Kategorie: Crypto Analysis

It is just 5 days to the start of the largest sporting event – the World Cup. Even as the world stares at their favourite football players, big corporations will try to attract their visibility. Algorand is one such organisation.

In May, Algorand was selected to become the first blockchain partner for the FIFA World Cup. The platform will provide a blockchain-supported wallet for the event. There are plans to onboard Algorand to develop FIFA’s digital strategy. But as the World Cup kicks off on November 20, Algorand will feature strongly in the media and promotional materials.

While Algorand (ALGO/USD) responded positively to the news of sponsorship of this year’s event, it is trapped by a bear crypto market. However, recent price action signals a potential price recovery ahead of the November 20 kickoff. 

ALGO attempts to break above the $0.28 resistance

ALGO/USD Chart by TradingView

From the technical outlook, ALGO trades at the $0.28 resistance, with a strong bullish push. The token has 13% gains in the day, signalling a potential bull rally. 

Going by the technical indicators would be a little disappointing for the cryptocurrency. The moving averages provide resistance against ALGO. The RSI shows an improvement in momentum, although the reading remains below the midpoint. The cryptocurrency remains in the hands of bears.

Should you buy ALGO now?

The closing of the daily candlestick will tell if a breakout is successful or not for ALGO. Of course, the World Cup is a big event and will have a huge influence on the price of the token.

A successful breakout will be confirmed if the daily candlestick closes above $0.28. You could buy ALGO if that happens, coupled with strong momentum.

On the flip side, the candlestick could close below the resistance. Buyers should stay away from the bear case.

Where to buy ALGO

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy ALGO with eToro today Disclaimer

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

Buy ALGO with Capital.com today Disclaimer

The post Should you buy Algorand ahead of the World Cup amid a sponsorship deal? appeared first on CoinJournal.

I’m kind of getting sick of the word “contagion”.

Nonetheless, it appears the C-word is coming for the digital asset space again. By now we are familiar with the collapse of FTX, one of the world’s largest cryptocurrency exchanges.

But it’s far from over.

LUNA set the precedent

While the crash here does not compare to the infamous death spiral of UST and LUNA (to refresh my PTSD), that scandal does show how far-reaching the tentacles of such a sudden loss of capital can cause.

UST was worth $18.6 billion and LUNA $29.7 billion on the eve of the Terra meltdown in May. Within a couple of days, those figures were zero. FTX, on the other hand, is reportedly looking at a balance sheet hole of $8 billion.

So, the numbers are not as comparable, but the domino effect could be. Numerous firms got caught up in the Terra crash by holding UST on their balance sheets, as well as being over-exposed to other crypto assets, all of which fell in the aftermath of the scandal.

We saw Celsius file for bankruptcy, owing $4.7 billion to over 100,000 creditors. Voyager Digital, another crypto lending firm, also had over 100,000 creditors on the hook – although for a lower sum of $1.3 billion.

Then there was Three Arrows Capital, owing $3.5 billion to 27 different companies. I could go on, but you get the point. The crypto industry was far to incestuous, with companies holding pieces of other companies, despite all being exposed to the same systemic risk.

In retrospect, it all reads like a cautionary tale for risk management and diversification. How crypto companies thought it was wise to trade their own Treasuries, assets and whatever other liquidity they had, on the very same highly volatile asset class to which their business was already exposed, is beyond me.

But they did, and the domino effect followed.

Who is exposed to FTX?

The question now becomes this: who is exposed to FTX?

One hopes that the industry learned a lesson from Terra and hence is more prudent this time around. Then again, the flipside is that FTX seemed like they were as safe as could be: funds were stored there in stablecoins and fiat – not just highly volatile cryptocurrencies.

Much like those who fell victim to UST thought that it was a stable asset pegged to $1, there are those who got blindsided by FTX, simply leaving their funds in the exchange denominated in fiat currency.

We know now that Sam Bankman-Fried had other ideas, sending these funds to his sister trading firm Alameda Research, following a series of bad investments and loans getting called in. Ironically, these loans were likely called in the aftermath of the LUNA crash, when spooked investors moved to get their funds of crypto by all means possible.

Companies are already beginning to wobble. BlockFi, yet another crypto lender, paused withdrawals and issued a statement outlining that the damage was stark.

“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” BlockFi said.

They had signed a deal with FTX in July for a $400 million revolving credit facility. It is hard to see them recovering after pausing withdrawals – which we know by now is the death sentence. 

The money actually goes beyond aggressive crypto firms. Sequoia Capital, SoftBank, and Tiger Global, who are as big and boring as traditional investors get, have all been burned. 

“Based on our current understanding, we are marking down our investment to $0”, Sequoia said in a note to LPs. I think we can all agree that’s a fair call. 

SoftBank is reported to have lost $100 million, while Tiger Global is apparently down $38 million.

I was let go by Sequoia Capital today. Buck had to stop somewhere. I was the 27 year old associate responsible for copying and pasting revenue and profit numbers from a spreadsheet in the FTX data room into a PowerPoint slide in an investment memo as diligence

— Kyle Russell (@kylebrussell) November 10, 2022

A quick glance a the below graphic should tell you all you need to know: 

 

Going forward

As I said, I don’t expect this to be as grave a liquidity crisis as LUNA. But it would be delusional not to expect further pain – and that includes some sombre announcements which will come out of the blue. There will be companies caught up in this mess that will take people by surprise. 

$10 billion is a hell of a lot of money. It can’t disappear without reverberations elsewhere. Hopefully, the damage is as minimal as could be hoped for, given the lessons shown by the LUNA fiasco. 

But surely this will finally persuade CEOs and treasury managers to allocate their capital wisely, perform diligent stress tests, pay proper attention to diversification and just…be sensible. 

It must, right? Right?

The post Expect crypto contagion as FTX crisis is far from over appeared first on CoinJournal.

TWT is the best performer amongst the leading cryptocurrencies today after rallying by 47% in the last 24 hours.

TWT, the native token of the Trust Wallet ecosystem, is up by 47% in the last 24 hours, making it the best performer amongst the top 100 cryptocurrencies by market cap.

The rally comes after Changpeng Zhao, the CEO of Binance, urged people to use Trust Wallet. His comment comes as centralised exchanges were facing pressure from the broader crypto community following FTX’s recent collapse. 

We are not just a CEX. We offer choices.

Store crypto yourself? Read this article I wrote from 2 years ago. The 15 minutes read will save you money and headache later. @TrustWallet

Read the same article if you use a CEX, too. @binancehttps://t.co/Kp6VeKirgZ

— CZ 🔶 Binance (@cz_binance) November 13, 2022

CZ said Binance offers choices for investors, and Trust Wallet is one way they can store their cryptocurrencies and be in control of their keys. 

TWT’s rally comes as the broader crypto market begins its recovery following last week’s massive losses. The total crypto market cap is up by more than 1% today and currently stands at around $840 billion.

Bitcoin is closing in on the $17k resistance level and is up by 1% in the last 24 hours. Ether is also trading above $1,200 and is up by 2.5% so far today.

Key levels to watch

The TWT/USD 4-hour chart is extremely bullish as Trust Wallet has been performing well in the last 24 hours. The technical indicators show that TWT is outperforming the broader crypto market. 

The MACD line is deep within the positive zone, indicating that TWT is currently bullish. The 14-day RSI of 85 shows that TWT is currently in the overbought region.

At press time, TWT is trading at $2.4952 per coin. If the bullish run continues, TWT could surge past the first major resistance level at $3.0 and set a new all-time high in the process.

However, TWT could need the support of the broader cryptocurrency market to move toward the $4 mark in the near term. 

Where to buy Trust Wallet now

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

Buy TWT with Capital.com today Disclaimer

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 TWT with Binance today

The post TWT soars by 47% after Changpeng Zhao promotes the use of Trust Wallet appeared first on CoinJournal.

Ripple token (XRP) continues to send clear signals. It is ready for takeoff once it is confirmed that XRP is not a security, as alleged by the US SEC. On Tuesday, the token surged by 10%, becoming the top gainer among its peers. The gains come after positive cryptocurrency news.

According to the November 14 announcement, Ripple has been granted motions to file amicus briefs in the case with SEC. The amici status allows individuals and other interested parties to be included to assist in the proceeding. Coinbase could be the first “friend of the court” to file the amici briefs. The US crypto exchange has supported Ripple’s argument that XRP should not be classified as a security. The exchange and other firms are expected to file by November 18.

The development is positive for Ripple since amici briefs have been a source of contention for a while. It will shed more light on the case and allow Ripple to build a stronger argument against the regulator. In particular, Coinbase has been vocal against SEC’s rulemaking targeting the crypto industry.

The court’s go-ahead brings a new perspective, dealing a blow to the regulator. SEC has so far been losing the battle against Ripple. If you are seeking to buy XRP in light of the developments, you need to look at the technical bits.

XRP hit a resistance level as price pumps

Source – TradingView

Technically, XRP trades at a key resistance zone. The momentum is weak, considering that the token is recovering from the recent slump. The MACD indicator remains in the bear zone. The level around $0.38 should be watched.

When to buy XRP?

The development around Ripple’s case with SEC is positive for XRP. The price could build on the news to continue rising. A bullish momentum will be confirmed if XRP clears the area around $0.38-$0.40. 

On the flip side, bears could outwit the bulls at the current resistance level and force a correction back to $0.30. Both outcomes are likely given the mixed crypto outlook. So, buy after confirmation of the upside.

Where to buy XRP

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy XRP with eToro today Disclaimer

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

Buy XRP with Capital.com today Disclaimer

The post Ripple’s XRP rallies 10% after another win. Is the token now bullish? appeared first on CoinJournal.

MDX price staged a strong recovery this week as investors bought the dip. The coin jumped to a high of $0.12, its highest point since November 7. At its peak, MDEX was up by more than 80% from its lowest level this month.

What is MDEX and why is it rising?

MDEX is a small but fast-growing platform in the decentralized finance (DeFi) industry. It aims to provide a platform where users can do cross-chain transactions on the BNB Chain, HECO, and Ethereum. According to its website, MDEX has a total value locked (TVL) of more than $600 million.

MDEX aims to grow by integrating more chains in its ecosystem. Its dual mining mechanism of liquidity mining and transaction mining gives participants with maximum rewards.

MDX is the native token for MDEX’s ecosystem. It has a total supply limit of about 1.06 billion coins. 10% of them are use for team operations while 7% is used to reward early investors. 49% and 31% of these funds are used for liquidity mining on HECO and BNB, respectively.

It is unclear why MDEX price has bounced back in the past few days considering that most cryptocurrencies have nosedived recently. A possible reason is that many investors have moved to Decentralised Finance now that centralized exchanges have continued imploding.

 Just a few months ago, exchanges like Voyager Digital and Celsius collapsed. And this month, the top crypto news is the collapse of FTX.

Another reason is that the network has continued adding more products in its ecosystem, On Tuesday, it added Trust Wallet to its Innovation Zone. Trust is a fast-growing coin that was recently touted by Changpeng Zhao. MDEX also continued burning more MDX tokens in a bid to boost its value.

MDX price forecast

The four-hour chart shows that the MDEX price has been in a strong recovery in the past few days. In this period, it has managed to move above the important 25-day and 50-day moving averages. The coin’s Relative Strength Index (RSI) has moved slightly below the overbought level. 

MDEX has also formed a bullish flag pattern. Therefore, there is a likelihood that the coin will continue rising as bulls target the next key resistance level at $0.1600. A drop below the key support level at $0.100 will invalidate the bullish view.

How to buy MDEX

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 MDX with Binance today

Swapzone

Swapzone is a crypto exchange aggregator that operates as a gateway between the cryptocurrency community and exchange services. Swapzone aims to provide a convenient interface, safe user flow, and crystal-clear data for users to find the best exchange rates among the whole cryptocurrency market.

Buy MDX with Swapzone today

The post MDX price is defying gravity: Is it a good buy? appeared first on CoinJournal.