Monat: Juni 2022

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Analyst: ‘main market-native risk to crypto is contagion’

While Bitcoin (BTC) remains perched above $20,000 amid the crypto winter, digital asset market analyst Marcus Sotiriou says the main risk for the market is the contagion linked to the crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius Network.

For 3AC, today’s notice of default from Voyager Digital all but confirms the demise of the hedge fund, whose problems go back to the collapse of cryptocurrency Terra Luna in May.

Multiple companies exposed to 3AC

Crypto brokerage Voyager’s exposure to 3AC is via a loan of over $675 million – in $350 million of USDC and 15,250 BTC. Three Arrows is unable to repay the loan and hence Voyager’s attempt to explore legal means of getting the funds repaid.

And it’s not just Voyager, the rot affects multiple crypto firms that have had exposure to the crypto hedge fund, whose not-so-good investment practices could see it sink with others. Sotiriou says the contagion could be deeper. This is what the crypto market currently faces.

“As every major lender has been severely impacted by the demise of Three Arrows Capital, including BlockFi, Celsius, Voyager and Genesis, it is clear that the main market-native risk to crypto is contagion,” he said in emailed comments.

Together, these firms could see billions of dollars worth of investments go up in flames.

Notably, though, FTX founder and CEO, billionaire Sam Bankman-Fried is emerging as a ‘lender of last resort’ with his multiple bailout credit facilities. SBF noted last week that the key reason to help some of these firms is to “prevent contagion.” But he notes some may have to be left to die.

The post Analyst: ‘main market-native risk to crypto is contagion’ appeared first on CoinJournal.

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Bitcoin, Ethereum price levels to watch

The crypto market is coming off one of its worst months as June draws towards a close, with the crypto market capitalization once again moving closer to the $1 trillion mark thanks to fresh resilience among buyers.

Bitcoin and Ether, the top two cryptocurrencies by market cap, currently trade around $20,850 and $1,190 respectively. The leading crypto assets have an intraday high of $21,469 and $1,245 and both have managed to stay above the key support levels established over the week.

But where do the two cryptocurrencies go from here? What levels should investors watch on the downside?

Analyst says the 200-week moving average is key

According to Bloomberg analyst Joanna Ossinger, the key price levels are at the 200-week moving average. For Bitcoin, that is currently around the $22,000 level, while for Ether, it’s near the $1,100 mark.

However, the “round levels of $20,000 for Bitcoin and $1,000 for Ether are still a big deal,” she said during Monday’s Bloomberg Markets and Finance show. 

These levels provide the critical support zones for BTC and ETH respectively in case of fresh selling. If BTC/USD and ETH/USD hold above these zones, then buyers could be looking at new momentum above their 200-week moving averages.

On the downside, crypto analyst Rekt Capital says BTC could drop to prices near $16,000.

For Ether, il Capo says a drop to $700-$800 is possible.

The post Bitcoin, Ethereum price levels to watch appeared first on CoinJournal.

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The Sandbox token could slide below $1 if it breaks below the key $1.1 level

  • The Sandbox SAND has gained 43% in the past week.

  • Major organizations are building a virtual reality world in the Sandbox.

  • The SAND token could rise further if price rejects decline below $1.1.

Sandbox’s SAND/USD is showing renewed hopes. The metaverse token has returned 43% in 7 days. The return is the second-highest in the top 50 cryptocurrencies by market cap. SAND’s gains have been fueled by activity on the blockchain, alongside improving crypto sentiment.

The Sandbox is a blockchain that aims to power entities and individuals to the metaverse. The virtual world enables users to build, own, participate, and monetize their virtual experiences. The Sandbox is an enabler to the metaverse world. Its native token, SAND, is crucial in conducting transactions on the blockchain platform.

The Sandbox has lived to the expectation of a virtual world enabler. Large organizations and celebrities have partnered with the blockchain to move to the metaverse. The latest partnership was with TIME Magazine around a week ago. TIME said the partnership would catapult the brand to a virtual world in The Sandbox. These developments are fueling SAND’s rise alongside an improved sentiment. Investors should, however, watch key levels.

SAND/USD technical analysis

Source – TradingView

Technically, SAND hit resistance at $1.33. Investors could be taking profit after the week’s-long rally. The crypto-token will proceed down to find support at $1.1. However, with the uncertain crypto landscape, SAND could break below the support. If that happens, then the token could crash to the next support at $0.96. If the $1.1 support holds, investors could ride another fresh rally to the $1.33 resistance.

Summary

Investors should watch SAND at $1.1. A buy signal would be triggered if the level holds and crypto sentiment remains robust. A break below would see the token crash to $0.96.

The post The Sandbox token could slide below $1 if it breaks below the key $1.1 level appeared first on CoinJournal.

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Top 3 undervalued cryptocurrencies to watch

These three have the potential for 3 – 5X Gains in the next bull run.

Key Points:

  • Chainlink is growing in adoption, but the price is more than 80% off all-time highs.

  • Sandbox Metaverse is on a growth trajectory, but the price remains depressed.

  • Axie Infinity is trading at massive lows despite a fast-growing P2E gaming ecosystem.

The entire cryptocurrency market is significantly lower than at its peak in late 2021. Almost all cryptocurrencies are down by 70% or more. Under these circumstances, it is easy to assume that all cryptocurrencies are undervalued. 

However, if the 2018 correction and the recent high-profile collapse of the top 100 cryptocurrencies are anything to go by, then not everything is undervalued. Some cryptocurrencies were simply blown out of proportion by the hype in 2021 and may never recover. 

That said, crypto gems exist and look highly attractive to investors at current prices. Below are some of the top most undervalued cryptocurrencies to keep an eye on in the year. 

Chainlink – The king of decentralized oracles

Chainlink LINK/USD is one of the cryptocurrencies that have achieved dominance in a vital market aspect. Chainlink dominates more than half of the decentralized data oracles space. If its growing adoption is anything to go by, then the chances are that none of its competitors will dethrone it, at least in the foreseeable future.

Despite this dominance, Chainlink is trading at record lows. From highs of $50 last year, Chainlink is currently trading between $5 and $7. Adoption is on the rise though, an indicator that LINK’s intrinsic value is on the rise.

Due to this mismatch of value and price, there is a good chance that if bulls retake the market, Chainlink could reward investors with an impressive ROI.

Sandbox – Metaverse crypto with actual adoption

The Metaverse was all the hype towards the end of 2021. However, with the 2022 bear market, the excitement seems to have died down. That doesn’t mean that major developments are not happening in this space. Play-2-earn gaming and other aspects of the Metaverse are on a growth trajectory.

Sandbox SAND/USD has seen exponential growth in the number of games in its ecosystem since 2021. At the same time, Sandbox has recorded growth in other aspects of the Metaverse, such as virtual concerts. 

Despite these developments, SAND tokens are struggling to hold above a dollar, down from highs of $8 in 2021. It shows how massively undervalued SAND is, especially when you factor in analyst predictions of a trillion-dollar Metaverse market by 2030.

Axie Infinity – A fast-growing play-2-earn game

Like Sandbox, Axie Infinity AXS/USD has recorded a significant growth rate since it launched. So much so that it now has one of the most valued NFT collections in the cryptocurrency market. 

Despite the growth in Axie Infinity’s gaming ecosystem, AXS’s price has taken a significant hit in 2022 and is currently trading at under $20. This mismatch between price, and the ever-growing Axie Infinity intrinsic value, indicates potential growth once the market turns bullish again. 

In last week’s crypto rally, Axie Infinity rallied by 50%, indicating that if the market turns bullish again, AXS could be a big winner.

The post Top 3 undervalued cryptocurrencies to watch appeared first on CoinJournal.

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Large cap cryptocurrencies to watch in H2 of 2022

Avalanche and Solana’s core metrics give them a clear path for growth.

Key Points:

  • Avalanche subnets make the network attractive for use cases in Web 3.0. 

  • Avalanche’s double-digit price jump last week point to its high potential if bulls retake the market this year.

  • Solana network remains stable, a factor that could be a confidence booster now that the market is trading at record lows. 

As the market bounces from seemingly the worst cryptocurrency meltdown in years, it is time to start looking for cryptocurrencies that hold the most potential in the future. That said, the market is not entirely out of the woods yet. As such, it would be best to focus on the big cap low-risk cryptocurrencies for now. Among those that hold the most potential for gains are Avalanche and Solana. Here’s why. 

Avalanche – A scalable and reliable layer-1

Avalanche (AVAX) is proving to be one of the more successful layer-1 blockchains in the market today. It can comfortably handle over 4500 transactions per second and is always stable. Over the last year, these traits have seen the number of Dapps opting to run on Avalanche increase significantly.

At the same time, Avalanche is working on upgrades that could see it scale even better going into the future. One such upgrade is the subnets, which allows users to customize how they can use the blockchain to suit their purposes. 

For instance, with the Avalanche subnets, it is possible to create a network limited to a specific geographical area or features such as KYC. These features could open up a whole load of use cases for Avalanche, especially in the finance world. 

It is not surprising that Avalanche emerged as one of the top performers in last week’s mini-rally. It’s an indicator that if the market makes a full bullish recovery, AVAX could emerge as one of the year’s biggest winners.

Solana – Beyond the 2021 issues

Like Avalanche, Solana (SOL) rallied quite strongly in last week’s mini-rally, indicating that it is on the investor’s radar. Solana’s potential to rebound in 2022 is not just a matter of speculative buying. There are a lot of fundamentals behind it.

In the platform blockchains space, scalability is critical, and Solana is a winner on this front. The Solana network can handle up to 50k transactions per second at a negligible cost of just $0.01 or lower. 

This has seen Solana’s uptake rise sharply, especially for minting NFTs. Solana DeFi projects are on the rise, too. This growing demand will play a significant role in the value of SOL tokens going into the future.

Most importantly, the Solana network seems to have overcome the issues it was dealing with last year, mainly related to network outages. This is a big deal as the network outages were a big contributor to Solana’s price drop, over and above the broader market correction.

The post Large cap cryptocurrencies to watch in H2 of 2022 appeared first on CoinJournal.