US Fed begins quantitative tightening, Japan restricts stablecoin issuance and LUNA 2.0 rides a price roller coaster: Hodler’s Digest, May 29-June 4
Polkadot At $9.30, But Is There A Chance Of Slight Shift In Trend?
Polkadot has been noting fall in price over the past few days. Although the coin has been laterally trading, there has been continuous dips in the price. Over the last 24 hours, DOT fell by 4.2% and in the last week the coin brought home minor gains.
Broader market weakness can be attributed to most altcoins either trading sideways or moving downtrend. The coin broke below its crucial support of $ 14 and ever since that Polkadot has been moving south.
Buying strength also automatically faded from the market as the bears took over the price action. Despite the bears strengthening, DOT continued to attempt moving on the upside but the coin was met with selling pressure each time.
The bulls just need to push the price a little above the $ 9.60 mark after which the buyers could attempt to re-enter the market. This could bring in some relief to the altcoin’s price.
Polkadot Price Analysis: One Day Chart Polkadot was priced at $ 9.30 on the one day chart | Source: DOTUSD on TradingView
DOT was trading at $ 9.30 on the one day chart. Polkadot was mostly consolidating but was trying to break past the same every now and then. Bears have gotten stronger as buying strength has fallen. A fall below the $ 9.30 price mark will cause the coin to rest on the $ 8.71 support line.
This would mean DOT would touch the price level of August, 2021 again. Overhead resistance for the coin stood at $ 10 and a push above the same will make the altcoin trade near the $ 11.87 price mark.
The volume of the coin traded had fallen and was seen in red. This indicated that the bulls had weakened at press time.
Technical Analysis Polkadot registered fall in buying strength on the one day chart | Source: DOTUSD on TradingView
DOT noted a consistent increase in buying strength as seen on the Relative Strength Index. There has been an uptrend on the RSI. At press time, the coin displayed fall in buying strength as the indicator captured a downtick signifying increase in selling pressure.
In regards to DOT registering a shift in price action, the price pf the asset was seen slightly above the 20-SMA line. This meant that buyers were slowly gathering momentum and that the sellers might not continue to drive the price momentum in the market.
Related Reading | Polkadot Surged Over 4%, What Are The Technicals Indicating?
Polkadot flashed a buy signal on the one day chart | Source: DOTUSD on TradingView
DOT flashed a buy signal which amounts to the coin displaying a possible change in the price action. Moving Average Convergence Divergence depicts the price momentum, and it indicated bullishness. MACD portrayed green signal bars which are tied to a buy signal.
Bollinger Bands that indicate price volatility showed narrowing of the bands. If the bands become narrowed it means that price volatility is about to drop.
A drop in the same means lesser price fluctuations. DOT can try to rise above the given immediate resistance if the buying strength increases in the market over the immediate trading sessions.
Related Reading | Bitcoin NUL Suggests More Downside To Come Before The Bottom
Ethereum’s Merge FOMO isn’t priced in, making a spike to $2.6K a possibility
Ethereum’s price action hangs around major swing lows despite the all-important Merge network upgrade. Analysis suggests ETH is discounted below $ 2,000.
Here are 3 altcoins that could surge once Bitcoin flips $35K to support
ADA, MATIC and XLM appear well positioned for a bullish breakout once BTC flips the $ 32,000 to $ 35,000 zone to support.
Bitcoin price rallies to $32.3K, but three factors could limit its recovery
BTC bulls pressed the price to $ 33,300, but significant tailwinds in traditional markets could continue to weigh on Bitcoin price.
Paraguay paves the way for crypto regulation despite internal opposition
A new bill for crypto regulation has been approved by Paraguayan Congress despite the central bank and budget commission’s rejection of the project.
Ethereum Gas Fees Touch New Lows, What’s Ahead For Ethereum
Ethereum is one of the most widely-adopted cryptocurrency projects worldwide. Yet, it’s hated worldwide for its sky-high gas (transaction) fees. Users globally constantly complain about the coin’s terribly-high transaction prices on various social media platforms.
Shockingly, Santiment, an on-chain and metrics platform, published on Twitter a report showing Ethereum’s transaction prices plummeting to their lowest.
The Ethereum Platform
Ethereum is a distributed, permissionless, and open-source blockchain that provides users access to a smart contract. It is the second-largest blockchain by market capitalization, following crypto giant Bitcoin.
Related Reading | Bitcoin Dominance Remains High As Market Sell-Offs Settle
Remarkably, Ethereum offers a p2p (peer-to-peer) network that verifies and executes codes within the platform, known as Smart Contracts.
Ethereum GAS Price
On the Ethereum network, users are charged some amounts to perform any transaction, buying, selling, swapping, minting, etc. Ethereum previously had a ridiculous record for having very high gas fees for its transactions.
Recently, the crypto giant began offering meager transactional charges to its users, as recorded by Santiment. Santiment is a financial market content and data platform for blockchains and cryptocurrencies.
The metric platform took to Twitter the news of Ethereum’s meager transaction prices. As of Tuesday, 24th May, the second-largest blockchain had a transaction price of $ 2.54 a transaction.
What’s Next For Ethereum (Source: Santiment)
According to Santiment, this is the lowest the transaction fees have been since last July. Therefore, it may be unique for ETH prices. Historically, ETH coin prices usually leap once the average transactions drop below $ 5. Ethereum’s average gas fees have plummeted, breaking its 10-months low.
Nevertheless, traders still need to be careful while trading and transacting with the crypto because the market is presently disadvantaged. Thus, a considerable leap might not occur given the current global bearish market.
Various crypto pundits and financial analysts project that Bitcoin is about to dip massively, predicting a further dip. Mike Novogratz was among the “prophets of doom” for the world’s leading blockchain and crypto.
ETH price on the brink of falling below $ 1,700 | Source: ETHUSD on TradingView.com
Novogratz, a financial investor, took to Twitter, stating that further dips await Ethereum and Bitcoin and the entire DeFi market. In his tweet, he emphasized that 2022 will not be so favorable for investors and traders.
Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $ 30,000
Noting that Bitcoin controls the value of the entire DeFi marketplace, if Bitcoin dips, being the most significant blockchain, the whole market dips. This includes the Ethereum blockchain.
Featured image from Pexels, chart from TradingView.com
NewsBTC
Bearish Indicator: Is Bitcoin Headed For Its Ninth Red Weekly Close?
This week, Bitcoin had made history when it recorded its eighth consecutive red weekly close. This first-of-its-kind streak had cemented the digital asset on one of the worst bearish trends that have ever been recorded. Now, even as the week runs towards another close, the cryptocurrency has not been able to make any considerable recovery, indicating that it may not be done with its bearish streak.
Bitcoin Headed For A Ninth Red Close?
With bitcoin still trading well below $ 30,000, it is no long shot to speculate that the digital asset may close out this week in the red too. If it does so, then it will break its previous record while plunging the market into even worse bearish trends. Nine consecutive weekly closes would prove that bulls have mainly relinquished control of the market, meaning the bears have the leeway to pull the market down further.
Related Reading | Bitcoin Dominance Remains High As Market Sell-Offs Settle
This combined with the increased interest rates from the Fed has left investors feeling warier about financial investments. Thus driving them towards more ‘stable’ investment options. With such money leaving the market, bitcoin possesses little chance of actually reversing the current trend.
Even though bitcoin has been providing a safe haven from the altcoin bloodbath, it does not mean that the digital asset itself has not taken losses. NewsBTC reported that while bitcoin has been the best performer of all the indices, the cryptocurrency is still down 24% from the start of the month. This decline in price means that investors are still not as bullish on the pioneer cryptocurrency.
BTC price falls to $ 28,000 | Source: BTCUSD on TradingView.com What The Indicators Say
For bitcoin, maintaining above the 50-day moving average has always been a bullish indicator. This is why the current trading value of the cryptocurrency does not spell good news for it. For example, bitcoin is more than $ 9,000 below its 50-day moving average. To cement a recovery trend, it would not only have to move above this point but will need to establish significant support above the $ 40,000 level. This would mean that bitcoin would have to recover 37% to achieve this.
Related Reading | Perp Traders Remain Quiet As Bitcoin Struggles To Hold $ 30,000
While this is not outside the realm of possibility, exchange inflows show that it is very unlikely to happen. Over the last 24 hours alone, BTC exchange inflows have surpassed outflows by $ 7.5 million, showing that the sell-off trend continues to wax stronger.
Unless this sell-off trend can be halted and turned into an accumulation trend, a 37% recovery remains out of the picture for bitcoin. Coupled with the extreme fear sentiment that is being experienced in the space, BTC is more likely to touch below $ 25,000 before establishing support above $ 40,000.
Featured image from BBC, chart from TradingView.com
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