Kategorie: Altcoin News

Avalanche (AVAX) price seems to be heading the same way as Terra (LUNA) mainly because it is one of the collateral assets that maintain TerraUSD (UST), Terra’s new stablecoin; the other collateral asset is the US Dollar which the UST has unpegged from.

After the UST unpegged from the US Dollar, its price became unstable and it is currently on the decline prompting the Luna Foundation Guard (LFG), a Singapore-based non-profit backed by TerraLabs, to empty its crypto reserve to support the stablecoin back to its $1. This places AVAX in a precarious situation with fears of a massive sell-off since it is one of the main backers of UST.

Today, AVAX’s price has experienced a massive drop after dropping by more than 35%.

At the time of writing, AVAX was trading at $31.39, down 36.28% after retracing from a daily high of $50.09. This drop coincides with that of UST which has shed more than 86%.

It is important to note that the UST’s US Dollar de-pegging happened despite LFG’s effort to try to empty its crypto reserve to support the UST peg. Currently, the LFG has 1.97 million AVAX worth about $74.75 million.

Avalanche bulls’ effort to support the AVAX token

Avalanche bulls have been trying their best to stop the token from dropping below the key support line near $36 but their effort only helped the token to recover about 22% of today’s loss with its price bouncing back from $32.50 to over $39.50 before retracing back again to $31.39 at the time of writing.

Although the token is aimed at regaining a bullish trend, it’s still facing headwinds from the high-interest rate environment which has diminished buying sentiment in the crypto market.

This could lead to AVAX/USD pair retesting $36 as the support for the breakdown move, which can lead to price risk of $20.

The post Avalanche (AVAX) down 35% amid fears of massive AVAX sell-off after UST meltdown appeared first on Coin Journal.

The broader crypto market has started May on a somewhat disappointing note. Some of the major coins like Bitcoin and Ethereum have all fallen sharply from their rallies in April. While this is concerning, it means there is also a good opportunity to buy decent dips. Here is why:

• Despite a slow start in 2022, the crypto industry is still expected to outperform other asset classes.

• The long-term prospects of crypto still remain positive even with recent headwinds.

• There has never been a better time to buy crypto than now based on the prices.

So, if you are looking at the May dip and wondering where to put your money, here are 3 coins to get now.

Solana (SOL)

Solana (SOL) has often ranked as one of the most exciting crypto projects in the market. But 2022 hasn’t really delivered a lot of success for the altcoin. Instead, SOL has seen sharp and consistent losses.

it is now trading at its lowest levels this year, and this provides the perfect chance for investors to buy. In fact, Solana has a realistic chance of growing 3 or more times this year. The current dip is merely short-term.

Cosmos (ATOM)

Cosmos (ATOM) is one coin that doesn’t often get the attention that it deserves. The project has grown quite steadily over the last few months. However, just like many other altcoins, it remains in a downtrend due to slow improvements in investor sentiment across the market. But once the crypto market bounces back, ATOM will be one of the big gainers.

Waves (WAVES)

Waves (WAVES) is one of the few coins that appear to be reporting gains even as most other coins in the market drop. The coin has had some steep corrections though over the last few weeks, but it’s still worth watching in the longer term.

The post May shopping list: 3 coins to consider buying this month appeared first on Coin Journal.

The TerraUSD (UST) token crashed to lows of $0.61 on Monday as it massively de-pegged from the $1 peg even as the broader crypto market bled amid the worst sell-off of 2022.

UST has since moved back up amid a raft of measures to reestablish the peg by the Luna Foundation Guard, the organization that currently oversees the UST treasury.

As the algorithmic token fell, the LFG deployed its $2.2 billion BTC reserves – a move likely to have helped stem the rot- with BTC price falling briefly below $30k and LUNA nosediving more than 50% to around $28.

UST is vulnerable as LUNA trades 50% down in 24 hours

Tim Frost, founder and CEO of Yield App says the crash points to the vulnerabilities facing decentralized stablecoins.

“A brutal start to the week for the entire cryptocurrency market has brought one of its latest stars to its knees: UST. Just when we thought a decentralized, algorithmic stable coin had finally made the grade and proved all skeptics wrong, it slips 40% below its USD peg,” Frost told CoinJournal via email.

At the time of writing, UST is back to around $0.90 as BTC sees a slight recovery above $31.5k and Terra (LUNA) pares some of the losses to currently trade around $30. The LUNA/USD pair is however still 50% down.

Frost believes fresh selling around the DeFi token could mean LFG’s measures are “unlikely this is going to prove a long-term solution.” More inbound pressure on UST is thus possible.

“More importantly, this underlines how vulnerable decentralized stablecoins that rely on theoretical pegs instead of hard cash are in a good old-fashioned bank run. There is little anybody can do when investors start heading for the door en masse other than join the stampede and accept a huge loss,” the Yield App chief added.

On the overall outlook of the crypto market, Frost says “there is now little doubt we are in the midst of the most aggressive bear market since 2018.” 

The post UST crash shows dangers of un-backed DeFi stablecoins, says Yield App CEO appeared first on Coin Journal.

Anchor Protocol (ANC) has been surging today even as the broader crypto market sees a major sell-off. The coin is expected to continue outperforming the rest of the market over the next 24 hours or so. Here are some of the main developments:

• ANC has gained nearly 13% even as the broader market sees a drop of around 7%

• The DeFi protocol has also seen its TVL increase by 2% over the last 7 days

• Trade volume for ANC has also shot up by 300% over the last 24 hours

Data Source: Tradingview 

Anchor Protocol (ANC) – Can it keep it up?

The recent 13% surge in 24 hours is a welcome surprise for ANC investors. Outperforming the broader market is always a good sign. However, it is unlikely that this trend will last long. In fact, we expect the gains to be relatively short-term unless there is an improvement in sentiment across the market. 

As a result, expect ANC to report gains over the next two or three days before it finally pulls back and follows the broader trend in the crypto industry. Anchor Protocol should however be on your radar. 

A jump in TVL right now is not something to take lightly. Since the start of the year, DeFi Protocols across the board have seen a sharp decline in total value locked. The fact that Anchor still has nearly $17 billion in TVL right now is a big plus.

Is ANC a good future investment?

Anchor Protocol is the biggest DeFi protocol on the Terra network. It has one of the largest TVLs too. The DeFi protocol has also continued to offer low-risk returns for UST deposits with an annual yield of up to 18%. With these fundamentals, it is likely that the project will continue to grow very steadily into the future. It is therefore a worthy investment in DeFi.

The post Anchor Protocol (ANC) is rallying despite a broader market tumble appeared first on Coin Journal.

Decentraland (MANA) has continued to push lower over the last few days. The coin has in fact been under pressure for all of April. Sadly, it doesn’t seem like things will improve soon as MANA sells off. Here is what you need to know:

• Despite consistently dropping for the last month, a trend reversal for MANA is unlikely for now.

• The coin may bottom at $1 in the near term before its next bull run

• MANA has closed in the red for 5 straight trading sessions.

Data Source: Tradingview 

Decentraland (MANA) – price prediction 

April has been one of the most difficult months for MANA. The coin has largely been on a downtrend for the whole month, and while there were some signs the sell-off could ease, so far, the price action has failed to rally. But the worse is not even over yet.

In fact, we do not expect any reversal of this downtrend anytime soon. As a result, MANA will continue to fall in the near term and could bottom at $1 before its next bull run. This will be a loss of nearly 50% from its current price.

Besides, MANA’s fall did not start in April. The coin had in fact peaked in February and was trading at around $3.55. This was the best price in 2022. However, MANA has lost over 50% from those highs, with more losses expected to come in the coming weeks.

Will MANA rise again?

Yes, MANA will rise again. The metaverse coin still has a lot of upside in the longer term. However, current sentiment in the market remains very unpredictable. 

We are likely to see a sustained period of volatility and selling pressure before the price action finally stabilizes. Despite all this, we still think that MANA will deliver incredible returns this year, even though it will struggle to hit the success of 2021.

The post Significant downside risk could push Decentraland (MANA) to $1 in the coming days appeared first on Coin Journal.