Kategorie: Crypto Analysis

• Polkadot prices rose early in the trading day, breaking over the $18.51 barrier level.

• Price movement was optimistic, hitting as high as $18.88, despite a 20% drop in trading volume.

• Current trends indicate that selling pressure will increase as volatility rises.

After almost seven weeks of oscillation, the 21 January sell-off caused DOT to relinquish its oscillating pattern of $29.9-$23.11. Ever since, the bears have gained control, converting the $23.11 five-month support level into resistance.

The cryptocurrency plummeted to a 25-week low on January 24, posting a 38.34 percent drop. DOT created an ascending triangle on its 4-hour chart during the last several days as the bulls strengthened their pressure.

Source – TradingView

Polkadot price research indicates that the coin is on the rise. On the day’s session, the price jumped 4 percent to $18.88. In doing so, DOT broke over the $18.51 resistance level, which is currently at $20.44. Furthermore, trading volume for DOT declined by more than 20%, presenting a perfectly positive picture throughout the day’s trade.

Recent price movement suggests that most traders are ready to cash out, which will increase market volatility. 

From January 17, the DOT value has been associated with a sinking cryptocurrency market, but it has just seen its first daily uptick since then. Traders are anticipated to be wary of the present volatility, which will aid in pushing prices down in the next session.

DOT has formed an ascending triangle

The cryptocurrency plummeted to a 25-week low on January 24, posting a 38.34 percent drop. DOT created an ascending triangle on its 4-hour chart during the last several days as the bulls strengthened their pressure.

While in line with the price, the initial support was mainly near the 50-point level. Furthermore, the CMF (Chainlink Money Flow) recovered above the midpoint and demonstrated a positive bias. Nevertheless, the OBV was unable to overcome its first resistance.

The post Polkadot traded at $18.88- support turns resistance level. Is it time to cash out? appeared first on Coin Journal.

• Terra (LUNA) might drop to over $25 per token in the next few weeks.

• Harsh monetary policies began to harm bullish assets when they were slack.

The price of LUNA is in danger of falling lower, but experts predict a comeback when the cryptocurrency challenges a stable multi-month trend line for security. According to an analytical assessment given by experts, Terra (LUNA) might fall to around $25 per token in the following weeks as a head-and-shoulders (H&S) arrangement develops, signaling a 50% price decline.

When the price produces three peaks in succession, the middle peak (referred to as the „head“) is higher than the other two (left and right shoulders). The „neckline“ is a standard price floor that connects all three peaks.

When the market falls below the H&S neckline, traders usually try to begin a short position. Before launching a short position, some traders use a „two-day“ rule, in which they wait for the second breakout verification when the price retests the neckline from the downward as resistance.

Strong macroeconomic triggers put pressure on LUNA’s trading

LUNA’s downtrends have often come to an end when it challenges its 50-week simple moving average as support throughout its brief existence as a financial asset. At the time of publication, the price floor was about $30.

However, LUNA has probed its 200-day average range (200-day EMA) for a possible comeback on the daily timeframe chart. If that happens, LUNA’s next upside objective, as seen in the chart above, seems to be approaching $75.

A definitive move below the 200-day EMA wave, on the other hand, might kick off the H&S setup toward $25.

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• S&P 500 has remained relatively unchanged.
• Popsicle Finance’s ICE has plummeted 22% in the last 24 hours.

On Friday, Bitcoin (BTC) was trading at over $37,000, up around 3% in the previous 24 hours. In the meantime, after a tumultuous week, several alternative cryptocurrencies have begun to settle.

Analysts were also looking for signals of a probable stock market rebound, stimulating crypto purchases. Over the last week, the S&P 500 has remained relatively unchanged, contrasted to a 1% increase in BTC and a 3% loss in ETH.

Investors continue to retreat from US equities despite the predicted adjustment of the US Federal Reserve’s fiscal and monetary policy. More investors may begin to cut their risky asset holdings if the selling proceeds, with cryptocurrencies being the first to be impacted. As a result, a price comeback might be restricted in the near term.

Furthermore, given macroeconomic challenges, several experts are apprehensive about a repeat of 2017-2018.  However, it looks that winter has arrived, as seen by the over 40% dip in BTC from its all-time high of about $69,000 in November.

Is there a systemic danger in the crypto markets?

The current underperformance of various cryptocurrencies and decentralized finance (DeFi) tokens suggests that crypto markets are riskier. When there is a lot of volatility, some traders may switch to bitcoin, which is less dangerous in the crypto market.

Popsicle Finance’s ICE has plummeted 22% in the last 24 hours, Wonderland’s TIME has down 15%, and Abracadabra’s SPELL has dropped 15%. Daniele Sestagalli’s coins have garnered a loyal following in previous months due to his community-focused orientation to crypto projects. At one point, his procedures were valued billions of dollars, but those riches have since evaporated.

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While social media allows creators, brands, and communities to set up space on various platforms, they are subjected to some form of control. However, this control can be eliminated using social tokens. Social tokens are cryptocurrencies created by individuals, brands, or communities to serve a relative purpose. Its issuer defines the uses and benefits of a social token.

 Although NFTs are non-fungible, they are in some ways social tokens. Personal token, social money, community coin, and creator coin are some of the names social token can be called. Unlike mainstream media, social tokens are built on the blockchain and are secure and decentralized.

 Most social tokens are launched on the Ethereum blockchain. The Solana blockchain is also witnessing some action however minute. Social tokens help creators develop symbiotic relationships with their fans. The fans contribute to their growth by investing in their works and supporting them while the creators know what their fans want and create it.

 The more popular an issuer is, the more valuable their token becomes. With social tokens, brands, communities, and individuals can monetize themselves without neglecting existing platforms. This would enable them to put their loyal fans in exclusive membership levels. While some social tokens come at a price, some issuers give them out for free.

 The number of community coins you hold will determine the kind of benefits you will enjoy. The contract that creates the social token allocates special access or royalties to holders depending on some conditions. As only a limited amount would be minted, the value of a social token will probably rise over time.

 There was a record of a kind of social tokens in 1997 when David Bowie created the Bowie Bonds. This served as securities for revenue from his earlier works. Today’s social tokens lack third-party involvement and exist on platforms where they can generate value. It is believed that social tokens have a place in the web 3.0 future, likewise in branding and marketing.

 Right now, there are three distinct types of social tokens, and they include:

1. Personal Tokens

 These are tokens that individuals like artists, athletes, content creators, and personalities issue to monetize themselves. If an artist like Beyonce created a personal token, it would be valuable instantly as her fans would drive the price up in an instant.

 Buying personal tokens allow fans to be eligible for unique benefits from creators. Examples of personal tokens are KSK, PLAY, TILT, CHOU, ALEX, ALLIE, and RAC. RAC is the personal token of André Allen Anjos, a Grammy-award-winning artiste launched on Zora. RAC can only be earned, and it is not for sale.

 KSK is Keisuke Honda’s personal token that gives fans access to his life on and off the pitch. Fans also enjoy private chats and social recognitions. Kevin Chou owns CHOU, ALLIE by Alliestrasza, TILT by Joe Pulizzi, and ALEX by Alex Masmej.

2. Community Token

 This is created by an organization or a group of people for their community of followers. This token grants holders access to the community, which may be on Slack, Telegram, or Discord. It is often governed by a decentralized autonomous organization (DAO). These communities are made private using tools like Mintgate, Unlock, or CollabLand.

 Community tokens can be used as incentives for members for activities. It can also be used to aid identity and cohesion. WHALE, FWB, CHERRY, and DONUT are popular examples of this token.

 WHALE is one of the biggest community tokens right now. WhaleShark created it on TryRoll. It is backed by a vault of unique NFT collections owned by WhaleShark. The WHALE community, which is on Discord, is the most active.

 Members have access to renting and purchasing selected NFTs from The Vault. They also participate in the governance of the community and DAO’s projects. FWB was one of the first community tokens. The community consists of people who are enthusiastic about the web 3.0 future.

 To join the FWB community on Discord, you need 400 FWB. DONUT is the token of an Ethereum-based subreddit.

3. Social Platform Tokens

 The token is issued by social platforms that support the creation and trading of social tokens. They allow holders to buy the social tokens created on their platforms. Examples include Rally, BitClout, Coinvise, and TryRoll.

 Rally tops the list of social tokens, having raised over $22 million in April 2021. It allows members to have their social tokens. It has low transaction fees and is easy to use. However, tokens created on it can only exist on it because it is a sidechain of the Ethereum network.

 TryRoll allows users social tokens on the ERC-20 standard. Although it is one of the most popular, it is not easy to use and has high transaction fees. BitClout resembles Twitter and the likes where users can react on tokens linked to celebrities. Users can also create their tokens.

 Socios.com is a platform that has enabled the creation of fan tokens by football clubs. This has been embraced by football clubs across Europe, including FC Barcelona, PSG, Juventus, SS Lazio, Manchester City, AS Roma, and many more.

 Of the three types, social platform tokens have great potential for long-term growth. However, community tokens will go a long way with a loyal community and a great model. Most issuers use social platforms to create their tokens. This helps them streamline their fanbase and create in a way that promotes connection and community development.

 Social tokens can be used to monetize a brand, individual, or community as they can be requested in exchange for merch, accessories, and so on. It can be used to grant fans access to exclusive benefits, including events, sales, content, and the likes. It can give fans governance rights and as a symbol of membership. Fans can even hold it as a form of investment.

 In creating a social token, some vest a part of the supply, peg it to an asset or create a liquidity mining program. As a fan who is looking to get your favorites token, there are some steps to take, including:

1. Do research on where the token is listed by checking it in Coingecko or CoinMarketCap.

2. Register on an exchange like Binance, KuCoin, and the likes.

3. Buy a relative cryptocurrency that you may need in performing the exchange using your fiat.

4. Transfer it to the exchange where the token is listed and perform the trade. Most social tokens are listed on the Uniswap exchange.

5. You can either store it on a software or hardware wallet after buying.

 You can get some social tokens using your card; it depends on where it is listed.

Ending Note

 As it is pegged to an individual, brand, or community, it poses a very high financial risk. There is also this risk of regulations being a new venture. However, this shouldn’t stop you from investing in your favorite artiste, brand, or community. You have to do proper research and deal wisely.

The post Social Tokens: What are they & how to invest in them? appeared first on Coin Journal.

As sentiment in crypto remains fearful, many investors are holding back from making any new acquisitions. But there are some assets in the market that are offering the incentive to buy. Basic Attention Token (BAT) is one of them. Based on recent price action, the token appears to be in the prime buying zone right now. But should you swoop in? Well, analysis to follow below but first, some notable highlights:

• BAT has been rising over the last three or four days with most investors buying the dip in huge numbers.

• At press time, BAT was trading at $0.855, up about 2% in 24-hour intraday trading.

• The token has also surged at least 30% higher compared to its lowest point this month.

Data Source: Tradingview.com 

Basic Attention Token (BAT) – Price action and analysis

After tanking by nearly 60% from its all-time highs in 2021, it looks like there is some semblance of recovery by BAT. The token has seen some consistent rise in the last four days albeit they have been modest. 

However, BAT is still trading below the 25- and 50-day moving averages, suggesting that the downward trend is probably not reversing. 

If indeed bulls are not able to push the price action further, selling pressure could push it down towards the next support of $0.645. But if BAT is strong enough to cross the $1 mark, then we may see increased bullish momentum in the coming days.

Why you should buy Basic Attention Token (BAT)

Basic Attention Token (BAT) is the native token for Brave, the largest decentralised browser on the planet. Now, demand for decentralised browsers has not picked up yet. 

But as more users continue to raise privacy concerns with traditional browsers, then it is likely that Brave will be a big asset. In that case, if you want to invest in BAT long-term, this is the right time to do it.

The post Basic Attention Token (BAT) appears to be in the prime buying zone appeared first on Coin Journal.