Kategorie: Crypto Analysis

• Stacks crypto price has jumped by over 11% from its lowest level last week.

• The coin jumped after Bitcoin soared above $27,000.

Stacks price jumped by more than six percent on Monday as cryptocurrency recovery continued. The STX token rose to a high of $0.5023, the highest level since August 31st. It has risen by more than 13% from the lowest level this year.

Bitcoin price spikes above $27k

There was no Stacks-specific news that helped to push its token price higher. Therefore, this price action was mostly because of the performance of Bitcoin, which flipped the important resistance at $27,000 on Monday. This was a major recovery since Bitcoin crashed below $25,000 on Monday last week.

It is unclear why cryptocurrencies are rising. A likely reason is that investors are waiting for the upcoming Federal Reserve interest rates decision scheduled for Wednesday. Most analysts expect the Fed to leave interest rates unchanged at 0.25%.

The Fed decision comes at a difficult time for the American economy. The most recent data showed that the country’s inflation rose from 3.2% in July to 3.7% in August. At the same time, retail sales were strong even as inflation and interest rates rose.

The US is also going through a major strike, which was called by the United Auto Workers (UAW). This strike has seen workers in the biggest car plants in the US down their tools and analysts expect that the strike could go on for a while. Therefore, the Fed will likely decide to pause and assess the state of the economy.

The Stacks comeback led to an increase in shorts liquidations. Data by CoinGlass showed that shorts liquidations rose to $60k, the highest level since September 5th. Also, Stacks open interest in the futures market rose. It jumped by more than 28% in the past 22% to over $28.3 million.

Stacks price forecast

The daily chart shows that the STX crypto price has been moving sideways in the past few days. It has found a strong support at $0.4176, the lowest level since last week. Despite the comeback, the coin remains below the 50-day moving average and the descending trendline shown in black. This trendline connects the highest level since June 26th.

Therefore, I suspect that the coin will resume the bearish trend in the coming days. A bearish breakout will be confirmed if it moves below the support at $0.4176. The stop-loss of this trade will be at $0.5500.

How to buy Stacks

The post Stacks price spikes as BTC soars above $27k: Is it a buy now? appeared first on CoinJournal.

Key Takeaways

• The total supply of stablecoins has fallen every month since UST collapsed in May 2023
• Last month saw another $1.7 billion of outflows, the total supply now 33% off its peak
• Tether’s market share has increased amid stuttering rivals, but all other coins have seen large drawdowns
• Liquidity and volume in the space overall is thin and continues to fall

If one wanted to sum up the past few years in crypto, the stablecoin market would be a good place to start. 

The branch of the industry so important for liquidity has been heavily dented, with the total supply of stablecoins on the market now less than $125 billion. That represents a 33% decline from the peak of $188 billion, on the eve of the Terra collapse last May.

Since that infamous Terra meltdown, which saw the $18 billion UST not-so-stablecoin evaporate into thin air, the market has continued to pare down. In line with a tightening in financial conditions across the economy, the stablecoin supply has been reduced every month since. 

Last month saw another $1.7 billion reduction, the third largest of 2023. 

Tether market share increases 

To track the movements closer, you can hit “play timeline” on the below chart. Breaking down the overall supply into the largest stablecoins, nearly every coin has been hit hard. Nearly, that is, because there is one glaring exception: Tether. 

Somewhat ironically, given its long-debated cloudy reserves, Tether has re-established an absolutely dominant market share. Benefitting not only from the aforementioned demise of UST, but also the regulatory shutdown of BUSD ion February and the SVB-related fear (albeit brief) surrounding USDC in March, the Europe-based stablecoin has managed to avoid the harsh regulatory crackdown in the US and hoover up some of the capital fleeing rivals.

Its market share currently sits at a colossal 67%. With a market cap of $83 billion, the company revealed it generated an astonishing $1 billion in operating profit in Q2 alone, mainly due to the stout yields currently on offer through US Treasurys. 

Yet aside from Tether being well placed to take advantage of the obstacles that have suppressed rivals, the stablecoin market overall demonstrates the trouble of the cryptocurrency at large. 

Liquidity and volumes have collapsed, with volatility accordingly close to all-time lows. The capital flight of the space has been immense, as a tight monetary environment coupled with numerous scandals within the crypto space has hurt a sector which expanded rapidly during the zero-rate, money-printing bonanza of the COVID period. 

Where does the market go from here?

While the decimation in liquidity and volume is obviously a stark negative for the space overall, there have also been silver linings. 

The lack of volatility is welcome in some quarters, with the industry beset by multiple scandals last year, headlined by the FTX crisis in November. 2023 has thus far been marked by slow and muted market conditions. That is not ideal for traders and market makers, but for the reputation of the industry, at least the scandals of last year and the fallout of reckless risk management amid a suddenly-tightening economy appear to have subsided.  

Of course, there remains the matter of the largest cryptocurrency exchange on the planet, Binance, facing a litany of lawsuits. They allege everything from circumventing AML and KYC laws to manipulating volume and trading against customers. Without doubt, much of the space still operates in a highly opaque manner, so perhaps it’s foolish to declare those shocks a thing of the past.

Yet, either way, the trajectory of the space feels like it won’t shift until wider macro conditions allow it the slack to do so. The motive to hold a stablecoin, or invest in crypto in general, is far lower when US government-guaranteed bonds offer more than 5%. The risk-reward position is simply entirely transformed. 

With that said, there does appear to be hope that the tightening of rates is finally coming to a close. Looking at probabilities backed out by Fed futures, the market is anticipating a maximum of one more (if even that) rate hike before the Fed calls it quits. 

Perhaps then capital will be less hesitant to start looking towards this nascent asset class again. However, if one wants to get a quick gauge of how the crypto space has fared over the past couple of years, the stablecoin market is telling.

The post Stablecoin supply down below $125 billion as capital continues to leak from crypto appeared first on CoinJournal.

• Cryptocurrency prices had a good performance this week as Bitcoin rose to $26,000.

• tomiNet was one of the best-performing tokens as it jumped to a record high.

• VeChain price soared after being listed by Coinbase.

Cryptocurrency prices had a relatively good week as Bitcoin bounced back above $26,000 after falling below $25,000 on Monday. Some of the most important news were Franklin Templeton’s decision to apply for a Bitcoin ETF and Deutsche Bank’s move to offer crypto custody solutions. 

There were other important news. Hedera Hashgraphg launched Stablecoin Studio, a product that empowers institutions to build stablecoins. Telegram, the giant messaging company integrated Toncoin while Coinbase added VeChain in its platform. This article looks at some of the top cryptocurrencies, including tomiNet, XDC Network, and VeChain.

tomiNet price prediction

tomiNet was one of the top breakout stars in the crypto industry this week as it surged to the highest level on record. As it jumped, the token moved to the top 100 of the biggest cryptocurrencies in the world, with its market cap surging to over $268 million. 

For starters, tomiNet is a blockchain project that seeks to build quality applications. It has a browser, a DNS service, and a multichain digital wallet for tokens and NFTs. Its goal is to combine the best of Web2 and Web3 technologies to create a more private ecosystem. 

It is unclear why the tomiNet price surged. A likely reason is that traders are just pumping the token since there was no major news in the ecosystem. On the two-hour chart, the token rose above the key resistance level at $3.60, the highest level on 11th September. 

It has moved slightly above the 25-period moving average while the Relative Strength Index (RSI) has moved above the overbought level. Therefore, the token will likely retreat as sellers target the key support at $3.6 as the momentum fades.

XDC Network price prediction

XDC Network token price made a strong bullish comeback after falling to a low of $0.050 on Monday. On the four-hour chart, the pair managed to cross the upper side of the falling wedge pattern shown in red. In price action analysis, this pattern is one of the most popular bullish signs.

XDC price has jumped above the 50-period moving average and is approaching the crucial resistance level at $0.058, the highest level on September 8th. Therefore, because of the falling wedge pattern, there is a likelihood that the token will continue rising as buyers target the key level at $0.60.

VeChain price prediction

VeChain price jumped sharply after the coin was listed by Coinbase, one of the biggest exchanges in the world. It rose by more than 17% from its lowest level on Monday. As it jumped, the coin flipped the important resistance level at $0.016 (August 29th) into support.

VeChain has moved above the 25-day and 50-day moving average while the MACD has jumped above the neutral point. The price is also above the Ichimoku cloud.

I suspect that VeChain price will likely retreat in the coming days as the bullish momentum fades. If this happens, the coin will likely retest the support at $0.01680. The alternative scenario is where the price jumps as buyers target the resistance at $0.018 (August 14th high).

How to buy VeChain

The post Crypto price prediction: tomiNet, VeChain, XDC Network appeared first on CoinJournal.

• Shiba Memu’s presale has raised over $2.85 million in its presale on solid demand.

• The price of the tokens in presale increases every day at 6 PM GMT

• Shiba Memu could rise 50x, reinforced by its popularity and meme token trends

Buying meme cryptocurrencies might not be the right decision as crypto winter rages on. Leading meme names like Dogecoin and Shiba Inu continue to suffer in a bottomless drop. The bear market situation prompts investors to seek alternative tokens with the potential to explode. The entry of Shiba Memu (SHMU) into the scene has generated enthusiasm for meme investment. Since the presale started, investors have bought over $2.85 million of the tokens. To buy the token, investors can visit the project’s website. 

Why investors are interested in Shiba Memu

Investment in Shiba Memu is partly attributed to its potential sustainability. It is the world’s first meme project to apply artificial intelligence. The AI generates hype, which puts Shiba Memu in the limelight.

Unlike its meme peers, Shiba Memu will market itself on online forums, generating hype for itself. As you may be aware, meme cryptocurrencies’ prices are moved by online publicity. The self-marketing concept allows Shiba Memu to be a potential big price mover. This capability puts Shiba Memu ahead of rivals, which rely on humans to gain and maintain relevance.

Investors could also be looking at the price potential of Shiba Memu. Early birds in presale have already tasted the price potential with Shiba Memu’s tokenomics. At the onset of the presale, the token was valued at $0.011125 but now goes for $0.027325. The price increases every day at 6 PM GMT in the presale

Alongside the price increases at presale, the potential for Shiba Memu is enormous, given its market space. In the past, meme cryptocurrencies have exploded in value after listing. Shiba Memu looks at a similar potential, given the love meme tokens attract in the sector. As the bear crypto sector lingers on, investors could look at Shiba Memu as the fresh kid in the market. This could inspire a rally for the token.

Shiba Memu’s social features could also attract investors. The project features an AI dashboard where users can build meaningful conversations with the robot. They can ask the AI questions, share suggestions, and learn new things in creative advertising. 

How much can the Shiba Memu token rise?

Predicting the exact increases in the value of Shiba Memu could be subjective. However, projections can be made based on the token’s demand. The potential is indicated by the increasing number of investors buying the token. 

While launching tokens have risen by up to 10x, Shiba Memu can surprise the markets. Analysts have earmarked up to 50 times increase, reflecting past price surges in meme cryptocurrencies. 

Also, the token’s value could be unlocked from novel use cases. The Shiba Memu pool will let users earn fees by generating liquidity through a decentralised exchange. Similarly, the tokens can be staked in a smart contract or staking pol for additional rewards.

In the future, Shiba Memu could be unstoppable. AI can find use cases in diverse areas, benefiting Shiba Memu. This means the token’s value could overcome the frequent dumps that face meme cryptocurrencies. 

Is Shiba Memu worth buying now?

Shiba Memu’s roadmap provides for the token listing in Q3 2024. After listing, the token could witness increased buying, allowing it to explode in value. However, prudential investment involves buying an asset when the price is low.

Investing in Shiba Memu’s presale makes sense, as the token’s price is still low. By the time the token’s price starts to rise, presale investors will reap the benefits. Also, investing now is advantageous as investors get tokens worth more when the presale ends.

The post Shiba Memu: Why new meme cryptocurrency has won the hearts of investors? appeared first on CoinJournal.