Bulls Bustin Out?

ADA, ZRX, RUNE, and DOT charts, a look at how ETH's blockchain is ran, and the SEC's win vs. loss against crypto.

OVERVIEW

Bulls Bustin Out? 🐕️ 

There are some early signs that the congestion in the crypto market might be nearing its end. And those signs are currently of the bullish variety. 🟩 

In today’s Litepaper, we’re looking at three cryptos showing signs of getting very close to a bullish breakout ($ADA, $ZRX, and $RUNE) and one that is showing signs of some bearish yuckiness ($DOT)

Also on deck is a look at how $ETH’s ecosystem is governed and the SEC’s win vs. loss rate against the crypto industry. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

TECHNICAL ANALYSIS
Three Bulls And One Bear 🐂 

Cardano is looking pretty good here for the bulls - but only if it can blast through its near-term resistance. $ADA is just a hair above the 20-day EMA at $0.463 and a hair below the 50% Fibonacci retracement at $0.465. 👍️

ADAUSD Daily Chart - Click to enlarge.

Holy hand grenade of Antioch the daily $ZRX chart looks hawt. 0x opened below the 61.8% Fibonacci retracement ($0.510) and the 20-day EMA ($0.515), then fell below the 200-day EMA ($0.497) earlier today.

Then it bounced off the 200-day EMA and kept moving higher, above the 61.8% Fib and 20-day EMA. Some bulls are ready to charge out of the gate if 0x can close above those levels. 🐂 

ZRXUSD Daily Chart - Click to enlarge.

$RUNE has a GASP death cross. However, when sellers pushed prices below the 200-day MA ($5.99) on Sunday and prevented them from closing above the 200-day EMA on Monday, things looked pretty damn ugly.

Now things are looking pretty good for the bulls. On the daily RSI, historical support at 42 is holding and giving bulls some needed data to determine if a close above the 20-day ($5.86) and the 200-day EMAs would have enough to juice to keep moving higher. 📈 

RUNEUSD Daily Chart - Click to enlarge.

That said, not everything looks bullish today. A good chunk of the altcoin market looks like Polkadot’s daily chart.

$DOT is parked inside a bear flag and in between the 20-day EMA ($7.84) and the 200-day EMA ($6.08). Bear flags are bearish continuation patterns, so bulls will want to watch very carefully if DOT begins to test the top of the bear flag channel and the 20-day EMA.

Even if bulls can pull off a close above the 20-day EMA, some conservative bulls will likely wait for evidence of a possible bull trap. 🎯

DOTUSD Daily Chart - Click to enlarge.

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ETHEREUM
Who’s the Boss? The Ethereum Governance Mystery 🕵️ 

Who’s really running the show for $ETH? Who decides when and what to change in the protocol? Christine Kim dives into Ethereum governance, shining a light on the cryptic processes and key events shaping this sprawling blockchain. 🌐

The Ethereum Improvement Proposals (EIP) Process

Upgrades aren’t just a free-for-all. They’re formalized through Ethereum Improvement Proposals (EIPs), inspired by Bitcoin’s BIP and Python’s PEP processes. EIPs come in three flavors:

  • Standards Track: For hard fork-required changes.

  • Meta/Process: For governance process changes.

  • Informational: For general guidelines.

Anyone can propose an EIP, which undergoes community and technical scrutiny. Five editors play gatekeeper, ensuring each proposal meets the nerdy requirements. 🛠️

The Players

Ethereum governance is like a chaotic dinner party where everyone has an opinion: the Ethereum Foundation, client teams, validator node operators, and dapp developers. The Foundation, holding less than 0.3% of ETH, still manages to host All Core Developers (ACD) calls and Devcon. Client teams keep the software ticking, validators (the new miners) execute hard forks, and dapp developers whine until they get what they want.

Key Forums

Governance chats happen in various places:

  • ACD Calls: The big decision-making powwow.

  • ETHMagicians and Ethresear.ch: Where EIP dreams go to get crushed.

  • Discord: For real-time drama.

  • GitHub: For drafting and documenting code changes.

Governance Process in Action

Ethereum’s governance isn’t on-chain but led by the Ethereum Foundation through forums like Discord and GitHub. ACD calls are the heart of this process, ensuring organized chaos in governance decisions. These bi-weekly calls involve client teams, Ethereum Foundation researchers, and other stakeholders hashing out the technical merits of EIPs. 🔧

EIPs get dumped into GitHub where EIP editors review them for technical soundness and correct formatting. Core EIPs then face the final boss—presentation to client teams during ACD calls.

However, the validator node operators are the only folks getting rewarded with new ETH, and have the final say over code changes. They either implement or reject upgrades.🤔

Future Outlook

Ethereum’s ambitious roadmap includes scalability, MEV, account abstraction, and more. The protocol’s complexity and frequent upgrades underscore the need for governance that doesn’t implode. While decision-making remains off-chain and based on social norms, Ethereum keeps pushing the boundaries of decentralized governance. 🚀

NEWS
Well, Shit, The SEC Does Win A Lot 😑

Crypto fans, especially yours truly, believe the high-profile losses the SEC has suffered are great examples of their being big losers. Critics cheer every SEC win as justice is served. So, what’s the real score here? 🤔 

Well, those fine folks over at Protos did a little digging and a lot of research and found out the real score. Spoiler: boooooooo.

Courtroom Battles: SEC’s Winning Streak

Since 2019, the SEC has filed 116 lawsuits against 260+ crypto companies and promoters. Here are the results.

  • 95 cases ended in the SEC’s favor.

    • 21 cases remain unresolved (defendants like John McAfee or those hiding overseas, like Richard Heart).

  • Win rate:

    • Above 95% overall.

    • Over 99% if counting each complaint separately.

  • Notable losses:

    • Debt Box ($DEBT): SEC lost.

    • Ripple: SEC lost two out of three complaints involving $XRP.

    • Grayscale: SEC forced to backtrack on a spot Bitcoin ETF ($GBTC) denial.

To be fair, some of the SEC's wins are after some bad people, like Do Kwon, BitConnect, SBF, etc. But their scorched earth approach to targeting everyone in the space as a villain has hurt more people than helped. 🚑️ 

NEWS
Crypto News In Three Sentences 📰

👤 E-Trade to Ban Roaring Kitty?

E-Trade might ban Keith Gill, aka Roaring Kitty, who’s deep in the GameStop saga. They’re cracking down on meme stock influencers. Regulatory concerns are far from over. Full story at Decrypt.

📈 Crypto Funds Haul in $2B in May

Crypto funds raked in $2 billion in May, setting a new milestone. Year-to-date inflows are still strong. The crypto train keeps chugging along, no brakes in sight. Find out more. DailyCoin has more.

🎤 Iggy Azalea’s NFT Nears $90M

Iggy Azalea’s Solana-based NFT project, Mad Lads PFP, is closing in on $90 million in sales. Celebrity-driven NFTs are still printing money. Iggy’s success is a big win for the NFT space. Get the scoop here. From Yahoo!Finance.

🔗 Chainlink’s Oracle Hype 

Chainlink’s co-founder highlighted the vital role of oracles, especially after the NYSE glitch. Oracles are the unsung heroes of smart contracts. The glitch shows we need reliable data feeds more than ever. More from Cointelegraph.

⚖️ Binance Limits Stablecoins Over MiCA 

Binance plans to cap stablecoin offerings as new MiCA laws loom. They’re gearing up for EU’s crypto regulations. It’s a shake-up for the stablecoin market. Find out more at CryptoSlate.

🔥 Shiba Inu Burn Rate Spikes 

Shiba Inu’s burn rate spiked 1,442%, hinting at a potential price surge. Traders are eyeing a possible doubling. The memecoin madness is far from over. Benzinga has more.

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