Category Archives: Altcoin
Avalanche nears key breakdown level that could sink AVAX price by another 65% – Cointelegraph
Avalanche (AVAX) gained 0.5% to reach over $31 on May 23 but AVAX price remains trapped inside a trading range that appears like a "bear pennant" structure.
Bear pennants are bearish continuation patterns, i.e., they resolve after the price breaks out of them to the downside and thenas a rule of technical analysisfalls by as much as the height of the previous downtrend, also called "flagpole."
AVAX is nearing a technical breakdown as its price moves toward the pennant's apex, i.e., the point where its upper and lower trendlines converge.
This paints the bearish target for the AVAX/USD pair at $11.50 by June 2022, down about 65% from May 23's price, as shown below.
Conversely, AVAX's breakdown setup toward $11.50 could fell short due to certain key support areas.
For instance, the Avalanche token's volume profile shows it trading near its point of control (POC)the level where the traders were most active since 2021around $32.
Interestingly, the level was instrumental in capping AVAX's downside attempts in the AugustSeptember 2021 session; it preceded a 390% bull run, which saw AVAX reaching its record high of around $150 in late November 2021.
The POC level also served as a median during the consolidation trend witnessed between January 2021 and May 2021. Now, It holds as a price floor even as AVAX eyes the bear pennant breakdown, as discussed above.
Meanwhile, creating a Fibonacci retracement graph from AVAX's $2.75-swing low to $97.50-swing high shows AVAX consolidating between its 0.618 Fib line (near $40) and 0.786 Fib line (around 23), as shown below.
That raises Avalanche's possibility of retesting $23 as support, followed by a rebound move toward $40. Such a move would risk invalidating the bear pennant setup.
As of May 23, Avalanche trades nearly 78% below its record high of around $150, burdened by a strong bearish sentiment elsewhere in the crypto market in a higher interest rate environment.
In addition, the recent Terra ecosystem meltdown has also stressed the prices of AVAX and other cryptos lower.
But the worst is still yet to come if AVAX continues trending in sync with the top crypto Bitcoin (BTC) and, in turn, its global risk-on counterparts, such as Nasdaq. The correlation coefficient between Avalanche and Nasdaq was 0.91 as of May 23, showing that they have been moving in near-perfect tandem.
Related: Bitcoin macro bottom 'not in yet' warns analyst as BTC price holds $30K
On the brighter note, AVAX shows promise of an interim upside scenario with a divergence between its rising relative strength index (RSI) and falling prices, according to Scott Melker, an independent market analyst.
"There are potential bullish divergences with oversold RSI on a ton of daily altcoin charts," said Melker, adding:
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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Avalanche nears key breakdown level that could sink AVAX price by another 65% - Cointelegraph
What Are Altcoins? What Investors Need to Know – Finance Magnates
WhatIs an altcoin?
Inthe crypto world, altcoin stands for alternative coins and is simply a termused for any cryptocurrency other than bitcoin. So, that makes Ethereum, thecryptocurrency with the second largest market cap an altcoin as much as the3,000 ranked cryptocurrency.
Altcoinsare not required to be different from bitcoin as each altcoin will have itspreferred consensus mechanisms, such as proof-of-stake or proof-of-work. Forexample, bitcoin is the oldest cryptocurrency and uses the original validatormethod of proof-of-work, which is used by many altcoins today. Proof of work isresource-intensive and time-consuming, pushing more investors towards proof ofstake coins, allowing them to contribute to the blockchain.
However,altcoins do try to differentiate themselves from bitcoin through new technologylike smart contracts, PoS, or different tokenomics. Some aspects betweenaltcoins and bitcoin will always stay the same, such as peer-to-peer systems,which are embedded into the philosophy of cryptocurrency.
Sincethe beginning of cryptocurrency, with bitcoin as the spearhead, the market hasgenerally revolved around the price of bitcoin, with altcoins following itspumps and dips. Altcoins often come from bitcoin, tending to follow bitcoins'overall trends. Some of this matching can be put down to investors usingbitcoin as a major market indicator, but some altcoin graphs are similar tobitcoins that it becomes hard to ignore.
Keep Reading
However,as bitcoin dominance steadily decreases and more of the crypto market cap iseaten up by bitcoin, we start to see more independently priced altcoins, notexactly following bitcoins trajectory. We can put this phenomenon down to twomajor factors:
Simplyput, no. The term altcoin encompasses a massive group of coins, all providingdifferent utility to the crypto sphere, the term is used to differentiate themfrom bitcoin.
Cryptocurrencyis still a very new asset class, so each cryptocurrency project has its owncoin which investors buy into and often use inside of the ecosystem. Forexample, HIVE is used to navigate the platform. Later down the line, we shouldexpect major altcoins to take over as the main coin used over multipleprojects, as there is simply too much volatility for so many different altcoinsto be viably used in the future.
Remember: Altcoins can be part ofseveral categories at once.
Stablecoinshave come into existence to try and counteract the extreme volatility that thecrypto market faces. Investors can hold some value in stable cryptocurrency,without having to convert it into fiat, while waiting for the next investmentopportunity, or the perfect entry.
Examplesof altcoins would be USDT (Tethered to the US dollar, or USDC). Stablecoins arepegged to the value of a fiat currency or other more stable commodities such asgold to help hold their value.
Also,stable coins help investors get money into exchanges, without having toinstantly buy a more traditional cryptocurrency.
Utilitytokens act as a way of payment for services or to participate in an ecosystem.Each ecosystem will usually have its own unique utility token that is notmineable.
Awell-known example of a utility token is Filecoin, used to provide storage toother blockchains. The most famous example is Ethereum.
Atype of stable coin fresh in the mind of most crypto investors, meme coins aredescribed by the name, memes. Examples would be dodge coin or the recentspeculation on SHIB, based on Elon Musks dog.
Typicalattributes of a meme coin include a rapid surge in price over a short period oftime, lack of utility, and often shilled and advertised by crypto influencersor celebrities on platforms such as Twitter.
Memecoins have become rife with scams once people saw the massive potential thatcomes from playing with investors' FOMO.
Securitytokens are the closest cryptocurrency comes to traditional stocks and shares.Those buying security tokens will have shares in a company that participatesor does business on a blockchain.
Securitytokens help to validate ownership of a certain asset, providing greatersecurity than before to owners and their assets. However, when a user ownstheir own keys they are at risk of permanently losing access to the asset, asno centralized body can help them regain it.
Altcoinswhich are mining based use PoW (Proof of Work) as a way to generate new coins,the method that bitcoin uses. As mentioned before this is resource-intensiveand many altcoins are moving over to a PoS model, allowing users to participatein the blockchain themselves.
Thealternative is to have a project with pre-mined coins, which requires initialcapital to get off the ground. Coins are usually distributed during an ICO, orinitial coin offering, where investors pay Bitcoin, Ethereum, or fiat for apre-arranged amount of the essentially worthless coin. ICOs are naturally riskyas there is no guarantee these coins will ever be worth anything, having neverbeen traded before.
XPRis a massive example of a successful pre-mined coin, firmly sitting in the top10 coins by market cap.
Currently,bitcoin has a market dominance hovering around 40%, with Ethereum second justunder 20%. For an altcoin to ever flip bitcoin, we would need to see an alreadyprominent coin such as Ethereum really explode in the coming years.
Bitcoinwas the first cryptocurrency and will always be in the hearts of cryptoinvestors as the unbreakable, decentralized, permissionless blockchain, anexample for all future altcoins to follow.
Manyexperts suggest that Ethereum is capable of flipping bitcoin, but will rely ona successful Ethereum 2.0 release, executing the promises that were made aboutfaster transactions and cheaper transaction fees (Gas Fees).
However,to successfully flip Bitcoin or even Ethereum, the coin must defeat the problemof scalability, making it accessible to billions, such as Cardano.
Bitcoinhas had an early bird advantage over all other cryptocurrencies, so only timewill tell if an altcoin topples the Satoshi Tower.
Obviously,Bitcoin does not provide a solution to every problem trying to be solved bycryptocurrencies, so Altcoins are a necessity to solve the shortcomings ofBitcoin and provide actual utility across thousands of different sectors andmarkets. A task that no singular coin could finish.
Altcoinsare absolutely essential for this stage in the cryptocurrency ecosystem,providing investors with a massive choice of projects to invest in and allowingdifferent projects to show off their potential utility and use-cases while wegrow in the adoption phase.
Timewill slowly weed out useless altcoins as cryptocurrency becomes more heavilyadopted and the strongest altcoins will emerge and most likely become staplesas utility tokens across many ecosystems.
Altcoinsencompass almost all cryptocurrencies in the market, meaning as much as theyare a necessity, many come with their flaws, or are suffering from a volatilemarket. Here are the main dangers presented by altcoin investing and what youshould look out for:
Market sentiment is arguably the mostpowerful indicator in the cryptocurrency markets as massive bearish or bullishswings are common. Volatile cryptocurrencies are the most dangerous to holdduring a bearish sentiment, as there are zero guarantees they will even recover50% of their original price, especially if real-world utility is low, such asmeme coins.
Just because an altcoin has utility, does notmean the price will reflect it. We are still too early for mass adoption,meaning most utility speak is around the potential utility, making thecryptocurrency vulnerable to a massive drop in value.
Many altcoins operate on extremely low marketcaps, possibly trapping an investor's liquidity forever as trades are rare.
Do not get fooled by the term altcoin, anycoin that is not Bitcoin is an altcoin, even meme coins made by anyone withabsolutely zero value.
Thehonest truth that most altcoin investors do not want to hear is: that most, almostall altcoins, will not survive the next ten years. To see this as evidence, weonly must look back a few years at the top 100 cryptocurrencies by market capand see which ones are still there. Many projects have simply vanished out ofexistence, which will happen for our current set of altcoins now, only thestrongest will survive.
Mostanalysts predict a consolidation around the top ten, fifty, or whatever theoptimal amount of strong altcoins are needed for their utility and real-worlduse cases.
Altcoinswill always be around and only time will tell which ones survive. The mostpractical advice one can give on altcoins is to simply look for projects which yousee surviving past the adoption phase, based purely on speculation, and assessthe future utility that is possible, and what real-world problems they aretrying to solve.
Inthe crypto world, altcoin stands for alternative coins and is simply a termused for any cryptocurrency other than bitcoin. So, that makes Ethereum, thecryptocurrency with the second largest market cap an altcoin as much as the3,000 ranked cryptocurrency.
Altcoinsare not required to be different from bitcoin as each altcoin will have itspreferred consensus mechanisms, such as proof-of-stake or proof-of-work. Forexample, bitcoin is the oldest cryptocurrency and uses the original validatormethod of proof-of-work, which is used by many altcoins today. Proof of work isresource-intensive and time-consuming, pushing more investors towards proof ofstake coins, allowing them to contribute to the blockchain.
However,altcoins do try to differentiate themselves from bitcoin through new technologylike smart contracts, PoS, or different tokenomics. Some aspects betweenaltcoins and bitcoin will always stay the same, such as peer-to-peer systems,which are embedded into the philosophy of cryptocurrency.
Sincethe beginning of cryptocurrency, with bitcoin as the spearhead, the market hasgenerally revolved around the price of bitcoin, with altcoins following itspumps and dips. Altcoins often come from bitcoin, tending to follow bitcoins'overall trends. Some of this matching can be put down to investors usingbitcoin as a major market indicator, but some altcoin graphs are similar tobitcoins that it becomes hard to ignore.
Keep Reading
However,as bitcoin dominance steadily decreases and more of the crypto market cap iseaten up by bitcoin, we start to see more independently priced altcoins, notexactly following bitcoins trajectory. We can put this phenomenon down to twomajor factors:
Simplyput, no. The term altcoin encompasses a massive group of coins, all providingdifferent utility to the crypto sphere, the term is used to differentiate themfrom bitcoin.
Cryptocurrencyis still a very new asset class, so each cryptocurrency project has its owncoin which investors buy into and often use inside of the ecosystem. Forexample, HIVE is used to navigate the platform. Later down the line, we shouldexpect major altcoins to take over as the main coin used over multipleprojects, as there is simply too much volatility for so many different altcoinsto be viably used in the future.
Remember: Altcoins can be part ofseveral categories at once.
Stablecoinshave come into existence to try and counteract the extreme volatility that thecrypto market faces. Investors can hold some value in stable cryptocurrency,without having to convert it into fiat, while waiting for the next investmentopportunity, or the perfect entry.
Examplesof altcoins would be USDT (Tethered to the US dollar, or USDC). Stablecoins arepegged to the value of a fiat currency or other more stable commodities such asgold to help hold their value.
Also,stable coins help investors get money into exchanges, without having toinstantly buy a more traditional cryptocurrency.
Utilitytokens act as a way of payment for services or to participate in an ecosystem.Each ecosystem will usually have its own unique utility token that is notmineable.
Awell-known example of a utility token is Filecoin, used to provide storage toother blockchains. The most famous example is Ethereum.
Atype of stable coin fresh in the mind of most crypto investors, meme coins aredescribed by the name, memes. Examples would be dodge coin or the recentspeculation on SHIB, based on Elon Musks dog.
Typicalattributes of a meme coin include a rapid surge in price over a short period oftime, lack of utility, and often shilled and advertised by crypto influencersor celebrities on platforms such as Twitter.
Memecoins have become rife with scams once people saw the massive potential thatcomes from playing with investors' FOMO.
Securitytokens are the closest cryptocurrency comes to traditional stocks and shares.Those buying security tokens will have shares in a company that participatesor does business on a blockchain.
Securitytokens help to validate ownership of a certain asset, providing greatersecurity than before to owners and their assets. However, when a user ownstheir own keys they are at risk of permanently losing access to the asset, asno centralized body can help them regain it.
Altcoinswhich are mining based use PoW (Proof of Work) as a way to generate new coins,the method that bitcoin uses. As mentioned before this is resource-intensiveand many altcoins are moving over to a PoS model, allowing users to participatein the blockchain themselves.
Thealternative is to have a project with pre-mined coins, which requires initialcapital to get off the ground. Coins are usually distributed during an ICO, orinitial coin offering, where investors pay Bitcoin, Ethereum, or fiat for apre-arranged amount of the essentially worthless coin. ICOs are naturally riskyas there is no guarantee these coins will ever be worth anything, having neverbeen traded before.
XPRis a massive example of a successful pre-mined coin, firmly sitting in the top10 coins by market cap.
Currently,bitcoin has a market dominance hovering around 40%, with Ethereum second justunder 20%. For an altcoin to ever flip bitcoin, we would need to see an alreadyprominent coin such as Ethereum really explode in the coming years.
Bitcoinwas the first cryptocurrency and will always be in the hearts of cryptoinvestors as the unbreakable, decentralized, permissionless blockchain, anexample for all future altcoins to follow.
Manyexperts suggest that Ethereum is capable of flipping bitcoin, but will rely ona successful Ethereum 2.0 release, executing the promises that were made aboutfaster transactions and cheaper transaction fees (Gas Fees).
However,to successfully flip Bitcoin or even Ethereum, the coin must defeat the problemof scalability, making it accessible to billions, such as Cardano.
Bitcoinhas had an early bird advantage over all other cryptocurrencies, so only timewill tell if an altcoin topples the Satoshi Tower.
Obviously,Bitcoin does not provide a solution to every problem trying to be solved bycryptocurrencies, so Altcoins are a necessity to solve the shortcomings ofBitcoin and provide actual utility across thousands of different sectors andmarkets. A task that no singular coin could finish.
Altcoinsare absolutely essential for this stage in the cryptocurrency ecosystem,providing investors with a massive choice of projects to invest in and allowingdifferent projects to show off their potential utility and use-cases while wegrow in the adoption phase.
Timewill slowly weed out useless altcoins as cryptocurrency becomes more heavilyadopted and the strongest altcoins will emerge and most likely become staplesas utility tokens across many ecosystems.
Altcoinsencompass almost all cryptocurrencies in the market, meaning as much as theyare a necessity, many come with their flaws, or are suffering from a volatilemarket. Here are the main dangers presented by altcoin investing and what youshould look out for:
Market sentiment is arguably the mostpowerful indicator in the cryptocurrency markets as massive bearish or bullishswings are common. Volatile cryptocurrencies are the most dangerous to holdduring a bearish sentiment, as there are zero guarantees they will even recover50% of their original price, especially if real-world utility is low, such asmeme coins.
Just because an altcoin has utility, does notmean the price will reflect it. We are still too early for mass adoption,meaning most utility speak is around the potential utility, making thecryptocurrency vulnerable to a massive drop in value.
Many altcoins operate on extremely low marketcaps, possibly trapping an investor's liquidity forever as trades are rare.
Do not get fooled by the term altcoin, anycoin that is not Bitcoin is an altcoin, even meme coins made by anyone withabsolutely zero value.
Thehonest truth that most altcoin investors do not want to hear is: that most, almostall altcoins, will not survive the next ten years. To see this as evidence, weonly must look back a few years at the top 100 cryptocurrencies by market capand see which ones are still there. Many projects have simply vanished out ofexistence, which will happen for our current set of altcoins now, only thestrongest will survive.
Mostanalysts predict a consolidation around the top ten, fifty, or whatever theoptimal amount of strong altcoins are needed for their utility and real-worlduse cases.
Altcoinswill always be around and only time will tell which ones survive. The mostpractical advice one can give on altcoins is to simply look for projects which yousee surviving past the adoption phase, based purely on speculation, and assessthe future utility that is possible, and what real-world problems they aretrying to solve.
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What Are Altcoins? What Investors Need to Know - Finance Magnates
Crypto Analyst Predicts 1 Altcoin Will Fall Down Hard Is It Cardano? – NewsBTC
Pseudonymous crypto trader and analyst Capo tweets that Cardano (ADA) is bound to go on a massive downward trend.
This popular crypto trader with over 307,500 followers on Twitter predicted a massive plunge before the coin finishes its five-waved downward trajectory following the Elliott Wave Theory.
The Elliott Wave Theory pertains to a technical analysis that can predict price action by looking into mind psychology or crowd behavior that can be seen in waves.
Based on the theory, the crypto asset would always go through a predictive five-wave cycle before it makes that pivot or reversal.
Suggested Reading | NFT Prices Take A Beating After Crypto Market Chaos
According to Capo, ADA is on its way to completing the fourth wave which means its ready for that final wave.
Cardano is currently trading at $0.55 which is categorically 45% above the target price point of $0.30.
Cryptocurrencies recovered quite a bit on Friday but crashed today which appeared to be a roller-coaster ride of sorts.
The erratic market moves have been worrisome for many crypto traders and investors alike. Bitcoin (BTC) has fallen by 3.6% and Cardano (ADA) went down by 6.65%.
Suggested Reading | LUNA Not Alone In Crimson: APE, AVAX, SOL, SHIB All Lose 20% In Crypto Crash
With the Federal Reserve pulling a tight rein on monetary policy, there isnt a hint of a bullish trend. With the way things are going, many traders are looking for safer crypto assets compared to riskier ones.
Meanwhile, Capo is also keeping a steady eye on STEPN, a move-to-earn app built on the Solana blockchain. Capo says that he is looking at a significantly low trading value of $0.60. Looks like GMT is heading down the basement, as he describes. GMT is currently trading at $1.52.
Outlook for Bitcoin looks good as it continues to correct after going over the key support locked in at $30,000. The $30,000 support supposedly jarred it. A two-day candle has closed right below it and currently tapping that zone as support. At this point, this spot is still not good for buying.
Adding salt to the wound is the miserable turnout in the market value of TerraUSD that is pegged to USD. Its now priced at $0.18 this week. Meanwhile, TerraUSD is mapping out a recovery plan this week.
Overall, Cardano is more volatile compared to Bitcoin although it appeals greatly to the broader market, in general.
Bitcoin has more promise to be bullish for the long term compared to other coins, including ADA.
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Crypto Analyst Predicts 1 Altcoin Will Fall Down Hard Is It Cardano? - NewsBTC
Top Crypto Analyst Predicts Massive Price Dive for Cardano, Says One Solana-Based Altcoin Will Go Down t… – The Daily Hodl
A widely followed crypto trader is predicting further corrective moves smart contract platform Cardano (ADA) and one of this years trending altcoins.
Pseudonymous crypto analyst Capo tells his 307,500 Twitter followers ADA is poised for another leg down before it completes its five-wave downtrend, based on the Elliott Wave theory.
ADA
Fifth wave missing.
Main support is $0.30 $0.35.
The Elliott Wave theory is a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, an asset goes through a five-wave cycle before a major market reversal.
Capo says that ADA is about to complete its fourth wave, suggesting the coin is ready for a final flush. Cardano is trading at $0.55 at time of writing, which is 45% above the analysts downside target of $0.30.
Capo is also keeping a close watch on the move-to-earn protocol STEPN (GMT) which is built on the Solana (SOL) blockchain. According to the crypto strategist, he sees GMT trading as low as $0.60.
GMT has come home, but now it has to go down to the basement.
GMT is trading at $1.52 at time of writing.
Looking at Bitcoin (BTC), Capo says he expects BTC to continue correcting after breaching the key psychological support of $30,000.
After the fifth touch of the $30,000 support, it broke it. Previous two-day candle closed below it, and now its testing that zone as support. In my opinion, this is not a good spot to buy. It hasnt even reclaimed that level on a high timeframe close. $21,-$23,000 still in play.
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Top Crypto Analyst Predicts Massive Price Dive for Cardano, Says One Solana-Based Altcoin Will Go Down t... - The Daily Hodl
Chainlink (LINK), VeChain (VET) and One More Altcoin Nearing Potential Trend Reversals, Says Top Crypto Ana… – The Daily Hodl
Widely followed crypto analyst Michal van de Poppe says three popular altcoins are nearly ready to bounce back, starting with decentralized oracle network Chainlink (LINK).
The crypto tradertells his 601,300 Twitter followers that while LINKs price action has been worrisome, hes predicting it finds support and ignites rallies in the near future.
Not the most beautiful chart, but this is my scenario at this point.
In that case, Im expecting a continuation towards $12.50 to be happening, before a bearish rejection and some retests, after which the bull starts again.
Chainlinkis trading for $7.61 at time of writing, up nearly 4% on the day. A move to $12.50 would represent an approximately 64% increase.
Van de Poppe next evaluates VeChain (VET), an enterprise-solution-focused blockchain. Though the altcoin has fallen far from all-time highs, the crypto trader thinks VET is almost out of its bear market.
This one is relatively simple.
Lost the support around $0.045 and started falling down towards the high of the previous cycle in 2020.
Expecting that to be a massive resistance and some sideways action.
Should be relatively done with the bear market.
VeChainis trading for $0.032 at time of writing, up nearly 3% over the last 24 hours.
Van de Poppe also takes a look at the native token of Verasity (VRA), a next-gen video-sharing blockchain platform. Though he says the altcoin has already had a dramatic bear market, the trader foresees VRA re-testing its lower levels before reversing.
VRA
This one is having a heavy bear market.
The ultimate low could be $0.0035, but thats depending on the market structure.
Overall, expecting a little more upwards momentum of around 40-60% towards $0.012 for a bearish retest.
Verasityis trading for $0.0088 at time of writing.
Featured Image: Shutterstock/Motorpig
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Chainlink (LINK), VeChain (VET) and One More Altcoin Nearing Potential Trend Reversals, Says Top Crypto Ana... - The Daily Hodl
Ethereum-Based Altcoin Soars 28% In Just One Week As Crypto Whales Dive In: Santiment – The Daily Hodl
One decentralized finance (DeFi) altcoin is dramatically outperforming the vast majority of the crypto markets amid a major market correction.
Maker (MKR), the 52nd-ranked crypto asset by market cap, is up more than 28.5% in the past seven days, trading for $1,570 at time of writing.
MKR is the governance token that supports DAI, a stablecoin that aims to stay pegged one-to-one to the US dollar without any banks, governments or third parties. Amid the collapse of fellow stablecoin TerraUSD (UST) last week, DAI largely kept its peg intact. Its trading at $1.00 at time of writing.
The crypto markets stumbled with the news with leading assets Bitcoin (BTC) down more than 2% in the past week and Ethereum (ETH) down nearly 12%.
Crypto analytics firm Santiment notes that Maker has witnessed major whale activity and a large spike in $100,000+ transactions in the past couple of days. The firm says key stakeholders own an all-time high in MKR supply.
Data science company IntoTheBlock reports addresses holding at least 0.1% of MKRs total circulating supply and currently own 85% of Makers overall supply. The firm adds that 51% of addresses have made money on their MKR holdings, compared to 39% of addresses that have lost money.
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong
Experts predict massive drop in Ethereum before altcoin begins recovery – FXStreet
Though Bitcoin price dropped in the recent downtrend in the cryptocurrency market, analysts believe Ethereum could decline further before the altcoins trend reverses. Ethereum price could plummet ahead of Bitcoins fifth wave according to a leading cryptocurrency analyst.
In the market-wide cryptocurrency bloodbath, Bitcoin price suffered a negative impact. Analysts believe Ethereum capitulation could occur before a trend reversal. The recent drop in Bitcoin price is considered a precursor to a price rally in the asset, according to the Elliottwave Theory.
Ethereum price has sustained above its key psychological level at $2,000. The short to medium-term outlook on Ethereum is bearish. The altcoins price could plunge to support at $1,930 before a trend reversal in Ethereum.
The recent steep decline in the altcoins price was derived from Ethereums correlation with Bitcoin and the bloodbath in US tech stocks and equities.
With the recovery of US Stock indexes and Bitcoin price, Ethereum is on track to make a comeback. @CredibleCrypto, a crypto analyst and trader, evaluated the Ethereum price trend and noted that Bitcoin dominance will hit major support.
Ethereum price against Bitcoin is yet to break down and make its way to the red line, since capitulation is expected to occur in BTC. According to the analyst, the drop in Bitcoin price could have been a precursor of a massive pump or dump, and Ethereum could witness a bullish reversal ahead of Bitcoins fifth wave, based on Elliottwave Theory.
The theory implies that the fifth wave of the asset would be a significant rally, pushing BTC higher than its previous all-time high.
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Experts predict massive drop in Ethereum before altcoin begins recovery - FXStreet
Trader Predicts Crypto Market Will Mimic 2018 Bear Season Heres How High Bitcoin Could Go Before Nuk… – The Daily Hodl
A widely followed analyst and trader says that the crypto market could copy its 2018 playbook.
Pseudonymous trader Altcoin Sherpa tells his 175,700 Twitter followers that this year could very well turn out to be a repeat of 2018 with a few differences with regard to infrastructure and diversity of digital assets.
2022 could very well look like 2018 given the amount of time we could chop around for. I do think that the market is more mature these days than before, though. Overall market structure for trading is better + dexes [decentralized exchanges] + NFTs [non-fungible tokens] + gaming + new usable chains.
According to Altcoin Sherpa, Bitcoin (BTC) took 336 days in 2018 to hit a bottom after reaching a 2017 high, while altcoins took longer.
The crypto analyst and trader says that since Bitcoin hit the all-time high in November of 2021, roughly 189 days have passed, or about half the time it took for the flagship cryptocurrency to bottom out during the 2018 bear season.
BTC: One thing that sucked about 2018 was the amount of time it took to drawdown; were about halfway there right now.
If you count altcoin/BTC pairs, it was even longer. 2019 was shit for many of those (alt/BTC pairs were more popular back then).
The pseudonymous crypto analyst saysBitcoin could appreciate by over 15% from current levels before crashing.
Something like this would make sense for me; more people getting bullish on the bearish retest of $35,000 $40,000 and then price nuking lower.
Bitcoin is trading for $29,504 at time of writing.
Featured Image: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong
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Trader Predicts Crypto Market Will Mimic 2018 Bear Season Heres How High Bitcoin Could Go Before Nuk... - The Daily Hodl
Institutional investment flows out of ETH and into competing L1 altcoins – Cointelegraph
Institutional investors have shifted their attention from Ethereum to competing layer-1 blockchains of late, with capital inflows for altcoin investment products increasing last week while Ether (ETH) products posted outflows for the third week in a row.
Data from CoinShares latest Digital Asset Fund Flows report shows that investors last week (ending on Friday) loaded up on $3.5 million worth of Avalanche (AVAX), Solana (SOL), Terra (LUNA) and Algorand (ALGO) funds while capital outflows from Ether products totaled $16.9 million.
It marks the third straight week that Ethereum products have seen outflows, bringing the total over that time to $59.3 million, equal to around 35% of the year-to-date outflows of $169 million from the second-largest blockchain.
Notably, investors also favored digital gold last week despite some recent hesitancy, with Bitcoin (BTC) products fetching $2.6 million worth of inflows.
Over the past 10 weeks, inflows to Ethereum products have reached only $68.5 million in what could signal a bearish trend by institutions towards the major blockchain.
Alternate layer-1 blockchains have been growing in popularity recently, and decentralized application (DApp) usage on Solana in the last seven days has increased, according to metrics from DappRadar. Usage for the decentralized exchange (DEX) Orca has grown nearly 43% over the week, and automated market maker (AMM) Raydium has seen a 15.5% increase, with volume in its app reaching over $1.5 billion.
While the metrics for Avalanches DApp usage havent increased over the week, the blockchainsinvestments in incentive programs and millions spent luring developers to the platform have traders bullish on the future of AVAX.
Related: Does the future of DeFi still belong to the Ethereum blockchain?
The AVAX, SOL, LUNA and ALGO inflows were $1.8 million, $800,000, $700,000 and $200,000, respectively, while Bitcoin saw inflows equating to $2.6 million for the first time in two weeks. Analysts noted that month-to-date outflows for the largest crypto remain at $178 million.
Total outflows over the past three weeks have seen $219 million leave the market, with that number cooling last week winding down to just 7.2 million, a stark contrast to the $134 million which left the market in the first week of April.
Despite the recent run of outflows, the analysts note that year-to-date flows remain positive with $389 million coming into crypto assets since the start of the year.
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Institutional investment flows out of ETH and into competing L1 altcoins - Cointelegraph
Elon Musks Twitter Takeover Will Fuel Major Rally for One Altcoin, Says Top Crypto Trader – The Daily Hodl
A top cryptocurrency analyst is naming one digital asset that could spike amid Elon Musks plans to acquire Twitter.
Pseudonymous crypto trader Altcoin Sherpa tells his 174,200 Twitter followers that Dogecoin (DOGE) could present interesting trade opportunities as the process to buy Twitter plays out.
Elon Musk is a staunch Dogecoin fan who in December of 2021 said that the dog-themed crypto asset was a better currency than anything else he had come across.
DOGE: Im not expecting a sustained DOGE rally for a bit. In my opinion, the dog coin usually goes strongly when retail starts to pile in, marking close to the end of a cycle. That said, Elon Musk buying Twitter might create some interesting trade opportunities.
I expect this to mainly chop and accumulate for now with some crazy Elon Musk spikes in between.
DOGE rallied by slightly over 15% earlier this week after Twitters board announced it had accepted Musks bid to buy the micro-blogging platform.
Dogecoin is trading at $0.1399 at time of writing.
Altcoin Sherpa is also analyzing the two largest cryptocurrencies by market cap. The crypto trader says that Ethereum (ETH) has a more bullish market structure relative to Bitcoin (BTC).
ETH: Unlike BTC, ETH is still decently above its last lows and still has a bullish market structure (BTC does too but its closer). Would like to see a higher low formed for Ethereum. I think that its still at the mercy of BTC though, as always- if BTC tanks, so will ETH.
In the case of the Ethereum/Bitcoin pair, the crypto trader predicts that ETH/BTC is likely to continue to range for weeks at the minimum.
ETH/BTC: This has been chopping around for a year, not really doing much. I dont expect any big moves from this until BTC is in a healthy place and I think that we just continue more consolidation for weeks/months.
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Excerpt from:
Elon Musks Twitter Takeover Will Fuel Major Rally for One Altcoin, Says Top Crypto Trader - The Daily Hodl