Schlagwort: blockchain analysis

Cardano price has not been left behind in the ongoing cryptocurrency meltdown. ADA plunged to a low of $0.32, which was much lower than the all-time high of over $3. With a market cap of $11 billion, it means that its valuation has plunged by almost $80 billion in the past few months. So, is ADA a good investment or is it a value trap?

The rise and fall of Cardano

Cardano is a leading blockchain network that grew incredibly popular in 2021. It was launched by Charles Hoskinson, a co-founder of Ethereum. 

Cardano became popular as investors sought for cleaner alternatives to Ethereum, which used a proof-of-work (PoW) mechanism at the time. It was also billed as a faster alternative to Cardano since it can hande thousands of transactions per second (tps).

However, at the time, Cardano did not have an ecosystem since it did not have smart contract capabilities. This changed in August 2021 when the developers launched the Alonzo hard fork.

Since then, thousands of developers have embraced Cardano. However, it is struggling in Decentralised Finance (DeFi), which is one of the top use cases for blockchain networks. It has a total value locked (TVL) of about $70 million, making it the 34th biggest chain in the world. 

It is even smaller than relatively unknown projects like Ultron, Canto, and Velas. At the same time, key DeFi apps in its ecosystem have struggled to compete with the likes of Uniswap, Maker, and Aave. 

It is, nonetheless, finding some success in the NFT industry. Data compiled by CryptoSlam shows that the total volume of NFTs traded in the network has been growing. In the past 24 hours, it has handled over $237k NFTs. Similarly, in the past 30 days, it has handled NFTs worth over $25 million. However, as shown below, the volume has been dropping.

Cardano price prediction

                ADA/USD chart by TradingView

The renko chart above shows that the Cardano price has been in a strong bearish trend in the past few months. In this period, the coin has moved below all moving averages. It has also moved below the important support level at $0.3341, the lowest point on October 23. 

Cardano’s awesome oscillator has moved below the neutral level. Therefore, the path of the least resistance for the coin is lower. As such, at this moment, it is a bit risky to buy Cardano will continue falling as sellers target the key support at $0.300.

How to buy Cardano

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

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Uniswap (UNI/USD) trades with weekly gains of 8%. Only a handful of cryptocurrencies have posted gains in the past week. A drop below the key support of $5.6 after the FTX collapse was quickly followed by a sharp recovery. That helped bulls to recapture the key level, with UNI trading at $5.8 as of press time.

The gains in Uniswap coincide with rising trading volumes post-FTX saga. On Monday, Ethereum transactions on the decentralised crypto exchange hit $1.21 billion. The volume represented an increase of over 80% in a day. The rising volumes indicated that traders were deploying their digital assets on alternative DEX platforms after the FTX collapse. Attraction to DEX platforms like Uniswap could support the native tokens, at least in the short term.

Meanwhile, new users on Uniswap’s Web App reached the highest in the year. A total of 55,550 Daily New Transacting Wallets were reported on November 15. Uniswap Labs attributed the milestone to the growing demand for self-custody wallets. Apparently, the growth in self-custody wallets has been attributed to a mass exodus of investors from centralised exchanges. 

Uniswap retreating to the support after a strong recovery post-FTX dip

Uniswap found support at $4.8 after the accelerated selloff a week ago. The monthly high was set at $7.7 in previously building bullish momentum.

UNI/USD Chart by TradingView

The key technical level for UNI is $5.6. The cryptocurrency is correcting to retest the support zone after the recent breakout. The MACD indicator shows that momentum is still weak. However, momentum is improving, although bears are in control.

Should you buy UNI now?

UNI price recovery above $5.6 makes it attractive and likely to find higher levels. We should watch for bullish signals at the support as the token retests the level. The next targets for the cryptocurrency are $7 and $7.8.

On the flip side, if bulls fail at the $5.6 level, a continuation of the bear momentum could force UNI lower. The next levels to watch for the cryptocurrency will be $4.8 and $4.1.

Where to buy UNI    

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

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The post Uniswap is showing bullish signs, but how far can it go? appeared first on CoinJournal.

Have you been looking to buy Decentraland’s (MANA/USD) this month? Unfortunately, a technical outlook shows the metaverse token is not ready yet. The token has claimed a new low in the year and looks increasingly bearish. At least, we expect a potential new low, and you would not want to chase the clouds for now. What is happening?

A prolonged crypto winter has dealt a blow to the once-booming metaverse sector. Consequently, MANA has lost 92% of its value since November 2021. The token now trades at the lowest value since June 2021, losing its post-boom surge in the process. 

Perhaps it has become lonely there in the metaverse as crypto winter ravages. According to data released by DappRadar last month, metaverse platforms, including Decentraland, are struggling to retain users. The low development activity has been responsible for the price weakness. Investors may have to wait longer before we see another recovery for the token.

MANA technical outlook shows weakening momentum

MANA/USD Chart by TradingView

On the daily chart, MANA is on a clear downtrend. The key level at $0.8 was tested, allowing the cryptocurrency to proceed lower.

Technical indicators are also bearish. Since August, the 20-day MA has never recovered above the 50-day MA. The MACD indicator remains in the bear zone. The momentum is weak, and the bear pressure is rising further.

What next for MANA?

MANA is heading to a bottomless pit after hitting the June 2021 lows. Although the bulls can arrest a further decline below the level, there is no such indication yet. 

We hold a bearish view until suitable support is found and MANA shows sufficient upside. A recovery above the $8 resistance would be ideal to consider a bullish view.

Where to buy MANA

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

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The post Decentraland’s MANA may take longer to see a recovery. Here is the price outlook appeared first on CoinJournal.

It is just 5 days to the start of the largest sporting event – the World Cup. Even as the world stares at their favourite football players, big corporations will try to attract their visibility. Algorand is one such organisation.

In May, Algorand was selected to become the first blockchain partner for the FIFA World Cup. The platform will provide a blockchain-supported wallet for the event. There are plans to onboard Algorand to develop FIFA’s digital strategy. But as the World Cup kicks off on November 20, Algorand will feature strongly in the media and promotional materials.

While Algorand (ALGO/USD) responded positively to the news of sponsorship of this year’s event, it is trapped by a bear crypto market. However, recent price action signals a potential price recovery ahead of the November 20 kickoff. 

ALGO attempts to break above the $0.28 resistance

ALGO/USD Chart by TradingView

From the technical outlook, ALGO trades at the $0.28 resistance, with a strong bullish push. The token has 13% gains in the day, signalling a potential bull rally. 

Going by the technical indicators would be a little disappointing for the cryptocurrency. The moving averages provide resistance against ALGO. The RSI shows an improvement in momentum, although the reading remains below the midpoint. The cryptocurrency remains in the hands of bears.

Should you buy ALGO now?

The closing of the daily candlestick will tell if a breakout is successful or not for ALGO. Of course, the World Cup is a big event and will have a huge influence on the price of the token.

A successful breakout will be confirmed if the daily candlestick closes above $0.28. You could buy ALGO if that happens, coupled with strong momentum.

On the flip side, the candlestick could close below the resistance. Buyers should stay away from the bear case.

Where to buy ALGO

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

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The post Should you buy Algorand ahead of the World Cup amid a sponsorship deal? appeared first on CoinJournal.

I’m kind of getting sick of the word “contagion”.

Nonetheless, it appears the C-word is coming for the digital asset space again. By now we are familiar with the collapse of FTX, one of the world’s largest cryptocurrency exchanges.

But it’s far from over.

LUNA set the precedent

While the crash here does not compare to the infamous death spiral of UST and LUNA (to refresh my PTSD), that scandal does show how far-reaching the tentacles of such a sudden loss of capital can cause.

UST was worth $18.6 billion and LUNA $29.7 billion on the eve of the Terra meltdown in May. Within a couple of days, those figures were zero. FTX, on the other hand, is reportedly looking at a balance sheet hole of $8 billion.

So, the numbers are not as comparable, but the domino effect could be. Numerous firms got caught up in the Terra crash by holding UST on their balance sheets, as well as being over-exposed to other crypto assets, all of which fell in the aftermath of the scandal.

We saw Celsius file for bankruptcy, owing $4.7 billion to over 100,000 creditors. Voyager Digital, another crypto lending firm, also had over 100,000 creditors on the hook – although for a lower sum of $1.3 billion.

Then there was Three Arrows Capital, owing $3.5 billion to 27 different companies. I could go on, but you get the point. The crypto industry was far to incestuous, with companies holding pieces of other companies, despite all being exposed to the same systemic risk.

In retrospect, it all reads like a cautionary tale for risk management and diversification. How crypto companies thought it was wise to trade their own Treasuries, assets and whatever other liquidity they had, on the very same highly volatile asset class to which their business was already exposed, is beyond me.

But they did, and the domino effect followed.

Who is exposed to FTX?

The question now becomes this: who is exposed to FTX?

One hopes that the industry learned a lesson from Terra and hence is more prudent this time around. Then again, the flipside is that FTX seemed like they were as safe as could be: funds were stored there in stablecoins and fiat – not just highly volatile cryptocurrencies.

Much like those who fell victim to UST thought that it was a stable asset pegged to $1, there are those who got blindsided by FTX, simply leaving their funds in the exchange denominated in fiat currency.

We know now that Sam Bankman-Fried had other ideas, sending these funds to his sister trading firm Alameda Research, following a series of bad investments and loans getting called in. Ironically, these loans were likely called in the aftermath of the LUNA crash, when spooked investors moved to get their funds of crypto by all means possible.

Companies are already beginning to wobble. BlockFi, yet another crypto lender, paused withdrawals and issued a statement outlining that the damage was stark.

“We do have significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US,” BlockFi said.

They had signed a deal with FTX in July for a $400 million revolving credit facility. It is hard to see them recovering after pausing withdrawals – which we know by now is the death sentence. 

The money actually goes beyond aggressive crypto firms. Sequoia Capital, SoftBank, and Tiger Global, who are as big and boring as traditional investors get, have all been burned. 

“Based on our current understanding, we are marking down our investment to $0”, Sequoia said in a note to LPs. I think we can all agree that’s a fair call. 

SoftBank is reported to have lost $100 million, while Tiger Global is apparently down $38 million.

I was let go by Sequoia Capital today. Buck had to stop somewhere. I was the 27 year old associate responsible for copying and pasting revenue and profit numbers from a spreadsheet in the FTX data room into a PowerPoint slide in an investment memo as diligence

— Kyle Russell (@kylebrussell) November 10, 2022

A quick glance a the below graphic should tell you all you need to know: 

 

Going forward

As I said, I don’t expect this to be as grave a liquidity crisis as LUNA. But it would be delusional not to expect further pain – and that includes some sombre announcements which will come out of the blue. There will be companies caught up in this mess that will take people by surprise. 

$10 billion is a hell of a lot of money. It can’t disappear without reverberations elsewhere. Hopefully, the damage is as minimal as could be hoped for, given the lessons shown by the LUNA fiasco. 

But surely this will finally persuade CEOs and treasury managers to allocate their capital wisely, perform diligent stress tests, pay proper attention to diversification and just…be sensible. 

It must, right? Right?

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