Monat: August 2022

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Here’s why the Uniswap (UNI) price is at risk of a major plunge

Uniswap price continued retreating this week even after a major governance vote. The UNI token crashed to a low of $6.72, which was about 32% below the highest point this month. It is hovering near the lowest level since July 27th. 

Uniswap Foundation

Uniswap is one of the biggest players in the decentralized finance (DeFi) industry. The protocol allows people to swap and earn cryptocurrencies. In addition, users have the ability to build and launch decentralized applications (dApps) in its ecosystem.

Uniswap has grown rapidly in the past few years. According to its website, its trading volume jumped to over $1.1 trillion as it executed over 107 million trades. Data compiled by DeFi Llama shows that its total value locked (TVL) stands at over $5.7 billion, making it the 5th biggest DeFi platform in the world after Maker, Lido, Aave, and Curve.

Some of the applications in its ecosystem are Endaoment, Brink Trade, TrustWallet, Argent, Flipside Crypto, and Sorbet among others.

The UNI price retreated even after a major community in its ecosystem. Community members voted to create the Uniswap Foundation which will support open-source development within the protocol. It will also streamline the issuance of grants.

As a start, the foundation will seek about $74 million from Uniswap’s decentralized autonomous organization (DAO) treasury which has over $3 billion in funds. In a statement, a community member said:

“We want to ensure that there will be a large, thriving ecosystem of organizations that are building on, integrating with, and organizing events in support of the protocol.”

 Uniswap price prediction

The four-hour chart shows that the UNI price has been in a strong bearish trend in the past few weeks. The coin has found a strong support at $6.6581, where it struggled to move below this month. It has moved below the 25-day and 50-day moving average while the Relative Strength Index (RSI) has moved below the neutral point.

Uniswap price has also formed a bearish flag pattern. Therefore, the coin will likely continue falling as sellers target the next key support at $6. A move above the resistance at $7.10 will invalidate the bearish view.

The post Here’s why the Uniswap (UNI) price is at risk of a major plunge appeared first on CoinJournal.

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Bitcoin metric suggests where BTC price could trade next

  • Bitcoin flows from spot exchanges to derivative exchanges suggest a potential short term bullish flip for BTC price, 
  • However, BTC remains in bear market owing to flows to spot exchanges.
  • CryptoQuant Senior Analyst Julio Moreno shared the outlook on Thursday.

Bitcoin remains in a bear market as price struggles to sustain an upward move since the breakdown to June lows. However, according to one on-chain metric, the flagship cryptocurrency’s price outlook for the short term suggests a bullish flip.

Nonetheless, the prevailing market sentiment might see a period of further accumulation.

BTC price outlook

The bullish perspective, shared by CryptoQuant senior analyst Julio Moreno via Twitter, is based on the inter-exchange flows of BTC. 

The analyst says this metric has previously been a market cycle indicator, with prices going up when flows from Coinbase to derivative platforms increase and vice versa.

“Bitcoin flows from Coinbase to derivative exchanges are increasing again,” he tweeted on Thursday. “These kind of flows are associated with the market cycle – increasing flows from Coinbase to derivative exchanges, bull market [and] decreasing flows, bear markets.”

So while flows into spot exchanges remain high to suggest bears are still in charge, increasing transfers to derivatives means the chances of a bullish flip over the next few weeks are growing.

Bitcoin flows- what happens?

Bitcoin flows to derivative platforms jump in a bull run, helped by a risk-on sentiment that sees traders leverage their BTC on long positions. Investors also tap into the exuberance to bet on altcoins, using their Bitcoin sent to derivative exchanges as collateral. 

The opposite occurs during bear markets, with jitters in a risk-off environment seeing flows to spot exchanges amid selling pressure.

The post Bitcoin metric suggests where BTC price could trade next appeared first on CoinJournal.

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VGX Price Prediction as the Voyager Digital Token Flies

The VGX price surged to the highest point since July 18 as the bidding war for Voyager Digital continued. The token rose to a high of $0.6872, which was almost 400% above the lowest level this year. As a result, its total market cap surged to over $182 million.

Why is Voyager Digital token rising?

Voyager Digital was a leading Canadian cryptocurrency exchange that handled billions of dollars every week. The situation changed a few months ago following the crash of Terra’s ecosystem, Celsius, and Three Arrow Capital. 

Voyager Digital, facing a major cash squeeze, decided to file for voluntary bankruptcy in a bid to organize its resources. It also decided to stop deposits, withdrawals, and the creation of new accounts. The VGX token continued trading.

Behind the scenes, a bidding war by some of the biggest companies in the crypto industry like Coinbase, FTX, and Binance. In total, there were about 22 suitors for the company.

Now, the VGX token price rose after it emerged that FTX and Binance were the main contenders. According to Coindesk, Binance has moved aggressively to acquire those assets. FTX, which made an offer to buy the company last month, is still pursuing the company’s assets. 

Coinbase had partnered with Callaway Capital Management to launch a bid but then walked away. Besides, the company’s stock price has crashed hard this year. 

Therefore, the VGX price is rising as investors focus on the future of Voyager now that it seems like it will be saved by a bigger company. The rise is also part of a short squeeze that has been going on in the past few months.

VGX price prediction

The four-hour chart shows that the Voyager Digital price has been in a bearish trend in the past few weeks. In this period, the coin formed a falling wedge pattern, which is usually a bullish sign. This pattern also explains why the coin has gone parabolic in the past few days. 

Voyager moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved above the overbought level. Therefore, I suspect that the coin will now retreat as the enthusiasm about the company’s acquisition fades. If this happens, the next key support at $0.3800.

The post VGX Price Prediction as the Voyager Digital Token Flies appeared first on CoinJournal.