Monat: Juli 2022

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Here is why MATIC is up by more than 10% today

The cryptocurrency market is yet to kick the ground running this week and could end the week trading in the negative zone.

The cryptocurrency market has been underperforming since the start of the week. Over the last 24 hours, the total market cap is down by less than 1% and currently stands above $880 billion. 

Bitcoin is looking to surge past the $20k resistance mark again despite going down by 0.5% over the past few hours. Ether, on the hand, is looking to climb above the $1,100 resistance point after adding 1% to its value today.

However, MATIC, the native token of the Polygon ecosystem, is the best performer amongst the top 20 cryptocurrencies by market cap. MATIC is up by more than 10% in the last 24 hours, outperforming the other major cryptocurrencies.

The primary catalyst behind the ongoing rally is the announcement that Polygon is the only blockchain project chosen to be a part of the Disney Accelerator program. 

The 2022 Disney Accelerator, is a business development program designed to accelerate the growth of innovative companies from around the world.

Key levels to watch

The MATIC/USD 4-hour chart has turned bullish as Polygon has been performing well over the past 24 hours.

The MACD line is above the neutral zone, indicating bullish momentum. The 14-day RSI of 61 shows that MATIC is currently not in the oversold region and could rally towards the overbought zone in the coming hours or days.

At press time, MATIC is trading at $0.625. If the rally continues, MATIC could surge past the first major resistance level at 0.70 before the end of the day.

MATIC is retracing some of its earlier gains and could slip below the $0.57 support level if the bears remain in control of the broader cryptocurrency market. 

The post Here is why MATIC is up by more than 10% today appeared first on CoinJournal.

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Ethereum price bearish flag points to a major crash soon

Ethereum price has struggled in the past few months as investors remain concerned about several factors. The ETH token is trading at $1,083, which is significantly lower than its all-time high of near $5,000. The coin’s market cap has dropped to about $131 billion. At its peak, Ethereum was valued at over $600 billion.

DeFi, NFT, Gaming growth concerns

Ethereum price has crashed as investors continue worrying about the rising inflation and the strong US dollar. Data published on Wednesday revealed that America’s inflation surged to 9.1% in June of this year. This was the biggest increase in more than 41 years.

Inflation has an impact on Ethereum and other cryptocurrency prices. For one, high inflation pushes the Federal Reserve to embrace an extremely hawkish policy. In return, this policy tends to push the value of the US dollar much higher. 

Learn more about how to buy Ethereum.

Indeed, the US dollar index has surged to $108, which is the highest level it has been since 2002. A strong US dollar usually devalues the prices of other financial assets that are priced in the currency. Unfortunately, Fed is expected to double down by implementing a 100 basis point rate hike later this month.

Ethereum price has also crashed because of the ongoing performance of key sectors like gaming, decentralized finance (DeFi), and non-fungible tokens (NFT). In the past few months, the total value locked (TVL) in DeFi has crashed from over $250 billion to about $73 billion. In this period, the TVL in Ethereum has dropped to about $45 billion.

The same trend has happened in the gaming industry. The number of active players in an Ethereum platform like Axie Infinity has dropped to below 500k. Decentraland has also seen waning user growth. 

Further, the volume of non-fungible tokens (NFT) traded on a daily basis has declined significantly in the past few months.

Ethereum price prediction

The daily chart shows that the ETH price has been falling in the past few months. Most recently, the coin has formed a horizontal channel that is shown in blue. This channel resembles a bearish flag pattern. It has also moved below the 25-day and 50-day moving averages.

Therefore, because of the bearish flag, there is a possibility that Ethereum will soon have a strong bearish breakout as sellers target the support at $888, which was the lowest level this year.

The post Ethereum price bearish flag points to a major crash soon appeared first on CoinJournal.