Kategorie: Crypto Analysis

Tezos (XTZ) has managed to establish a decisive upward trend as we end a troubled May in the crypto market. The coin appears to have significant upward momentum and will likely report more gains over the coming days. Here are some of the highlights:

• Tezos has managed to regain the crucial $2 support

• Consolidation around this price is happening right now.

• XTZ will likely surge past $2.4 before any significant pullback

Data Source: TradingView 

Can XTZ maintain this uptrend for long?

A rise above $2 is a clear sign that indeed a prolonged recovery runs for XTZ could be possible. In fact, if bulls can push the price action above $2.4 and keep it there for a few days, we could see XTZ add nearly 50% in early June. Besides, XTZ is coming from a period of intense sell-off during the first half of May. At one point, the coin bottomed at $1.4, the lowest it has been in 2022.

But we are seeing incredible recovery. XTZ has gained around 50% from its lowest price this year and appears to be headed for another 50% bounce. Nonetheless, this steady uptrend also suggests that XTZ is due for a correction. 

However, we do not think this will happen anytime soon. In fact, XTZ will likely surge past $2.5 before some dip buyers start to cash out. The coin will however need to keep the price above $2 for this bullish setup to remain relevant.

XTZ – The short-term play

There is decent short-term play for XTZ buyers right now. The coin is hovering slightly above $2 which is an ideal entry point. 

Buyers who enter at this price can hold XTZ for a few days and exit when the price nears $2.4. However, if the coin fails to close the day at $2 or above, wait for the next consolidation phase.

The post Tezos (XTZ) could hit $2.4 after a steady relief rally appeared first on CoinJournal.

The Terra ecosystem is gearing for a relaunch after this month’s spectacular collapse that led to over $40 billion in losses. As this happens, the current LUNA token has collapsed to $0.00018, which is a remarkable collapse considering that it was trading at $120 a few months ago.

How will Terra relaunch?

Terra’s revival plan has several important parts. The goal of this revival will be to ensure that the strong community that existed before the collapse continues. The same is true for some of the most important projects that were built in Terra like Astroport, Station, and Stader.

First, the current Terra will change its name to Terra Classic while its token will be known as LUNC. The new blockchain and the token will be known as Terra and LUNA respectively. 

Second, the network will do away with TerraUSD, the stablecoin that caused this problem. Therefore, it is still unclear whether the developers will launch a new stablecoin or not. Also, it is still not clear whether they will create a new collateralized stablecoin or whether they will embrace existing coins like USD Coin and Tether.

Third, to promote that essential developers stick with the network, they will be allocated 0.5% of the total supply. They will also receive 1.5% of total assets as part of the developer alignment program and 8% of total supply for mining program. The remaining coins will be rewarded to pre-attack and post-attack LUNA and UST holders. 

Some of the holders who will not be eligible for allocation include UST or LUNA bridged off of Terra and LUNA protocols that cannot be verified. Terra 2.0 will launch on Thursday this week.

Is Terra 2.0 a good investment?

Terra’s collapse has caused a lot of pain to many people and there is a possibility that most of them will not have an incentive to buy the coin again.

While South Korean prosecutors are making a case against Do Kwon, it is too early to determine whether he was responsible for its collapse. In my opinion, UST was a brilliant idea that failed. 

As such, there is a likelihood that the Terra 2.0 will address the gaps that existed in the previous version. Due to its strong name recognition, we cannot rule out a situation where Terra price bounces back in the near term.

The post Is Terra LUNA 2.0 a good long-term investment? appeared first on CoinJournal.

The cryptocurrency market has experienced a mixed performance over the past 24 hours.

The crypto market has experienced a mixed performance since the start of the week. The market is up by less than 1% in the last 24 hours, with the total market cap currently below the $1.3 trillion threshold.

Bitcoin is trading in the green zone but continues to struggle to surpass the $30k resistance level. Ether is also trading around the $2k level after adding less than 1% to its value so far today.

However, LRC, the native token of the Loopring ecosystem, is one of the best performers amongst the top 100 cryptocurrencies by market cap today.

LRC has added more than 6% to its value in the last 24 hours and is up by 20% over the past seven days.

At press time, LRC is trading at $0.5734 per coin. The major catalyst behind LRC’s ongoing rally is the news that Loopring has processed more than $5 billion in cumulative trading volume. 

As a layer-2 protocol, this latest development is an important milestone for the Loopring ecosystem. 

Key levels to watch

The LRC/USD 4-hour chart is currently bullish as Loopring has been performing well so far this week. The technical indicators show that it is one of the best performers amongst the top 100 cryptocurrencies by market cap.

The MACD line has been above the neutral zone for the past few days, indicating bullish momentum. The 14-day relative strength index of 59 shows that LRC could enter the overbought region if the current market momentum is maintained.

If the rally continues, LRC could break past the first major resistance level at $0.6137 before the end of the day. The second resistance level currently stands at $0.7564 and LRC could surge past it with the help of the broader cryptocurrency market. 

The post Why is Loopring up by more than 6% today? appeared first on CoinJournal.

Floki Inu (FLOKI) has seen quite some resurgence over the last two weeks or so. The coin is looking strong right now after smashing past several resistance zones. There are hopes that this could be a decisive trend reversal after weeks of decline. But how far can Floki actually go? Here are some highlights:

• FLOKI had seen gains in 3 straight sessions before retreating yesterday

• The coin has now added 65% in value in less than 10 days

• This uptrend looks strong and is set to continue in the coming days

Data Source: TradingView 

Floki Inu – Why a trend reversal is unlikely

Although all signs appear to point to the fact that Floki is reversing the trend, it’s important to note there are many risk factors that could easily suppress the price. Besides, FLOKI has fallen nearly 90% from its ATH and is on a bearish trend year on year. 

While a 65% gain in 10 days is quite impressive, it is likely a result of the short-term dip-buying activity. Soon enough, Floki Inu buyers will start to lock in profits and as such, we expect the coin to retreat further. Also, from a long-term point of view, the coin continues to face increased regulatory challenges in the UK after its ads were deemed unethical. 

Floki could still deliver some 2x growth in 2022. But for now, the uptrend we are seeing will slow, and the coin will decline sharply.

Why is Floki risky right now?

Most meme coins have seen major sell-offs this year. In a market filled with uncertainty, a lot of investors will obviously offload risk assets, and meme coins are in that category. 

So, unless we see conditions improve in the broader crypto industry, holding FLOKI for long could be a big blunder. But there are of course many short-term plays for speculative traders.

The post Floki Inu (FLOKI) sees a steady resurgence – Is a trend reversal coming? appeared first on Coin Journal.

Chainlink (LINK) has often marketed itself as the platform that will ultimately democratize the blockchain. The coin has had better days no doubt. But in 2022, the price has remained suppressed for the most part. This comes even as LINK continues to report impressive ecosystem updates. Here are some notable developments:

• Chainlink adoption continues to surge in 2022, with more integrations expected this year.

• Cross-chain activity has also increased for LINK in recent weeks.

• Despite this, LINK’s price has failed to rally more than 10% month on month in 2022.

Data Source: TradingView 

Why are ecosystem updates not pushing LINK?

In a normal market, you would expect such important ecosystem news to have a huge impact on the price. In fact, announcing more integrations would have at least given LINK a boost of 20% in a single month. But this is not a normal market. 

In 2022, we have seen very high volatility and slowed investor sentiment. As such, even though underlying fundamentals for LINK remain solidly good, the risk-off sentiment means that investors are just biding their time before they decide to buy. Also, there are other concerns regarding LINK.

For example, the project is facing massive competition from other newer entrants. Chains like Solana and Polkadot are raising the bar when it comes to scalability and access. As such, it seems investors are starting to spread out their money as they try to cash in on every new project. This puts LINK at a disadvantage.

Can LINK still deliver good returns?

It’s worth noting that LINK hit an all-time high of $57 a few months ago. The coin is now trading at a mere fraction of that.

Although we do not anticipate LINK hitting its ATH this year or even getting close, there is still some potential for a decisive profit for those who buy now. In fact, it is possible that you could 3x your money by year’s end.

The post Chainlink (LINK) struggles to rally despite important ecosystem updates appeared first on Coin Journal.