Kategorie: Crypto Analysis

Avalanche (AVAX/USD) has lost 90% of its value since the November 2021 high. The token has been falling alongside other major cryptocurrencies in the bear market. The bear momentum is still high, with the cryptocurrency trading at $15. In the past one week, AVAX has lost more than 5% and is looking to head to $10. What’s happening?

Avalanche has been touted as an alternative platform to Ethereum for DeFi and NFTs. However, the two nascent blockchain sectors have been hit this year. According to data by Dune Analytics, NFT’s weekly trading volume has dropped by a massive 98% this year. The total trading volume at the end of January 2022 was $6.2 billion but now stands at $114. 

NFTs and DeFi decline has been a significant blow to blockchains like Avalanche. That’s because the blockchain had crafted a name around the evolving sectors. Consequently, it may take time before investors flock back, suggesting that a bear market could last longer. Going by the recent decline, bears are in control of AVAX, with a lower price on the horizon.

AVAX price outlook as momentum weakens

Source – TradingView

The daily chart shows AVAX trades on a system of lower lows and lower highs on a weak momentum. The MACD indicator is deep in the bear zone.

At the current level, AVAX is trading at a potential pivot point. However, momentum is weak, giving bears a chance to take the cryptocurrency lower.

What next for AVAX?

With the weak momentum, we rate a reversal chance at $15 very low for AVAX. The cryptocurrency is not a buy since it may continue to slide, finding support at $10. The support is crucial since it marks the zone where the crypto boom started in 2021.

Where to buy AVAX

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.

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Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

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The post AVAX to $10? A bleak technical outlook shows why buyers have to keep off for now appeared first on CoinJournal.

As the clock ticks, the more certain we become that a bear market is here to last. Recovery looked to have started in June and July, but the elephant in the room remains – macro uncertainty.

Consequently, Ethereum (ETH/USD) looked on its way up as it tapped $2,000 in August, doubling in value from the July lows. However, the gains have been shuttered, and ETH trades at merely $1262. That begs the question, when will the cryptocurrency bear market end? 

Galaxy Digital CEO Mike Novogratz has weighed on the matter. According to him, Ethereum and other altcoins will depend on innovation to get out of the bear market. He also says that, to some extent, the macro conditions will determine. However, for Bitcoin, the CEO says the macro conditions rank first.

The comments by Novogratz come when all the markets are under pressure. Red-rot inflation and economic tightening have been the main cause. The macro factors have the upper hand in the bear market. In our assessment, they will determine the medium-term market recovery for all cryptocurrencies. Nonetheless, as Novogratz notes, innovations around DeFi and NFT will determine the long-term growth and recovery of Ethereum and altcoins. 

Aside from the fundamentals, ETH looks stable, around $1250. However, buyers lack the power to take cryptocurrency to the next level.

Ethereum holds steadily to $1250

Source – TradingView

Technically, ETH trades at $1276, slightly above the support of $1250. Although that signals stability for the cryptocurrency, buyers have been unable to take it higher. Instead, the token has mainly been consolidating at the support.

Turning to the RSI, the reading is below the midpoint but not in the oversold territory. The reading suggests that bears are also active for ETH at the current level.

Should you buy ETH?

Ethereum price lacks a directional movement. The price action suggests a strong will by bulls to take ETH higher, but the macro uncertainty weighs on the token. We only encourage buying and holding for long-term gains on ETH. 

Where to buy ETH

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.

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Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

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The post Ethereum price outlook: what will drive it from the bear market? appeared first on CoinJournal.

As the Ripple vs. SEC case drags on, interesting twists are popping up. The SEC has finally complied with a court’s order to submit internal documents contested by Ripple (XRP/USD). The documents could prove to be a significant win for Ripple, going by the comments of its CEO Brad Garlinghouse.

Ideally, the said documents related to internal emails and early drafts of a speech by former SEC official William Hinman. They date back to 2018 and are comments by Hinman when he asserted that Bitcoin and Ethereum could not be classified as securities.

Ripple is now attacking the regulator for double standards. According to Ripple’s general counsel Stuart Alderoty, SEC is picking winners and losers in digital asset categorisation. Of course, Ripple was a target of the SEC based on the argument that XRP should be classified as a security.

Garlinghouse has called out the SEC, terming its behaviour as shameful. According to the Ripple CEO, the SEC does not care about disclosure or transparency. He points out that it will be shocking once the truth comes out, in reference to the Hinman documents.

XRP shows indecision despite the latest development

The Hinman documents add to growing optimism that Ripple would win against the regulator in the XRP classification. However, XRP has yet to react and has even lost by an intraday of 4.30%. Technical indicators show it is bearish.

Source – TradingView

On the technical side, XRP is under pressure at minor support of $0.44. A bearish MACD crossover was initiated recently as bears circled the token.

Although the $0.44 level has held before, an increasing bear pressure could force a breakout. The next potential zone for XRP will be $0.37.

Should you buy XRP?

XRP is not a buy at the current level despite the positive developments. The bullish momentum seems to have hit speed bumps, and bears are taking control. 

Potentially, the news isn’t exciting enough to the bulls looking more at the case’s outcome. Also, a bear market is to blame. Investors should aim to buy XRP lower. 

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.

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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.

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The post How good is XRP after this brutal statement by Ripple against the SEC appeared first on CoinJournal.

Monero’s price remains above $140, but XMR could find it hard to maintain this position as the broader cryptocurrency continues to underperform.

XMR, the native coin of the Monero ecosystem, is down by less than 1% over the last 24 hours and is currently trading at $140.66 per coin.

The recent poor performance has erased the gains recorded earlier this week. XMR is down by roughly 1% in the last seven days and could find it hard to maintain its position above $140.

What is driving Monero’s price lower today?

There is no apparent catalyst behind Monero’s poor performance today. Its performance coincides with that of the broader cryptocurrency market, which is down by more than 1% in the last 24 hours.

The total cryptocurrency market cap could drop below $900 billion for the first time in a month if the current bearish momentum persists. 

Bitcoin has lost more than 1% of its value today and is now trading below $19k. Meanwhile, Ether is also down by more than 1% and is currently trading around $1,280 per coin.

What’s the outlook for the Monero price?

Despite holding its position at $140, Monero would most likely drop lower over the coming hours. Its performance would depend on how the broader crypto market performs, as there is no major news coming out from the Monero ecosystem at the moment.

Failure to maintain its price above $140 could see XMR drop toward the $125 level over the next few days.

Monero technical analysis

The XMR/USDT 4-hour chart has turned bearish as Monero has been underperforming over the last few days. 

XMR/USDT Chart By TradingView

The MACD line dropped into the negative zone yesterday, indicating that the bears have taken control of the Monero market. 

The 14-day relative strength index has also declined and currently stands at 43. If the bearish momentum grows stronger, it could enter the oversold region over the weekend. 

If the bearish trend continues, XMR could drop toward the $133 support level for the first time since July. However, the second major support level at $121 could hold over the coming days. 

How to buy Monero?

Follow these simple steps to buy Monero:

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Fund the newly-opened eToro account with your local fiat currency. You can deposit as much as you desire. 

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You can immediately start trading Monero against a host of other cryptocurrencies like Bitcoin or against fiat currencies like the GBP or USD.

Where to buy Monero now

EZinvest

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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.

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The post Monero price above $140: Where next for XMR? appeared first on CoinJournal.

Bitcoin has been hanging around this $20,000 level – or close to it – for quite a while now.

It’s funny how things work. Trade sideways for a couple of weeks and all the traders grow impatient.

But people: be careful what you wish for. There is reason to believe that Bitcoin’s current flirtation with $20,000 may be looked back upon as the “good old days” sometime soon.

What can we tell from previous cycles?

In looking back at previous cycles, it is notable that Bitcoin rarely traces back beyond the peak of the prior bull market. In this case, the previous bull market peaked close to Christmas in 2017, when Bitcoin exploded upwards to trade at $19,345.

It is thus noticeable that we have now dipped below this level – albeit only by a small amount. In looking at the chart, you can see this represents an outlier historically.

I don’t pay a lot of attention to support and resistance – I believe that in the current environment, the ominous macro climate is all that matters. Bitcoin, alongside the stock market, merely moves on inflation readings and the words of Jerome Powell.

However, it would be remiss to overlook psychological whims entirely. They do play a factor in all market moves, and oftentimes in crypto they can be more pronounced than most.

This is why I fear that Bitcoin is one bad news event away from a catastrophic day, and a sharp red candle. The world’s biggest cryptocurrency has been in crab motion at these levels for nearly four months now. The longer it does this, the more important that level becomes.

Additionally, the fact this crabbing is occurring around the psychologically important $20,000 number adds a little bit of symbolism and poignancy. Finally, given the fact that the peak of the previous bull has been erased, it really does bring all factors into play.

Macro still calls the shots

Of course, macro is still very much the leader. And with the state of the world so precarious right now – rising interest rises, spiralling cost of living, a war in Europe, an energy crisis – the bad news is everywhere you look. It is not hard to imagine a bad news event coming down the pipeline sometime soon.

If this event does materialise, that is when I fear for Bitcoin. I would not be surprised to see the orange coin plummet to a level not many thought possible – at least, not when talk of “supercycles” was in vogue during the pandemic surge.

It is important to note that the economy is a different beast right now to anything Bitcoin has ever experienced. People forget that Bitcoin was only launched in 2009. This means that it has never before existed in a high-interest rate environment, nor a world where the stock market was not printing outrageous gains (the S&P 500 6X’d from its nadir in the GFC to its all-time high less than a year ago).

So in this context, what good is it to blindly preach that Bitcoin has drawn down similar amounts before, only to roar back?

Today, we are squarely in the midst of a wider bear market, for the first time in crypto history.  The S&P 500 is off nearly 25% this year. Bonds are in the dumps. Even the king of the safe havens, gold, has lagged.  

Bitcoin is also a completely different asset than previous cycles. There is strong liquidity in the markets and institutional adoption. In short, it is a mainstream financial asset. It is even legal tender in a couple of countries. Nobody in financial circles has not heard of Bitcoin at this point.

So again, what can previous cycles tell us?

When does the red candle come?

Let me be clear. I have no idea when this will come, so it’s not much good. If I did, I wouldn’t be typing away on a laptop, I’d be lying on a beach somewhere sipping from a coconut I picked with my bare hands.

I’m just articulating a hunch that I would be very afraid of Bitcoin at this point. It has been treading water at this mark for quite a while – and that mark is a significant one, both in terms of the round $20K figure and the comparison to previous cycles.

Volatility is never far away from Bitcoin. So for the traders lamenting sideways action – you might look back upon these days with envy sometime soon. It would not surprise me one bit to see a negative news event and a violent wick south of $15,000.

Then again – I’m just a boy on the Internet, what do I know?

The post Is Bitcoin one event away from a world of pain? appeared first on CoinJournal.