Kategorie: Crypto Analysis

Daily headlines and news about crypto analysis.

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Shiba Inu v Dogecoin – Which one is a better buy?

Shiba Inu’s deflationary tokenomics give it a clear edge over Dogecoin

Key Points:

  • Both SHIB and DOGE have strong prospects for growth. They are trading at massive lows while their core fundamentals are getting stronger. 

  • Shiba Inu recently launched a Metaverse and a layer-2 scaling solution. 

  • Many top organizations now adopt Dogecoin for payments, including Tesla. 

  • While the two are likely to perform well long-term, SHIB’s deflationary tokenomics give it an edge over DOGE. 

Shiba Inu (SHIB)

Shiba Inu made history in 2021 as one of the best-performing cryptocurrencies ever. Shiba Inu launched in August 2020, and by November 2021, it was up by 48,000,000%. However, for most of 2022, things have not been rosy for Shiba Inu. Shiba Inu is currently down by over 80% from its November 2021 highs. 

Despite the price crash mainly being a function of the broader cryptocurrency market, the Shiba Inu ecosystem is growing fast. For instance, Shiba Inu recently launched a Metaverse and a layer-2 solution to help scale and cut down on transaction costs. Adoption of SHIB for payment is growing too, which points to Shiba Inu’s potential as a cryptocurrency likely to rebound once the bear market ends. 

Dogecoin (DOGE)

Dogecoin is the oldest meme coin. While it was created as a joke coin, Dogecoin has maintained its position as one of the top cryptocurrencies by market cap since 2013. However, Dogecoin only started making headlines in 2020 after Elon Musk got interested. His tweets about Dogecoin saw it pump and record gains of 12,000% by April 2021. 

Since then, Dogecoin has been in a correction and has struggled to retest its all-time highs. That aside, Dogecoin adoption continues to grow, and many large corporations now accept Dogecoin payments. These include the Dallas Mavericks and Tesla, which now sell some of their low-cost merchandise in Dogecoins. 

As adoption grows, Dogecoin has a good chance to perform well once the market turns bullish again. The fundamentals are getting better, and Dogecoin in 2022 is miles ahead of where it was in 2020. 

Which one is a better buy?

Both Dogecoin and Shiba Inu are among the best meme coins to bet on in the long term. However, in terms of absolute gains, the odds favor Shiba Inu as the likely winner of the two. That’s because of its deflationary tokenomics. SHIB also has a more robust ecosystem that includes a Metaverse. 

Conclusion

While both Shiba Inu and Dogecoin have the potential for long-term growth, SHIB could perform better. It has a more extensive ecosystem, and its deflationary tokenomics favor long-term value growth.

The post Shiba Inu v Dogecoin – Which one is a better buy? appeared first on CoinJournal.

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Ankr’s (ANKR) bearish outlook continues as the coin struggles to escape major resistance

Ankr (ANKR) continues to show bearish signs and could remain on the downside for weeks. The coin is suppressed below several crucial resistance zones. It will take time and a significant change in sentiment for this overall bearish outlook to reverse. Here are some points:

  • ANKR was largely exposed to the UST collapse about a week ago.

  • UST’s recovery in recent days has however failed to translate into gains for ANKR.

  • The coin lost nearly 5% in the last 24 hours.

Data Source: TradingView

Will ANKR recover in 2022?

The long-term outlook for ANKR has always been positive. However, there is still a long way to go before the coin reaches any meaningful milestones. First, the biggest challenge will be to overcome the $0.041 resistance zones. At the moment, ANKR is roughly 15% away from this. 

However, we don’t see the token testing of $0.041 in the coming days. In fact, owing to the broader weakness in the crypto market, ANKR will likely retreat by at least 10% by the end of the week before its next leg up. This will push the token towards its next support of around $0.031. 

Now, here is where things might get interesting. If indeed ANKR consolidates above $0.031 for a few days, it may reverse the downtrend and test $0.04. But if bulls fail to hold that, then ANKR will likely bottom at $0.023 by the end of June.

Is ANKR worth buying?

Despite the price decline over the last few weeks, ANKR still retains very good fundamentals. In fact, the project recently announced a major partnership with the Tron Network. 

So, for the long term buyer, ANKR is a decent buy. However, wait a few weeks for the price action to retreat further. That way, investors can get an even bigger discount as they await a long term ANKR recovery.

The post Ankr’s (ANKR) bearish outlook continues as the coin struggles to escape major resistance appeared first on CoinJournal.

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Litecoin (LTC) breaks below crucial support – What to expect next

should I buy litecoin

After days of trading sideways and showing very little appetite for trending upwards, Litecoin has finally broken below a crucial support zone. The coin is now facing a major downside and could crash over the coming days. Here are the main takeaway points:

  • LTC has broken below the crucial $64.34 support.

  • The coin is exposed to a 30% downswing as a result of this.

  • However, so far LTC is yet to decisively drop and could still regain this support this week.

Data Source: TradingView 

LTC price analysis: What to expect Next

At the moment, it doesn’t seem like LTC will crash. If anything, the bulls are trying to regain the $64 mark. The coin will need to gain around 5% over the next 24 hours to reclaim the support. However, although this may look like a simple thing, LTC has actually remained suppressed below that price for most parts of the day. 

We do not think there is enough buying activity in the market to push LTC above $64. As a result, we expect the coin to remain closer to the price at the end of the day but ultimately, LTC will not close above this price. 

This will trigger a decisive sell-off over the coming days that could see LTC drop by nearly 30%. The altcoin will eventually settle at around $51 in this bearish cycle before it tries to find its next run. But if more weakness follows and LTC loses $51, it could crash to $40.

How to trade this set-up?

The downside risk for LTC is significant right now. The best you could do is to wait a few days to see if bulls can regain $64 and keep the price action above it. 

But if you are looking to buy LTC for the long term, there will be an opportunity to get it cheap when it tanks to $51 or thereabout.

The post Litecoin (LTC) breaks below crucial support – What to expect next appeared first on CoinJournal.

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STEPN (GMT) drops by 37% in minutes – Here is why

STEPN has dominated the news cycle in crypto over the past few weeks. The coin is one of the most popular lifestyle web3 projects that pays users to move. However, its native token GMT fell sharply today in minutes. Here are some of the details:

  • STEPN dropped by over 37% in just a few minutes after news it was withdrawing from China

  • The project cited regulatory hurdles as the reason for the withdrawal

  • GMT stabilised later in the day and managed to recover some of those losses

Data Source: TradingView 

STEPN (GMT) – Price analysis and prediction

STEPN has developed a unique web3 lifestyle approach. This has made the project and its native GMT token quite popular in recent days. However, news of the Chinese withdrawal appeared to rattle investors. GMT saw 37% of its value vanish in just a few minutes. At one point the coin even lost the $1 price and was trading at around $0.7. 

Despite this, the GMT token managed to recover. In fact, GMT regained the $1 mark shortly after the mini-crash. Even though the token is now down 8% over the last 24 hours, it has managed to keep the price action above the $1 mark.

Based on this, it is clear that the initial shock of the Chinese withdrawal has abated. Investors have already priced in any possible disruption and as such, GMT will likely consolidate at $1 before it tries to move up again.

Why is STEPN a good investment?

Built on Solana, STEPN markets itself as a web 3 lifestyle app. The project has created a metaverse where users earn rewards when they get out of the house and move. Users must buy NFT backed sneakers and integrate GPS into their phones to earn. 

Over the last few weeks, GMT, the native governance token for the STEPN metaverse, has seen immense growth. The project is by far one of the most innovative applications of web3 concepts in real life.

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What’s happening with Waves’ rollercoaster 2022 price action?

Rollercoaster is a term frequently used in cryptocurrency. It’s certainly the first bit of vocabulary that comes to mind when looking at the Waves chart. The coin gained 240% in March 2022, yet has given back all those gains and more, and now trades 70% below where it opened on New Year’s Day.

It’s currently ranked 81st on CoinMarketCap. Back in 2017, it was in the top 20, before competitors such as Solana, Matic and Polkadot surged onto the scene.

So what’s going on here?

First, what is Waves?

A multi-purpose blockchain capable of supporting various decentralised applications and smart contracts, Waves’ summary reads as an alternative to Ethereum, really. Most popularly, it grants users the ability to create and trade custom crypto tokens at ease. No extensive smart contracts are needed, rather the currencies can be run via scripts off user accounts built on the Waves blockchain.

Why the crazy price action?

The chart below, plotting the market cap of WAVES since the start of the year, requires only a glance to realise how unusual the price action here has been.

The March boom was caused by a few variables. Anticipation over the Waves 2.0 upgrade. The announcement of a $150 million fund to boost applications and protocols running on its blockchain. Additionally, the below tweet re-affirming Waves’ founder Sasha Ivanov as Ukrainian seemed to also provide some impetus.

But why the staggering fall since, down 93% from the peak? The most concerning was analysis circulating on Twitter that the team were involved in manipulating the price of its native token through its own DeFi lending protocol Vires.finance. It is important to note that Ivanov dismissed these as false, instead laying the blame on Alameda for manipulating price while simultaneously launching a hostile media campaign to induce panic selling in the markets.

USDN De-Pegging

Either way, the debate quelled enthusiasm for the token, which was reflected in the price. That all got worse when, and stop me if this sounds familiar, a stablecoin started de-pegging. USDN is the coin in question, and works similarly to Waves as UST did to Luna.

Measures by Ivanov to fight back against a de-pegging event were controversial – reducing liquidation thresholds, limiting borrowing and instilling max APRs. Amid the furore, the Waves token has continued to fall, however, while the liquidity in the Vires.finance protocol has done the same.

Now, the team has released a proposal to revamp the approach and recover faith in USDN following the de-pegging, down to as low as 75 cents last month, and still trading below 97 cents at the time of writing.

Revamp

USDN is currently backed by roughly 40 million WAVES which are leased to two generating nodes. Half of the generated WAVES leasing profit is sent as rewards to USDN stakers and the other 50% gets sent to the smart contract to increase the USDN reserves.

The team is striving to decentralise and solidify the peg control mechanism, and therefore seeking crypto investors and community members “who are willing to run their own nodes for the needs of Neutrino to improve the reliability of the system and make their own interest”.

  • The addition of participants will be gradual and on a one-by-one basis.
  • Maximum participants cannot exceed 80.
  • To begin, each participating node will get 1 million WAVES in leasing, with this amount changing in the future with the possibility of additional participants.
  • Participants will be combined in groups of 10 addresses to simplify the management of the leased amounts.

Phase two of the program will provide the community the chance to govern the decentralisation through voting.

Conclusion

Whether this will re-instil confidence among the community following the de-pegging remains to be seen. The meltdown of the UST stablecoin obviously sent shockwaves through the entire space, but with USDN possessing so many parallels, the pain was more pronounced here than elsewhere.  On the bright side, the Waves team recognised there was action required and is now acting accordingly. If they can learn from Terra’s errors and make the necessary adjustments, there could be a rebound. If not, all bets are off. 

It will be an interesting one to follow.

The post What’s happening with Waves’ rollercoaster 2022 price action? appeared first on CoinJournal.