Home Blog

Crypto Roundup: September 29th, 2020

0

Bitcoin is once again approaching $11K, after swiftly recovering from a drop alongside stocks and gold early last week.

The leading cryptocurrency fell to $10K before bouncing amidst bullish headlines, including news that British overseas territory Bermuda had approved a Bitcoin ETF. Although not on U.S. soil, the event has created a stir among traders, who have long anticipated that a Bitcoin ETF listing could trigger a meteoric rise like the one that followed the first Gold ETF in 2003.

Ahead of Bitcoin, little brother Ethereum recovered even faster from the fall. The second-largest cryptocurrency has pushed up almost 3% over the last seven days as it races to catch up with the week’s biggest winners — Cardano and Tezos.

This Week’s Highlights

  • Cardano Climbs Above $0.10
  • Tezos Rides Tokenized Art Trend

Cardano Climbs Above $0.10

A surprise ask-me-anything session with Cardano founder Charles Hoskinson catalyzed a 20% surge for the platform’s native token, ADA, last week. In the session, Hoskinson shared details of the upcoming network upgrade, Goguen. This represents a big step forward as it will allow developers to build decentralized applications (dApps) on Cardano.

Bullish Cardano sentiment has been bolstered further by news that IHOK, the company behind the platform, is working with the United Nations to incentivize the development of blockchain projects aimed at boosting sustainability.

Tezos Rides Tokenized Art Trend

Self-governing smart contract platform Tezos has risen almost 7% over the last week.

As one of the leading tokenization platforms, the rally could be related to rising interest in non-fungible tokens (NFTs). These on-chain crypto-collectibles and unique art pieces have garnered increased attention in recent weeks amidst the DeFi boom.

Aside from hosting digital artwork, Tezos could also be helping small Chinese businesses to build and deploy blockchain apps. China’s government-backed blockchain infrastructure initiative, the Blockchain Service Network, announced this week that it has now fully integrated Tezos.

The Week Ahead

Although September has been a relatively quiet month, some suggest this is a bullish sign, with data from Messari showing that Bitcoin has never before managed to stay above five figures for so long.

This buoyancy is particularly impressive given the recent KuCoin hack, which could continue to impact crypto markets in the coming week as hackers seek to offload more than $150M in stolen funds.

As we move into October, the impending U.S. election is likely to dictate price action across global markets, along with fears of a second wave of coronavirus cases. This could come to a head on Friday when the latest jobs report will give fresh insight into the state of the economy.

Image by Gerd Altmann from Pixabay

Chainlink (LINK) Bulls Facing Uphill Task: Here’s Why $11 Holds The Key

0

Chainlink (LINK) started a strong upward move from the $7.32 low against the US Dollar. The bulls are now facing a strong resistance near $10.50, $11.00, and the 100 SMA (H4).

  • Chainlink token price gained nicely above the $8.50 and $9.00 resistance levels against the US dollar.
  • The price is now facing hurdles near the $10.50 resistance and the 100 simple moving average (4-hours).
  • There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The pair could either rally above $11.00 or it might trim all gains to drop back at $7.50.

Chainlink (LINK) is Facing Hurdles

This past week, we saw a sharp rise in chainlink (LINK) above the $8.50 and $9.00 resistance levels against the US Dollar. The price remained well bid after it settled above the $9.00 pivot level.

There was also a break above the 50% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low. However, LINK price ran into a significant resistance at $11.00 and the 100 simple moving average (4-hours).

It seems like price is struggling to clear the last breakdown zone at $10.50 and $11.00. The 61.8% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low is also acting as a strong resistance for the bulls.

LINK price trades below $10.00. Source: TradingView.com

The price is currently correcting lower (similar to bitcoin and ethereum) and trading below $10.00. There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair.

If there is an upside break above the channel resistance and $10.50, there are high chances of a sharp increase above the $11.00 resistance zone. In the stated case, the price could rally towards the $12.50 and $13.20 resistance levels.

Fresh Decline?

If chainlink’s price fails to clear the $10.50 resistance and stays below the 100 simple moving average (4-hours), there is a risk of a sharp decline.

An initial support on the downside is near the channel lower trend line at $9.40 level. The main support is near the $9.00 level, below which there are real chances of a drop towards the $7.50 level in the near term.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 50 level.

Major Support Levels – $9.40, $9.00 and $8.50.

Major Resistance Levels – $10.40, $10.50 and $11.00.

93% of the top 250 coins declined in price in September

0

Over the last few months, DeFi protocols including Yearn.Finance, Compound, Synthetix, and Chainlink have seen their token prices go through the roof, sparking talk that the long-awaited bull market might be here. 

The DeFi boom is built on Ethereum and propelled ETH’s price rise from $100 in March to $470 in August.

However, the DeFi euphoria has been fading in recent weeks, and there is bearishness in the rest of the market too. For the past two weeks, ETH price has been hovering at around $350.

And according to CoinMetrics, 72% of the top 250 crypto assets have declined in price week over week, and that number increases to 93% for the month over month analysis. Looking at Messari’s DeFi chart, across September, most DeFi tokens corrected by anywhere between 15% – 85%, with bZx Network losing 85%, Curve down 78%, Swerve (-76%), Ren (-57%), Balancer (-53%), THORChain (-52%), Synthetix (-34%) and AAVE (-29%).

To better understand what’s going on here, let’s look at a rolling 7-day metric using the ratio of assets making new 30 day highs less a ratio of those making 30 days lows. The chart shows bearish levels not seen since the selloff in March of this year — but thankfully still a long way off the depths of crypto winter in 2018.

While the recent pullback has some traders wondering if the party is over, trend reversals are common in bull markets. During the bull market of 2017, there were numerous price retracements.

For instance, in early 2017, when Bitcoin hit $1,180 for the second time, it triggered a massive sell-off and the top cryptocurrency fell by almost 40%. And of course, that didn’t stop Bitcoin from reaching an all-time high around $20,000 later that year.

 In its newsletter this week, DeFiWorld suggested corrections were normal and just part of a larger trend, adding this year reminded them of 2016.

“We move in bubbles and 4-year cycles. While everyone is just thinking about what happens today, this week, or this month, you should zoom out and reflect where we are really heading. The long term trend is clear: It’s upwards.”

Reddit’s MOON token has a $2.64 septillion market cap

0

In defiance of Reddit’s apparent wishes, crypto traders have devised a way to exchange the social platform’s ‘community points’  tokens for fiat — and it’s resulted in a pretty surprising market cap. 

In May Reddit announced it would begin distributing ERC-20 rewards tokens on the Rinkeby testnet among users of its cryptocurrency and Fortnite subcommunities in the form of ‘MOONs’ and ‘BRICKs.’ The tokens are distributed according to a user’s contributions to the respective subreddits.

xMOON pairings appeared on xDai network exchange Honeyswap last week after Reddit introduced a feature allowing Moons to be converted into ‘coins’.

MOON holders can now trade the tokens by converting them to xMOON via xmoon.exchange, and then exchanging the xMOONs for xDAI — which can be converted to the stablecoin DAI 1:1 — via Honeyswap.

Reddit’s crypto community token is currently changing hands on Honeyswap for $0.088 worth of xDAI. Pairings for xMOON have generated $174,000 in volume over the past 24 hours.

According to Etherscan, more than 30,000,000,000,000,000,000,000,000 (30 septillion) MOONs have been distributed to roughly 7,800 addresses, meaning that the token’s market capitalization is roughly $2.66 septillion.

By contrast, the entire global economy was worth roughly $133 trillion in 2019, suggesting that the creation of MOONs has increased the value of the world’s economy by close to 2 trillion percent. Who said crypto wasn’t good for the economy?

After trading for approximately $0.015 for its first two days of trading, xMOON rallied to post all-times of $0.35 on September 26, before retracing back to $0.055 by September 30.

xMOON/xDAI: Honeyswap

Reddit is currently hosting a contest for developers working on scaling solutions that could facilitate the launch of the platform’s tokens on the Ethereum (ETH) mainnet, ideally before 2021.

Ethereum Bears Hold Strong At $360: Indicators Show Risk of Downside Break

0

Ethereum is struggling to clear the $360 and $365 resistance levels against the US Dollar. ETH price is showing bearish signs and it could dive below $350 and $345.

  • Ethereum is still facing a heavy resistance near the $360 and $365 levels.
  • The price is currently stuck near the $355 support and the 100 hourly simple moving average.
  • There is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to continue lower if it breaks the $352 and $350 support levels.

Ethereum Price is Facing Many Hurdles

Ethereum remained stable above the $350 support level, but it is still facing a heavy resistance near the $360 and $365 levels. ETH started an upward move from the $350 low and climbed above the 100 hourly simple moving average.

There was a break above the 23.6% Fib retracement level of the downward move from the $369 high to $350 low. However, the $360 resistance and the broken bullish trend line seems to be acting as a strong resistance for the bulls.

The 50% Fib retracement level of the downward move from the $369 high to $350 low is also acting as a resistance. Ether price is currently declining and trading near the $355 support level.

Ethereum price trades below $360. Source: TradingView.com

It seems like there is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD. If ether continues to move down and breaks the trend line support at $352, there is a risk of a bearish break.

The next major support is near the $350 and $348 levels, below which the bears are likely to aim a larger decline towards the $335 support level in the near term.

Chances of Upside Break in ETH?

If Ethereum manages to stay above the $352 and $350 support levels, there are chances of an upside break. An initial resistance is near the $360 level.

The first key resistance could be near the $362 level, above which the bulls might aim a clear break above the $365 resistance level. The next major resistance is near the $375 zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly moving back into the bearish zone.

Hourly RSIThe RSI for ETH/USD is currently declining and it is well below the 50 level.

Major Support Level – $350

Major Resistance Level – $360

Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $11K

0

Bitcoin price is stuck in a broad range below the $11,000 resistance against the US Dollar. BTC is likely to decline sharply if it continues to fail near $10,800 and $11,000.

  • Bitcoin is struggling to gain bullish momentum and it is well below the $11,000 resistance.
  • The price is approaching the 100 hourly simple moving average and the $10,750 support.
  • There is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could either surge above $10,850 or it might start a fresh decline towards $10,200.

Bitcoin Price is Stuck in a Range

After a sharp bearish reaction from the $10,950 zone, bitcoin price found support near the $10,650 level against the US Dollar. The bears made a couple of attempts to clear the $10,650 support, but they failed.

The recent low was formed near $10,647 before the price recovered above $10,750. The price traded as high as $10,860 and it is currently correcting lower. There was a break below the 23.6% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin is now approaching the 100 hourly simple moving average and the $10,750 support. It is close to the 50% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin price trades below $10,800. Source: TradingView.com

It seems like there is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair. To start a strong increase, the price must clear the triangle resistance and then the $10,950 zone.

The main hurdle is still near the $11,000 resistance, above which there are real chances of a sustained upward move towards the $11,500 and $11,600 levels in the near term.

Downsides Break in BTC?

If bitcoin fails to climb above the $10,800 and $10,850 resistance levels, there is a risk of a downside break. The first key support is near the triangle lower trend line or $10,650.

A clear break below the $10,650 support might increase chances of more downsides below the main support zone at $10,550. In the stated case, the price is likely to dive towards $10,200 or even $10,000 in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently testing the 50 level.

Major Support Levels – $10,650, followed by $10,550.

Major Resistance Levels – $10,850, $10,950 and $11,000.

Bulls target $11.5K, bears desire drop to $9.8K

0

Bitcoin (BTC) price appears to be gearing up for another shot at the $11K mark but traders shouldn’t get overly excited as resistance in the $11,000-$11,200 zone and at $11,389 have kept the price from moving higher for the last few weeks. 

Crypto Fear & Greed Index. Source: Alternative.me

Currently the Crypto Fear & Greed Index registers 49 which shows crypto investors feel neutral about the current state of the market. While it’s difficult to gauge the accuracy of the indicator, Bitcoin price and volume have been relatively flat as the price is basically pinned between $9,900-$11,200. 

BTC/USDT daily chart

BTC/USDT daily chart. Source: TradingView

As the daily chart shows, since Sept. 18 Bitcoin price has bounced between the trendlines of the symmetrical triangle and if the compression continues investors will start to look for a decisive move to occur in the coming week.  

In the event that the price drops from the symmetrical triangle the volume profile visible range (VPVR) shows buying interest from $9,950 to $9,200 and looking back to Sept. 3 through Sept. 10 bulls consistently purchased dips below $10,000. 

As mentioned in a previous analysis, for the moment it seems that traders are waiting on Bitcoin price to make a stronger move above $11,500 or below $9,800 before becoming more engaged with the market. 

DeFi tokens fall flat as Bitcoin price consolidates

While Bitcoin price has held a relatively stable range, DeFi tokens appear to have lost their bullish momentum. 

At the time of writing CoinGecko’s Top 100 DeFi Coins index shows that 45 of the 100 listed tokens have registered losses in the past 24-hours and Uniswap data shows volume has declined when compared to the $953 million record reached on Sept. 1. 

Uniswap daily trading volume

Uniswap daily trading volume. Source: Uniswap

Even top DeFi darlings like Yearn.finance (YFI), Aave (LEND), and Chainlink (LINK) have corrected sharply in the last month and traders will note that YFI is currently down 43% from its all-time high at $44,000. 

Some analysts have suggested that the profits and funds invested in DeFi protocols are steadily making their way back into Bitcoin but data is yet to support this narrative. 

Bitcoin price daily performance

Bitcoin price daily performance. Source: Coin360

As Bitcoin and DeFi tokens search for momentum, altcoins managed to accrue marginal gains. At the time of writing, Ether (ETH) is up 0.50%, Binance Coin (BNB) has added 5.19%, and Cosmos (ATOM) rallied 8.39%.  

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $346.5 billion and Bitcoin’s dominance index is currently at 57.6%.

Keep track of top crypto markets in real time here

StrongBlock launches DeFi protocol but token prices slump 70%

0

Just-launched DeFi protocol StrongBlock has announced the integration of Chainlink oracles — however its native token’s price tumbled 70% today. 

The platform, founded by former members of the original EOS core team, was launched on Sept. 29. StrongBlock says that low quality and insecure blockchain nodes can be unreliable and provide erratic market data, especially if they get out of synch. The protocol’s core concept is to shift the emphasis away from rewarding validators, to rewarding node security, as a way to improve public blockchain performance.

Bitcoin Cash evangelist, Roger Ver, gave the project a shout out:

Mining rewards are in the form of Ethereum and Chainlink tokens and StrongBlock announced Sept. 30 it had integrated Chainlink’s price oracles for LINK/ETH and ETH/USD to determine the prices of its own token called STRONG.

With a total supply of 10 million STRONG, around 4.89 million have been allocated to the shareholders, founders, and team. A third of this allocation was unlocked along with the DeFi protocol launch and it appears some are being dumped. Following an initial surge from $180 to $275, STRONG prices have tanked over 70% today to $66 according to Uniswap.info.

StrongBlock, launched its Blockchain-as-a-Service platform in February 2020, and selected the Ethereum network due to the network effects of the blockchain hosting the majority of DeFi platforms. The move has raised eyebrows however, as it was founded by members of the original EOS core team and Block.one company executives.

CEO and co-founder of StrongBlock, David Moss, acknowledged that Ethereum is the heart of DeFi at the moment, and that EOS does not have as much support at present. The protocol is looking for existing and new Ethereum full nodes to be listed in order to start earning mining rewards. A guide was published on September 24 to advise on the requirements of getting a node listed on the protocol.

Bitcoin’s Network Health Plunges as New Investors Stop Buying BTC

0

Bitcoin’s price has been facing some turbulence throughout the past couple of days and weeks, with buyers and sellers being unable to catalyze any clear momentum in either direction.

Earlier this week, bulls roared when they sent the crypto rallying up towards $10,800, but the resistance just above this price level slowed its ascent, stopping BTC from testing $11,000.

Following a short bout of consolidation, the cryptocurrency eventually began drifting sideways, before facing selling pressure yesterday that sent its price plunging down to lows of $10,500.

Although it subsequently rebounded from these lows and has been trading sideways ever since, it is important to note that the cryptocurrency’s network health has been declining over the past week.

This has come about due to the lack of new entrants to the Bitcoin network, with its turbulent price action likely hampering its adoption amongst new users and investors.

Until there’s more clarity when it comes to the cryptocurrency’s price, it may continue seeing declining fundamental strength.

Bitcoin’s Price Action Creates Air of Uncertainty Amongst Investors 

Throughout the past few days and weeks, Bitcoin’s price has been struggling to garner any momentum in either direction.

It has mostly been consolidating between $10,200 and $11,200, and until one of these levels is decisively broken, its outlook remains unclear.

It is important to note that this has caused trading liquidity on exchanges to trend lower throughout the past week, according to analytics platform Glassnode. On-chain transactional liquidity, however, has been trending higher.

“While trading liquidity decreased due to lower exchange deposits, transaction liquidity rose due to an increase in the volume of BTC transferred on-chain,” they explained.

Until Bitcoin determines its mid-term trend, it may continue watching its liquidity plunge lower.

Glassnode: Network Health Declining Due to Lack of New Users

In their latest weekly update, Glassnode explained that Bitcoin’s network health has also been declining over the past week, which primarily stems from weakness in their “network growth” category.

“Network Health dropped from a score of 74 to 64 points over Week 39, decreasing by 13.5%. The network growth subcategory lost 8 points due to a decline in the number of new users joining the Bitcoin network. Meanwhile, network activity dropped by 10 points as the number of BTC transactions also fell.”

Image Courtesy of Glassnode.

The sharp plunge seen across new users joining the Bitcoin network, transaction volume, and liquidity points to some mounting fundamental weakness.

This could all rapidly shift if the cryptocurrency makes a trend-defining move in the near-term.

Featured image from Unsplash.

Chainlink Downtrend Could Continue Toward New Lows Despite Record Rebound

0

Chainlink recently saw a record-breaking rebound, closing an intraday rally with more than 30% gains on the day. The recovery kept climbing but has since turned around at the top of a downtrend channel that thus far has been holding.

Will the downtrend take the cryptocurrency lower? And what other factors back up any theories predicting more downside in the altcoin ahead?

Chainlink Downtrend To Deepend, Following Record-Breaking Rally And Rejection

Last week, after sweeping lows, Chainlink rebounded from under $8 back up to over $11 at the local high. The over 30% surge broke records for the most green day in all of 2020 – a year where the altcoin has been just about unstoppable.

The year started off with the cryptocurrency setting fresh highs, only to collapse during the Black Thursday carnage to nearly zero.

The bounce from lows sent Chainlink on a journey toward price discovery mode, and eventually peaked at $20 per LINK token.

From that peak, however, a downtrend channel has formed, and despite a record-breaking rally last week, the cryptocurrency was unable to break free. Failure to break out from the downtrend, could lead to new local lows.

LINKUSD Daily Downtrend Pitchfork Channel | Source: TradingView

Technical Indicators Gives Credence To Crypto Asset’s Further Collapse

Downtrend channels are subjective, extended across price action manually using technical analysis drawing tools. But technical analysis indicators are created using precise mathematical formulas, leaving little room for interpretation and user error.

These various tools, also suggest that Chainlink is ready for another dive lower.

According to the Bollinger Bands, a volatility measuring tool consisting of a moving average and two standard deviations, Chainlink was just rejected from the “mid-BB.” Rejections from this area, often are followed by a move to retest the lower band.

Reclaiming the middle-line, would suggest the opposite and send Chainlink towards the top of the band.

LINKUSD Daily Middle Bollinger Bands Rejection | Source: TradingView

The Bollinger Bands aren’t the only indicator backing up the idea behind the downtrend channel. The Ichimoku indicator also paints an extremely bearish picture.

The “at a glance” indicator says a lot about price action. Looking backward on the chart, the chikou span, or lagging span, shows the price line hanging onto weak support.

LINKUSD Daily Ichimoku Rejection | Source: TradingView

The chikou span traces back 26 trading sessions and helps plot support and resistance levels. The chikou span looks back, but the cloud looks ahead. The cloud itself is twisted bearish, suggesting bearish future price action.

Finally, the kijun-sen (red) is above the tenkan-sen (blue) line signaling bearish price action, and Chainlink itself is in the process of being pushed downward further by the kijun-sen.

Using the Ichimoku indicator to find potential levels of support lower than the previous level that held, points to targets of $6 and $4.80 per LINK token. Unless the cryptocurrency can burst upward out of the downtrend channel, that is.

Featured image from Deposit Photos, Charts from TradingView

Loading data ...
Comparison
View chart compare
View table compare