprises a vertical line and a rectangle consolidation pattern, which is now happening. 

Alibaba stock price has also been in an Elliot Wave pattern. It has completed the first three waves, and is currently in the fourth one, which is usually a bearish one. This means that it will soon move to the fifth wave, which is usually characterized by more upsides. 

Therefore, a combination of a bullish flag pattern, strong moving averages, and Elliot Wave is a sign that the stock will have a strong bull run later this year. More bullish signs will be confirmed if the stock surges above the key resistance point at $148. A move above that level will boost the odds of the Alibaba share price soaring to $200 by the end of this year. 

BABA stock chart by TradingView

Top bullish catalysts for BABA shares

There are several bullish catalysts for the Alibaba stock price. First, Alibaba has become a highly undervalued company because of its internal and external challenges in the past few years.

Alibaba trades with a forward P/E ratio of 17.20, much lower than its American peers like Amazon and Google. The multiple is also much lower than the S&P 500 index, which has a multiple of 21. 

Second, Alibaba has become one of the biggest players in the artificial intelligence industry. It has unveiled several models that perform all tasks like text generation, and QwQ-32B, which it claims rivals that of DeepSeek. 

Alibaba’s AI models have become so successful that it has become the default platform for Apple devices in China. Therefore, the company will likely continue doing well since the AI industry is still in its infancy, 

Beijing is supportive of Chinese tech companies

Third, there are signs that Beijing is being supportive of technology companies. Earlier this week, Xi Jinping hosted the biggest tech entrepreneurs in the country, including Jack Ma, for a meeting. This means that Alibaba will likely not experience the regulatory issues it has gone through in the past few years. 

Further, Alibaba will likely not be impacted by Donald Trump’s tariffs, because it is less exposed to the United States. Also, American customers will keep buying from China because of the low costs. US semiconductor sanctions will not affect Alibaba’s cloud and AI business.

Analysts expect BABA’s business to keep doing well this year. The average revenue estimate for the current quarter is 237 billion CNY, up by 6.8% from a year earlier. This revenue growth means that its annual revenue may cross the 1 trillion yuan milestone this year.

This growth means that Alibaba will keep buying back shares, a process that has dramatically reduced its share count in the past few years. Its US share count has dropped to 2.31 billion, down from 2.63 billion in 2022. 

The post Top reasons why Alibaba stock price is about to explode higher appeared first on Invezz

Keep Reading
Stocks

Has DeepSeek really lowered compute demand in 2025?

AI stocks have been hammered in recent weeks, part of which is related to the macro headwinds, but some of it, at least, is due to concerns of an AI slowdown ahead.

But recent data continues to dismiss such fears as inflated. In fact, if anything, the demand for compute has only gone up in 2025, according to a senior Bernstein analyst, Stacy Rasgon.

“The only ones that seem worried about it are the investors. The companies that are actually doing the spending, it seems like it’s full steam ahead,” he argued in a CNBC interview last week.  

DeepSeek is driving demand for compute

Part of the reason why investors are questioning if 2026 could still be a growth year for artificial intelligence is DeepSeek.

The Chinese startup rolled out an AI model in February that it claimed required significantly less computational resources to achieve results comparable to ChatGPT.

However, demand for compute has only gone up since DeepSeek’s launch, Rasgon added.

We’ve seen CAPEX numbers go up. We’ve head stories of GPU shortages as they’re starting to deploy this stuff.

It does actually look like it’s driving demand, not curtailing it.

Still, the iShares Future AI & Tech ETF is currently down nearly 25% versus mid-February.

Nvidia continues to see strong demand ahead

Nvidia chief executive Jensen Huang echoed a similar view at the annual GTC event this month.

In his keynote speech, the industry veteran said DeepSeek’s R1, while efficient, is a reasoning model that actually requires 100 times more computational power than non-reasoning AI models.

This was contrary to initial market assumptions that DeepSeek’s advancements would reduce overall compute demand.

“I’m of the belief that cost reduction, in general, is good – it drives demand. That’s been true in semiconductors over the course of five or six decades.” Rasgon told CNBC last week.

Bernstein’s view on Nvidia stock for 2025

Rasgon’s belief that concerns of an AI slowdown are, in fact, overblown keeps him bullish on the sector darling, Nvidia Corp (NASDAQ: NVDA).

His outperform rating on the artificial intelligence chips giant is coupled with a price target of $185, which indicates potential for a nearly 70% upside from current levels.

The Bernstein analyst agreed that semiconductor stocks tend not to do well during a recession, but added:

Some of the spending on AI, particularly related to productivity savings and cost reductions, and things like that may prove more resilient in a recession than discretionary spending.

Nvidia itself guided for continued momentum ahead in February.

For Q1, the AI chips behemoth expects $43 billion in revenue, which translates to about a 65% year-on-year increase. Analysts, in comparison, were at $41.78 billion only.

The post Has DeepSeek really lowered compute demand in 2025? appeared first on Invezz

Keep Reading
World News

Why Europe’s diesel imports are falling despite ample Atlantic supplies

The Atlantic Basin has seen seasonal highs in diesel flows multiple times in 2024, with this trend continuing into early 2025.

“Last year, high run rates in the US Gulf, steady exports from East of Suez refiners and an increasing volume of Russian barrels reaching the South Atlantic were just some of the factors contributing to ample supplies to net-importers in Europe and Latin America,” Mick Strautmann, market analyst at Vortexa, said in a report. 

According to the shiptracking intelligence company, competing export flows in the Atlantic Basin indicated a well supplied market. 

Diesel exports from the Middle East experienced a significant shift from West to East in late 2024, resulting in the lowest seasonal availability of diesel barrels from East of Suez for Atlantic Basin importers in over three years, Vortexa said in the report.

Source: Vortexa

Diesel exports from North America reached a five-year seasonal high in the fourth quarter, increasing 18% from the previous year. 

This surge was driven by seasonal pricing incentives in Asian markets, which created a gap in supply.

Demand gap

The product market is currently oversupplied. 

Europe expects to lose at least 300,000 barrels per day of refining capacity in the second quarter of 2025, adding to the 80,000 barrels a day already lost at the Gunvor Rotterdam refinery last November, according to Strautmann.

Source: Vortexa

Closures in Wesseling and Grangemouth refineries may lead to increased imports of refined products from other regions.

Diesel imports into core European regions, including the European Union, Norway, Switzerland, and the UK, have decreased by 5% in the first quarter of 2025 compared to the same period last year, according to Vortexa data.

The weakness in import levels is due to expectations of permanent refining capacity loss and a surge of unplanned outages in the region. 

ARA inventories or refined oil product inventories are well above last year’s levels, indicating that the extra imports in March are intended to cover domestic shortfalls, but are not for immediate consumption.

Demand from Latin America not enough

Vortexa data reveals that Latin American diesel imports have risen 6% in the last four quarters compared to the same period last year. 

This is driven by Brazil’s strong agricultural demand, which continues to attract cheaper long-haul Russian diesel shipments. 

Additionally, PADD 3 (Petroleum Administration for Defense Districts) diesel is being redirected toward the Panama Canal to meet the increasing demand for power generation in Chile and Ecuador, the agency said.

“Even if the trend continues, this modest growth in imports is likely not enough to absorb excess Atlantic diesel supplies,” Strautmann said. 

Further upside potential in this region is limited by increased biodiesel adoption and ongoing fiscal consolidation.

Competition

In the future, PADD 3 diesel exports will continue to compete for market share against Russian barrels and supplies from East of Suez, Strautmann said.

Simultaneously, global attention is focused on the escalating production of two substantial Atlantic Basin refineries. 

Source: Vortexa

Nigeria’s Dangote refinery, with a 650,000 barrels a day capacity and presently operating at approximately 60%, is projected to generate 150,000 barrels per day of on-spec diesel/gasoil, with 100,000 barrels per day designated for export, according to Vortexa.

The Dos Bocas refinery, with a capacity of 340,000 barrels per day, aims to produce 120,000 barrels a day of diesel/gasoil for the domestic market, Vortexa added.

“The likely result of further supply coming into the Atlantic Basin market is further downward pressure on diesel cracks until a fresh round of refinery shutdowns tightens the market once again,” Strautmann noted.  

The post Why Europe’s diesel imports are falling despite ample Atlantic supplies appeared first on Invezz

Keep Reading
World News

LATAM cryto update: Bitso launches peso-backed stablecoin as Latin American banks adopt blockchain

LATAM’s cryptocurrency landscape continues to grow.

This week’s highlights include the groundbreaking decision of Bitso to launch its peso-pegged Stablecoin in Mexico.

This happens as the banking sector embraces blockchain technology in Latin America.

Bitso Business, a part of the Mexican cryptocurrency exchange Bitso, is planning to create a stablecoin linked to the Mexican peso on the Layer 2 Ethereum network called Arbitrum.

A report from Cointelegraph shows that the new stablecoin, MXNB, will be issued and controlled by Juno, Bitso’s newly formed company.

According to a statement issued by Bitso Business, MXNB will be fully backed by Mexican pesos on a one-to-one basis, providing user stability and reliability.

Ben Reid, Bitso Business’s head of stablecoins, stated that MXNB’s principal use case is to ease international investment and trade within Latin American markets.

He underlined that the stablecoin would allow firms to function in a “more efficient” manner than traditional financial infrastructure, which frequently offers considerable monetary issues.

With obstacles such as high middleman charges and slow transaction times, MXNB intends to simplify cross-border payments for multinational firms looking to service customers in new countries.

The rise of stablecoins in Mexico, combined with a favorable remittance environment, has heightened interest in cryptocurrencies.

According to Chainalysis, Mexico is a “key country to watch” for cryptocurrency-based remittances, with an annual receipt of around $61 billion, largely from the US.

This trend is reinforced by increased adoption rates of stablecoins, as indicated by a 9% increase in stablecoin purchases on Bitso’s exchange, driven by local users seeking reliable stores of value in the face of significant inflation and currency devaluation.

Blockchain and tokenization reshape LATAM’s financial landscape

During Fintech Americas Miami 2025, experts from Bitso, Koibanx, and Banco Nación (Argentina) emphasized the advancements of blockchain and tokenization in the traditional financial system, enhancing efficiency and financial inclusion across the region.

According to Cointelegraph, representatives illustrated how these technologies are revolutionizing various processes, from remittance transfers to investment access through asset tokenization.

Leo Elduayen, CEO of Koibanx, pointed out that regulatory frameworks are beginning to encompass the tokenization of financial securities, marking a pivotal step towards democratizing capital markets.

The debate also focused on the growing relevance of blockchain in remittances and international payments.

Bitso’s strategic alliances director, Nano Rodríguez, reported that stablecoins and blockchain technology are already used in 10% of remittances between the US and Mexico, possibly accounting for over $64 billion in transaction volume.

Argentina’s thirst for real-time, decentralized financial operations is demonstrated by the $98 billion in bitcoin transactions performed in 2023, which exceeds the total value of the country’s imported goods.

With banks such as Macro and Mercantil incorporating blockchain solutions for payment processing, it is clear that traditional banks are developing to play a larger role in bitcoin adoption.

Guatemala proposes to transform landfills into Bitcoin data centers

The Blockchain Association of Guatemala has offered a novel method for addressing landfill environmental issues: transform them into Bitcoin data centers.

This project attempts to address two major issues: limited space and the risk of fires at garbage disposal sites.

As cities expand, garbage creation grows dramatically, posing operational capacity difficulties for landfills and necessitating the urgent need for new disposal sites.

Without proper solutions, many communities may confront waste management challenges in the coming years.

The group contends that locating Bitcoin data centers in landfills could be a novel solution for addressing both trash management and energy challenges.

Bitcoin data centers undertake the sophisticated calculations required to validate transactions on the Bitcoin network, which mandates the use of renewable, continuous, and low-cost energy sources.

This concept, by exploiting existing trash sites, not only aims to improve garbage disposal efficiency but also supports the use of renewable energy in the developing bitcoin sector.

The post LATAM cryto update: Bitso launches peso-backed stablecoin as Latin American banks adopt blockchain appeared first on Invezz

Keep Reading
World News

Two US tech stocks on the verge of initiating dividends: here’s what to watch

Markets are turning increasingly concerned about a recession due to uncertainty related to the new US government’s trade policies. 

While equities tend to underperform during economic slowdowns, dividend stocks often remain a great pick as they offer a significant cushion against potential losses amidst challenging times.

That said, here are the top 2 US tech stocks that are in a position to initiate dividend payments in 2025, according to Morgan Stanley strategists. 

Twilio Inc (NYSE: TWLO)

Morgan Stanley sees Twilio as incredibly positioned to start paying a dividend this year as its free cash flow yield currently sits at a solid 4.7%.

Twilio shares have lost more than 30% since mid-February amidst a tariffs driven rout in the US tech stocks.

But investors should capitalise on the sell-off as the risk-reward tied to this quality name is rather attractive at current levels, the investment firm told clients in a recent note.

Its analyst, Meta Marshall, now rates TWLO stock at “overweight”. Her recently revised price target of $160 indicates potential upside of more than 55% in shares of the cloud communications company.

Marshall sees “opportunity for both multiple expansion and estimate revision” as Twilio continues to tap on artificial intelligence to drive innovation and attract more customers.  

Additionally, she expects improved cross-selling to unlock significant further upside in TWLO shares.

Morgan Stanley dubbed the ongoing weakness in the cloud stock as “overdone” in its recent note, particularly because the company narrowed its loss and improved sales in its latest reported quarter.

Despite the sell-off this year, Twilio stock is up nearly 100% versus its 52-week low at the time of writing.

Okta Inc (NASDAQ: OKTA)

Another tech name that Morgan Stanley sees as well-positioned to initiate dividend payments this year is the San Francisco headquartered Okta Inc.

That’s because the identity and access management company currently boasts an even better free cash flow yield of about 5.4%.

The investment firm expects OKTA to announce its first-ever dividend in 2025 also because it’s doing well financially.

Earlier in March, the Nasdaq-listed firm reported market-beating results for its fourth quarter and issues guidance that surpassed expectations as well.

Morgan Stanley expects Okta to see accelerated growth ahead as “renewal headwinds abate, go to market strategy is further refined and new products continue to gain traction.”

The company’s ability to navigate the new tariffs environment and a potential recession is already evidenced in its year-to-date stock price action.

While the majority of tech stocks have had a hard time in recent weeks, Okta shares are up nearly 45% versus the start of 2025.

Note that a bunch of other Wall Street analysts agree with Morgan Stanley’s positive view, given the consensus rating on Okta Inc currently sits at “overweight”.

The post Two US tech stocks on the verge of initiating dividends: here’s what to watch appeared first on Invezz

Keep Reading
Business

Best blue-chip ETFs to buy as Donald Trump’s trade war escalates

American stocks have crashed this year, and are continuing to lag behind their global peers in countries like Germany, France, and China. This performance may continue next week when Trump implements his Liberation Day tariffs, triggering a trade war.

Investing in quality blue-chip ETFs can be a good way to prepare for these tariffs. This article highlights some of the best ETFs to buy and hold ahead of these tariffs, and what to expect. 

Blue-chip ETFs to buy ahead of tariffs

Some defensive ETFs will do well when Trump implements his tariffs. The most notable names are the SPDR Gold Shares ETF (GLD), Vanguard Utilities ETF (VPU), Vanguard Health Care ETF (VHT), and Vanguard Consumer Staples ETF (VDC).

SPDR Gold Shares ETF (GLD)

The GLD ETF is one of the best blue-chip ETF to buy as the trade war intensifies. It has already jumped by over 17% this year and over 38% in the last 12 months and is hovering near its all-time high. 

Gold will be a good asset to buy as more investors move to its safety because of the rising risks. Also, the ongoing tensions between the US, its allies, and foes will see more companies abandon the dollar and move to its safety. 

Further, the GLD ETF may do well when the Federal Reserve starts to cut interest rates later this year to deal with a potential recession.

Vanguard Utilities ETF (VPU)

Utilities are some of the best assets to invest in times of economic issues because customers always buy them. Homeowners will always pay for their water and electricity bills, meaning that many of these firms will keep doing well.

The VPU ETF is one of the best funds to invest in during a recession. It is a cheap ETF with an expense ratio of 0.09%, making it highly affordable. It tracks 69 companies and has an average P/E ratio of 20.2x. 

Most companies in the VPU ETF are in the electric utilities, followed by gas utilities, independent power producers, and water utilities. Popular names in the fund are NextEra, Southern, Duke Energy, Constellation Energy, and American Electric Power. The VPU ETF has a 3% yield and has jumped by 3.5% this year.

Read more: 5 Best Utility Stocks to Buy for Q1 2025

Vanguard Health Care ETF (VHT)

The healthcare sector will always be a good defensive area to park your money because of the rising demand of drugs. Also, most people in the US don’t pay for medicine out of pocket. Instead, they rely on private insurance and the government. 

The VHT ETF is a cheap fund to invest in because of its exposure to the healthcare sector. It holds 413 companies spread across areas like biotechnology, healthcare equipment, managed health care, pharmaceuticals, and healthcare facilities. 

The biggest companies in the VHT ETF are Eli Lilly, UnitedHealth Group, AbbVie, Johnson & Johnson, Merck, and Intuitive Surgical. The fund will likely continue doing well this year. The risk, however, is that it has exposure to many biotech companies that are often volatile. It is also an expensive fund with a price-to-earnings ratio of 30.

Vanguard Consumer Staples ETF (VDC)

The Vanguard Consumer Staples ETF (VDC) is another good fund to invest when Trump’s trade war starts. Companies in the consumer staples industry often do well in all market conditions since customers buy their products in market conditions. 

The VDC ETF tracks the biggest companies in the industry. The biggest category in the fund is merchandise retail, household products, soft drink & non-alcolic beverages. Some of the top firms in the fund are Costco, Walmart, P&G, Coca-Cola, PepsiCo, and Philip Morris. 

Other ETFs to buy

There are other top blue-chip ETFs to buy when the trade war starts. The most notable ones are the Schwab US Dividend Equity ETF (SCHD), VanEck Morningstar Wide Moat (MOAT), and Pacer US Cash Cows 100 ETF (COWZ).

Read more: COWZ vs CALF vs BUL: Which free cash flow ETF is better to buy?

The post Best blue-chip ETFs to buy as Donald Trump’s trade war escalates appeared first on Invezz

Keep Reading
Business

Ethereum price prediction: here’s why ETH is heading to $1,500

Ethereum price made a strong bearish breakdown during the weekend, reaching a low of $1,835, its lowest level since March 13. It has plunged by over 55% from its highest level in 2024.

Why Ethereum price has crashed

Ethereum has crashed because of its ecosystem challenges and the ongoing macro factors. Internally, Ethereum has plunged because of the ongoing outflows in the spot Ethereum ETFs. 

Data by SoSoValue shows that ETH ETFs have had net outflows in all days this month other than March 2 and 28. These funds have had a cumulative net inflow of just $2.4 billion, bringing their net assets to $6 billion.

Ethereum ETFs have largely failed because of a lack of demand from Wall Street investors. Most of these investors prefer holding and staking ETH, which earns them a good staking return of about 3%. 

Read more: Ethereum price prediction after the $238 billion wipeout

ETH price has crashed because of the soaring competition from the layer-1 and layer-2 industry. Most of its competition is coming from companies layer-2 networks like Base and Arbitrum. These networks are known for having higher transaction speeds and low costs. 

Ethereum is also seeing more competition from layer-1 networks like Sui, Solana, and BNB Chain. These factors explain why many analysts have warned that ETH price could crash further. For example, Standard Chartered analysts have lowered their target by 60% to $4,000.

ETH price also dived because of the recent leadership crisis at the Ethereum Foundation. 

Ethereum price crashed because of weak technicals

ETH price chart by TradingView

Further, technicals suggest that ETH price has more downside to go. The weekly chart shows that Ethereum price made a risky pattern known as a triple-top in 2024. 

This pattern formed as Ether failed to move above the key resistance point at $4,036 three times. It has now crashed below the important support level at $2,113, the neckline of this pattern and its lowest point on August 5.

Ethereum price has plunged below the 50-week and 200-week Exponential Moving Averages (EMA). A crossover of these two averages will be a death cross, one of the riskiest patterns in the market. 

ETH price has also plunged below the 61.8% Fibonacci Retracement, commonly known as the golden ratio at $1,940. The Relative Strength Index (RSI) and the MACD indicators have all pointed downwards. Ethereum coin has also formed a bearish flag chart pattern, a popular continuation sign. 

Therefore, Ethereum price will likely continue falling as sellers target the key support at $1,500, a psychological point that is about 20% below the current level. A move above the key resistance point at $2,113 will invalidate the bearish outlook.

Read more: Ethereum price prediction March: Is another 50% crash possible?

The post Ethereum price prediction: here’s why ETH is heading to $1,500 appeared first on Invezz

Keep Reading
Business

XRP price prediction: why it could crash despite the good Ripple news

The XRP price has pulled back in the past few weeks, and technicals point to a deep dive if it loses a crucial support level. Ripple dived from the year-to-date high of $3.40 to the current $2.2. This crash has led to a $62 billion wipeout as the market cap has plunged from over $189 billion to $127 billion. 

XRP price crash despite strong fundamentals

The ongoing XRP price crash happened even after Ripple had some substantial positive news recently.

Its most important news came earlier this month when the Securities and Exchange Commission (SEC) voted to end its appeal against Ripple Labs. 

This was an important thing because it meant that Ripple paid just a fraction of the $2 billion that the agency wanted.

Further, the decision means that Ripple Labs will now be at liberty to sign more deals in the United States. According to Brad Garlingouse, Ripple largely stopped making any major deals in the US following the SEC lawsuit, with most of its business coming from other countries.

Many American companies cited the ongoing litigation for refusing the deal. Therefore, with the Ripple case done, analysts anticipate that there will be more deals going on. Indeed, Garlinghouse noted that the number of deals signed six weeks after Trump’s election were more than those signed six months before that.

XRP price crashed even after Ripple continued its partnerships and regulatory wins. It recently partnered with Chipper Cash, a popular payment network in Africa. The company will now use Ripple’s technology to improve its payment network over time. 

Ripple ETF odds have risen

The XRP price has also crashed as the odds of a Ripple ETF approval have jumped. There are now over 10 XRP ETF applications from popular companies like Grayscale, Canary, and Franklin Templeton. 

Analysts believe that the SEC has no good reason to reject these funds since it has already accepted Bitcoin and Ethereum. Also, the judiciary has said that XRP is not a security. Indeed, Polymarket odds of an XRP ETF approval have jumped to over 86% this year. 

Most importantly, Ripple has the resources it needs to build a viable alternative to SWIFT, a payment network that handles over $150 trillion in transactions each year. 

To succeed, Ripple will need to onboard as many banks as possible, which is now possible now that the company’s legal liabilities have ended. Banks and consumers will prefer the On-Demand Liquidity (ODL) because it is a faster and cheaper alternative to SWIFT. 

XRP price technical analysis

XRP price chart | Source: TradingView

The weekly chart shows that the XRP price has dropped this year. Its attempts to recover have found substantial resistance in the past few months. 

It has now plunged below the 38.2% Fibonacci Retracement level at $2.24, a sign that the downward momentum is continuing. 

Ripple price has also sunk below the 50-week and 100-week moving averages. Most notably, it has formed a head and shoulders pattern, a popular bearish sign in technical analysis.

Therefore, there are odds that the XRP price will continue falling in the coming weeks. This bearish view will become valid if the coin plunges below the support at $1.9770, the neckline of this H&S pattern. The bearish outlook will be invalidated if the coin rises above the key resistance level at $3.0.

The post XRP price prediction: why it could crash despite the good Ripple news appeared first on Invezz

Keep Reading
Business

PepeX gains steam Ethereum and Solana prices crash

Economic uncertainties continue to weigh on the crypto market, with fear being the prevalent emotion among enthusiasts. Even so, optimism over a trend reversal has the likes of Solana finding their footing. At the same time, internal shortcomings are further weighing on Ethereum price. 

Amid this chaos, PepeX stands out as one of the attractive meme projects of 2025. Its mission is to restore fairness and transparency to the meme coin space while eliminating gatekeeping. In just one week, it has raised over $1 million and is set for further gains during and post its 90-day presale. 

Ethereum price plunges as its ecosystem’s shortcomings fuel underwhelming performance

Ethereum price extended its previous losses on Saturday’s session to trade at its lowest level since 11th March. As seen on CoinMarketCap, the altcoin’s price has been down by 7.89% over the past 7 days compared to Bitcoin and Solana’s decline of 1.38% and 3.19% respectively.

Notably, economic uncertainties continue to weigh on the crypto market. While the market sentiment had improved to a neutral level earlier in the week, the crypto fear & greed index dropped to a fear level of 26 on Saturday before improving slightly to 32. 

However, beyond these external factors, some analysts blame shortcomings in its ecosystem for the underwhelming performance. In the absence of a major bullish catalyst, Ethereum price will likely remain under pressure in the near term. 

As seen on its daily price chart, the altcoin will likely remain range-bound in the ensuing sessions as the bulls defend the support zone along the lower Bollinger band. On the upside, it may face resistance along the middle band at around $1,950. However, further decline will invalidate this thesis; pushing Ethereum price to the October 2023’s low retested on 11th March at $1,750.

Ethereum price chart | Source: TradingView

PepeX: The project bringing back sanity to the meme crypto space

Some meme coins like the TRUMP token still propel the culture of a project starting from an internet trend and its virality fueling its growth. However, the subsector is steadily moving away from this concept to become major financial assets operating on real-world use cases. PepeX is one of the fresh crypto projects under the latter category.

On its website, PepeX describes itself as being “like pump.fun but fair, easy and open to all”. This is meant to solve the existing challenges related to insider manipulation andthe gatekeeping of token creation.

As the world’s first AI-driven meme launchpad, it allows anyone to launch a meme coin in just five minutes. This also includes the branding and marketing of meme tokens; features that allow retail investors to enjoy opportunities that have previously been unattainable to them.

Besides, PepeX will ensure that token creators’ holdings are capped at 5% of the total supply, which they can lose to the community should the project fail. This policy, coupled with anti-sniping protections and transparent bubble maps, positions PepeX as the “system rectifier” and investors are taking note of it.

Subsequently, it has already raised over $1 million in one week with stage 1 already sold out. In addition to its growth potential in the crypto market, early adopters get to enjoy gains of upto 311% during its presale. What started at a token price of $0.02 is currently at $0.021 as it increases by 5% with every stage. By the end of its presale slated for 22nd June, it will be at $0.0823. Hurry up and buy the PepeX token here.

Solana price finds footing as bulls remain optimistic of a trend reversal

Solana price chart | Source: TradingView

Macroeconomic factors continue to weigh on the cryptocurrency market with Solana price dropping to a two-week low on Saturday’s session. However, it will likely remain above the steady support zone of $118.50 as the bulls remain optimistic of improved risk sentiment and subsequent trend reversal. 

The entry of more buyers may have Solana price break the resistance along the middle Bollinger band at $130.80. If successful, it would attract even more traders with the next target being at $139. 

The post PepeX gains steam Ethereum and Solana prices crash appeared first on Invezz

Keep Reading