Kategorie: Crypto Analysis

The Terra price crashed to the lowest level since February this year as the cryptocurrencies sell-off accelerated. LUNA dropped to a low of $50.60, which was about 60% below the highest level on record. As a result, its total market cap has declined to about $19.5 billion.

Terra downward trend

Terra was not left behind in the ongoing cryptocurrency sell-off as investors battled the rising volatility and risks in the market. It was not alone considering that other cryptocurrencies also crashed to multi-month lows.

Indeed, the total market cap of all cryptocurrencies tracked by CoinGecko declined to above $1.56 trillion. At its peak, the market cap rose to more than $3 trillion, making them large asset classes in the world. 

Terra has therefore declined as many people who own the coin dump it fearing more losses. There are also concerns that about the lack of inflows into the coin.

Learn more about how to buy cryptocurrency.

Further, fears of the hawkish Federal Reserve have pushed more people out of the market as evidenced by weak performance across the board. For example, the tech-heavy Nasdaq 100 index has dropped by 26% from its highest point this year. Similarly, the Dow Jones and the Nasdaq have all declined by more than 10% from their highs.

Meanwhile, Terra price is also struggling as its DeFi platforms see intense outflows. According to DeFi Llama, Terra’s total value locked (TVL) has declined by more than 18% in the past 24 hours. This is a deeper decline than other chains like Ethereum, Solana, and BNB Chain. 

The TVL currently stands at $20.19 billion. Its biggest applications have seen their TVL drop by more than 20% in the past 24 hours. For example, the TVL of the Anchor Protocol has slipped by 16% while those of Lido and Astroport have fallen by over 20%.

Terra price prediction

In my last article on Terra, I warned that the coin would see a major decline since it was forming an inverted cup and handle pattern. This prediction was accurate as the coin has crashed sharply in the past few days.

Terra has moved below the 25-day and 50-day moving averages while the MACD and the Relative Strength Index have moved to the extremely oversold levels. 

Therefore, the LUNA price will likely have a brief rally this week especially when the US publishes weak consumer inflation data. If this happens, the next key resistance to watch will be at $60.

The post Should you buy Terra LUNA as it gets extremely oversold? appeared first on Coin Journal.

The crypto market is heavily bearish at the moment and has lost more than $200 billion over the past few days.

The cryptocurrency market has been in a bearish trend over the past few days. The market has shed over $200 billion in the last few days, with the total market cap now above $1.52 trillion. 

In the last 24 hours, the market has lost nearly 4% of its value. Bitcoin remains the market leader but has lost its $35k support level and is now trading around $33k per coin. 

Ether, the second-largest cryptocurrency by market cap, has also dropped below the $2,500 psychological level and further losses could see the ETH bulls forced to defend their position above $2,000.

TRX, the native token of the TronDAO ecosystem, is one of the best performers amongst the top 20 cryptocurrencies by market cap in the last 24 hours. TRX has added more than 3% to its value and now trades at $0.08404 per coin.

The coin is performing well as TronDAO’s USDD stablecoin continues to gain traction. TRONDAO recently revealed that the total supply of the stablecoin has now surpassed $240 million.

Key levels to watch 

The TRX/USDT 4-hour chart is currently bullish as Tron has been performing well in recent days. The MACD line is above the neutral zone, indicating bullish momentum for TRX.

The 14-day relative strength index of 52 shows that TRX is no longer in the oversold region. 

If the bullish momentum continues, TRX could rally past the $0.0910 resistance level over the next few hours. In the event of an extended bullish run, TRX could trade above the $0.10 level for the first time this year. 

The post Here is why TRX is up by more than 3% today appeared first on Coin Journal.

The cryptocurrency market has lost more than $200 billion over the past few days.

The cryptocurrency market has been in a bearish trend over the past few days. Over the weekend, the market shed more than $200 billion as the total crypto market cap dropped from $1.7 trillion to $1.5 trillion.

In the last 24 hours, the market has lost nearly 4% of its value. Bitcoin has lost its major support level above $35k and is now struggling around the $33k point. It could be in line for further losses over the coming days.

Ether has also dropped below the $2,500 psychological level and further losses could see the ETH bulls forced to defend their position above $2,000. 

NEAR, the native token of the Near ecosystem, is the best performer amongst the top 20 cryptocurrencies by market cap in the last 24 hours. The coin has added more than 7% to its value during that period. 

However, there is no major catalyst behind NEAR’s ongoing positive performance. NEAR could find it hard to maintain this bullish run as the broader market is currently bearish.

Key levels to watch 

The NEAR/USDT 4-hour chart is still bearish despite the ongoing positive performance. However, the technical indicators show that NEAR’s value is slowly recovering.

The MACD line is below the neutral zone as NEAR has been in a bearish trend in recent weeks. The 14-day RSI of 50 shows that NEAR is no longer in an oversold region.

At press time, NEAR is trading at $11.07 per coin. If the rally continues, it could surge past the first resistance point at $12.40. However, the second resistance level at $13.285 should cap further upward movement.

With the broader market still bearish, NEAR could see its gains reversed. NEAR could be forced to defend its first major support level at $9.046 before the end of the day.

The post Why is NEAR up by more than 7% in the last 24 hours? appeared first on Coin Journal.

Algorand is a leading blockchain project that seeks to become the most environmentally-friendly platforms in the world. It is a smart contract chain that uses the Algorand Virtual Machine (AVM) that provides numerous possibilities for scaling and accelerating projects. According to its website, Algorand can handle over 1,000 transactions per second (tps).

Algorand price performance

Algorand ranks as one of the biggest smart contract platforms in the world. According to CoinGecko, it has a total market capitalization of over $4.7 billion. Like most digital coins, ALGO has not had a good year as its price has crashed by more than 60%. It has also declined by over 77% from its all-time high and is trading near its lowest level since February 2021. 

There are numerous reasons why the Algorand price has plummeted in the past few months. First, there are the significant risks about the Federal Reserve will embrace a more hawkish tone. Indeed, the bank has already done that by implementing two rate hikes. 

The most recent rate hike that happened in May was a whopping 0.50%. The bank also decided to continue hiking interest rates and implementing quantitative tightening policies. Historically, cryptocurrencies like Algorand tend to underperform in a period of high-interest rates.

Second, Algorand has struggled because of the rising competition and the fact that its ecosystem is a bit smaller than that of its peers. Some of the biggest competitors to Algorand are Ethereum, Cronos, Solana, and Cardano. While these networks have a total value locked (TVL) of billions, Algorand has a relatively smaller one. 

With this in mind, let us look at some of the top reasons why Algorand is a good investment.

Algorand’s World Cup exposure

World Cup is one of the biggest sporting events in the world with billions of viewers globally. Recent data shows that there were over 1.1 billion viewers of the final between France and Croatia. This is a significant number considering that the world has a population of more than 8 billion. Also, the World Cup is watched by more people than those who watch Formula 1 and Super Bowl.

In May 2022, Algorand announced that it had signed a deal with FIFA to become a major sponsor of the World Cup. As a result, its logo will be seen by millions of people from around the world. At the same time, FIFA will use Algorand’s technology to create its blockchain initiatives like Non-Fungible Tokens (NFT). 

Therefore, we believe that the Algorand price will make a steady recovery during and after the World Cup event. This will happen as more people decide to buy the coin during the matches.

However, while this is a good catalyst, it is worth noting that cryptocurrencies that have appeared in most events have only had a temporary boost. For example, Cronos, which was previously known as Crypto.com Coin, saw just a modes gain when the company sponsored Super Bowl.

Its growing ecosystem

Algorand is a good investment because of its growing ecosystem across the board. Like Solana and Avalanche, Algorand has been adopted by all types of developers. These creators are building applications in all industries, including Automated Market Makers (AMM), analytics, decentralized autonomous organizations (DAO), DEX, governance, oracles, and NFTs among others. 

The catalogue of all apps created in Algorand has been growing rapidly in the past few months. Some of the most popular blockchain platforms created using Algorand are AlgoFund, AlgoLaunch, Choice Coin, Algofi, Flex NBA, The Drag Racing League, and Folks Finance among others. While most of these projects are in their infancy, there is a likelihood that they will continue growing in the coming years. 

It is a proof-of-stake platform

The other reason why the Algorand price will keep doing well is that it was built using a pure proof-of-stake (PPoS) consensus. This is a protocol that enables new coins to be minted through the use of validators. It differs from a proof-of-work methodology, which allows coins to be created by solving complex mathematical solutions.

Proof-of-stake is said to be a better approach, which explains why Ethereum is migrating from its PoW platform to PoS. 

There are several benefits of Algorand being a PoS platform. First, it allows investors to earn a return by simply holding the coin. This process, known as staking, allows people to earn as much as 12% APY. Second, it makes Algoran to be significantly faster. It can handle over 1,000 transactions per second, while Ethereum can only handle less than 20. 

Further, Algorand’s PoS system helps to ensure that it is climate-friendly. Indeed, the platform uses ClimateTrade to offset its carbon footprint. ClimateTrade is used widely by companies that are seeking to reduce their footprint.

Algorand is offered widely

Further, Algorand is provided widely by most brokers and exchanges. It is available in leading centralized exchanges like Coinbase, Crypto.com, and Binance. These are some of the most popular exchanges in the world. At the same time, it is possible to buy and trade Algorand in leading decentralized exchanges like Uniswap and PancakeSwap. 

Learn more about how to trade cryptocurrency.

Algorand has a strong community

Finally, Algorand has one of the biggest communities in the blockchain industry. Its main Twitter account has over 250,000 followers, which is higher than most cryptocurrencies. Also, a closer look at its network shows that it has millions of wallets. At the same time, Algorand has launched a $250 million grants program to incentivize developers.

The post Is Algorand a Good Investment? 5 Reasons We Think It Is appeared first on Coin Journal.

The cryptocurrency market has performed poorly over the past 24 hours, with more than $100 billion wiped out during that period.

The bearish sentiment in the crypto market returned over the past 24 hours, with the market losing over $100 billion during that period. The broader crypto market is down by 6.85% in the last 24 hours, its biggest loss recorded in recent weeks.

At press time, the total cryptocurrency market cap stands around $1.67 trillion, down from the $1.79 trillion reported yesterday.

Bitcoin, the world’s largest cryptocurrency by market cap, is one of the poorest performers over the past 24 hours. BTC has lost more than 8% of its value during that period and now trades above the $36k level.

The bearish run could see Bitcoin drop below the $35k resistance level for the first time this month. As usual with the crypto market, Bitcoin’s poor performance has affected the other top cryptocurrencies.

All the cryptocurrencies in the top 100 list are trading in the red zone except Anchor Protocol, which is up by more than 6% in the last 24 hours.

Key levels to watch

The BTC/USD 4-hour chart is currently bearish as Bitcoin has lost more than 8% of its value recently. The technical indicators show that the bearish sentiment in the market remains strong.

The MACD line has slipped below the neutral zone thanks to Bitcoin’s ongoing poor performance. The 14-day RSI of 28 shows that Bitcoin is currently oversold. 

At press time, Bitcoin is trading at $35,901. If the bearish trend continues, BTC could slip below the $35k level for the first time in weeks. In the event of an extended poor performance, Bitcoin could be forced to defend the second major resistance level around $33,800. 

The post BTC could drop below $35k as bearish sentiment continues appeared first on Coin Journal.