Dogecoin price crashes by nearly 12% as loyal investors continue to offload their DOGE

https://www.fxstreet.com/cryptocurrencies/news/dogecoin-price-crashes-by-nearly-12-as-loyal-investors-continue-to-offload-their-doge-202306060236

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  • Dogecoin price slipped to trade at $0.063 at one point on May 5, following Bitcoin’s lead.
  • DOGE whales did make some moves, with their volume averaging close to $1.5 billion over the week.
  • The mid-term cohorts’ domination over the DOGE supply declined to 42%, with short-term holders now holding 25% of the entire supply.

Dogecoin price is currently following Bitcoin’s lead, bringing the meme coin down to three-month lows and testing a key support level. The cryptocurrency has been a highly influenced token for a long time now, but with DOGE’s charm fading away, even some of its most faithful investors seem to be pulling back.

Dogecoin price falls back to March lows

Dogecoin price, trading at $0.066 at the time of writing, stood over 8% below yesterday’s opening price as the meme coin witnessed corrections following Bitcoin price falling below $26,000. BTC, at present, is trading right around $25,750 and has brought the entire crypto market down with it, erasing nearly 4.92% or about $52 billion in the span of a day.

BTC/USD 1-day chart

BTC/USD 1-day chart

But the bigger problem in the case of DOGE lies in the fact that it is not observing much support from its investors. Whales, which stand to be some of the most crucial cohorts for any cryptocurrency, have been making minimal moves for the last couple of weeks. 

Throughout May, these whales averaged under $2 billion, and at the time of writing, the volume slipped to $1.5 billion.

Dogecoin whale transaction volume

Dogecoin whale transaction volume

Furthermore, Dogecoin is losing the confidence of its investors quicker than it can hold. This is visible in the decline in holdings of mid-term holders, the cohort that has held on to its supply for more than a month but less than a year. 

The change in supply can be observed in their falling domination, which has come down from 60% at the start of May to 42.85% at present. The lost supply has thus moved to the short-term holders that have been holding their DOGE for less than a month. This cohort now commands over 25% of the entire circulating supply.

Dogecoin supply distribution by time held

Dogecoin supply distribution by time held

If their conviction persists through the crash and the meme coin recovers, it will push the supply back into the mid-term holders’ category. The chances of an immediate recovery appear bleak as the altcoin recently experienced a bearish crossover on the Moving Average Convergence Divergence (MACD) indicator.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

The Relative Strength Index (RSI) is also in the bearish zone, barely tipping into the oversold zone. The latter intensifying might trigger a recovery, but until then, Dogecoin price will be vulnerable to a fall to $0.0619.

Apple staying mum on Metaverse at WWDC wipes out Metaverse tokens’ value by 10%

https://www.fxstreet.com/cryptocurrencies/news/apple-staying-mum-on-metaverse-at-wwdc-wipes-out-metaverse-tokens-value-by-10-202306060056

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  • Apple launched its mixed reality headset at the WWDC but declined to comment on Metaverse.
  • The Metaverse market fell by over $1.4 billion in less than 12 hours following the event.
  • ApeCoin price declined by nearly 15%, falling to November 2022 lows of $2.87.

Apple recently hosted the Worldwide Developers Conference (WWDC), where it was expected to kickstart the Metaverse hype again. However, with the anticipation going through the roof, the opposite happened when the company with the biggest market cap failed to talk about the virtual world.

Apple talks about Metaverse without mentioning Metaverse

During the WWDC, Apple launched its new mixed-reality headset, which was rumored to be the medium to access the company’s VR world. While the headset did launch, the company did not mention the keyword in any form, resulting in a major letdown amongst the Metaverse users.

The bigger impact resulting from the negative sentiment was faced by the crypto market, the biggest consumer of Metaverse at the moment. 

Consequently, Metaverse tokens took a significant hit, and the entire market capitalization of the sector was wiped out by $1.4 billion in less than 12 hours. At present, the collective value of all these tokens stands at $12.5 billion, with the overall trading volume rising by more than 110% in the same duration.

Some of the biggest Metaverse tokens declined by more than 10%, including the likes of Internet Computer (ICP), ApeCoin (APE), The Sandbox (SAND), and Decentraland (MANA). 

ICP, crashing by 10%, fell to a five-month low, trading at $4.335 thanks to the already devastating bear market, which brought the altcoin down from its 2023 highs of $7.100. The Relative Strength Index (RSI) indicates that the cryptocurrency is in the oversold zone below the 30.0 threshold. This zone is generally synonymous with trend reversals and could induce some recovery and prevent further decline.

ICP/USD 1-day chart

ICP/USD 1-day chart

APE, on the other hand, observed a significantly larger decline of 14.21%. Plus, with the altcoin already consistently treading lower since the late January peak of $6.30, the fall to $2.87 at the time of writing brought the cryptocurrency to November 2022 lows. 

However, in the case of APE, the RSI is still above the oversold zone, which makes it susceptible to further corrections unless it manages to flip the neutral line at 50.0 into a support floor again.

APE/USD 1-day chart

APE/USD 1-day chart

With the Metaverse hype collapsing as time passes, Apple stands out to be the last hope of sorts to trigger a global interest in the space still. If the company manages to do so in the near future, not only would it be a leg up against Mark Zuckerberg’s Meta failure but also a major trigger for the Metaverse market.

Pro-XRP lawyer: Ripple losing the SEC lawsuit might be a blessing in disguise

https://www.fxstreet.com/cryptocurrencies/news/pro-xrp-lawyer-ripple-losing-the-sec-lawsuit-might-be-a-blessing-in-disguise-202306020234

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  • XRP price is up by 15% in the last week, bringing the coin to $0.51.
  • John Deaton, Ripple supporter, stated that even a minimal slap on the wrist kind of defeat would not be the worst thing in the world for XRP.
  • Reports of Ripple meeting with institutional investors in April to gauge interest in an IPO have surfaced over the last few hours.

XRP price made a decent recovery in the month of May, fueled by Ripple’s chances of winning the lawsuit it is facing against the Security and Exchange Commission (SEC). The cryptocurrency has amassed a huge base of supporters, which might potentially expand further regardless of the outcome.

Ripple prepares for life after the lawsuit

Analysts have been claiming that Ripple had recently hosted a private “road show.” A roadshow is a marketing event where a company and its underwriters meet with potential investors to generate interest in an IPO (Initial Public Offering). It has been reported that every reputable institutional investment firm on Wall Street participated in the roadshow conducted in April this year.

However, a lot of the bullishness for XRP is currently hanging by the hope of a win in the lawsuit against the SEC. The reason is that a win would generate momentum that might end up creating a strong demand for the token.

This could propel XRP price upwards, which is crucial in attracting new investors and more capital to the chain.

However, according to Pro-XRP lawyer John Deaton, even a loss might not be the worst thing in the world. In regards to the road show report, Deaton tweeted,

“If Ripple wins the SEC lawsuit or gets the functional equivalent of a slap on the wrist, along with a ruling that ongoing and future sales of #XRP are not securities, the lawsuit will prove a blessing in disguise for Ripple.

XRP investors become bullish again

As XRP price rallied by nearly 24% in the last few weeks, it brought back the dissipating interest from users whose activity spiked on-chain recently. With the altcoin hitting a 45-day high, the investors who are currently in profit seemingly moved their supply. This resulted in the network recording the highest single-day transaction volume in profit since February this year.

Ripple transaction volume in profit

Ripple transaction volume in profit

This also included the tokens that belonged to long-term holders, i.e., addresses that have been holding their tokens for more than a year. The spike noted on the age consumed metric is evidence of the same and an indication that profit-taking is on investors’ minds.

Ripple age consumed

Ripple age consumed

However, XRP holders need to refrain from leaning into profit-taking too much, as it could backfire. While at the time of writing, XRP price is holding above the support level at $0.505, it still needs to note a 7% rally in order to mark new 2023 highs.

XRP/USD 1-day chart

XRP/USD 1-day chart

This would be achieved once the barrier at $0.542 is breached, enabling the altcoin to mark a new year-to-date high.

Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

https://www.fxstreet.com/cryptocurrencies/news/ethereum-fees-decline-by-70-from-2023-highs-as-top-defi-protocols-lose-users-202306010711

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  • Ethereum transaction fee has lowered from $14 to $4.28 over the last few weeks.
  • Top Ethereum protocols such as Uniswap, PancakeSwap, SushiSwap and Trader Joe have considerably low engagements at the moment.
  • Ethereum TVL, in the span of a month and a half, has declined by more than $8 billion.

Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors’ skepticism. But while the spot market only recently took a turn for the worse, the Decentralized Finance (DeFi) space has been only negative for a long time.

Ethereum loses fees and users

Ethereum transaction fees have been a matter of discussion and concern for a long time now, but over the last few days, the transaction fees have reduced considerably. The average fee rises when there are lots of transactions occurring on the blockchain, creating backlogs, essentially enacting an increase in demand.

But given the condition of the broader market, which is still bearish, along with concerns of the debt ceiling at a high during the past few days, investors seem to have been pulling back from investing. Consequently, the transaction fee has declined by nearly 70% from the highest point in 2023 of $14 to $4.28 at present.

Ethereum average transaction fee

Ethereum average transaction fee

Interestingly, while the spot market is observing lower participation only now, the DeFi market has been doing so for a long time now.

On-chain data shows the DAU/MAU (Daily Active User/Monthly Active User) ratio for some of the top DeFi protocols, such as Uniswap, PancakeSwap, SushiSwap and Trader Joe has been at a low. The ratio is generally used to gauge user engagement and is expressed as a percentage where 50% or more is noted as exceptional.

However, the aforementioned ratio must have a value of more than at least 20% in order to be considered good, but anything below it is highly bearish and concerning. In the case of the four protocols noted above, there have been a few spikes every now and then.

 But for the most part of the last two years, the DAU/MAU ratio has been below 20%, with the recent few months bearing the most weight.

Thus the low average transaction fee is the result of the receding user base and the barely improving network conditions, as well as declining demand due to a lack of profits in the market. 

This is concerning for the network since, despite being the biggest DeFi chain in the world, Ethereum is not observing a lot of capital moving into its protocols in comparison to the likes of Avalanche, Tron and more. To add to that, the Total Value Locked (TVL) on the chain is on a decline too.

In the last month and a half, the TVL has come down by more than $8 billion, from $56 billion to $48 billion and is still declining. 

Ethereum total value locked

Ethereum total value locked

All of this can be turned around, provided the investors’ participation is improved along with the condition of the market, which would necessitate a bullish outlook in the crypto space over the next few weeks.

New SHIB investors bring deposits to the network but fail to trigger a rise in Shiba Inu price

https://www.fxstreet.com/cryptocurrencies/news/new-shib-investors-bring-deposits-to-the-network-but-fail-to-trigger-a-rise-in-shiba-inu-price-202305310227

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  • Shiba Inu price, akin to the meme coin leader Dogecoin, is still consolidating above $0.00000845.
  • Network growth is currently at a month and a half high, suggesting SHIB is gaining traction in the market.
  • However, the overall participation is still at a low, which might counter the new investors’ bullishness.

Shiba Inu price is still facing consolidation after nearly a month of no major gains, and it seems like this might be the case for a while. Even though the network is observing bullish interest from new investors, the lack of bullishness from existing SHIB holders might act as a barrier to recovery.

Shiba Inu price makes no move

Shiba Inu price trading at $0.00000869 has virtually made no significant increase in the last three weeks as the meme coin is currently changing hands at the same value as it did on May 11. Consolidated within $0.00000908 and $0.00000845, the altcoin has tested the lower range as support more frequently than it has attempted to breach the upper range acting as the resistance level.

SHIB/USD 1-day chart

SHIB/USD 1-day chart

While a part of this lack of recovery can be attributed to the broader market conditions and lack of bullishness in the crypto space, the same cannot be said for Shiba Inu. This is because the network has seen significant growth over the last couple of days. 

The network growth indicator thatsuggests the rate at which new addresses are formed, is currently at a month and a half high. This suggests that the meme coin is gaining traction.

Shiba Inu network growth

Shiba Inu network growth

Furthermore, this bullishness is not empty addition of addresses either, as the network has seen a surge in active deposits. After nearly two months of decline, the active deposits rose again. This could also mean that investors are selling, but since the balance on exchanges has not changed much, it points in a more bullish direction.

Shiba Inu active deposits

Shiba Inu active deposits

Thus despite new investors sharing an optimistic outlook, Shiba Inu is still failing to make any recovery. One of the reasons behind this is the lack of participation from its 1.22 million addresses. The active Shiba Inu addresses have averaged under 3k for the month of May, also conducting no notable number of transactions on-chain.

Shiba Inu active addresses

Shiba Inu active addresses

Put simply, unless Shiba Inu finds support from its existing bunch of holders, even new investors won’t be able to trigger a rise in price.

Bitcoin price struggles to breach $27,000 as miners sell 1,000 BTC worth $27 million

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-struggles-to-breach-27-000-as-miners-sell-1-000-btc-worth-27-million-202305260053

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  • Bitcoin price is attempting to defend the $26,500 support.
  • BTC miners seem to be offsetting their losses or paying off their bills to keep their systems running.
  • NASDAQ, on the other hand, seemed unbothered by the macroeconomic conditions adding 2.46%, led by Nvidia’s 24% rise.

The concerns regarding Bitcoin price recovery are spreading in the crypto market. Beyond impacting the price of other cryptocurrencies, the bearishness is also reaching miners. The worries surrounding the US debt ceiling are being felt but not reflected in the stock market.

Bitcoin price declines while TradFi booms

Bitcoin price is still in the sub $26,000 levels after observing a 3% decline over the last 24 hours. This has resulted in miners selling their reserves in order to either prevent further losses or to continue to power their systems. In the span of 24 hours, these miners sold nearly 1,000 BTC worth close to $27 million.

Bitcoin miner reserve

Bitcoin miner reserve

At the moment, the US debt ceiling is being hailed as a major reason for the pushback on recovery in the crypto’s price. While the Biden administration and Republicans continue to talk and find common ground, the market suffers from the fear of default. However, on May 25, this fear seemed to have dissipated as the stock market improved.

Seemingly unaffected by the adverse macroeconomic conditions, the NASDAQ 100 shot up by 2.46%, hitting a 13-month high of 13,938. This rise was led by Nvidia (NVDA), whose stock prices rose by nearly 24.37%, trading at $379.80.

NVDA 1-day chart

NVDA 1-day chart

NVDA added nearly $200 billion to its market cap during the intra-day trading hours, which raised eyebrows everywhere. To put this into perspective, the total gain by NVDA on May 25 is four times the amount left in US Treasury’s cash balance of around $49 billion.

Seeing this stellar rise, Crypto Twitter is questioning why Bitcoin did not find the liquidity to benefit from such an increase.

This was explained by analyst CrediBULL Crypto that the liquidity exists in the market as observed in the case of NVDA. And it would not be difficult for the biggest cryptocurrency in the world to find it either, given the crypto space is still small in comparison.

However, the market still needs stimulation from institutional investors and whales since retail investors still operate with fear and caution, pulling back at the first sign of trouble. Besides, Bitcoin whales, for a long while, have been observed as a trigger for a bull cycle. 

This was evident back during the 2017 Bitcoin cycle as well when these whales pushed the BTC price to its then-cycle top. The whale activity at the moment is at a two and half year low. The last time it was at this point was back in December 2020, and a rise in the same could prove fruitful for Bitcoin price.

Bitcoin whale activity

Bitcoin whale activity

Read more – How whale activity fuels Bitcoin cycles: a 2017 vs. 2023 comparison

Can China’s recent crypto optimism trigger a bull run in Bitcoin price?

https://www.fxstreet.com/cryptocurrencies/news/can-chinas-recent-crypto-optimism-trigger-a-bull-run-in-bitcoin-price-202305242314

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  • China recently launched its government-backed Metaverse platform.
  • Binance CEO CZ believes China broadcasting crypto could act as a bullish trigger.
  • Bitcoin price is currently trading below the $26,500 mark, noting a two-month low.

Back until 2021, in addition to the United States, China used to have considerable dominance over crypto. This has since not only declined but completely disappeared owing to the blanket ban by the country two years ago. Thus it would be surprising if the crypto market suddenly went swinging again.

China becomes crypto “tolerant”

As per a recent tweet from the Chief Executive Officer (CEO) of Binance, Changpeng Zhao (CZ), , a state-owned channel, China Central Television (CCTV), recently broadcasted crypto-related news. This was an impactful event considering the staunch anti-crypto policy the country has upheld for the last two years. The executive stated.

“It’s a big deal. The Chinese speaking communities are buzzing. Historically, coverages like these led to bull runs.

This tweet from CZ came hours after China launched its government-backed Metaverse platform called the “China Metaverse Technology and Application Innovation Platform”. The launch was in accordance with the Metaverse Strategy announced in February this year, headed by the Nanjing University of Information and Science Technology (NUIST).

This is indeed a surprising turn of events for the country, given it has been standing against cryptocurrencies for more than two years now. Back in April 2021, China began its crackdown on cryptocurrency mining establishments which led to a major crash in Bitcoin price. 

The initial drawdown pulled BTC to just under $50,000, but the decline continued with Elon Musk’s announcement of Tesla discontinuing the acceptance of BTC as a payment method. This brought the cryptocurrency down to 42% in two months to trade at $36,700.

Bitcoin price May 2021

Bitcoin price May 2021

Eventually, by September 2021, China placed a blanket ban on the mining, trading and usage of cryptocurrencies. This is why according to CZ, an optimistic attitude by China might hold the key to a bull run. Another popular trader, lilili.eth, seemed to have a similar opinion stating,

“It is not necessarily a bull market when there are Chinese people involved, but it is definitely not a bull market when there are no Chinese people involved.

However, Wu Blockchain dismissed this possibility, saying that crypto broadcasts by China have happened before. However, he is in favor of  Hong Kong allowing retail investors to access licensed crypto exchanges.

Thus put simply, the “observed” bullishness is merely circumstantial as there is no concrete evidence suggesting that China has made any significant advancement in terms of becoming accepting of crypto. So investors must not expect any kind of major impact on Bitcoin price.

Bitcoin price at a two-month low

Bitcoin price is currently trading at $26,350 after declining by more than 3% in the last 24 hours. The biggest cryptocurrency in the world is testing the 100-day Exponential Moving Average (EMA) line as support at the moment.

The cryptocurrency might be susceptible to further declines, given the Relative Strength Index (RSI) is in the bearish zone below the neutral line at 50.0.

If the cryptocurrency does lose the 100-day EMA support line, it could fall to test the 200-day EMA at $25,000. But a daily candlestick close below it might push it towards $21,500. 

BTC/USD 1-day chart

BTC/USD 1-day chart

However, if the cryptocurrency turns around and recovers to breach the resistance marked at $27,500 coinciding with the 50-day EMA, it might be able to continue rising toward $30,000.

Institutional investors in the US continue to pull out of Bitcoin, unlike Canada

https://www.fxstreet.com/cryptocurrencies/news/institutional-investors-in-the-us-continue-to-pull-out-of-bitcoin-unlike-canada-202305250056

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  • Institutional investment in Bitcoin noted outflows worth over $30 million for the fifth week.
  • ARK Invest’s Cathie Woods blamed the regulatory system for the Bitcoin movement losing strength.
  • 3iQ’s CEO stated that Canadian institutions view BTC as a significant investment option.

Even though Bitcoin price has rallied considerably since March, investors’ interest in the cryptocurrency has been consistently declining. This seems to be extending to one of the crypto market’s biggest investors – the institutions.

Bitcoin loses institutions’ focus

Earlier this week, the founder of US investment management firm ARK Invest, Cathie Woods, stated that the Bitcoin movement was losing strength. She blamed the reason behind this on the regulatory system in the United States, adding,

“It would be nice if the US were leading this movement, but we’re losing it, and we’re losing it because of our regulatory system.

Her statement came days after the wealth and asset management company Northern Trust’s global head of digital assets and financial markets, Justin Chapman, stated that crypto has lost its shine from the institutional perspective. The executive, in an interview with CNBC, noted that even the hedge funds that are usually active in the markets have reduced their exposure to crypto. He further iterated,

“We’re not focused that much on the asset class because the client isn’t at the moment,” Chapman said. “So we’re not seeing that appetite to have that within their portfolios. If that changes, as a firm, we can account for those capabilities.

This is visible in their actions as well, given Bitcoin has been observing consistent outflows for the fifth week from institutional investors. For the week ending May 19, nearly $33 million worth of BTC outflows were registered, bringing the year-to-date outflows to $112 million.

Institutional investment in crypto assets

Institutional investment in crypto assets

To add to that, the overall optimism in Bitcoin price has dissipated. As observed in the investors’ sentiment since March, the positive outlook has vastly diminished, except for a spike observed this week that turned out to be a fakeout.

Bitcoin investors’ sentiment

Bitcoin investors’ sentiment

However, portfolio managers in Canada have started considering Bitcoin as a “serious venue” to invest in. According to the CEO of 3iQ, Fred Pye, the reason behind this is the FOMO (Fear Of Missing Out) people had regarding Bitcoin moving to Artificial Intelligence, which has been growing immensely thanks to ChatGPT.

As it is, the regulatory uncertainty has driven crypto out of the country, with Coinbase being the best example. The world’s second-biggest cryptocurrency exchange launched its offshore derivatives exchange in Bermuda earlier this month owing to the lack of clarity regarding regulation in the US.

Consequently, the current situation makes the Securities and Exchange Commission (SEC) vs. Ripple case very important. The outcome of the lawsuit would remarkably impact the regulatory outlook of the country, potentially increasing the optimism of not just retail investors but institutions as well.

Shiba Inu price triggers activity from long-term holders; on-chain losses reach two-month high

https://www.fxstreet.com/cryptocurrencies/news/shiba-inu-price-triggers-activity-from-long-term-holders-on-chain-losses-reach-two-month-high-202305170107

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  • Shiba Inu price fell below the $0.00000900 mark to trade at $0.00000878 at the time of writing.
  • Long-term held supply became suddenly active over the last 24 hours, consuming over 4,000 trillion days.
  • In the same duration, the network noted significant losses as over 20 trillion SHIB was moved around under the original price.

Shiba Inu price has been moving sideways for the past week, but before that, the meme coin noted a strict downtrend movement. Standing inches away from the December 2022 lows, the altcoins are noting a sudden bearishness on-chain.

Is Shiba Inu price set for a rise or decline?

Shiba Inu price, trading at $0.00000878 at the time of writing, is still below the $0.00000900 mark. Over the last few days, the on-chain performance of the asset has been seen, which explains the growing concerns around investors’ profits. 

SHIB/USD 1-day chart

SHIB/USD 1-day chart

The first sign of the same could be noticed on the age-consumed chart. This metric is usually used to judge the impact of the long-term held supply multiplied by the number of days it was held for. In the case of May 16, the total number of days being consumed was 4860 trillion days, which is a good sign.

Shiba Inu age consumed

Shiba Inu age consumed

This made two things apparent. One, long-term holders are expecting losses over the coming days as selling from the most loyal cohort of any cryptocurrency is not a good situation. Second, losses have already arrived.

The daily on-chain transaction chart noted the largest red bar since the end of March. The bar indicates that the transactions in losses trumped the transactions in profit on May 16 by a ratio of 1:20, as nearly 20 trillion SHIB worth $180 million were moved around despite being underwater.

Shiba Inu transactions in loss

Shiba Inu transactions in loss

Thus considering the intensity of bearishness across the network, Shiba Inu price might take a few days before recovery. According to the Relative Strength Index (RSI) indicator, the asset is currently oversold. Sitting below the 30.0 mark, the altcoin is susceptible to a bounce back, as noted in the past. 

The first certain sign of recovery would be visible once Shiba Inu price flips the 50-day Exponential Moving Average (EMA) line at $0.00001006 into a support floor. 

ETH’s “smartest holders” could be hinting at a 25% crash in Ethereum price

https://www.fxstreet.com/cryptocurrencies/news/eths-smartest-holders-could-be-hinting-at-a-25-crash-in-ethereum-price-202305160052

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  • Ethereum price is expected to fall to $1,400, unless the $1,850 price level is flipped into support.
  • Ethereum large wallet holders have exhibited some selling while some whales have been acquiring this sold supply.
  • This stability of the network was also questioned this week after ETH faced finality issues for nearly half an hour on two separate occasions.

Ethereum price drawdown came to a halt earlier this week as the crypto market has receded from greed to return to a neutral state. This is also resulting in a slower recovery being expected out of altcoins since Bitcoin’s dominance is still high.

Ethereum price might fall to this level

Ethereum price action had investors concerned across the market. However, popular trader Cryptonary stated that the smartest people knew what they were doing since they were one of the biggest investors.

This cohort is the whales and especially those who hold more than 10,000 ETH. Some of these investors began selling this week. The wallets holding between 10,000 ETH to 100,000 ETH sold nearly 800,000 ETH worth $1.45 billion to bring their balance to 28.38 million ETH. 

Ethereum whales’ activity

Ethereum whales’ activity

The network faced some finality issues over the last two days, which inherently impacts the on-chan transactions and investor participation. Earlier this week, the finality had to be halted for about half an hour, which impacted the rotation of the altcoin and, at the same time, justified the networks’ stability as being a key feature. 

Looking at the broader market conditions, an alt season in the current market has been out of the question for some time now. The only reason behind making this journey for the altcoin was until the broader market recovered. 

This may not be soon as the state of the crypto market further justifies a possible drop in ETH to $1,400. The decline would most likely occur unless $1,850 happens to turn into a support floor, in which case an uptick could be the way to go for the Ethereum price.

However, not all aspects of the cryptocurrency are bearish. While the whales are selling, large wallet holders holding 100,000 ETH to 1 million ETH are acquiring the supply dumped by retail investors. In the same duration, close to 400,000 ETH worth over $700 million has been picked up by these investors, bringing their holdings to 20.72 million ETH.

The altcoin is finding more bullishness in the fact that over 20 million ETH has been staked to date, and another 3.5 million ETH burnt from the supply. This is positive because it triggers the deflationary discussion, making Ethereum one of the more sought-after cryptocurrencies.

Ethereum staked to date

Ethereum staked to date

If further bullish cues are observed in the next few weeks, Ethereum price might initiate a recovery, or else a dip to $1,400 is inevitable. The latter would be a 23.43% crash and the biggest altcoin in the world would fall back down to mid-January prices, registering a four-month low.

ETH/USD 1-day chart

ETH/USD 1-day chart

Thus, any trader looking to invest in ETH should keep an eye on Ethereum price fluctuation as well as the broader market.

Dogecoin price dips by nearly 9% in 24 hours as corrections continue due to overvaluation

https://www.fxstreet.com/cryptocurrencies/news/dogecoin-price-dips-by-nearly-9-in-24-hours-as-corrections-continue-due-to-overvaluation-202305082222

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  • Dogecoin price is trading at $0.071 after declining by more than 25% in the span of a month.
  • DOGE Network Value to Transaction ratio hitting a five-month high suggests that the altcoin’s value is surpassing its on-chain transaction volume.
  • The meme coin plummeting has spooked investors resulting in participation standing at a two-year low in the last 14 days.

Dogecoin price, after showing signs of some potential recovery, failed to chart gains and ended up falling to a five-week low. The investors interestingly already had it coming as signals of the same could be observed for nearly a month now.

Dogecoin price bows down

Dogecoin price at the time of writing could be seen trading at $0.071, noting a 6.3% decline over the last 24 hours. The bearishness during the intra-day trading hours rose significantly, pushing DOGE to the low of $0.069, down by nearly 9% at one point. However, the slight eventual recovery resulted in the meme coin shedding just over 25% of its value in the last month.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

While the broader market cues did play a part in the price action, the same was anticipated, given the rise in the Network Value to Transaction (NVT) ratio. The ratio measures the network value, i.e., the market cap of the cryptocurrency, to the transaction volume and value settlement. 

This helps an investor guage whether the digital asset is overvalued or undervalued. High NVT values are associated with overvaluation and note market tops or corrections, while low NVT ratios signal just the opposite. 

In the case of Dogecoin, the NVT ratio happens to sit at a five-month high of 163, a figure last noted back in December 2022. Back then, DOGE ended up failing recovery and registered another 21% decline over the next seven days.

Dogecoin NVT ratio

Dogecoin NVT ratio

Now since the on-chain transaction value has surpassed the altcoin’s value, some corrections would correct the discrepancy between the two. 

This development has spooked investors to the point that they are refraining from participating on the network despite posting some good figures throughout early April. Towards the end of the month, active addresses dipped from 142,000 to 117,000 in the span of 48 hours. 

Dogecoin active addresses

Dogecoin active addresses

The last time the Dogecoin network noted the participation of fewer than 120,000 users was nearly two years ago, back in July 2021. This suggests that investors are set to lay low until they see some recovery on the charts. 

For the same to happen, corrections would need to come to an end, which is looking likely given the Relative Strength Index (RSI) is nearing the oversold zone. This region is synonymous with recovery, and if the meme coin falls into it, some green candlesticks might be on their way.

With 96% of the investors suffering losses, Algorand price might need more than new 2023 highs

https://www.fxstreet.com/cryptocurrencies/news/with-96-of-the-investors-suffering-losses-algorand-price-might-need-more-than-new-2023-highs-202304281652

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  • Algorand price is currently trading at a four-month low even as many other altcoins have charted year-to-date highs.
  • About 96% of all ALGO holders bought their supply out of FOMO around September 2021 highs of $2.4.
  • Over time a lot of these investors moved their supply around, which is, at the moment, in the hands of mid-term holders.

Algorand price has seen lesser growth over time, and while most of the market is recording recovery, this altcoin is lingering at the lows of its current trading price. The problem here is not just a lack of growth but also a lack of support from the investors, who cannot be blamed for their nominal conviction given their current conditions.

Algorand price needs a miracle rally

Algorand price trading at $0.18 is at a near four-month low. Usually, this bearishness is offset by the cryptocurrency’s investors’ bullishness, but this will not be the case with ALGO. The reason behind this is that ALGO holders have no incentive to act bullish at the moment. And it is not just a certain chunk that is bearish, it is over 96% of the investors.

ALGO/USD 1-day chart

ALGO/USD 1-day chart

Most of the holders bought their supply around the 20% range of the altcoin’s all-time high of $2.38 in September 2021. These investors are known as all-time highers, and all of them have amassed their stash at prices above $1.89. Generally, this cohort represents a small part of all the investors, but in the case of Algorand, it is the other way around as 16.75 million addresses or 96% of all the investors are all-time higher.

Algorand all-time highers

Algorand all-time highers

With Algorand price at the present price levels, all these investors are currently underwater and for their supply to turn profitable again, the altcoin would need to chart a rally between 870% to 1000%. Since the possibility of this happening is highly unlikely, it seems like the only option for these investors is to either HODL or dump their stash.

By the looks of it, this might have happened as balance upon being categorized by time shows that most of the ALGO supply is in the hands of mid-term holders. These mid-term holders, also known as “Cruisers”, are the addresses that have held their supply for a time period between 1 month and 12 months. 

About 67% of all ALGO has been held for this time period, and only 20% of the supply has remained unmoved for more than a year, classified as “Hodlers”. This makes Cruisers potentially detrimental as mass selling at their hands could trigger a further decline in Algorand price. Since this supply lacks the conviction of long-term holders, even a nominal fall in prices could lead to panic selling.

Algorand supply by time held

Algorand supply by time held

The only way to counter this situation is by Algorand price miraculously marking gains and climbing back to aforementioned targets, as even a new year-to-date high will not be able to do much for the cryptocurrency.

Ripple finds new ally in its fight against SEC as Coinbase files lawsuit against the regulatory body

https://www.fxstreet.com/cryptocurrencies/news/ripple-finds-new-ally-in-its-fight-against-sec-as-coinbase-files-lawsuit-against-the-regulatory-body-202304272152

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  • Ripple noted a 34% growth in its DEX volumes and a 46% increase in the centralized exchanges’ activity.
  • Coinbase, on April 27, responded to the SEC’s Wells notice stating they are willing to defend themselves.
  • The Ripple community saw this as a potential tool for victory but, at the same time, demanded relisting of XRP on the exchange.

Ripple has been fighting the Securities and Exchange Commission (SEC) for almost two and half years now, and in all this time, it took on the regulatory body all by itself. However, the SEC’s regulation by enforcement method seems to have backfired and tipped the scales in favor of Ripple with the help of Coinbase.

Ripple grows amid regulatory uncertainty

Ripple has been growing undeterred despite the regulatory uncertainty it faces in the courtroom. As per the Q1 2023 report, over the quarter, XRP Ledger on-chain activity, particularly the decentralized exchange (DEX) volumes, noted a 34% increase in comparison to Q4 2022 to $115 million.

Additionally, the XRP Average Daily Volume on centralized exchanges shot up 46% to $1 billion from the previous quarter’s $698 million.

A chunk of the credit for the strong quarter has been accredited to DEXes and NFTs, as the 1 million assets have been minted on the Ledger since the XLS-20 proposal went live. The proposal was a key upgrade to the network as it enables the creation of NFTs on XRP Ledger without the use of smart contracts.

However, amid the lack of clarity regarding regulation in the United States, Ripple might have its eyes set on other countries. In regards to the same, the Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse, stated, 

“The US may be moving backwards, but I like to focus on the positive – in the last few months the EU, UK and UAE all moved forward with new regulatory frameworks and regimes for crypto activities.

This is the second time Ripple has made such a suggestion as earlier this week, even the International Policy Counsel at Ripple, Susan Friedman, hinted towards the same.

Read more about it here – XRP price crash to be offset by Ripple making growth in the European Market

But at the core of this entire discourse is the lawsuit faced by Ripple that SEC initiated in 2020. As the world awaits the summary judgment by Judge Torres, Ripple is dealing with another lawsuit filed against it. This lawsuit was filed by XRP holders who alleged that illegal offering by Ripple led to losses to the investors.

All of this might smooth down in the coming weeks.

Enter Coinbase! 

After discussions about Coinbase moving offshore and being targeted by the SEC with a Wells notice, the crypto exchange finally responded. On April 27, Coinbase stated that the company first went public in 2020 following the blessing of the regulatory body; however, it is now facing potential charges on the very same aspects, per the Wells notice.

Paul Grewal, the Chief Legal Officer at Coinbase in regards to the same tweeted,

The ripple community sees this as a potential tool in ascertaining their victory in their fight against the SEC. Some even went to the extreme length of suggesting Coinbase beg for the Ripple community’s support.

Furthermore, in spite of providing support to the crypto exchange, the Ripple community also demanded the relisting of XRP on Coinbase. Back in 2020, following the SEC filing the lawsuit, Coinbase delisted the token, claiming they would not be listing any security. Reiterating that stance, the exchange stated,

“We didn’t list securities then, and we still don’t. We’d like to in the future, but the SEC has still not complied with the law by providing companies like Coinbase with a way to register to be able to do that. We do not relish litigation against the SEC, but we will vigorously defend ourselves – and stand up for the rule of law for everyone.

Whether Ripple and Coinbase come together over this mutual ground is yet to be seen, though.

Can Cardano price recovery trigger the return of 100,000 investors that fled after the 15% crash?

https://www.fxstreet.com/cryptocurrencies/news/can-cardano-price-recovery-trigger-the-return-of-100-000-investors-that-fled-after-the-15-crash-202304261812

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  • Cardano price has recovered by 8% over the last 24 hours following the broader market cues.
  • The total addresses fell to 4.35 million after over 110,000 addresses exited the market as ADA dipped on the charts.
  • ADA shares a high correlation of 0.85 with BTC, which means that Bitcoin price flipping $30,000 into a support level would help Cardano price new 2023 highs.

Cardano price has performed exceptionally throughout Q1 and April as well reinvigorating the investors’ lost confidence in the project. But as it appears to be, this confidence was rather weak as investors dipped out as soon as the altcoin began painting red on the charts.

Cardano price drop triggers terror

Cardano price slipping from $0.452 to $0.383 was the result of the bearishness witnessed by the entire crypto market, which was initiated by Bitcoin price falling to $27,000. This was the second biggest drop of the year following the crash noted from mid-February to the beginning of March.

ADA/USD 1-day chart

ADA/USD 1-day chart

Surprisingly despite falling by nearly 27% in those two weeks, the investors did not tap out, but they did when Cardano price dipped by 15% over the last week. The reason behind this was profits, as always. Since ADA was yet to breach November 2022 back in February, investors held on until a profitable level was achieved. 

This came on April 15 when Cardano price closed at $0.452, marking a seven-month high. But as the third-generation cryptocurrency began trending downwards, investors began exiting the network. Consequently, in the span of four days, the total addresses holding any amount of ADA fell by 100,000 from 4.44 million to 4.35 million.

Cardano addresses holding a balance

Cardano addresses holding a balance

The aforementioned lack of confidence is visible in the social aspect of the altcoin as well. Up until the dip, the “Ethereum-killer” was observing interest across the social channels, with Cardano bearing a mention in every 2 out of 100 queries regarding crypto. Since the crash though, the social volume fell by 50% from 3,009 to 1,528, increasing concern for a sustained recovery.

Cardano social volume

Cardano social volume

To add to the worries, Cardano price is set to be highly impacted by the Bitcoin price action given their high correlation of 0.85. Thus, BTC’s fluctuation will result in ADA either charting a gain or registering more red candles. 

Cardano’s correlation to Bitcoin

Cardano’s correlation to Bitcoin

For now, the altcoin could note a recovery provided the biggest currency in the world also flips $30,000 into a support floor. Trading at $29,700 presently, BTC climbing back to April highs seems highly likely, which would translate to ADA also potentially recovering to 2023 highs of $0.452.

Arbitrum price rises by 10% in 24 hours even as zkSync challenges its dominance in L2 market

https://www.fxstreet.com/cryptocurrencies/news/arbitrum-price-rises-by-10-in-24-hours-even-as-zksync-challenges-its-dominance-in-l2-market-202304261603

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  • Arbitrum price shot up by 10% after noting a bullish divergence on the 4-hour chart,
  • zkSync Era’s fee share in the L2 market is at 20% currently, nearing Optimism’s 30% dominance.
  • Arbitrum still has the upper hand in terms of investor interest, verified by the project’s adoption rising by 70% in the last four days.

Arbitrum propelled Layer-2 solutions into the limelight after launching its token ARB recently. This propelled investor interest in these chains and increased the inflows into the L2 market. Soon after zkSync Era entered the space with its mainnet and is already on its way to fight with Arbitrum for the lead.

Arbitrum and zkSync fight for the crown

Arbitrum took over the L2 market from Optimism which was the leader of the space for a long time. Since the launch of its native token on March 23, the total value locked on the L2 solution doubled to $6.5 billion. A day later zkSync Era’s alpha mainnet launched, and in the span of a month, its TVL shot up to $261 million. Collectively, both the L2 chains increased the interest of the investors in the L2 market, and as a result, the total TVL has increased by nearly 65%.

Total value locked on L2 chains

Total value locked on L2 chains

Furthermore, zkSync’s hype and Arbitrum’s dominance are subsiding Optimism’s demand, which once had dominance in terms of fee share. However, at the moment, zkSync Era is on the verge of overtaking Optimism. In the past two months, Optimism’s fee share reduced from nearly 40% to less than 30%, and since zkSync’s mainnet launch, its dominance grew to almost 20%. Given the steadily rising interest in the L2, it may not be long before Optimism is pushed to third place.

One of the biggest differences between Arbitrum and zkSync Era is the foundation of the chains. While the former is an Optimism rollup, the latter is a zero-knowledge (zk) rollup. Optimism rollups still rely on the trust in validators and thus assume transactions are valid by default.

Zk rollups are rising in demand since people don’t necessarily trust the Optimism method and require a validity proof to be published on-chain for all off-chain computation. Although the latter results in higher costs, which is why the demand is relatively lower still.

Regardless, despite zkSync Era’s emergence, Arbitrum’s growth is still consistent, backed by its users who recovered from the recent debacle by the development team. The ARP-1 proposal, which created confusion amongst the users and Arbitrum regarding the allocation of 750 million ARB tokens, drew a wedge between the two. This was later fixed by Arbitrum by scrapping the proposal.

Since then the project has observed stark growth in its user base as it gains traction in the DeFi market. The rate at which new addresses are being formed on the network has risen by 70% in the span of four days from 6,167 to 10,506.

Arbitrum network growth

Arbitrum network growth

Thus, Arbitrum is banking on this confidence, moving on to the next phase of its development roadmap, beginning the $120 million DAO distribution. Executed 48 hours ago, about 1.13% of all ARB tokens have been allocated to qualifying DAOs on the network.

Investors initially had mixed responses to this airdrop, with many even expecting a price decline. However, in the last 48 hours, Optimism rose, effectively reviving ARB price and resulting in a nearly 11% rally.

ARB/USD 4-hour chart

ARB/USD 4-hour chart

Trading at $1.48 at the time of writing, the altcoin successfully executed the bullish divergence with RSI observed over the last few days on the 4-hour chart. The broader market’s bullish cues provided additional support to the cryptocurrency, resulting in the price rise.

The bane of Uniswap price – not the market but UNI holders

https://www.fxstreet.com/cryptocurrencies/news/the-bane-of-uniswap-price-not-the-market-but-uni-holders-202304251557

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  • Uniswap price is among the highest losers this week as the altcoin has declined by nearly 17% in the last five days.
  • UNI holders’ loss-to-profit ratio is among the highest in the crypto market, with over 77% of holders losing money on their investments.
  • The lack of conviction among investors is visible in the active addresses’ ratio, which is 0.18% of all addresses, lower than that of Shiba Inu.

Uniswap price has been painting red on the charts over the previous six days, like the rest of the cryptocurrencies. But the reason behind the altcoin facing a higher decline is due to its investors turning to sell instead of HODLing through the bearishness. This is also one of the reasons why UNI is far from marking a new 2023 high.

Uniswap price in the weeds

Uniswap price, unlike other digital assets, is closer to the year-to-date lows than the highs. While the entire crypto market experienced bullishness over the last couple of weeks, UNI remained consolidated below $7.0. Now following the 17% crash over the past week, the altcoin has dipped to trade at $5.2, close to the December lows of $4.9.

UNI/USD 1-day chart

UNI/USD 1-day chart

The reason behind Uniswap price observing such a decline is due to a notable lack of investor conviction. While even Shiba Inu investors refrained from selling their stash, UNI holders dumped close to 600,000 UNI in the last couple of days of volatility, as noted on the supply on exchanges. 

A lot of this came from whales holding between 100,000 to 1 million UNI as their balance fell by 1.4 million UNI from 87.9 million to 86.5 million UNI.

Uniswap whale accumulation

Uniswap whale accumulation

But beyond the selling, it’s the lack of participation that is a matter of concern. Despite having a total number of users holding a balance in the range of 350,000, the number of investors active on the network is, on average, less than 700. Spikes in the users’ conducting transactions have been noted arbitrarily, thus bringing the active address ratio to 0.18%.

Uniswap active address ratio

Uniswap active address ratio

To put this into perspective, Shiba Inu has an active address ratio of 0.30%. These holders are considered to be some of the most opportunistic investors in the market and only come alive when the altcoin is either rallying or crashing.

Since this lack of conviction amongst UNI investors leads to a lower bullish momentum, Uniswap price does not find enough strength to chart gains. Consequently, this altcoin’s investors currently face the lowest profit-to-loss ratio, with less than 19% of the investors currently making money on their investment.

Uniswap investors in loss

Uniswap investors in loss

The success of any project or altcoin is highly dependent on its users, and for Uniswap price to note a solid recovery going forward, these investors would need to step up.

Institutions reviving Bitcoin spot ETF bid might lead to a pushback in the alt season

https://www.fxstreet.com/cryptocurrencies/news/institutions-reviving-bitcoin-spot-etf-bid-might-lead-to-a-pushback-in-the-alt-season-202304252010

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  • Bitcoin price decline over the past week spooked retail and institutional investors.
  • Regardless, ARK Investment and 21Shares are partnering to file for a Bitcoin spot ETF.
  • The trembling confidence in the crypto market has increased altcoins’ dependence on Bitcoin which would result in the alt season being delayed for a while.

Bitcoin and altcoins price action over the last two weeks has taken a toll on the alt season narrative brewing throughout the latter half of March. But as BTC fell in the past five days, the discourse about alt season is firing up again, although investors might be in for a disappointment.

Institutions signal mixed feelings about Bitcoin

Given the current volatility of the crypto market, no one side can be taken, and institutions are experiencing the same situation. This is evident in the fact that while on the one hand, ARK Investments and 21 shares are partnering to file for a new spot Bitcoin ETF, on the other, institutions are pulling out of BTC.

Cathie Woods’ Ark Investment Management announced its partnership with crypto exchange-traded products (ETP) issuer 21Shares. The two companies are coming together to apply for a Bitcoin spot market-based Exchange Traded Fund (ETF).

21Shares has attempted to make such an ETF happen twice in the past, once in 2021 and again last year. However, both bids faced rejection by the Securities and Exchange Commission (SEC). 

21Shares is not alone in this, as the regulatory body’s stance on such a situation has been witnessed by Grayscale as well. The SEC rejecting Grayscale’s bid for converting its Bitcoin Trust (GBTC) into an ETF even led to the investment management company filing a lawsuit against the regulators. The company even stated that the SEC was unfair for rejecting a Bitcoin spot ETF and claimed it treated the same with “special harshness.”

Thus another attempt by ARK and 21Shares might bear the same results, but the bullishness visible in this attempt suggests some institutions are pining for Bitcoin price recovery.

At the same time, institutions pulled out of Bitcoin after being spooked by the recent decline. The cryptocurrency falling to $27,700 resulted in an outflow of $53 million for the week ending April 21. This suggests that the faith in BTC is weak given that altcoins, including Ethereum, Litecoin, Solana, etc., noted inflows in the same duration.

Institutional investment in digital assets

Institutional investment in digital assets

Alt season – On the way or not?

Generally, when Bitcoin marks a market top, money tends to move into altcoins, and the resulting market conditions are known as an alt season. This is precisely what investors have been expecting since the beginning of Q2; Bitcoin’s hold over the market is pushing back.

Bitcoin vs altcoin dominance

Bitcoin vs Altcoin dominance

Given that altcoins are following the lead of the biggest cryptocurrency in the world, even BTC’s decline did not translate into a rise for alts. Thus, instead of Bitcoin’s dominance falling, the altcoin’s dominance fell. This is pushing traders and analysts to make do with an “inverse altcoin season,” which they predict will take place for now.

Furthermore, those waiting for Bitcoin prices to fall should also realize that in the near future, if Bitcoin blows straight through the roof, altcoins will lose the potential to rise. The credit for this goes to the resulting Bitcoin season.

On the other hand, if BTC dumps hard, altcoins might still lose since the investors’ faith in the crypto market is not strong enough to sustain confidence in just the altcoin market. Investors are waiting for Bitcoin price to find some stability post which there might be a chance for an alt season; otherwise, the likelihood of the altcoin season seems pretty low.

Gold dipping below $2,000 may have a lot to do with Bitcoin price crashing by 10%

https://www.fxstreet.com/cryptocurrencies/news/gold-dipping-below-2-000-may-have-a-lot-to-do-with-bitcoin-price-crashing-by-10-202304241616

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  • Bitcoin price slipped below $27,500 as Gold noted a 2.88% crash over the last ten days.
  • Gold and Bitcoin correlation is currently above 50%, representing a multi-year high.
  • Central banks accumulated the highest amount of Gold since 1967 in 2022 and are expected to continue in 2023, bearing a positive impact on BTC.

Bitcoin (BTC) price has been compared to Gold (XAU) for a very long time, and time and again, the cryptocurrency has delivered. Recently, BTC regained the correlation it once shared with the precious metal before its mutuality with the stock market increased, and that may not have been for the best.

Gold and Bitcoin share a boat

Gold – Bitcoin correlation is currently at a multi-year high of over 50% after it broke the correlation it shared with SPX earlier this year. The banking crisis in the United States resulted in BTC’s correlation with Gold recovering significantly.

Consequently, over the last ten days, as Gold dipped on the charts by 2.88%, Bitcoin price followed suit. The cryptocurrency in the same duration fell by 10.06% to trade at around $27,300.

XAU/USD 1-day chart

XAU/USD 1-day chart

But this high correlation is set to impact the digital asset on a macro scale as Gold is expected to draw more attention this year. The concerns around the US Dollar losing its strength continue to grow, and with BRICS members – China and Russia – moving away from using USD for bilateral trades, XAU might notice more bullishness. 

This is reflected in the opinion of central banks around the world. As per an annual poll of 83 central banks, about two third of the banks stated that they expect increased Gold accumulation in 2023.

As it is, 2022 noted the highest amount of Gold purchased at the hands of central banks since 1967, which speaks a lot to the bullishness of the investors regarding the commodity.

Most of the market considers this to be a positive environment for Bitcoin to grow and rise further. However, some find it possible for Gold to crash in the near future, which could take BTC down with itself.

Bitcoin price dependent on Gold

Bitcoin is called digital Gold due to the crypto asset being an inflation hedge investment. But its dependence on the precious metal still makes it vulnerable to a dip due to factors not necessarily particular to the crypto market.

In line with the same, investor Robert Kiyosaki stated that there is a chance Gold could crash to $1,000 based on a prediction by Steve Van Meter. These prices were last visited by XAU in October 2009, and a fall to the same level would present an almost 50% crash.

Since this is out of the realm of reality, Bitcoin price is safe from observing any drastic crash simply due to its high correlation with Gold. However, BTC might still see some pullback if Gold declines further, but recovery would bring the cryptocurrency back above $30k. The digital asset is then expected to push to $35,260, and a continued uptrend will take it to $41,273. 

To understand further how these targets could be achieved, read more here – Bitcoin price action from 2019 hints what could happen to BTC in 2023

DOGE holders try to protect the meme coin as Dogecoin price falls back to where it was a month ago

https://www.fxstreet.com/cryptocurrencies/news/doge-holders-try-to-protect-the-meme-coin-as-dogecoin-price-falls-back-to-where-it-was-a-month-ago-202304241837

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  • Dogecoin price, after crashing by more than 16%, fell back to $0.0789, rising by just 1% since March 24.
  • DOGE holders’ participation has seen a remarkable rise, with the active address ratio rising above 2%
  • Whales continue to act bullish, with addresses accumulating over 80 million DOGE in the span of five days.

Dogecoin price took quite a hit over the last few days as the meme coin followed in the footsteps of the leader of cryptocurrencies, Bitcoin. However, surprisingly, DOGE investors did not jump shit and claim whatever profits they could but instead stood firmly to prevent a major crash.

Dogecoin investors hold back

Usually, after hitting peaks, DOGE holders tend to cash out before a streak of red candles is formed on the charts. Although this time around, Dogecoin investors decided to take the other route and instead decided to lean in on the altcoin even more deeply.

Dogecoin price between April 19 and April 23 fell by nearly a little more than 16.5% to trade at $0.0789 at the time of writing. This crash, at one point in the day, brought the altcoin back to the same price it was exactly a month ago.

Interestingly, the Relative Strength Index (RSI) also dipped slightly lower than its position from March 24 in the bearish zone, suggesting that some pessimism persists at the moment.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

However, investors are attempting to subdue this by maintaining a bullish outlook for the meme coin. The network continued noting high interest from DOGE holders as new addresses rose to 4.49 million, preserving the streak which led to the addition of 230,000 investors this month.

But it is not just the new investors that are exhibiting bullishness as older Dogecoin holders are also consistently active at the moment. 

Addresses conducting transactions over the past three weeks have risen, bringing the active address ratio to an average of 1.8%, even touching 2.43% at one point. The ratio measures the number of active addresses against the total addresses holding a balance which currently stands at 4.49 million.

Dogecoin active address ratio

Dogecoin active address ratio

Furthermore, as always, whales continue to play an important role in DOGE’s performance. As the Dogecoin price fell, cohorts holding a balance of 1 million to 10 million, DOGE began accumulating the meme coin. In the span that the altcoin dipped by 16.5%, these whales amassed more than 80 million DOGE worth over $6.3 million.

Dogecoin whale activity

Dogecoin whale activity

Such actions tend to prevent larger crashes and support quicker recovery for the digital asset, which is quite necessary for Dogecoin price. This is because, unlike other altcoins, DOGE is yet to mark a new high for 2023 and for the same it would need to breach the barrier at $0.0959.

Dogecoin price crashing by 10% stumps investors awaiting profits worth $1.64 billion

https://www.fxstreet.com/cryptocurrencies/news/dogecoin-price-crashing-by-10-stumps-investors-awaiting-profits-worth-164-billion-202304201852

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  • Dogecoin price followed Bitcoin’s cues as the meme coin failed to breach the multi-mont barrier at $0.0966.
  • Investors that bought their holdings when DOGE fluctuated between $0.0868 and $0.0932 went underwater over the last 24 hours.
  • The prospect of recovery is looking strong at the moment, given the rising rate of DOGE transfer among addresses.

Dogecoin price has been struggling to mark a new year-to-date high as it continues to fail in breaching the four-month-long barrier. This has left a specific group of DOGE holders perplexed as to whether their holdings will ever see the light of profits.

Dogecoin price dip brings losses 

Dogecoin price in the last 24 hours charted a nearly 11% decline as the meme coin fell from $0.0942 to $0.0835 at the time of writing. As the altcoin declined on the charts, the group of investors that bought their supply when DOGE was worth between $0.0868 and $0.0932 witnessed losses again.

DOGE/USD 1-day chart

DOGE/USD 1-day chart

These investors amassed nearly 19.6 billion DOGE, which at current prices is worth close to $1.64 billion. For this supply to turn profitable, the Dogecoin price would need to recover beyond $0.0894, which is the average price of 19.6 billion DOGE. 

Dogecoin GIOM

Dogecoin GIOM

Furthermore, these tokens would turn truly profitable only when the altcoin can manage to sustain a rise beyond $0.0966. This level marks not only the multi-month resistance level that the cryptocurrency has not breached since December 2022 but also the point beyond which Dogecoin price would note new year-to-date highs.

The possibilities of profit currently rely on the broader market cues as DOGE investors are maintaining a bullish outlook. The velocity of the cryptocurrency, which highlights the rate at which supply has been changing hands, is indicating an uptick.

This translates to optimism among investors and has historically been accompanied by a positive turn in price action, as observed in December 2022 and March this year.

Dogecoin velocity

Dogecoin velocity

This bullishness is also visible in the rising demand for Dogecoin as the total addresses holding a balance have observed a sharp rise against the average rate at which investors join the network. While between November 2022 and March 2023, Dogecoin only added 170,000 new addresses, in the last 20 days alone, over 200,000 new addresses have joined the network.

Dogecoin total addresses

Dogecoin total addresses

Not everything is lost for the addresses that hold the 19.6 billion DOGE, as several indicators support a recovery.

Bitcoin price could crash to $23,500 if this bearish fractal from April 2021 repeats

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-could-crash-to-23-500-if-this-bearish-fractal-from-april-2021-repeats-202304201559

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  • Bitcoin price is hovering at the $28,800 mark after noting a 5% crash in the last 24 hours.
  • While the bearish fractal suggests a 22% crash, the Net Unrealized Profit/Loss Ratio shows that the market is at a very neutral level.
  • Whales holding 100 to 1,000 BTC have accumulated nearly half a billion worth of Bitcoin which could offset any potential bearishness.

Bitcoin price corrected for the first time after a little over a month and triggered the discourse of a “bear market”. Such is the fragility of the crypto market that even the slightest drops induce panic in investors, even when they are only describing a pullback.

Bitcoin price repeats history, but not really

Bitcoin price slipped by 5.39% over the previous 24 hours to trade at $28,786, reminiscing a bearish fractal – a type of repeating market pattern – that was formed back on April 14, 2021. Surprisingly, the candlestick pattern noted on April 14 this year is akin to the one from two years ago.

Bitcoin bearish fractal from April 2021

Bitcoin bearish fractal from April 2021

A bearish fractal usually occurs when a high point is followed and preceded by lower highs which lead to further price falls. In the case of 2021, the subsequent decline in price led to a 22.5% crash that pulled BTC back below $50,000. If the same pattern plays out this time, Bitcoin price could see a drop to $23,650.

BTC/USD 1-day chart

BTC/USD 1-day chart

However, this would not necessarily count as a bearish move, and the chances of an all-out crash are minimal. Bitcoin price is only correcting due to the market overheating caused by excessive bullishness over the past month, not because of a more fundamental reason. The Relative Strength Index (RSI) crossing the 70.0 mark is evidence of the same, which at the time of writing has returned to the neutral line at 50.0.

Further evidence is in the fact that volatility is currently at a two-month low which indicates that no major swings in price can take place. All the panic in the market is due to Bitcoin losing the psychological support of $30,000.

Bitcoin volatility

Bitcoin volatility

Moreover, the Net Unrealized Profit/Loss Ratio (NUPL) shows that the crypto market is at a very neutral level. Neither being heavily discounted nor being heavily overvalued suggests that Bitcoin price is safe from any sudden crashes.

Bitcoin NUPL ratio

Bitcoin NUPL ratio

Bitcoin whales are supplementing the neutral conditions by accumulating over the last few days. Cohorts holding 100 to 1,000 BTC have amassed 20,000 BTC worth $576 million in over four days to further offset any potential bearishness that may arise if the bearish fractal plays out.

Bitcoin whale accumulation

Bitcoin whale accumulation

Thus, investors do not need to worry about a crash to $23,650 as the chances of that happening are pretty slim for the moment.

Bitcoin price falls below $30,000 as the Elon Musk effect on crypto fades

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-falls-below-30-000-as-the-elon-musk-effect-on-crypto-fades-202304200104

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  • Bitcoin price is retracing its rise even after bullish signals intensify.
  • Tesla’s Q1 earnings report highlighted that the company left its Bitcoin holdings untouched.
  • Elon Musk moving from crypto to AI is a double-edged sword as it could impact the market positively and negatively.

One of the biggest criticism that cryptocurrencies receive is that they are highly speculative assets. However, this logic stood undefeated even with the biggest crypto asset, Bitcoin, as it awaits a signal from the broader market or just one individual – Elon Musk.

Elon Musk could be moving out of crypto

Musk’s mention of cryptocurrencies and related topics has gone down over the last couple of months. Except for a mention or two about Dogecoin, Elon Musk has kept his head low while Bitcoin maintained a bullish rally, rising above the $30,000 mark this week. But this lack of impact is more vivid when Tesla is considered.

The company recently released its Q1 earnings report, and Tesla has kept its BTC balance untouched. Despite renouncing the asset in 2021, Elon Musk has not sold a single BTC as the total holding of about 11,950 BTC is worth $350 million. The lack of selling is considered a bullish sign, but investors don’t seem to care much at the moment.

This shows that the crypto market is not only decoupling from the TradFi market but also from the impact of influencers, pushing the pressure back on the supply and demand pattern.

Regardless, one of the biggest reasons for Elon Musk’s departure from crypto has been the emergence of Artificial Intelligence (AI). This rapidly developing technology has been a big point of interest for Musk, who announced that his focus would no longer be on crypto but on AI.

What happens if Musk quits on Bitcoin?

There are two sides to the coin of the impact of Elon Musk’s exit from crypto. While on the one hand, the chances of a negative impact will go down. On the other hand, panic will also surround crypto assets.

The negative impact is Elon Musk’s ability to sway the value of digital assets as and when the Twitter owner deemed them to be. This would certainly come to an end. At the same time, if Musk completely pulls out of crypto, he could also sell off Tesla’s BTC holdings. This would cause a sudden and drastic selling that could begin another bear market for BTC.

Put simply, Elon Musk still holds a lt of power in the crypto market with the ability to sway any asset’s value. This uncertainty is also a matter of concern for many investors as any asset could fall victim to Musk’s interest, who could increase or decrease any asset’s value at any time without making much of an effort.

Cardano price retreats from seven-month highs after flipping DOGE, MATIC in Q1

https://www.fxstreet.com/cryptocurrencies/news/cardano-price-retreats-from-seven-month-highs-after-flipping-doge-matic-in-q1-202304191658

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  • Cardano price pulled back to trade at $0.421 after marking a seven-month high.
  • Quarter on quarter, Cardano’s DeFi presence has grown by 172%, boasting a TVL of $138 million.
  • ADA holders seem to have regained confidence in the altcoin, with transaction volume noting a 650% increase in three months.

Cardano price observed a rather spectacular Q1 this year as, along with the token, the blockchain also noted growth on all fronts. This triggered an optimistic outlook in the investors that had been missing since the lackluster Alonzo upgrade of August 2021.

Cardano price rise brings back investors’ confidence

In three and a half months, Cardano price has managed to chart more than 85% in gains before slipping by 7% over the last four days. Trading at $0.423, ADA has surpassed the likes of Dogecoin and Polygon in terms of market capitalization to take back the spot of the seventh biggest crypto asset. 

ADA/USD 1-day chart

ADA/USD 1-day chart

Its performance in the Decentralized Finance (DeFi) space also seems to be improving. The quarter-on-quarter total value locked (TVL) across Cardano’s 19 protocols has increased by a stellar 172% from $50 million to $138 million.

However, despite this development, Cardano still has not established itself in the ever-growing DeFi space, in which its competitors, such as Arbitrum, have already gained domination.

Regardless, the network has regained a crucial element that would be critical to its consistent growth hereon, the user base. ADA holders, who have been skeptical in their behavior for almost a year and a half now, are returning to their bullish state, evidence of which can be found in their participation.

On-chain transaction volume, which had been dipping since April 2021, began increasing again as the year started. In the span of three months, the volume has shot up from $2 billion on average to $15.6 billion at its peak this week. This signifies a 650% increase over the first quarter.

Cardano transaction volume

Cardano transaction volume

Furthermore, ADA whales have also refrained from selling since the beginning of the year, which has been one of the biggest driving factors in Cardano price rally. Although heavy accumulation would have supported a larger rise, the lack of selling at the hands of cohorts holding between 100,000 to 10 million ADA, has kept investors’ faith intact for recovery.

Cardano whale activity

Cardano whale activity

This newfound confidence was visible in the overall discussions surrounding Cardano as well, given its social presence shot up by 300% in the last three months. Even though most of the growth came towards the end of March, this is the most demand ADA has seen since April 2022. At the moment, Cardano is part of every three queries out of 100 regarding crypto, which was the blockchain’s average back in July 2021.

Cardano social presence

Cardano social presence

If ADA holders can sustain this optimistic attitude throughout the second quarter as well, Cardano price could chart some more gains potentially feeding further into Cardano enthusiasts’ impossible dreams of a $1 trillion market capitalization.

 

MATIC price breaching this key level could trigger a 50% rally and turn 1.15 billion MATIC profitable

https://www.fxstreet.com/cryptocurrencies/news/matic-price-breaching-this-key-level-could-trigger-a-50-rally-and-turn-115-billion-matic-profitable-202304181426

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  • MATIC price is facing a supply wall at $1.24, where nearly 30,000 investors bought $1.34 billion worth of MATIC.
  • Polygon whales have been active over the last month accumulating significantly, supporting the probability of recovery.
  • On the other hand, network adoption has declined to suggest Polygon is losing traction among users.

MATIC price currently resides among the few altcoins that have failed to mark any growth over the last two months. The altcoin, in particular, has been facing a barrier for the last month and a half, clearing which is crucial to initiate a bounce back to a price point last tagged by the cryptocurrency in February 2022.

MATIC price needs to clear this

MATIC price, trading at $1.17, has been looking for a bullish signal since the beginning of March. A key reason behind the lack of growth is the uncertainty surrounding the long-awaited alt season as Bitcoin’s dominance continues to signal otherwise. However, over the last week, BTC dominance has dropped to 47.32%, which is reigniting hopes for the alt season.

Bitcoin dominance

Bitcoin dominance

When this season arrives is up for speculation, but the optimism could be a driving factor in MATIC price’s recovery. According to analysts, an explosion in the altcoin would be possible if only the altcoin could maintain a sustained rally above the $1.24 mark. This particular price point is the average cost at which nearly 30,000 addresses bought about 1.14 billion MATIC tokens worth $1.34 billion.

MATIC GIOM

MATIC GIOM

Thus, breaching $1.24 would not only turn these tokens profitable after a month, but a daily candlestick close above it could also trigger a 53% rally to $1.80. On the way, MATIC would encounter two other supply walls at $1.42 and $1.64, which collectively would unlock 265 million MATIC worth $310 million.

Although to achieve this, the token would need to see some demand at the hands of the investors and whales. The latter, at the moment, is showing signs of bullishness as the cohorts holding 100,000 to 1 million MATIC have noted a 7.4% increase in supply. 

Similarly, larger wallet addresses holding anywhere between 1 million to 10 million MATIC have been accumulating as well. Their supply has shot up by 35% from 128 million to 173 million MATIC.

MATIC whale accumulation

MATIC whale accumulation

The altcoin might still face some resistance at the hands of the investors as the project is not seeing much traction in the market presently. The Network Growth, which indicates the rate of adoption, i.e., the formation of new addresses on the chain, has dropped by 37% from 130,000 to 81,000. 

MATIC network growth

MATIC network growth

While this is not an explicitly bearish sign, it does highlight some skepticism at the hands of investors.

Artificial Intelligence versus Crypto: Is SEC Chair Gensler in the right?

https://www.fxstreet.com/cryptocurrencies/news/artificial-intelligence-versus-crypto-is-sec-chair-gensler-in-the-right-202304181814

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  • SEC Chair Gary Gensler says Artificial Intelligence is the transformative technology right now and not crypto.
  • While crypto influencers like Elon Musk moved away from crypto to AI, Binance CEO CZ notes AI and crypto can work hand in hand.
  • Crypto and AI have a common pressing point, data, and both can be used by one another to solve the problems that may arise from either’s use case.

Cryptocurrencies were all the fuss until last year, but the decline in digital assets’ value combined with the collapse of crypto companies led to a drop in people’s interest. Come 2023, the rising interest in Artificial Intelligence is taking over the crypto market, and at the moment, it has become the biggest topic of discussion, just as crypto once was back in 2021

How AI became the talk of the town

Artificial Intelligence (AI) first came to prominence after the emergence of ChatGPT. The AI chatbot triggered the discourse of this technology’s supremacy and how its use cases could make way for easing up workflow. 

But ChatGPT also triggered a natural competition as big tech companies jumped to claim control of this field. The likes of Microsoft, Google and Amazon all launched their own chatbots that furthered the AI hype.

One of the crypto market’s biggest objectors, Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), submitted his take on the AI vs. crypto narrative.

During his testimony before Congress on April 18, the regulatory body’s head stated that Artificial Intelligence is the transformative technology right now and not crypto. He further shared his contempt for the digital asset market, saying,

“It’s not a matter of lack of clarity, I think this is a field that … has built up around non-compliance and that’s their business model.

Is Gary Gensler’s attack on crypto agreed upon?

While Gary Gensler’s comments came in the second quarter of this year, many notable crypto influencers have shared their opinion before. One of them is the DOGE father Elon Musk, who stated last month that his interest is shifting from crypto to AI.

Crypto exchange Binance’s CEO Changpeng Zhao (aka CZ) considers crypto and AI could go hand in hand. During an ask me anything (AMA) session on Twitter last month, the executive, upon being asked about the application of AI in 2023 with respect to crypto, stated,

“Binance has been using AI in our products in a few areas…You can interact with AI, and if you ask for something, the AI will try to give you a response. So that’s the most recent one.

The impact of AI has been significant on the crypto market, too, so much so that in the last few weeks, AI tokens have begun fielding the most funding from investors. The likes of The Graph Token (GRT), Render Token (RNDR), SingularityNET (AGIX) etc., have seen stellar growth and continue to.

Although according to analyst Alex Valaitis, both crypto and AI have a common thread, data, as the former attempts to decentralize it while the latter aims to centralize it and use it to train computer systems. He noted that while each of them differed in incentives, they could be used to solve the problems that may arrive out of excessive use of either of them.

But when it comes down to whether crypto holds power or AI, it becomes clear that neither has it at the moment. Thus, Balaji Srinivasan’s $1 million Bitcoin bet could mostly fail. Not in terms of BTC reaching that price point by the second quarter of 2023 but in terms of the ideology that Bitcoin would become the most in-demand asset as people recognize crypto’s value. 

Solana price might not play in bulls’ favor despite Grayscale SOL Trust launch

https://www.fxstreet.com/cryptocurrencies/news/solana-price-might-not-play-in-bulls-favor-despite-grayscale-sol-trust-launch-202304171652

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  • Solana price has rallied by over 20% in the past week, but any further rise might overheat the market, triggering corrections.
  • Grayscale Solana Trust, launched with 304,427 shares, is expected to draw in institutions and lead to a price increase.
  • Institutional investors, on the other hand, are pulling out of Solana at the moment as retail participation declines by nearly 60%.

Solana price has been following Bitcoin’s cues to chart gains over the last week. While analysts are seeing potential in the asset for another leg of green candles, on-chain data is suggesting otherwise. However, the factor of institutional interest could sway the investors’ sentiment in either direction.

Solana price rally uncertain after Grayscale Trust launch

Solana price noted a 21% rally in the last seven days, but according to the crypto analyst Inmortal, this is not the end of the road for SOL. Despite most of the altcoins observing minimal rises, Solana is expected to shoot up to $28, resulting in many calling it the “most hated” rally. This is because SOL would trend against the majority of the altcoins and chart a five-month high.

Coincidentally, on April 17, Grayscale launched the Grayscale® Solana Trust (GSOL). The trust was announced with 304,427 shares that will be tracking the CoinDesk Solana Price Index. This is expected to draw in retail as well as institutional investors towards SOL, but the latter does not seem to be as interested at the moment.

According to investments received by digital assets for the week ending April 14, Solana failed to observe any inflows but instead registered outflows. Amounting to $2.1 million, the week-long outflows pulled SOL’s year-to-date net flows down from $10 million to $8 million. On the other hand, Bitcoin recorded nearly $104 million in inflows.

Solana institutional investors’ net flows 

Solana institutional investors’ net flows 

This shows that the majority of institutions are focused on BTC and not altcoins. Particular to Solana, its own users are exhibiting hints of skepticism in their behavior. Year to date, the number of daily active addresses has declined by 58.8% from 566,000 to 233,000 at the moment.

Solana daily active addresses

Solana daily active addresses

The uncertainty surrounding the alt season is also keeping investors away, with new SOL addresses falling by 39% from 188,000 at the beginning of the year to 113,000 at the time of writing. This has had an impact on the total value being moved on-chain. As it is, the value has dropped from an average of $34 billion in November 2022 to $2 billion as of now. The lack of participation will likely maintain the volume at a low.

Solana on-chain value 

Solana on-chain value 

However, considering a scenario where Solana manages to rise above these issues to mark a rally, SOL is still not safe from corrections. The Relative Strength Index (RSI) is lingering right at the cusp of flipping into the overbought zone above 70.0. 

A rise in prices resulting from sudden buying could overheat the market, which would be denoted by RSI’s presence in the overbought zone. This zone is synonymous with corrections as the market cools down, which might keep SOL from breaching the $28 mark.

Bitcoin price pulling back after a 50% rally means this for the crypto market

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-pulling-back-after-a-50-rally-means-this-for-the-crypto-market-202304172131

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  • Bitcoin price is beginning to exhibit market top-like signals, which suggests selling pressure may be ona the rise.
  • Lack of movement at the hands of whales toward stablecoins despite a hike in social mentions suggests interest is at a low.
  • The MVRV ratio for the biggest cryptocurrency is well into the danger zone, which further backs the possibility of selling.

Bitcoin price has gained significantly throughout the last couple of weeks, but by the looks of it, the green candle streak might be coming to an end. On-chain data highlights that while on the surface, the crypto market is still bullish, signs of potential selling are becoming evident when delved deeper.

Bitcoin price might begin trending downwards

Bitcoin price registered a 50% increase in value over the duration of a month from mid-March to mid-April. This resulted in the social volume toward BTC rising by 81% in the last 30 days, month on month. 

However, the biggest cryptocurrency in the world is not alone in this, as stablecoins are also observing high social mentions. This, according to Santiment, is usually a bearish signal and points towards profit-taking as traders consider the market conditions as toppish in nature.

Stablecoin social volume

Stablecoin social volume

However, even as the social volume around the dollar-pegged assets is rising, the whales are showing no significant interest. The transactions worth over $100,000, which is typically a whale movement indicator, have been within the normal ranges for all top-cap stablecoins.

Furthermore, the discussions surrounding crypto overall are also declining, although it doesn’t indicate much since FOMO could bring that back at any time.

Stablecoin whale movement

Stablecoin whale movement

But the real signals come from looking at past patterns. The 365-day Market Value to Realized Value (MVRV) ratio has been on an incline. In the span of a month, the indicator has risen from the neutral line to just under 30% at the time of writing.

Usually, a breach above 30% puts Bitcoin in the danger zone, which is synonymous with corrections. In the past, too, BTC reaching beyond 30% has resulted in a price drop, case in point November 2021, December 2020, and September 2019.

Bitcoin MVRV ratio

Bitcoin MVRV ratio

Thus if the formation plays out as it has in the past, Bitcoin price is vulnerable to a decline. The cryptocurrency is observing a 2.84% drop at the time of writing. 

Bitcoin MACD

Bitcoin MACD

Plus, the bearish crossover taking place on the Moving Average Convergence Divergence (MACD) suggest the same. The signal line (red) crossing over the MACD line (blue) is evidence of potential bearishness, which could significantly impact the price going forward, setting off a correction for BTC.

Cardano price pays off investors’ patience with a new 2023 high, hints at what is about to come next

https://www.fxstreet.com/cryptocurrencies/news/cardano-price-pays-off-investors-patience-with-a-new-2023-high-hints-at-what-is-about-to-come-next-202304140035

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  • Cardano price marked a five-month high on April 13 after charting a 5% rise to trade at $0.425.
  • Cardano long-term holders have been maintaining their stance since the beginning of 2023, which could be paid off soon.
  • Regardless, when it comes to on-chain transactions, investors are still observing more losses than profits.

Cardano price has been on an impressive streak of green candles for the last four weeks, making investors anxious for profits. But while the recent rally has been in favor of the altcoin, ADA holders might have to hold on for a while longer before their investment becomes green.

Cardano price to chart another rally

Cardano price has shot up by nearly 40% since mid-March to bring the altcoin to trade at $0.425. The last time ADA was at this price level was before the FTX collapse-induced market crash in November 2022.

The reason why this rally matters significantly is that for the first time in five months, investors are looking at a promise of profits, which comes very rarely to Cardano holders. According to popular analyst Ali, ADA is on the verge of forming an inverse head and shoulders pattern.

The confirmation of this pattern would suggest that a potential 44% rally is on the way and could push the altcoin toward $0.60.

Should this setup play out and Cardano’s price reach $0.60, nearly 2.76 billion ADA would turn profitable once again. Investors that bought their holdings at an average price of $0.548 have been waiting since August 2022 for their supply to turn green again.

As nearly $1.1 billion worth of profits enter the market, long-term holders that have maintained their bullishness for a year now would be paid off in some ways.

Cardano GIOM

Cardano GIOM

The cohort that has been holding on to their ADA for more than a year now holds the most dominance over the Cardano supply. These long-term holders, up until last year, constituted just 13% of all the addresses on-chain, whereas today, more than half the investors fall into this category.

This 51% domination over the addresses is a sign of perma-bullishness at the hands of ADA holders.

Cardano long-term holders

Cardano long-term holders

Such bullishness has enabled these investors to ride through the last few weeks, during which losses were running high. Despite the transaction volume shooting up since January this year, the daily transactions in losses outweighed the transactions in profit. The aforementioned long-term holders held through that as well, and their patience could pay off if ADA rallies to $0.60.

 

Ethereum price marks 11-month high as ETH staking exceeds withdrawals

https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-marks-11-month-high-as-eth-staking-exceeds-withdrawals-202304132320

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  • Ethereum deposits could be seen outpacing withdrawals at one point on April 13, following the Shanghai upgrade.
  • 70% of the ETH being withdrawn is from the Kraken exchange, whose staking service was recently shut down by the SEC. 
  • Ethereum whales reacted to the Shanghai upgrade, with large wallet holders dumping 400,000 ETH in the span of 48 hours.

Ethereum price lived up to expectations as the second-biggest cryptocurrency in the world breached a key psychological barrier on April 13. But more than the bullishness in the price action, the positivity observed in the investors’ behavior surprised the market following the Shanghai upgrade.

Ethereum investors begin stake as staking withdrawal goes live

Ethereum holders were expected to begin drawing out their staked ETH from the network after the Shanghai upgrade. The hardfork enabled users to withdraw their deposits from the last year and a half, but against the market’s prediction, the altcoin’s holders decided to pour their money into staking again instead.

On-chain data highlighted that at one point during the day, the total number of ETH deposits exceeded the total ETH withdrawn. While the instance was only noted once when a little over 7,000 withdrawals took place against 11,000 deposits.

Ethereum staking vs withdrawal 

Ethereum staking vs withdrawal 

This could go back to one of the two possibilities:-

  1. Ethereum holders are awaiting a bigger rally before pulling out their ETH to sell it for profits.
  2. The slow pace of withdrawals is resulting in deposits running higher as the bullishness for ETH at the moment will draw investors toward it.

Interestingly, 70% of the withdrawals in the waiting line were coming from the Kraken cryptocurrency exchange. The reason behind this is the regulatory crackdown faced by Kraken a while ago. Back in February, the exchange was fined $30 million by the Securities and Exchange Commission (SEC) and asked to shut down its staking service.

Ethereum withdrawal distribution
Ethereum withdrawal distribution

But on-chain, investors did not fail to surprise either, as whales displayed mixed sentiments when it comes to holding ETH. The cohort with a balance of 100,000 to 1 million ETH noted an increase of over 200,000 in the span of two days.

On the other hand, the addresses with a balance of 1 million ETH to 10 million ETH declined by more than 400,000 in the same duration.

Ethereum supply distribution

Ethereum supply distribution

Thus while retail investors and smaller whales continue to hold a bullish outlook for the biggest altcoin in the world, larger wallet holders are taking a different route.

As it is, Ethereum price has shot up beyond $2,000 in the 24 hours since the upgrade, marking an 11-month high and could continue if the investors’ sentiment sustains.

Bitcoin price refutes Warren Buffet’s “gambling token” critique; shames US Dollar index

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-refutes-warren-buffets-gambling-token-critique-shames-us-dollar-index-202304121555

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  • Bitcoin price stood virtually unchanged above $30,000 following the release of CPI, while the USD index noted selling pressure falling to 101.6.
  • Berkshire Hathaway CEO Warren Buffet labeled Bitcoin a “gambling token” after previously calling it “rat poison squared”.
  • Bitcoin is defending its “inflation hedge” and safe-haven status with the support of its maximalist community.

Bitcoin, the world’s biggest cryptocurrency, has been targeted by one of the world’s biggest investors Warren Buffet for a long time now. Buffet has been criticizing digital assets ever since the crypto market emerged to be significant and continues to do so even as Bitcoin is standing the test of time.

Warren Buffet’s problem with Bitcoin

Bitcoin certainly grew in prominence among institutions and retail investors but failed to impress everyone. A member of the anti-Bitcoin community, Warren Buffet, has openly advised against investing in the digital asset. In the past, the Berkshire Hathaway CEO has even gone so far as to call BTC “rat poison squared”, and more recently, he labeled it a “gambling token” as well.

Buffet’s stance on never holding any cryptocurrency derives from his lack of understanding of digital assets. He admitted to the same in an interview with CNBC in May 2022, stating,

“I get in enough trouble with things I think I know something about. Why in the world should I take a long or short position in something I don’t know anything about?”

Buffet also stated that he believed Bitcoin holds no intrinsic value as it only serves the purpose of transmitting money. He noted that it doesn’t qualify as currency since it is not a durable means of exchange or a store of value, comparing crypto to a cheque, as they fundamentally perform the same function of transmitting money.

However, the reality of the situation differs from the 92-year-old investor’s opinion, as in the last couple of months, the situation has significantly changed.

  1. After crashing to the lows of $15,500 last November, Bitcoin recovered and retained its safe-haven tag, recently rallying against the worsening macroeconomic conditions.
  2. Investors like MicroStrategy, who went deep into the digital asset, buying 140,000 BTC worth over $4 billion, emerged profitable once Bitcoin price breached the $30,000 mark this week. 
  3. Banks, too, are leaning into Bitcoin indirectly as Bank of America and Fidelity Management recently purchased $85 million worth of MicroStragey’s MSTR shares, which is tied to BTC itself. 
  4. Additionally, institutions are continuing to pour money into the asset, with the week ending April 7 observing inflows worth $56 million in the case of BTC. 

Institutional inflows

Institutional inflows

Bitcoin price stands the test of time

On April 12, the Consumer Price Index (CPI) came in at 5.0% year on year against expectations of 5.2%, declining from February’s 6%. The core CPI YoY met expectations and stood at 5.6%.

Although month-on-month, the inflation rate was up by 0.1%, it fell beneath the expected 0.3%. Soon after, the CPI data was released. The US Dollar Index faced selling pressure and, at the time of writing, stood at 101.6, down by 0.45%.

Bitcoin price, on the other hand, initially stood unchanged at $30,200, sliding only 0.69% to $30,100 after the release. But on the whole, BTC lived up to its “inflation hedge” status along with Gold, which after shooting up by nearly 1%, came down to post a green candle of 0.25%. 

BTC/USD 1-day chart

BTC/USD 1-day chart

Thus, even though the broader market impact on Bitcoin might result in minor fluctuations every now and then, on a macro scale, the digital asset has untethered itself from the TradFi markets.

Furthermore, the Bitcoin supporters are completely unbothered by TradFi players’ statements, and their bullish stance will end up being a driving factor in BTC’s rally going forward. These social cues happen to bear a significant impact on an asset and the market as a whole.

You can read more about how social cues dictate market trends here – Why these social cues could be forecasting a local top for Ethereum and the broader crypto markets.