Kategorie: Crypto Analysis

The broader crypto market declined sharply at the beginning of May. Most coins in the top ten have all fallen by double figures since the beginning of the month. The dip however presents investors will have a decent chance to buy promising coins at a very discounted price. Here is why you should buy:

• The crypto market has proved to be quite resilient over the last 5 months.

• The market has had to deal with serious economic and geopolitical shocks

• Crypto is likely to rebound and surge in the medium and longer term.

For the dip hunters out there, we have a list of three coins below that should be worth watching in May.

Terra (LUNA)

Terra (LUNA) is one of the leading stablecoin platforms in the world. In the month of May alone, the coin has lost over 30% of its value. We do not expect LUNA to rebound immediately. However, this is a project that is backed by very decent fundamentals.

For those of you looking for decent long-term investments in crypto, you won’t find a more suitable option than LUNA. The coin is very cheap right now, considering the potential it offers. It’s time to get it.

Kadena (KDA)

Kadena (KDA) is an innovative blockchain designed to address some of the challenges associated with Proof of Work networks. In essence, KDA offers the security of proof of work models while maintaining high speeds and scalability. The coin has dipped by over 25% in the last few days. It is a prime asset right now for global dip buyers.

Oasis Network (ROSE)

DeFi protocols like the Oasis Network (ROSE) have also seen sharp falls this month. ROSE is now over 20% down from its price at the start of May. However, considering that it remains one of the high potential DeFi projects right now, the 20% drop is a great opportunity to stock up on ROSE cheaply.

The post Top 3 coins to buy as the crypto market dips appeared first on Coin Journal.

LUNA is one of the worst performers amongst the major cryptocurrencies by market cap.

The bearish sentiment in the market grows ticker as the market lost over $100 billion in the last 24 hours. The crypto market has lost more than 2% of its value in the last 24 hours and the total market cap now stands below $1.5 trillion.

Bitcoin briefly dropped towards the $30k psychological level before rebounding to now trade at $31,800 per coin. Ether continues to trade above $2,400 and is up by less than 1% despite the broader market in a bearish situation.

However, the biggest loser amongst the top 20 cryptocurrencies by market cap is LUNA, the native token of the Terra ecosystem. 

LUNA is down by 44% over the past 24 hours and has lost its place amongst the top 10 cryptocurrencies by market cap. The coin now occupies 13th place in the market.

The bearish performance came after Terra’s UST stablecoin slipped below its dollar peg twice yesterday. UST dropped to $0.69 yesterday, resulting in questions about the stablecoin’s stability.

UST’s predicament led to LUNA losing more than 40% of its value over the last 24 hours.

Key levels to watch

The LUNA/USDT 4-hour chart is one of the most bearish amongst the top 20 cryptocurrencies by market cap. 

The MACD line is below the neutral zone, indicating bearish momentum. Furthermore, the 14-day RSI of 21 shows that LUNA is currently oversold.

At press time, LUNA is trading at $33.05 per coin. If the bearish trend continues, it could drop below the $30 support level soon.

However, LUNA has shown signs of recovery over the past few hours and could move past the first major resistance level at $39 before the end of the day.

The post Here is why LUNA is down by more than 40% in the last 24 hours appeared first on Coin Journal.

Ethereum (ETH) is now on a full downtrend. The coin has breached several crucial support zones and fell below $2500 for the first time in weeks. The decline follows a broader sell-off in the market, and it is likely that more losses are coming. Here are the main takeaways:

• ETH is now firmly in a bearish trend and could lose $2000 in the coming weeks.

• A trend reversal appears unlikely, and ETH holders appear to be selling fast.

• If the coin loses $2300, there will be sharp declines thereafter.

Data Source: Tradingview 

Ethereum (ETH) – is there any hope?

Growing fears of stagflation in the US appear to be driving much of the selloff in crypto. Investors are also processing the news that the US economy could slow significantly this year and even head into a biting recession. 

Under such economic conditions, we expect Ethereum and the broader market to be highly volatile in the medium term. While the overall outlook for Ethereum in the longer term remains positive, the coming few weeks will be brutal. 

After losing two key support zones of $2800 and $2500, ETH is now hovering dangerously close to its next support of $2300. This zone has held strong so far. But it’s very hard to imagine the price action will remain above $2300 for long. As pressure mounts, ETH will likely fall below $2300 and soon after, the coin could spiral below $2000 in no time.

What next for Ethereum investors?

Most Ethereum investors have always held the coin for the long haul. There is no reason to panic. This dip was largely expected. If you are still a believer in crypto, then ETH is one coin you cannot afford to ignore. Even with the recent sell-off, ETH could still end 2022 higher than it started. But in the weeks ahead, we expect the coin to fall sharply.

The post Ethereum (ETH) falls below $2500 – What to expect next appeared first on Coin Journal.

Bitcoin (BTC) has continued its fall for 5 days in a row now. The mega-cap is threatening to enter a bear market barely weeks after surging above $45,0000. But as the weakness continues, investors are faced with a big dilemma. Should you hold or sell? More analysis on this later but first some pointers:

• Bitcoin has lost the crucial $35000 support which is psychologically important.

• The coin went below $31,000 at one point during intraday trading albeit its recovered.

• The broader sell-off in the crypto market is likely to continue in the coming days.

Data Source: Tradingview

Bitcoin (BTC) – Hold or sell

The one big dilemma Bitcoin investors face is whether to hold or sell. Now, there are many ways to look at this. On the one hand, if you bought BTC a few years back, you are still in the money. However, most investors will always focus on the future outlook as opposed to what has already happened. 

So, in order to decide whether to hold or sell BTC, it is important to know where it’s heading. The period of weakness we have seen over the last few weeks is not going to end soon. The slowing global economy and red-hot inflation are pushing crypto assets down. 

These economic conditions will not abate anytime soon and as such, BTC investors must be ready for a prolonged period of volatility. Nonetheless, BTC is still a hold. The coin will likely return above $50,000 before the year is out.

How to view this sell-off

Sell-offs in 2022 have become all too common in crypto. This one however appears to be more decisive since it is correlated to equity markets. 

Perhaps we are seeing the ultimate Bitcoin correction. As such, it would be best to wait for the price action to stabilize a bit before buying BTC.

The post Bitcoin loses crucial $35000 support – Should you hold or sell? appeared first on Coin Journal.

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.