Schlagwort: crypto business

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Watch these levels as TRX forms a descending triangle

  • TRX is up 1.08% in the past day and 4.6% in the past week

  • Tron is the most decentralized network with strong fundamentals

  • A breakout could be imminent, but momentum indicators are bearish

Tronix (TRX/USD) is the native token powering the Tron blockchain. The network facilitates content sharing with no intermediaries, away from platforms like YouTube.

With the promise of more pay for content creators, TRX occupies an important space in decentralization. It is considered the most decentralized network in the industry. Tron has an even distribution of governance power based on a distributed proof-of-stake system.

The concept of DPoS in Tron has driven exponential growth over the years. The number of active users is on the rise in the Tron blockchain. As of the start of last month, Tron has more than 20 million wallets. The dApps hosted on the platform have also jumped more than 1,000.

Aside from the rosy fundamentals, TRX faces bearish momentum. Despite jumping 1.08% on the last day, the token is down 4.6% in the past week. At the time of writing, Tronix was exchanging for $0.066 with a market capitalization of $6 billion.

TRX trades in a descending triangle pattern

Source: TradingView

According to the daily chart above, TRX trades in a descending triangle. The price is slightly above the $0.06 support level. TRX has bounced off the top part of the triangle three times, making it a significant price reference. From the outlook, TRX could be on the verge of a bullish or bearish breakout.

In the case of a bullish breakout, the immediate resistance is at $0.07, and the long-term level is $0.08. On the flip side, $0.05 is the nearest support. However, the indicators are looking bearish.

The MACD is looking bearish with red histograms. The MACD line has crossed below the signal line. The Stochastic Oscillator is at 26. The level is above the oversold zone, meaning lower levels could be hit before any possible trend reversal.

Summary

TRX is trading within a descending triangle and may be due to a bullish or bearish breakout. The momentum indicators are looking bearish. In case of a breakout, traders should watch $0.07 and $0.05 as the immediate resistance and support, respectively.

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On-chain data suggests further accumulation for Bitcoin

  • Bitcoin trades around $21,500, about 2.5% up in the past 24 hours.
  • Staying below the realized price of $21,700 or if bulls fail to hold above in case of a breakout will result in further accumulation.
  • BTC fell to lows of $20,700 after a swift rejection above $25,000 last week.

Bitcoin has moved above $21,500 on Tuesday, seeing some upside after hitting intraday lows of $20,700 on Monday. 

However, despite the uptick, the cryptocurrency remains vulnerable to a downside flip with BTC/USD currently snuggled below the Realized Price.

Glassnode alerts data showed more Bitcoin wallets were in profit is at new lows, owing to BTC price selling off this past few days.

So while BTC price could scrap some upward moves and see a break above the $22k level and bring some relief likely to push prices even higher, buyers might struggle to push past key resistance in the $25k region.

Why Bitcoin might see further accumulation this week

According to on-chain data analysis platform Glassnode, BTC/USD is below the realized price after 23 consecutive days above it. The sell-off seen this past week underpins the weakness across the markets, with risk-on appetite also off in equities.

Also noticeable has been the lack of new money coming into the sector, with the recent upside not attracting a new wave of retail investors. These factors point to ranged movement for Bitcoin.

“The recent price uptrend also failed to attract a significant wave of new active users, which is particularly noticeable amongst retail investors and speculators. The monthly momentum of exchange flows is also not suggesting a new wave of investors entering the market, implying a relatively lackluster influx of capital,” the firm noted in its latest weekly update.

If price remains below the cost basis, Glassnode says we could see more accumulation.

“During the 2018-2019 bear market, prices fluctuated below the Realized Price for 140 days, making the prevailing bear market duration of 36 days relatively brief, and thus indicating more accumulation time may be required,” analysts at the firm wrote in the newsletter.

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Lawmaker demands answers from US Treasury over Tornado Cash sanctions

US Congressman Tom Emmer (R-MN) wants answers from the Treasury Department over the sanctions the agency imposed on Tornado Cash.

In a letter addressed to Treasury’s Janet Yellen on Tuesday, Rep. Emmer highlighted his take on the sanctions, noting the implication of the US government’s move to national security as well as individuals’ privacy rights.

The lawmaker shared the letter on Twitter.

Sanctioning ‘privacy-enabling’ code

According to Rep. Emmer, while the Office of Foreign Assets Control (OFAC)’s sanctions target illicit funds linked to crypto heists and other cyberattacks, they were however unique in that the agency did not levy them “against a person or an entity, but against ‘privacy-enabling’ code.”

The sanctions are thus against “a neutral, open-source, decentralised technology,” which raised a lot of questions that the Treasury needs to clarify, he noted.

Emmer wants the US Treasury to explain whether OFAC’s sanctions undertook that the banned Tornado Cash addresses indeed belong to individuals. He also seeks clarification on exactly who or what entity the agency believes controls the mixing service’s smart contracts.

Also on his list of questions is the recourse for users whose funds are locked, as well as those who might receive unsolicited money from the blacklisted addresses.

OFAC sanctioned Tornado Cash, a decentralised transaction anonymising platform, early this month over claims it had enabled multiple money laundering transactions involving North Korea-linked hackers.

The blacklisting has forced several crypto platforms to stop Tornado Cash functionality on their sites, and seen wider outcry over the same across the crypto space following the arrest of a developer in the Netherlands.

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Why is ATOM up by more than 12% in the last 24 hours?

ATOM is one of the best performers amongst the top 30 cryptocurrencies by market cap today. 

ATOM, the native token of the Cosmos ecosystem, is one of the best performers amongst the top 30 cryptocurrencies by market cap today. The coin has added more than 12% to its value today, outperforming the broader crypto market. 

The cryptocurrency market is slowly recovering today, following a slow start to the week. After losing more than 3% of its value yesterday, the crypto market is up by nearly 2% so far today. 

The positive performance has pushed the total cryptocurrency market cap above the $1 trillion mark again.

Bitcoin remains above the $21k level and could rally higher today after adding more than 1% to its value. Ether is trading above $1,600 after depending its price above the $1,500 psychological level yesterday. 

However, ATOM is the second-best performer amongst the top 30 cryptocurrencies by market cap (only behind Bitcoin Cash).

There is no catalyst behind ATOM’s ongoing rally as it could be only a recovery from its recent price crash. Despite adding more than 12% to its value today, ATOM is down by 1% in the last seven days.

Key levels to watch

The ATOM/USD 4-hour chart has turned bullish as Cosmos has been performing well over the past 24 hours. 

The MACD line crossed into the positive zone a few hours ago, indicating that ATOM is no longer bearish.

The 14-day relative strength index of 60 shows that ATOM could enter the overbought region if the positive momentum continues. 

At press time, ATOM is trading at $11.52. If the positive momentum continues, ATOM could move past the first major resistance level at $12.271 before the end of the day. 

However, ATOM would need the support of the broader market to reach the $13.60 mark for the first time since May.

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NFT lending protocol Bend DAO proposes emergency actions to stabilize ecosystem

NFTs borrowing and lending protocol Bend DAO is staring at a credit crisis after it was revealed on Monday that the protocol only had about 15 wrapped Ether (wETH) worth about $23,715 for paying back its lenders.  The protocol has so far lent out 15,000 ETH.

To avert the crisis, the project’s developers have proposed new emergency measures aimed at stabilizing Bend DAO’s ecosystem.

The proposed emergency measures 

To start with the development team suggested constraining the liquidation threshold for collateral at 70% of the loan value; cutting it down from 85%.

Secondly, the auction period for NFTs would be reduced from 48 hours to four hours and the requirement for the minimum bid price of NFTs to be pegged to 95% of the floor price on OpenSea would be scrapped.

Thirdly, interest rates on loans shall rest from the current 100% to 20%.

Lastly, the Bend DAO treasury shall be empowered to cover all the bad debts using revenue.

What led to the current Bend DAO situation?

Generally, the declining floor prices of NFTs in the market even among popular NFT collections is placing many NFTs in danger of being liquidated. The interest rates on “debt-secured” NFTs are skyrocketing and it has almost hit 100% making some users prefer letting go of their NFTs rather than paying back the debt and this is resulting in a lot of bad loans. Also, the NFT markets are not as liquid as coin markets meaning there may not be a single bid at the time of an NFT liquidation; something that further complicates the scenario.

The proposal by Bend DAO is currently being voted for by the community. The voting process is expected to last 24 hours although it has already passed the required 47 million veBend with 99.23% of voters in favour of the proposal.

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