Kategorie: Crypto Analysis

The cryptocurrency market has continued its slow recovery following its poor start to the week.

The broader cryptocurrency market could end the week on a positive note, thanks to its latest performance. The total crypto market cap has increased by less than 1% and currently stands above $1.8 trillion.

Bitcoin is closing in on the $40k psychological level despite adding less than 1% to its value in the last 24 hours. Ether is up by roughly 2% so far today and looks set to reach the $3,000 mark soon.

BNB, the native token of the Binance ecosystem, is the best performer amongst the top 10 cryptocurrencies by market cap in the last 24 hours. The coin has added more than 4% to its value over the past few hours, outperforming the other major coins and tokens in the process.

The rally is fueled by the news that Coinbase has listed Binance USD (BUSD) stablecoin. Coinbase is a major cryptocurrency exchange and one of Binance’s leading competitors.

Hence, the news that Coinbase was listing Binance’s stablecoin served as the catalyst to push BNB higher. 

Key levels to watch

The BNB/USD 4-hour chart is still bearish as BNB has been underperforming in recent days. However, the technical indicators show that BNB is recovering from its recent slump.

At press time, BNB is trading at $404.90 per coin. The MACD line is still below the neutral zone, but the recent trajectory shows it could cross into the positive territory soon. The 14-day RSI of 57 shows that BNB is no longer in the oversold region.

If the rally continues, BNB could rally past the first major resistance level at $423 before the end of the day. However, the resistance point at $435 should cap further upward movement in the short term.

On the flip side, if the bears regain control of the market, BNB could be forced to defend its major support level at $394. 

The post Why is BNB up by more than 4% today? appeared first on Coin Journal.

After hitting an all-time high at the start of April, Zilliqa (ZIL) has fallen sharply as investors continue to lock in profit from its meteoric rise. The coin is however still exposed to further downside. More on this later in the post but first, here are the key takeaways.

• ZIL has slipped below its crucial demand range between $0.097 and $0.121.

• The coin is now firmly on a bearish trend with very little upward momentum.

• Failure to regain the demand range mentioned above will lead to a 45% decline.

Data Source: Tradingview 

Zilliqa (ZIL) – The downside risk to note

March was the best month for Zilliqa. The coin managed to surge by over 500%, outperforming all other major coins in the market by a huge margin. ZIL in fact hit its all-time high on April 1. It was trading at around $0.230 at the time. 

But after such a meteoric rise, an epic correction was inevitable. As investors started to take their profits, the coin fell sharply. At the moment, ZIL has lost nearly 150% of its ATH. Crucially, the coin has slipped below an important demand zone ranging from $0.097 and $0.121.

This is a sign of major weakness and in fact, ZIL is now bearish. If the coin fails to regain this demand zone, the price action will weaken further. In fact, ZIL could nose dive by another 50% before it finds any demand.

Is Zilliqa’s bull run over?

Yes, at the moment, the bull run that ZIL reported in March and the start of April is now gone. We do not expect the coin to retest its ATH anytime soon. 

Instead, ZIL will remain bearish for the next few weeks. The coin could bottom at $0.05, roughly closer to where it was before the March bull run. The correction we all expected will now be complete.

The post Zilliqa (ZIL) is facing a possible 45% nosedive – Here is why appeared first on Coin Journal.

Algorand (ALGO) has seen some bearish pressure this week. The coin has, as a result, dropped below an important support zone. But ALGO could still bounce back really fast and deliver a decisive double-digit upswing. Here is what you need to know:

• ALGO has fallen slightly below the crucial support of $0.687

• The coin could however bounce back above that price in no time

• Algorand will rally to $0.814 if indeed this happens.

Data Source: Tradingview 

Algorand price prediction- Why upside potential remains

A fall below crucial support zones is never a good thing for any coin. The fact that ALGO has lost $0.687 could be a big blow. However, we don’t see it that way. In fact, the general consensus is that ALGO will likely bounce back very fast, regaining the support in the process. 

Once this happens, we will see the price action consolidate above $0.687 before ALGO surges towards $0.814. This will deliver an upswing of around 20% for bulls. Besides, other momentum indicators, including RSI show the coin is bullish right now.

Despite this, ALGO has had so many false breakouts in April. For example, at the start of the month, the coin formed a significant bottom reversal pattern that promised to deliver massive gains. But ALGO failed to follow through and instead, the coin only rose modestly before tumbling back down. While a surge towards $0.814 could be seen as a bullish breakout, we don’t expect it to go on for long.

Is Algorand a good buy today

Well, based on the underlying fundamentals, Algorand (ALGO) is no doubt a great crypto asset to purchase. If you just want it for the long term, then you are free to buy it now. 

From a short-term perspective, ALGO has some upswing potential. The coin could gain around 20% over the coming week. But due to increased volatility in the market, don’t hold your position for long.

The post Algorand (ALGO) price analysis – How bulls can deliver a 20% upswing appeared first on Coin Journal.

For the most part in April, Polygon (MATIC) has continued to face a lot of selling. Although the coin has rallied slightly a few times, it has typically failed to find any serious upward trajectory. Despite this, MATIC has managed to slow its downtrend. Here are some of the facts:

• MATIC appears to be going through a period of consolidation

• The coin could swing towards $1.63 in the days ahead

• A close below $1.15 will invalidate this thesis

Data Source: Tradingview 

MATIC’s rise to $1.63

The slowed downtrend we have seen over the last few days could suggest that MATIC is about to experience a trend reversal. At the moment, the altcoin is going through a consolidation phase, and it is likely the price will remain well above $1.2. 

After this happens, we expect MATIC to rally and surge towards $1.63. This will represent an upswing of around 35%. However, based on the coin’s performance in April, the upward trajectory will not last for long. In fact, once the coin is well above the $1.63 mark, investors will start to take a profit. This will lead to a small sell-off that will push MATIC down towards its current $1.2 price.

Unless there is a huge improvement in overall sentiment in the market, MATIC will likely remain stagnated in the long-term trend despite increased short-term volatility. Besides, a daily close below $1.15 will invalidate the short-term bullish thesis above.

Where will MATIC go next?

MATIC was one of the best-performing coins back in 2021. But the altcoin is failing to live up to expectations this year. While the overall outlook for the altcoin is still positive, MATIC is not going to offer the kind of returns we saw in 2021.

However, there is still enough upside for at least 3x growth before 2022 is out. But sentiment in the broader crypto market will have to improve drastically for this to happen.

The post Polygon (MATIC)’s downtrend is slowing – Can it pull above water? appeared first on Coin Journal.

One of the most common debates currently taking place within the economic sphere is what constitutes the best inflation hedge. You know, because a KitKat Chunky nearly costs more today than a two-bed apartment did this time five years ago.

Old-school investors still argue gold is the best hedge, which traditionally is the ultimate way to protect oneself against a depreciating currency. After all, the shiny metal has been part of almost every human culture throughout history. It’s stood the test of time. Yet its returns since it spiked after the GFC have been lacklustre, to say the least – up only 21% in the last ten years.

The more irreverent investors think there’s a new kid on the block, first name Bit, second name Coin. Is Bitcoin digital gold? Is it a superior store-of-value than the OG king that is gold? The bulls argue that Bitcoin’s (outrageous) outperformance of gold over the last decade highlights its superiority. Then again, amid the highest inflation environment in recent memory, gold is up 3% YTD, while Bitcoin is down 17%. So, what gives?

What About Both?

Well, the good news is that, like a wise politician, we can sit on the fence. Because today a novel exchange-traded product has been launched on the Swiss SIX Stock Exchange which combines Bitcoin and gold. It’s the first combined gold/bitcoin exchange-traded product in the world, and has been developed by crypto ETF provider 21Shares, in partnership with crypto data provider ByteTree Asset Management.  

Even the ticker symbol is an amalgamation of the two assets – BOLD. The issuing firms stated the ETP will provide “protection against inflation, giving optimal risk-adjusted exposure to bitcoin and gold”. What is that breakdown? It’s 81.5% gold and 18.5% Bitcoin, and will “rebalance monthly according to each asset’s inverse historical volatility”.

“BOLD seeks to take away the hassle of personally managing the two assets while imposing a disciplined process when it comes to delivering higher risk-adjusted returns”, 21Shares CEO Hany Rashwan said.

Asset Characteristics

It’s an interesting concept. Of course, investors can simply invest in gold and Bitcoin in their desired proportions, but that’s the case with most ETPs. It gives an automated, easy exposure to both assets, and the risk-weighted adjustment is a neat feature. It may also make it easier for certain institutions to gain Bitcoin exposure, as regulatory barriers to the cryptocurrency remain in place for several entities.

Novice investors can rotate into assets outside the traditional stock/bond sphere, both of which have been getting hammered amid the high-inflation environment. Typically negatively correlated, stocks and bonds have both been suffering recently, which has been the case throughout history when inflation soars past manageable levels.

With a large portion of investors still intimidated by Bitcoin, and hesitant to fully embrace its volatile nature, the BOLD ETP is a nice avenue to gain exposure to Bitcoin in a moderate capacity. With its high risk/return profile combined with gold’s more conservative price action, it’s no surprise 21Shares have chosen to launch the product – which amounts to the 30^th digital asset ETP that the innovate firm has brought to market.  

The post Bitcoin or Gold to hedge inflation? With this new exchange product, you don’t need to choose appeared first on Coin Journal.