Kategorie: Crypto Analysis

Optimism, the fast-growing layer-2 network, is bracing for a major event that could hit its price. The developers will carry out a token unlock event that will release tokens worth millions of dollars to the market.

According to TokenUnlocks, the total number of OP tokens in circulation stands at over 335 million tokens. With the OP price trading at $1.53, this gives it a total market cap of over $515 million.

The developers will next release more tokens that are about 9% of the total supply to the market. These tokens will be unlocked to core contributors and investors.

Data shows that over 1.5 billion OP tokens are still locked and the unlocking event will happen for two mpre years. The last token unlock will happen in 2027.

Token unlocks are usually seen as bearish for cryptocurrencies since they increase their volume in circulation and dilute existing investors. Earlier this year, we saw dYdX postpone its token unlock event fearing more weakness in the token.

Optimism is a layer-2 network that seeks to optimise the performance of Ethereum transactions. It has a total value locked (TVL) of more than $907 million, making it the 6th biggest chain in the world after Ethereum, Tron, BNB Chain, Arbitrum, and Polygon.

Optimism powers some of the best-known platforms in the industry like Uniswap, AAVE, Curve, and Synthetix among others. It will also power Worldcoin, the upcoming cryptocurrency that was create by the founder of OpenAI. Also, Coinbase is using its technology to launch Base. 

In anticipation of the token unlock, Optimism OP price plunged to $1.53, the lowest point since January 23rd.

How to buy Optimism

The post Optimism price prediction ahead of the token unlock appeared first on CoinJournal.

• The US dollar trades with a bearish tone following the debt ceiling agreement
• Ripple gained more than 8% in one week
• The technical picture looks bullish as the $0.55 resistance level looms large

The dollar is under pressure after the over-the-weekend announcement that a debt ceiling agreement has been reached. The decline is visible not only in the traditional financial markets, but also in the cryptocurrency one. 

Ripple, in particular, trades with a bid tone. It gained over 8% in one week and recovered the $0.5 level. 

With only one full trading day left in the month, can Ripple gain some more? 

Ripple chart by TradingView

However, this time might be different. 

An inverse head and shoulders pattern is a bullish reversal pattern formed just before the current market rally. It is not unusual for the market to make a new higher high after such a pattern appears, and so, a break above the resistance level should not surprise anyone. 

That is particularly possible if the economic data out of the United States disappoints. On Friday, the NFP report is key for interpreting what the Federal Reserve will do next with the interest rate level. A weakening job market might put the Fed on pause and thus trigger another leg lower for the US dollar. 

The post XRP/USD regains the $0.5 level as the greenback is sold appeared first on CoinJournal.

• Polkadot hodlers are underwater
• A bullish scenario remains valid if the lows hold
• A move above $7 should lead to more gains

It has been a tough period for long-term holders of Polkadot. The DOT/USD exchange rate has moved South relentlessly after peaking at $56 in late 2021.

From $56 to $5, it was a straight decline. It took only one year for Polkadot to frustrate bulls.

And even now, as cryptocurrencies have rallied in 2023, one should be scared looking at the daily chart. After all, the bounce from the lows looks so small when interpreting the bigger picture that it is difficult to find a bullish argument.

Polkadot chart by TradingView

Polkadot should overcome $7 resistance area for bulls to be in control

Zooming in, one may see the 2023 rally that brought back optimism in the cryptocurrency market. Sure enough, Polkadot already gave back more than half of its YTD gains.

But the invalidation level for a bullish scenario still holds. Effectively, it means that the recent price action might be nothing but a correction part of a bigger-degree bullish trend.

Polkadot chart by TradingView

The Elliott Waves theory states that an impulsive move (i.e., the one that began at the start of the year) is followed by a corrective structure, an a-b-c.

This a-b-c that corrects a bullish trend should have two waves moving in the opposite direction (i.e., waves a and c), and one that moves in the main trend’s direction.

It means that one may easily say that the move from the 2022 lows is an impulsive structure, and the decline from the 2023 highs is the a-b-c. In this case, the implications are bullish for Polkadot and bearish for the US dollar.

However, only a move above the pivotal $7 level would cement the bullish Elliott Waves scenario. Until then, bulls might wish for the price action to hold above the invalidation area shown on the chart above.

The post DOT/USD technical analysis – will the bottom hold? appeared first on CoinJournal.

• BNB Coin, like other cryptocurrencies, has been in a consolidation phase recently.

• The number of transactions in the ecosystem has dropped from its April high.

• There are concerns about the US debt ceiling as divisions increase.

Binance Coin price moved sideways as concerns about the debt ceiling issue continued. After soaring to a high of $346, in April, the token has dropped to $315, giving it a market cap of over $47 billion. The coin remains about 39% above the lowest level this year.

Debt ceiling concerns remain

The main reason why the BNB price has gone nowhere in the past few days is the ongoing risk-off sentiment in the market. This sentiment is evidenced by the rising US dollar index (DXY) and the VIX index, as I wrote here.

The biggest concern among investors is the ongoing debt ceiling discussion in the United States. With divisions between the democrats and republicans widening, there are concerns that the American government will default. 

The plot thickened when Fitch, a leading credit rating agency, placed the American government in a watch for a rating downgrade. This means that the company will not delay downgrading the government in the coming days.

As I wrote in this article, this defauly will likely not happen since the two sides will likely reach an agreement in the 11th hour. In most periods, cryptocurrencies tend to move in sync with each other, which explains why other coins have dropped.

The Binance Coin price has moved sideways as the number of transactions in the ecosystem wane. Data by BNB Explorer means that the number of transactions in the ecosystem dropped to 5.337 million on May 17th to $4.41 million on May 24th.

At the same time, the volume of BNB traded per day has been in a strong downward trend, as shown in the chart below. This is also the same as with other cryptocurrencies like Bitcoin, Ethereum, and Solana.

BNB price prediction

The 4H chart shows that the Binance Coin price has moved sideways in the past few days. Looking back, the coin has struggled moving above the important resistance at $337, the highest point on August 9 2022. The coin has also failed to move above this level in February, March, and April this year.

BNB coin price has moved slightly below the 25-period and 50-period moving averages. Volume has dropped after peaking in November 2022. Therefore, the outlook of Binance Coin will likely continue falling below the key support at $300. A move below this level will open the possibility of the coin drop to the key support at $265.7.

How to buy Binance Coin

eToro

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KuCoin

Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies. Kucoin has a wide range of services, such as; a built-in peer-to-peer exchange, spot and margin trading, bank level security and a wide range of accepted payment methods. Users can benefit from a beginner-friendly interface and relatively low fees.

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The post Binance Coin price outlook as BNB Chain transactions slip appeared first on CoinJournal.