Stellar (XLM) is at the same point it was back in October, just before a massive rally. The daily chart above for XLM/USD shows that the price of Stellar (XLM) has now touched the support line. RSI and Vix indicators for Stellar (XLM) show that the price has either reached a bottom or is very close to reaching it. Stellar Lumens (XLM)’s RSI is at a level where a big rally from here on out seems favorable. The price is currently trading just above 20 cents, down from 33 cents in late July. The price action appears bullish but Stellar (XLM) has to remain above the support line in order to begin a new cycle at this point.
Congruent fractals of similar triangle and wedges are the hallmark of Stellar (XLM). While other coins often rally or correct in a haphazard manner, Stellar (XLM) likes to follow the rules and that is why most technical analysts love it. Stellar Lumens (XLM) formed its last triangle in March which extended all the way to Feb 2018 but the price broke out of the triangle in October. Currently, the price is trading in another triangle since January 2018. The triangle extends all the way to December 2018 but the price is likely to break above or below it before September 2018.
The Vix indicator for XLM/USD shows that each time before a rally, the price has found a bottom (as shown by green bars on the lower indicator on the above chart). The closer the green bars, the more likely it is that a particular asset has truly bottomed out. This time, we have seen four of these bars formed on the chart, just in the month of August. Three of those bars are together whereas one is at a short distance. This shows that the exact bottom may not have been found yet but we are very close to finding it.
The daily chart above for XLM/BTC corroborates our analysis of XLM/USD and presents a similar bullish scenario. The price for XLM/BTC has traded in a series of falling wedges since May 2017. So far, the price has traded in four falling wedges and has broken above three of them in the past. Currently, the price is trading in another small falling wedge, just above the support line. If history repeats itself, the price can be expected to follow the same pattern and break above the falling wedge to begin a new cycle. Current RSI conditions and EMA alignment favor such a rally. The MMA ribbon on the chart above also confirms our deductions and indicates that the price has either reached a bottom or is a few weeks away from finding one. In any case, barring extenuating circumstances, Stellar Lumens (XLM) is poised for a big rally in the latter half of this year, one which will most likely begin before September 2018 and extend all the way to March 2019.
Brazilian Authorities Arrest Suspect Of Running Potential Crypto Money Laundering Scheme
Brazilian police arrested a man that was apparently running a crypto money laundering scheme in Brazil.
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Suspect Arrested of Running Crypto Money Laundering Scheme
According to the report, police found mining equipment valued at R$ 250,000, close to $63,000. These devices were switched on and running 24 hours a day mining Bitcoin. The room in which the equipment was found had little ventilation and no other security objects to run the operations.
The man claims that he owns the equipment to mine virtual currencies and that he entered the market in order to mine digital assets. At the same time, he said that he is not involved in illicit organizations dealing with drugs. The individual was also accused of stealing electricity to mine virtual currencies. Bitcoin mining requires large amounts of electricityand, depending on its price, it could be profitable or not to perform mining activities.
Adriano Nonnemacher, a police officer, commented:
“The flat is well-hidden. We are going to investigate further. Everything points to a Bitcoin mining operation. They could be exchanging the money and use it to fuel drug trafficking. Here is also a possibility that they are using the funds derived from drug trafficking to buy Bitcoin.”
At the same time, police officers decided to seize the mining equipment that could have entered the country in an illegal way from China.
Bitcoin has been several times linked to illegal activities around the world and in many different situations. However, there are some reports that show that most Bitcoin transactions are not related to illicit and criminal activities.
New York State Sees First Conviction for Crypto Money Laundering
A case involving millions of dollars in bitcoin and Western Union payments has resulted in New York State’s first conviction for cryptocurrency money laundering.
The Manhattan District Attorney’s Office announced Wednesday that defendants Callaway Crain and Mark Sanchez, both 35, laundered $2.8 million earned through sales of controlled substances carried out over the internet.
Between 2013 and 2018, the two men sold steroids and other drugs including Viagra across the U.S. via their website “NextDayGear” and on the dark web. They sold over 10,000 packages and accepted payments in cryptocurrency and fiat currency via Western Union, which they then laundered.
Customers usually paid in bitcoin, the Attorney’s Office said, with the defendants laundering the proceeds via one or more “intermediary” cryptocurrency wallets to obfuscate the source of the funds. The bitcoin was then converted to U.S. dollars using a cryptocurrency exchange platform before the cash was deposited into their bank accounts.
Western Union payments, on the other hand, were laundered through the use of false identities or international wire transfers from receivers outside of the U.S..
The duo has now pleaded guilty and faces a jail term of 2.5–7.5 years, with sentencing expected to take place on July 12.
Manhattan District Attorney, Cyrus R. Vance, Jr., said:
“These defendants raked in crypto and cash worth millions on their full-service website that sold prescription-free counterfeit steroids and other controlled substances to customers in all 50 states.”
“Online drug sellers who do business in New York should take note: whether you’re operating in plain sight or in hidden corners of the dark web, my Office has the skills and resources to follow the money, shut down your business, and hold you accountable,” Vance warned.
Just last week, the same DA’s office also indicted three individuals for dealing in drugs and laundering $2.3 million in cryptocurrency by using preloaded debit cards and withdrawing cash at ATMs in Manhattan and New Jersey.
Galaxy Digital CTO Out at Novogratz-Led Crypto Fund
Mike McMahon, chief technology officer at crypto merchant bank Galaxy Digital, has left the firm, CoinDesk has learned.
“I have already left Galaxy Digital and looking for my next opportunity,” he told CoinDesk Wednesday, declining to provide further details.
Galaxy didn’t respond to CoinDesk’s request for comment by press time, but it’s actively looking for McMahon’s replacement, according to a new job posting on LinkedIn.
The CTO should, among other things, “build, coach and provide hands-on leadership to the technology team” an “build a strong partnership with the business to ensure technology is supporting revenue-generating, client-facing business initiatives.”
McMahon joined Galaxy a year ago following a career at traditional financial institutions and mainstream companies, including Bank of New York-Mellon, Morgan Stanley and Goldman Sachs, according to his LinkedIn profile.
He also spent more than two years at ENSO Financial Analytics, a fintech company owned by Chicago futures exchange operator CME Group.
Galaxy Digital, founded by former hedge fund manager Michael Novogratz, is one of the most active investors in crypto startups. In recent months, it backed staking startup Bison Trails and crypto analytics firm CipherTrace.
In January, Galaxy announced it had raised $250 million to “offer loans in U.S. dollars to struggling crypto firms.” Before that, Novogratz signaled his own confidence in the enterprise despite the bear market when he bought 2.7 percent of Galaxy’s shares, increasing his total stake to about 79.3 percent.
Although based in New York, Galaxy Digital is listed on the Toronto Stock Exchange’s TSX Venture Exchange, where it went public via a reverse merger with a pharmaceutical company.