Monat: Juli 2022

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Should you buy Axie Infinity as the price shoots 6% amid crypto recoveries

  • Axie Infinity token has surged by 6% in 24 hours.

  • The blockchain allows players to earn AXS tokens for participating in a competition.

  • AXS remains in a bearish market despite the reopening of Ronin Bridge.

Axie Infinity AXS/USD is a beaten-down cryptocurrency. The token of the play-to-earn game platform trades at $14.25. The level is significantly lower from an all-time high of $170 last year. Besides the crypto weakness this year, AXS was weighed by Ethereum’s Ronin Bridge hack. The attack, which dates March this year, led to the loss of over $600 million worth of USDC and ETH. The attack exposed the vulnerabilities of side chains, which some networks like Axie Infinity relied on.

At the bottom $14 price, the Axie Infinity token has defied positive developments. In late June this year, Ronin bridge reopened with improved security features. AXS has proceeded lower despite the news. This thesis postulates that the AXS bearishness emanates from the weakness in the crypto sector. It means that investors remain skeptical. Some platforms, such as Axie Infinity, continue to attract low interest. 

AXS trades below the moving average

Source – TradingView

From a technical outlook, AXS is still bearish. The token rallied 6% in the day but remained below the 14-day and 21-day moving averages. That confirms that it is yet to become fully bullish. The MACD indicator is at the same level as the moving average, which also fails to confirm a bullish push. We need further confirmation before buying AXS. A break above the moving average and a bullish MACD indicator will show when buyers are settling in. However, we need the crypto sentiment to improve to see long-term AXS recoveries.

Summary

AXS remains on a bearish trend. The price is yet to recover after the opening of the Ronin Bridge. There are no confirmed bullish signals for the Axie Infinity token.

The post Should you buy Axie Infinity as the price shoots 6% amid crypto recoveries appeared first on CoinJournal.

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What is Bitcoin Cash, and should you buy it now?

  • Bitcoin Cash is a blockchain hard forked from Bitcoin

  • Bitcoin Cash has faster and cheaper transactions than Bitcoin

  • BCH has gained by more than 5%, displaying some similarities to Bitcoin

Bitcoin Cash BCH/USD is a cryptocurrency ranked at position 30 by market cap. The cryptocurrency was created from a hard fork of the Bitcoin network on August 1, 2017. Bitcoin Cash was meant to solve the challenge of slow and costly transactions on the Bitcoin network. 

Bitcoin Cash has major resemblances to Bitcoin. Both have a hard cap of 21 million tokens. Besides, Bitcoin Cash is a proof-of-work blockchain like the mother blockchain. However, BCH is faster and carries lower fees. As such, it can support smaller transactions besides having smart contract functionalities.

BCH, the native token of Bitcoin Cash, was not spared by the recent crash. The token trades at $104 from above $400 at the beginning of the year. At press time, BCH has been up 5.10% in the last 24 hours. That’s roughly the same gains as 5.16% recorded for Bitcoin. We find almost similar trends in the price movement of BCH and BTC. Investors could be looking at BCH as an alternative when most cryptocurrencies recover. But should you buy it now?

Bitcoin embarks on a bullish momentum but faces resistance.

Source -TradingView

Technically, BCH has a short-term bullish momentum. The cryptocurrency is recovering as bullish sentiment develops. The MACD indicator has moved above the moving average, signaling a bullish push. The 14-day and 21-day moving averages offer support for BCH. We expect BCH to continue rising in the short term. The cryptocurrency will face resistance at $111. 

Concluding thoughts

Although BCH is recovering, we can’t confirm a lasting bullish momentum. Short-term investors should hold up to $111. Long-term buys are recommended, although a price drop is possible at the $111 resistance.

The post What is Bitcoin Cash, and should you buy it now? appeared first on CoinJournal.

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Tezos co-founder says Celsius going bankrupt was inevitable

Tezos co-founder Kathleen Breitman says the eventual filing for bankruptcy by embattled crypto lender Celsius Network is not surprising at all.

Breitman, commenting on the unfortunate turmoil that’s threatening to suck any pending warmth from an already cold crypto winter, said the lender’s trajectory towards trouble was inevitable.

The die was cast for Celsius

According to the Tezos co-founder, a suspect business model, underpinned by the massive yield offered to investors and the crypto price crash spelled bleakness for the likes of Celsius.

So when crypto hedge fund Three Arrows Capital collapsed and filed for bankruptcy, followed by crypto brokerage Voyager Digital, the die was cast for Celsius.

The lender, which paused customer withdrawals in early June, indicated in its filing that total liabilities stand at $5.5 billion, with over $4.7 billion owed to users. However, the total assets are about $4.3 billion to leave a $1.2 billion hole in the balance sheet.

Before the bankruptcy filing, Celsius had been hit by a class action lawsuit brought by a former employee. The lawsuit alleged that the crypto lender had, among other things, disregarded risk management practices and even manipulated the market by artificially inflating the price CEL, its native token.

Before hitting the wall, the lawsuit alleges Celsius had operated more like a Ponzi scheme, using new customer deposits to sustain withdrawals.

These are the events that paint a picture of a company doomed to fail.

“For those of us who’ve been in this industry for quite some time, it’s completely unsurprising that something like Celsius would go bankrupt,” she told Bloomberg Technology.

She added that this outcome was likely “because economics does have laws that transcend the word blockchain.” The unfolding, she explained, is a “shakeout” of what wouldn’t just work – especially for businesses that staked their future on “the theory that numbers will always go up.”

The post Tezos co-founder says Celsius going bankrupt was inevitable appeared first on CoinJournal.

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Lido price prediction: Here’s why the LDO token is rising

Lido price continued its recovery trend as blue-chip DeFi tokens continued surged. The LDO token rose to a high of $1.2534, which was the highest point on May 26th. It has risen by almost 200% from its lowest level this year.

DeFi blue-chips jump

Lido is a leading player in the decentralized finance (DeFi) industry. It is a platform that provides liquidity solutions for staked assets. One of the best-known staked assets that in Lido is sETH, which is pegged to Ethereum’s Beacon Chain.

According to its website, Lido has over $5.2 billion worth of staked assets in its ecosystem. Most of these assets are linked to its Ethereum platform. The other popular assets are Kusama, Polkadot, Polygon, and Solana. 

Lido is the fourth biggest DeFi platform in the world with a total value locked (TVL) of more than $5.2 billion. The three biggest ones are Maker, Aave, and Curve Finance.

Lido price is rising as investors buy the dip in blue-chip DeFi tokens. Indeed, these tokens have become the best-performing in the industry. They include coins like COMP, AAVE, CRV, and UNI.

It is unclear why these coins have surged recently. A likely reason is that investors believe that the tokens will become dominant players in the financial industry. For example, while many dot com companies went bankrupt during the last dip, many others like Google and Cisco thrived. 

Another reason is that investors believe that DeFi platforms will be more popular than centralized platforms. That’s because recently, many well-known brands in the industry like Celsius, Voyager, and Vauld have gone out of business. 

DeFi platforms are usually more transparent since they are usually built using open source technology. Further, LDO price has risen because Staked Ether seems to be regaining its peg.

Lido price prediction

The four-hour chart shows that the LDO price has been in a strong bullish trend in the past few weeks. The coin has managed to move from a low of $0.4198 in June to the current $1.2534. It has risen above the 25-day and 50-day moving averages. It has also risen above the key resistance levels at $0.9454 and $0.7345. 

Therefore, it seems like there is a bullish momentum, meaning that the coin will keep rising as bulls target the key resistance at $1.50. This view is in line with my previous LDO price.

The post Lido price prediction: Here’s why the LDO token is rising appeared first on CoinJournal.