Crypto

Polkadot (DOT) is in the green (see image below) and going steady. Could this hint at price recovery? Even though Polkadot’s funding rate plunged for a while, it is showing some improvement at the time of writing.

Here’s a quick look at DOT price movement:

•  Polkadot price is up by 14.9% in the weekly
•  DOT low in market cap dominance
•  DOT shows a spike in development activity

According to Coingecko, DOT price has skyrocketed by 4% in the last 24 hours, and trading at $6.50 as of press time.

Polkadot Eco-Friendliness To Drive Positive Momentum

January was phenomenal for most cryptocurrencies that are enjoying a price rally, but DOT was seen struggling and was unable to reach its pre-FTX levels. 

On a positive note, DOT was the only asset that consumed the least electricity when pitted against other cryptocurrencies. This eco-friendly quality of DOT can drive positive momentum for the coin.

POLKADOT – THE ECO-FRIENDLY BLOCKCHAIN

Thanks to CCRI Report 2022, we found @Polkadot was ranked #2, only followed by US Household in terms of the total yearly electricity consumption ?

Let’s see more details below ?#Polkadot $DOT #AVAX #ALGO #BTC #ETH #SOL #ADA pic.twitter.com/S5WxxvJSA0

— Polkadot Insider (@PolkadotInsider) January 25, 2023

Even though the weighted sentiment on Polkadot remained to be negative last December, its low electricity consumption can drive a change in public sentiment, switching it to positive which is great news for Polkadot.

Image: Santiment

The low trading volumes suggest that the bears may have the upper hand. This action has the potential to push DOT prices below the $6.154 support level, putting the brakes on the recent uptrend in DOT.

DOT is predicted to spike in terms of development activity which could tick developer interest this year. In addition, DOT is said to potentially tip its pre-FTX levels in the next couple of days or weeks.  

DOT total market cap at $7.3 billion on the daily chart | Chart: TradingView.com

In the event that this positive pattern persists, DOT’s pace of rebound is estimated to climb, which would enable bulls to charge beyond the resistance located at $6.845 and $7.235, which is the range that existed before the crypto turmoil broke out around late November.

Social Metrics Up For DOT

The number of people staking DOT has also increased by over 6.2% as seen in the past month which also hints at a positive streak for the asset. More so, social metrics have also increased for DOT.

Social mentions spiked by 7.6% with engagements shooting over 26K. Interestingly, DOT has been increasingly popular as more people are interested in and talking about it.

Polkadot social mentions. Image: LunarCrush

Additionally, there are upcoming referendums in line with runtime and governance upgrades that could increase the attractiveness of the coin to investors.

Meanwhile, the market sentiment enveloping DOT still has that air of uncertainty considering its shrinking market cap and high volatility.

Featured image from Freepik

Cardano’s native coin ADA has seen many rallies since the start of this year. The token owes its performance to the improving economic condition in the market and the ongoing developments on the Cardano Network.

Over the past seven days, ADA has observed more than a 15% price gain in 7 days and an over 17% 14-day gain. But what are the possible reasons for ADA’s impressive performance?

What Is Contributing To ADA’s Price Rally?

The hype around the upcoming Djed stablecoin launch, among others, has played a part in driving ADA price up over the past weeks in January. According to COTI developers, the network behind the Djed stablecoins, ADA holders would receive extra rewards when they mint Djed by staking their ADA coins. This information might spur users to buy more ADA and could further push the coin price.

Also, the Cardano community is anticipating upcoming launches that would enhance the network and Smart Contract capabilities. Furthermore, Cardano has received a new improvement proposal known as CIP-30. This improvement proposal would allow the integration of web-based wallet bridges that would promote interaction between Cardano wallets and Web2 platforms like Amazon.

It would allow ADA more use cases and adoptions and ensure increased growth for Cardano, positioning it to meet more market needs. This development could be among the factors fuelling ADA’s price gain. 

Another new development on the Cardano network that might be fuelling the ADA price rally is the eTukTuk automotive project launch. According to the announcement, the Cardano blockchain would be hosting the project. 

The project allows users to earn rewards using the eTukTuk electric vehicle charging infrastructure. Users can access the service using TUK, eTukTuk native token, but they need to hold ADA since the project anchors on Cardano. That also could be boosting ADA prices upward.

ADA Price Outlook

The Cardano cryptocurrency, ADA, has gained over 6% in the last 24 hours. ADA hit an eleven-week high of $0.384 on January 22 before taking a hit over the past 48 hours. Its price dropped 6.4% on the day while retracing its support levels.

However, ADA is currently trading at $0.3833 with a 24-hour high of $0.3866 and a low of $0.354580 after declining over the last six hours. The reversal could present a chance for the bulls to accumulate tokens in anticipation of Djed launch, which might push the ADA price forward.

From the technical view, ADA is showing a buy signal. The oscillators fluctuate between neutral and buy, and the Moving Averages show a strong buy signal.

The token’s price is currently hovering at $0.3833, representing a 6.43 % increase in its value in 24 hours. It has broken above its 50-day Simple Moving Average, indicating a short-term bullish sentiment for Cardano. However, it is below its 200-day SMA, meaning the asset price can become bearish in the coming weeks.

The current support levels are $0.324253, $0.335986, and $0.354289, while the resistance levels are $0.384326, $0.396059, and $0.414363. ADA will likely not surpass the $0.384326 level in the coming days since the bears are sustaining their charge.

The Relative Strength Index (RSI) is at 68.39, close to the overbought zone. However, a retracement can occur anytime soon. The Moving Average Convergence/Divergence (MACD) is above its signal line but shows convergence, which is a bearish signal. Expect the price of ADA to record slight gains before retracing to the $0.36 price level in the coming days.

But note that altcoins are volatile and sometimes deviate from predicted trends. Also, an altcoin that loses half its value (50%) must rally to (100%) to return to its original value. Traders with risk management techniques for volatile markets can utilize the opportunities to profit.

Featured image from Pixabay and chart from TradingView.com

Ethereum corrected lower sharply and tested $1,500 against the US Dollar. ETH started a fresh increase and is now trading above the $1,600 pivot level.

• Ethereum is gaining pace above the $1,580 and $1,600 levels.
• The price is now trading above $1,600 and the 100 hourly simple moving average.
• There was a break above a major bearish trend line with resistance near $1,615 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could rise further if it stays above the $1,600 and $1,580 support levels.

Ethereum Price Restarts Increase

Ethereum price started a sharp downside correction below the $1,600 level. ETH even declined below the $1,550 support zone and the 100 hourly simple moving average.

However, the bulls were active near the $1,520 support zone. A low as formed near $1,518 and the price started a sharp increase, similar to bitcoin. There was a steady increase above the $1,550 and $1,580 resistance levels. The bulls even pushed it above the $1,600 level.

Besides, there was a break above a major bearish trend line with resistance near $1,615 on the hourly chart of ETH/USD. Ether price is now trading above $1,600 and the 100 hourly simple moving average.

A high is formed near $1,639 and the price is consolidating gains. It is trading near the 23.6% Fib retracement level of the upward move from the $1,518 swing low to $1,639 high. An immediate resistance is near the $1,640 level. The next major resistance is near the $1,665 level.

Source: ETHUSD on TradingView.com

An upside break above the $1,665 resistance zone could start a fresh rally. In the stated case, the price may perhaps rise towards the $1,720 resistance.

Dips Limited in ETH?

If ethereum fails to clear the $1,640 resistance, it could start another downside correction. An initial support on the downside is near the $1,610 level or the broken trend line.

The next major support is near the $1,580 level or the 50% Fib retracement level of the upward move from the $1,518 swing low to $1,639 high. If there is a break below $1,580, the price might drop towards the $1,550 support. Any more losses might call for a retest of the $1,520 zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,580

Major Resistance Level – $1,640

In a new interview, Charles Edwards of Capriole Investments shared his Bitcoin theses for 2023. Looking back at the past few months, the renowned expert said those have put the market in a position where Bitcoin offers “a great position for long-term investors.”

As Edwards noted, almost every sentiment metric imaginable fell into the “biggest or second-biggest bearish” range in macro, equities, and crypto. “Pretty much anyone would have said on Twitter last year that we are in a recession or it’s coming to a recession,” the analyst continued.

While Edwards acknowledged that the risk of a recession is far from gone, many key metrics have come back quite a bit. Among them is the housing market, which is slowing and often leads the overall economy.

“So there are a number of metrics which suggest things are slowing down a bit. You got all the big tech names laying off employees and you see this in crypto as well. 10% to 20% cuts have not been unusual in the last months,” the founder of Capriole Investments asserted.

Furthermore, he pointed out an interesting fact: every time inflation peaked above 5% and then fell by more than 20%, the U.S. central bank pivoted. This observation holds true for the last 60 years. “So I think there is a high probability the Fed stops raising rates or reducing rates,” Edwards concluded and further said:

And then we have this deep value situation in crypto which has been playing out the last 3 or 4 months. […] And all that sets up a great opportunity for long-term investors in crypto and equities, as well, risk assets in general.

Fed Pivot Will Propel Bitcoin Upwards Within 6 Months

In general, it is difficult to predict when there will be a regime change at the Fed. However, Edwards believes it will happen within the next 3-6 months. After the forced liquidations in the Bitcoin market over the past 12 months, there is currently no longer any significant selling pressure.

Therefore, according to the Capriole Investments founder, there will be a liquidity crisis on the sell side once larger amounts of Bitcoin buyers return to the market, leading to a squeeze to the upside. “And we saw that kind of short-squeeze play out in the first weeks of January.”

As for the Fed pivot, investors should keep an eye on specific data. While the consensus now seems to be that the Fed will change monetary policy, there are still some risks. Edwards pointed to history in this regard, warning that inflation could rise again.

In the 1970s inflation went through a roller coaster ride and that could be the case for the next 5 to 10 years as well. But I do think the base case for me is at least a rate pause this year, at some point in the coming months.

Moreover, investors should be cautious when employment remains very high. This is “probably the single most important factor leading to recessions.” While this data point is still incredibly strong currently, it could change “any month now” given the layoffs in the big tech sector, according to Edwards.

Equities are also worth considering, he said. If they hit new highs, or if earnings are very strong, if manufacturing picks up and inflation is still at 5% to 6%, then the Fed might think it can keep going because everything is still fine. However, Edwards’s base case looks different:

I think 2023 will generally be a positive year because the Bitcoin price will probably be higher at the end of the year […], but there will be a lot of volatility.

At press time, Bitcoin traded at $23.115.

Featured image from iStock, Chart from TradingView.com

Solana is surging above $20 against the US Dollar. SOL price could extend its rally above the $26 and $30 resistance levels in the near term.

• Sol price started a fresh increase above the $20 and $22 levels against the US Dollar.
• The price is now trading above $22 and the 100 simple moving average (4-hours).
• There is a major bullish trend line forming with support near $23.05 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
• The pair could rise further if it stays above the $22.00 and $20.00 support levels.

Solana Price Rallies Over 10%

This week, solana price formed a base and started a steady increase above the $20 level. There was a strong increase above the $22 resistance zone, similar to bitcoin and ethereum.

The bulls even managed to pump the price above the $25 resistance. It traded to a new yearly high at $26.54 before there was a minor downside correction. There was a decline below the $24 level. The price declined below the 50% Fib retracement level of the upward wave from the $20.20 swing low to $26.54 high.

Sol price is now trading above $22 and the 100 simple moving average (4-hours). There is also a major bullish trend line forming with support near $23.05 on the 4-hours chart of the SOL/USD pair.

The pair is now trading comfortably above the 61.8% Fib retracement level of the upward wave from the $20.20 swing low to $26.54 high. The price is now rising and up over 8%. On the upside, an immediate resistance is near the $25 level.

Source: SOLUSD on TradingView.com

The first major resistance is near the $26.50 level. The next major resistance is near the $28 zone, above which the price might rise towards the $30 barrier. Any more gains might send the price towards the $35 level.

Dips Attractive in SOL?

If SOL fails to clear the $26.50 resistance, it could start a downside correction. An initial support on the downside is near the $24 level.

The first major support is near the $23.00 level and the trend line. The next major support is near the $21.70 level. If there is a downside break below the $21.70 support, the price might test the next key support at $20.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $24, $23 and $20.

Major Resistance Levels – $25, $26.50 and $30.

The Aptos Mainnet was only launched in full back in October 2022 in the midst of last year’s tumultuous bear market. Since then, the developmbnt team of Aptos has been busy. According to Santiment, development on-chain has been nearly consistent even as it is a far cry from all-time-high levels. 

Because of this, CoinGecko noted a strong bullish push as the native token of Aptos, APT, soared 147% in the weekly time frame. Adding on to the bullishness is the current sentiment surrounding cryptocurrencies. 

According to recent news, the market might continue its bullish run as the derivatives market of Bitcoin sends buy signals to bulls.

What’s Going On In Aptos?

The naming and identity arm of Aptos, Aptos Names, has been on a roll lately as they make their smart contract code open source. According to the thread, this would make the contracts much more secure as individuals can customize their contracts. 

This would also make the code more decentralized, allowing the community to have more input and authority on what can be implemented in the future for Aptos Names. 

Image: Aptos Names Twitter

PancakeSwap also continued with its multi-chain deployment on Aptos. Since the proposal, the decentralized exchange has deployed over 14 farms on the blockchain with four APT pairs available. 

Investors Should Watch These Levels

The ongoing rally for APT is something the bulls relish on, making APT among the top gainers in almost all time frames, according to CoinGecko data. 

Since January 1st, Aptos found three price levels in case the token faces a strong rejection in the coming days or weeks.

As it currently stands, the rally is being supported at $12.32. If the token faces rejection, investors and traders can rely on this crucial support if the $16.01 support is broken. 

APT total market cap at $3 billion on the daily chart | Chart: TradingView.com

Right now, the token is able to reach these new highs as a result of on-chain developments that give investors confidence.

At the time of writing, January 26th, long buyers outnumber the short sellers by a very small margin. 

Image: Coinglass

This may be a sign that investor confidence in the long-term prospect of the token is still optimistic. For now, investors and traders can cash in some gains to hedge against potential downturns in APT’s market. 

Watching the overall situation in the crypto market is also a must as market movements by major cryptos can have an effect on APT’s price trajectory. 

Featured image by New Scientist