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Apecoin (APE) to bottom at $5 as weakness continues

Apecoin (APE) has been showing strong bearish signs over the past week. The coin is now in steep decline as broader weakness in the market takes its toll. But how far can it actually fall? More on this below but first, here are some highlights:

  • APE has recorded 3 straight days of losses as bears take full control

  • The coin will likely bottom at $5 in this bearish cycle

  • This thesis will become invalided if bulls can push the price action above $7 

Data Source: TradingView 

Apecoin’s trajectory and why $5 matters

When Apecoin launched a few weeks ago, the coin simply went to the moon. At one point, it was even trading at around $25. But the expected correction soon followed. APE fell sharply, and in the whole of May, it has struggled to rise above $10. This weakness is set to continue as we end the month. 

APE has in fact closed in the red over the last three trading sessions. It was around 7% down in intraday trading today too. We expect this bearish trajectory to continue and eventually settle at $5. However, there is still some risk that APE could lose $5 if sentiment in the market becomes more bearish in the near term. 

If this happens, we could see a decisive drop towards $2. But bulls can still save APE from this downtrend if they manage to push the price above $7 before the close of trading today.

The long term outlook for APE

We do not think Apecoin will return to its $25 highs anytime soon. In fact, most estimates show that the coin will likely settle at around $15 this year. But before this happens, Ape investors will need to deal with potentially devastating downtrends. 

In fact, the possibility of this coin bottoming at $2 is high. However, this also means that opportunities to buy for long term investors will present themselves.

The post Apecoin (APE) to bottom at $5 as weakness continues appeared first on CoinJournal.

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STEPN (GMT) drops by 37% in minutes – Here is why

STEPN has dominated the news cycle in crypto over the past few weeks. The coin is one of the most popular lifestyle web3 projects that pays users to move. However, its native token GMT fell sharply today in minutes. Here are some of the details:

  • STEPN dropped by over 37% in just a few minutes after news it was withdrawing from China

  • The project cited regulatory hurdles as the reason for the withdrawal

  • GMT stabilised later in the day and managed to recover some of those losses

Data Source: TradingView 

STEPN (GMT) – Price analysis and prediction

STEPN has developed a unique web3 lifestyle approach. This has made the project and its native GMT token quite popular in recent days. However, news of the Chinese withdrawal appeared to rattle investors. GMT saw 37% of its value vanish in just a few minutes. At one point the coin even lost the $1 price and was trading at around $0.7. 

Despite this, the GMT token managed to recover. In fact, GMT regained the $1 mark shortly after the mini-crash. Even though the token is now down 8% over the last 24 hours, it has managed to keep the price action above the $1 mark.

Based on this, it is clear that the initial shock of the Chinese withdrawal has abated. Investors have already priced in any possible disruption and as such, GMT will likely consolidate at $1 before it tries to move up again.

Why is STEPN a good investment?

Built on Solana, STEPN markets itself as a web 3 lifestyle app. The project has created a metaverse where users earn rewards when they get out of the house and move. Users must buy NFT backed sneakers and integrate GPS into their phones to earn. 

Over the last few weeks, GMT, the native governance token for the STEPN metaverse, has seen immense growth. The project is by far one of the most innovative applications of web3 concepts in real life.

The post STEPN (GMT) drops by 37% in minutes – Here is why appeared first on CoinJournal.

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3 projects on Solana that could revolutionise P2E gaming and the metaverse

Solana is one of the biggest blockchains in the world. The project was in fact referred to as the ultimate “Ethereum Killer” based on what it has to offer. Over the years, Solana has grown and is now attracting a series of play to earn and metaverse projects with massive potential. Here is why:

  • Solana offers incredible transaction speeds for P2E and metaverse apps.

  • The chain is also known for its low gas fees, making P2E more sustainable.

  • Solana is a highly scalable and adaptable chain too.

So, if you are looking for potentially big P2E and metaverse investments, these three Solana based projects below should be worth it:

Star Atlas (ATLAS)

Star Atlas is a galactic themed game set in a vast metaverse. The game brings together three major factions where users can form guilds and build planetary empires. Each player needs an NFT backed spaceship to enter. Data Source: TradingView 

There are many rewards all throughout the game. Star Atlas is known for its epic gameplay, amazing graphics, and excellent features. It has also been attracting a huge number of players. It sure has a big future and is worth looking at.

Aurory (AURY)

Aurory is a role-playing game from Japan. The game is an adventure style metaverse with retro-style features. Players get various game modes. They can start off with a solo adventure or go on multiplayer modes where they engage with friends. There are tons of rewards within the game too, and so much to discover. The Aurory metaverse has also been expanding and adding incredible new features.

Genopets (GENE)

Genopets is a fun and exciting game that also doubles up as a lifestyle app for folks who love to get out. There are many NFT rewards too, and while the project is facing a lot of competition from other moves to earn games, it’s a great investment option.

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What’s happening with Waves’ rollercoaster 2022 price action?

Rollercoaster is a term frequently used in cryptocurrency. It’s certainly the first bit of vocabulary that comes to mind when looking at the Waves chart. The coin gained 240% in March 2022, yet has given back all those gains and more, and now trades 70% below where it opened on New Year’s Day.

It’s currently ranked 81st on CoinMarketCap. Back in 2017, it was in the top 20, before competitors such as Solana, Matic and Polkadot surged onto the scene.

So what’s going on here?

First, what is Waves?

A multi-purpose blockchain capable of supporting various decentralised applications and smart contracts, Waves’ summary reads as an alternative to Ethereum, really. Most popularly, it grants users the ability to create and trade custom crypto tokens at ease. No extensive smart contracts are needed, rather the currencies can be run via scripts off user accounts built on the Waves blockchain.

Why the crazy price action?

The chart below, plotting the market cap of WAVES since the start of the year, requires only a glance to realise how unusual the price action here has been.

The March boom was caused by a few variables. Anticipation over the Waves 2.0 upgrade. The announcement of a $150 million fund to boost applications and protocols running on its blockchain. Additionally, the below tweet re-affirming Waves’ founder Sasha Ivanov as Ukrainian seemed to also provide some impetus.

But why the staggering fall since, down 93% from the peak? The most concerning was analysis circulating on Twitter that the team were involved in manipulating the price of its native token through its own DeFi lending protocol Vires.finance. It is important to note that Ivanov dismissed these as false, instead laying the blame on Alameda for manipulating price while simultaneously launching a hostile media campaign to induce panic selling in the markets.

USDN De-Pegging

Either way, the debate quelled enthusiasm for the token, which was reflected in the price. That all got worse when, and stop me if this sounds familiar, a stablecoin started de-pegging. USDN is the coin in question, and works similarly to Waves as UST did to Luna.

Measures by Ivanov to fight back against a de-pegging event were controversial – reducing liquidation thresholds, limiting borrowing and instilling max APRs. Amid the furore, the Waves token has continued to fall, however, while the liquidity in the Vires.finance protocol has done the same.

Now, the team has released a proposal to revamp the approach and recover faith in USDN following the de-pegging, down to as low as 75 cents last month, and still trading below 97 cents at the time of writing.

Revamp

USDN is currently backed by roughly 40 million WAVES which are leased to two generating nodes. Half of the generated WAVES leasing profit is sent as rewards to USDN stakers and the other 50% gets sent to the smart contract to increase the USDN reserves.

The team is striving to decentralise and solidify the peg control mechanism, and therefore seeking crypto investors and community members “who are willing to run their own nodes for the needs of Neutrino to improve the reliability of the system and make their own interest”.

  • The addition of participants will be gradual and on a one-by-one basis.
  • Maximum participants cannot exceed 80.
  • To begin, each participating node will get 1 million WAVES in leasing, with this amount changing in the future with the possibility of additional participants.
  • Participants will be combined in groups of 10 addresses to simplify the management of the leased amounts.

Phase two of the program will provide the community the chance to govern the decentralisation through voting.

Conclusion

Whether this will re-instil confidence among the community following the de-pegging remains to be seen. The meltdown of the UST stablecoin obviously sent shockwaves through the entire space, but with USDN possessing so many parallels, the pain was more pronounced here than elsewhere.  On the bright side, the Waves team recognised there was action required and is now acting accordingly. If they can learn from Terra’s errors and make the necessary adjustments, there could be a rebound. If not, all bets are off. 

It will be an interesting one to follow.

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