Kategorie: Crypto Analysis

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.

The Mirror Protocol has done relatively well in the past few days as investors rush to buy the dip. MIR, its natve token, is trading at $0.40, which is about 115% above the lowest level this month. As a result, its total market cap has risen to just $35 million.

Why is MIR rebounding?

The Mirror Protocol is an important decentralized platform built on the Terra ecosystem. The platform’s goal is to enable people to buy and sell synthetic assets like stocks, commodities, and forex. 

Like all platforms built on Terra’s network, the coin’s price declined sharply this month. At its lowest point this month, MIR was down by almost 100%. 

Now, the cryptocurrency is bouncing back as other Terra coins recover. For example, TerraUSD, the stablecoin that caused all this damage, has risen by more than 10% in the past 24 hours. Similarly, tokens like Anchor Protocol and LUNA have all done well as investors buy the dip.

Analysts believe that some platforms like Mirror and Anchor Protocol will rebuild, possibly in other chains like Ethereum and Solana. They will also likely change their business model to bring in more transparency an focus on other asset-backed stablecoins like USD Coin and Tether.

However, for now, it is relatively difficult to recommend Mirror Protocol as an investment because of the relatively high risks. Like other Terra platforms, it is hard to know whether the recovery plans proposed by the leaders will become successful.

Worse, Mirror Protocol developers have not communicated about how they plan to salvage the project. Their last tweet was on May 4th before the implosion happened.

Mirror Protocol price prediction

On the daily chart, we see that the MIR price has been in a spectacular decline in the past few months. The coin’s sell-off accelerated when it moved below the important support level at $1.090, which was the lowest level on February 25th. 

Mirror Protocol price also crashed below the 25-day and 50-day moving averages. Therefore, despite this rebound, there is a likelihood that the coin’s price will continue falling as bears target the next key support level at $0.19.

The post Mirror Protocol price prediction: Should you buy the MIR dip? appeared first on CoinJournal.

The cryptocurrency market has lost nearly 4% of its value in the last 24 hours.

The broader cryptocurrency market has shed the profits it recorded over the weekend. The total cryptocurrency market cap stands at around $1.255 trillion, down from the $1.3 trillion recorded yesterday.

Bitcoin is trading below the $30k resistance level again after losing 3.9% of its value in the last 24 hours. Ether is down by 5% so far today and currently trades at $1,963 per coin.

However, TRX, the native token of the Terra ecosystem, is currently trading in the green. TRX is up by more than 4% over the last 24 hours, making it the best performer amongst the top 20 cryptocurrencies by market cap.

At press time, TRX is the only cryptocurrency amongst the top 20 trading in the green zone. 

The catalyst behind TRX’s ongoing positive performance is the announcement that Fireblocks now supports TRX and TRC20-based tokens. 

Fireblocks is an enterprise-grade platform known for delivering a secure infrastructure for moving, storing, and issuing digital assets. It provides services to institutional investors. 

THE Tron team said Fireblocks had added support for TRX and all TRC20-based tokens of the TRON DAO blockchain on its digital asset platform.

Key levels to watch

The TRX/USDT 4-hour chart is bullish at the moment, thanks to Tron’s ongoing positive performance. TRX is currently one of the best performers in the market over the last seven days.

The MACD line is within the positive zone, indicating bullish momentum. The 14-day relative strength index of 64 shows that TRX could enter the overbought region if the positive momentum is maintained.

At press time, TRX is trading at $0.08082 per coin. If the rally continues, TRX could surge past the first major resistance level at $0.08272 before the end of the day.

In the event of an extended rally, TRX could move past $0.0852 for the second time this month. 

The post Here is why TRX is up by more than 4% today appeared first on Coin Journal.

Cryptocurrency companies have also suffered from the ongoing winter in the digital currencies industry continues. This explains why the Coinbase stock price has crashed by over 84% from its all-time high. Similarly, centralized exchange tokens (CET) have all retreated sharply in the past few months. Here are some of the best CET cryptocurrencies to buy.

FTX Token (FTT)

FTX is one of the biggest cryptocurrency exchanges in the world. It operates an international brand and a US-focused company. Combined, the two have been valued at over $30 billion by private investors. This makes it more valuable than Coinbase, which has a market cap of over $15 billion. 

The FTX Token is the biggest centralized exchange token globally with a market cap of over $4 billion. The FTT token price has crashed by 64% from its highest level in 2021. With the company expanding to stocks trading, there is a possibility that the token will bounce back in the near term. This rebound will mostly happen when other cryptocurrencies start recovering.

OKB (OKB)

OKX is a large company that provides a platform where people can buy and sell digital currencies. Like FTX, it most focuses on cryptocurrency derivatives, which have become even bigger than spot currencies. According to CoinMarketCap, it handles over $10 billion of cryptocurrencies every day. OKX also has features that let people buy and sell non-fungible tokens (NFT) and other DeFi platforms.

The OKB price has been in a strong bearish trend in the past few months as demand for cryptocurrencies has declined. Similarly, the overall volume of derivatives traded in the ecosystem has been in a downward trend. OKB is a good buy because of the overall market share of the company.

KuCoin Token (KCS)

KuCoin is another large cryptocurrency exchange that handles billions of dollars every day. Its KCS token has a market cap of more than $1.6 billion. Unlike other centralized exchange tokens, KCS has done relatively well in the past few days. It has risen by more than 45% from its lowest level in February. 

The most recent catalyst for the KCS price was the large $150 million fund that the developers raised this month. They plan to use the funds to expand the ecosystem in areas like DeFi and the metaverse.

In addition to these three, the other top centralized exchange tokens are Huobi Token, Swissborg, and Gate.

The post Top 3 centralized exchange tokens to buy the dip in appeared first on Coin Journal.

After Terra’s UST collapsed, there has been a sharp focus on dollar-pegged stablecoins. There are in fact fears that another de-pegging could pose systematic risks for the entire crypto market. Nonetheless, USD Coin has emerged as one of the key alternatives to Terra’s UST. Here is why:

• USD Coin is managed by a verified consortium of experts.

• USDC is also backed by dollars which are actually held physically in reserve.

• The stablecoin is also backed by other reserve assets including US treasury bills.

Data Source: TradingView 

Why is USD Coin behind Tether?

With the attributes listed above, it is clear that USD Coin has all the makings to become a huge stablecoin. In fact, its market cap has been growing, especially after the collapse of Terra UST. However, there are some signs that USDC is not growing as fast as its market cap suggests. 

For instance, USDC liquidity on Uniswap, one of the largest DEX in the world, has dropped significantly in recent months. High liquidity on a platform like Uniswap often indicates that a stablecoin is in high demand. The fact that USDC is dropping is a concern. 

We are also seeing the largest wallets favoring Tether. In fact, research by Glassnode notes that the percentage of USDC held by 1% of the largest crypto wallets is at a one-year low. While this is not a big enough concern, it suggests that there is limited demand for the coin.

Is USDC facing De-pegging risks?

At the moment, there is nothing that indicates USDC is facing any possible risk of de-pegging. The UST collapse of course has put investors on edge. But so far, USDC has managed to maintain a stable peg on the dollar. 

It is unlikely we are going to see any de-pegging soon. However, one thing we can be sure about is that USDC is years away from competing with Tether.

The post Why USD Coin remains under Tether’s shadow despite growing interest appeared first on Coin Journal.