Kategorie: Crypto Analysis

Key takeaways

• Kava is one of the worst performers today after losing more than 8% of its value in the last 24 hours.

• The poor performance comes as KAVA retraces from its recent rally.

• Kava recently launched the KAVA 13 upgrade on the mainnet, resulting in the coin rallying by more than 15% earlier this week.

Why is Kava dropping today?

KAVA, the native coin of the Kava ecosystem, is one of the worst performers amongst the top 100 cryptocurrencies by market cap. At press time, the price of KAVA stands at $1.1030 per coin.

The poor performance comes as KAVA is retracing from its recent gains. Last week, Kava launched the KAVA 13 upgrade on its mainnet, resulting in the coin rallying by more than 15% over the last seven days.

Kava 13 is a major upgrade for growing numbers of developers and users looking to leverage Kava’s unique chain architecture. The upgrade sees Kava combine the speed and interoperability of Cosmos with the developer power of the Ethereum blockchain.

Since reaching a weekly high of $1.29 per coin, KAVA has been slowly shedding some of its profits. 

Kava could drop below $1 soon as the bearish trend thickens

Kava has been underperforming since the start of the week and could be set to dip lower over the coming days. At press time, KAVA is trading just above $1.1 and could drop below the $1 psychological level soon.

The KAVA/USD 4-hour chart is looking bearish, thanks to Kava’s poor performance. The technical indicators show that Kava could drop lower in the near term.

The MACD line is below the neutral zone, indicating that the bears are currently in control. The 14-day RSI of 47 also shows that KAVA could be entering the oversold region if the bearish trend continues.

KAVA could test the first major support level at $1.0146 over the next few hours if the selling pressure persists. If the bearish momentum is sustained, KAVA could drop below the $0.9449 support level for the second time this week. 

Where to buy Kava now

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy KAVA with Binance today

Wazirx

WazirX is India’s largest crypto exchange. Started in 2018, WazirX has grown to be the most trusted exchange in the Indian crypto market. It is a part of the binance group, serving users in 180 countries.

Buy KAVA with Wazirx today

The post Why is Kava dropping? KAVA retraces after its recent rally appeared first on CoinJournal.

• Credit rating agencies are watching the ongoing debt ceiling debate in Washington.

• Fitch placed the US into a rating watch negative area.

• The debt ceiling crisis is creating a good buying opportunity.

Metacade (MCADE), like other cryptocurrencies and stocks, has come under intense pressure as the debt ceiling crisis has escalated. The token was trading at $0.022, which was much lower than its all-time high of $0.046. Other cryptocurrencies have also been in the red. Bitcoin has retreated from the year-to-date high of $31,000 to below $27,000.

Debt ceiling crisis opportunity

Metacade price has not retreated because of its bad fundamentals. Instead, it has dropped because of the ongoing risk-off sentiment among market participants. This is evidenced by the fact that the US dollar index has surged to the highest level in more than a month. The closely watched VIX index has also jumped by double-digits.

The main concern is that the American government will default on its debt obligations in June if Democrats and Republicans fail to reach an agreement. Recent reports show that talks between the two negotiators have hit a wall. As a result, Fitch, a major rating agency announced that it was placing the US in a rating watch negative area. The report said:

“The brinkmanship over the debt ceiling, failure of the U.S. authorities to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signal downside risks to U.S. creditworthiness.”

I believe that the debt ceiling issue is creating a good opportunity for investors to buy the dip in key financial assets like Metacade and stocks. For one, odds are that the US will not default since the two sides will reach an agreement.

Janet Yellen, the head of the Treasury, has said that the US will run out of money on June 1. This means that there are still six weeks to reach an agreement. Historically, including in 2011, these deals are reached in the last day. 

A common saying in the market recommends buying when other people are fearful. This is a strategy that has worked well in the past crises. For example, it worked well when the Covid-19 pandemic was starting. Also, investors who bought the dip during the Global Financial Crisis made strong profits over the years.

Metacade fundamentals are strong

For starters, Metacade is a new blockchain project that raised over $16 million in a token sale. The developers are building a gaming product that is expected to be much better than existing products like Axie Infinity and Decentraland. 

According to Metacade’s white paper, the developers are now working on the game, which will be launched in the next few months. At the same time, they are working to have the token listed by leading exchanges. As we wrote here, it has already been listed by MEXC and BitMart.

Metacade has strong fundamentals since it is in an industry that is expected to grow in the next few years. A reccnt study estimates that blockchain games made over $4.6 billion in 2022 and that the volume will jump to over $65 billion by 2027. I believe that Metacade will have a market share in this industry.

Metacade price prediction

On the hourly chart, we see that Metacade price has moved sideways in the past few days. This price action is the same as that of other cryptocurrencies like bitcoin, ethereum, and solana. The coin has moved slightly above the ascending trendline that is shown in black. It has also jumped above the 25-day moving average while the Relative Strength Index (RSI) has moved above the neutral point.

Therefore, I suspect that MCADE price will continue consolidating and then make a bullish breakout later this month. If this happens, the next level to watch will be at $0.024. A move above that level will bring the resistance at $0.30 into view.

The post Metacade price and the debt ceiling impasse opportunity appeared first on CoinJournal.

• Bitcoin and most cryptocurrencies were deeply in the red on Wednesday.

• The same was true in the stock market, where the Dow Jones and Nasdaq retreated.

• Several altcoins like ARPA, CREAM, IRIS, and Waves soared.

Cryptocurrencies and stocks slumped hard on Wednesday as concerns about the debt ceiling continued. Bitcoin remained below the support at $27,000 while the Dow Jones and the Nasdaq 100 indices retreated by more than 1%. Safe havens like the US dollar index (DXY) jumped.

Debt ceiling crisis continues

The main catalyst for the ongoing sell-off in the stocks, commodities, and cryptocurrencies market is the ongoing debt ceiling issue. Democrats and Republicans have failed to reach an agreement on how to handle the crisis.

Therefore, there are concerns that the two sides will not reach an agreement before the June 1 deadline. However, most analysts and experts in negotiations believe that these talks will go to the wire as the two sides seek concessions.

A default of the American government would have a major implication around the world since it holds over $31 trillion in debt. It would lead to a major crash of key assets like stocks and bonds. Also, it would lead to a jump in the unemployment rate.

The soaring US debt is one reason why many people allocate their cash to safe havens like gold and Bitcoin to a small extent. However, historically, these assets tend to drop when there is an elevated risk. For example, BTC and gold plunged in March 2020 as the world was moving into lockdown.

Several altcoins are rising

Not all cryptocurrencies are slipping. Data compiled by Binance shows that ARPA price has jumped by over 74% in the past 24 hours, making it the best performer in the industry. This rally happened as the token trended in key social media platforms like Twitter and StockTwits. There is a likelihood that the developers will launch the mainnet soon.

CREAM, the token for Cream Finance, jumped by more than 15% while Bella Protocol jumped by 12%. PIVX and IRIS prices jumped by more than 10% in the past 24 hours. The parabolic moves of most of these tokens was not driven by any news in the ecosystems. It also happened in a low-volume environment, signaling that it could be part of a pump and dump.

Meanwhile, Waves price drifted upwards after an association of South Korean exchanges removed it from a cautionary list. As a result, several exchanges decided to restart offering the coin. Also, the platform partnered with Pyth Network, an oracle platform that competes with Chainlink.

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The post ARPA, IRIS, CREAM, BEL Waves prices rise as BTC retreats appeared first on CoinJournal.

• The US dollar’s strength weighs on major cryptocurrencies
• A double top pattern at the $100 suggests more weakness ahead
• If the dollar’s strength persists, one should not exclude a move to the 2022 support area

The US dollar is trending higher lately, despite uncertainty surrounding the debt ceiling negotiations. The US Treasury warned that unless the debt limit is raised or suspended, it will have no more funds to pay its bills starting in June.

Ongoing negotiations between Republicans and Democrats keep the suspense, but even a short debt ceiling breach would have substantial negative consequences for the US economy. As for the US dollar, the opinions are split as to how such an event would impact the world’s reserve currency.

Regardless of the reason, the dollar is trending higher against both fiat and cryptocurrencies. For instance, the EUR/USD pair trades below 1.08 after trading around 1.11 one month ago.

LTC/USD is one of the cryptocurrency pairs where the recent dollar strength is visible. Sure enough, the pair is up over 24% UTD, but today alone, it gave up more than 5% of its gains when this article was written.

Moreover, the worse part is that it failed at horizontal resistance given by the $100 level. It means that a triangle as a reversal pattern might be in place, suggesting more weakness for the pair in the period ahead.

LTC/USD chart by TradingView

A double top pattern suggests more weakness ahead

One of the most powerful reversal patterns is a double top. It is even more powerful in this case because it formed at a round number – the $100 level.

A move below the rising trendline opens the gates to further declines toward the 2022 support area seen at $40. If the dollar strength remains, one should not be surprised for the support to give way sooner rather than later.

The post LTC/USD stumbles at horizontal resistance as the $100 level holds appeared first on CoinJournal.

• Pepe and other meme coins have been in a strong bearish trend.

• Its daily trading volume and social media volume has retreated.

Pepe price continued slipping as concerns about the token and volume slipped. The token dropped to a low of $0.0000014, the lowest level since May 17. In all, Pepe has crashed by more than 66% from the highest level this year.

Volume and volatility slipping

Pepe made headlines earlier this month as its popularity jumped during the so-called meme coin season. One of the biggest headlines was the fact that the token made several illiquid millionaires. This means that some of its wealthiest holders were not able to liquidate their tokens.

Pepe’s price action has followed that of other meme tokens that came before it like Bonk and Tamadoge. Historically, these tokens tend to jump in their initial days because of the hype machine. They then crash after a few days or weeks as initial buyers exit. 

Data shows that demand for Pepe is falling. For example, data by CoinMarketCap shows that the 24-hour volume of the token came in at $188 million. While this is a big number, it is sharply lower than its all-time high of almost $1 billion.

Other data shows that the number of Google searches on Pepe jumped to a record high on May 5 and have now crashed to the lowest level since April 28. This is important since meme coins tend to do well when the number of Google searches is rising.

The same is true when you look at its social media activity. At its peak, Pepe was the top trending coin in key social media platforms like Twitter, Reddit, and StockTwits. Data by LunarCrash shows that the number of Pepe tweets has continued falling.

This is not to say that Pepe is dead. Historically, we have seen some meme coins suddenly jump, especially when other digital coins have risen.

Pepe price prediction

Turning to the 30-period chart, we see that Pepe has been in a strong bearish trend in the past few days. The token is sitting at a key support $0.00000014, where it has struggled to move below in the past few days. It has also moved below the 25-period moving average.

Volume has been in a downward trend. The Average True Range (ATR) has continued slipping, which is a sign that volatility has dropped. Therefore, there is a likelihood that the token will have a bearish breakout as sellers target the next key support at $0.00000011. 

How to buy Pepe

The post Pepe price forecast as trading and search volume slips appeared first on CoinJournal.