It was supposed to be Dogecoin’s day to shine, as meme makers talked up the joke coin’s prospects of hitting the $1 mark (or, even better, $0.69) on 4/20.
Alas, Dogecoin didn’t obey.
The sixth-largest cryptocurrency by market cap instead rolled around in the mud, dirtying its price to as low as $0.29, down from an all-time high of $0.40 over the weekend. Its current price of $0.34 represents a 20% drop over the last 24 hours, perdata from Nomics.
Doge Day, like all cultural phenomena these days, started its life on the internet just over a week ago, when hordes of Dogecoin-loving Redditors and Twitterati posted memes and rallying cries encouraging others to pump up the price of the coin on April 20.
The makeshift holiday had some prominent brand backers, including Snickers and Axe Body Spray:
What it hasn’t had, at least not yet at the time of writing, is the endorsement of Dogecoin’s patron saint of price-pumping, Elon Musk. The Tesla CEO has long enjoyed tweeting about the token, which was created in 2013 as a joke, and egging on buyers.
Musk last week invoked Dogecoin in a tweet, spotlighting the currency to his 50 million followers as it catapulted from $0.14 to $0.40 in mere days. Musk said in a February talk on Clubhouse that his tweets about Dogecoin are “meant as a joke,” but there’s ample evidence that those tweets, even if crafted in jest, have a direct effect on Dogecoin’s price.
The Doge faithful are likely still hoping, as of Tuesday evening, that Musk hasn’t forgotten his Twitter password on their big day.
The total crypto market capitalization fell from $2.15 trillion to a three-week low of $1.78 trillion within a few hours on Apr. 17.
The sudden downswing caught many overleveraged traders off guard, causing roughly $9 billion in liquidations.
Most liquidations occurred on Binance, while FTX and Bitfinex proved to be some of the safest exchanges to trade on.
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Many investors have been shaken out of their positions after the crpyto market crashed by more than 17% on Apr. 17. Data shows that Binance accounts for most of the losses incurred.
Over $4.4 Billion Liquidated On Binance
This week, the crypto market experienced one of the most severe flash crashes that it has seen since the beginning of the year. The incident responsible was a coal and gasaccidentin Xinjiang, China, which caused a power outage and forced Bitcoin miners to shut down.
After the Bitcoin mining hashrate fell by half, cryptocurrency prices reacted quickly.The total crypto market capitalization fell from $2.15 trillion to a three-week low of $1.78 trillion within a few hours, which caught many overleveraged traders off guard. The sudden downswing triggered a cascade of automatic sell-offs in a chain reaction thatresultedin roughly $9 billion in liquidations.
Data from Bybt shows that $4.43 billion worth of long and short positions were liquidated on Binance alone.
Total Liquidations by Bybt
Liquidations on Binance occur when the initial collateral and the realized/unrealized profit/loss are lower than the maintenance margin. In this case, all open orders are immediately canceled.
Binance uses a protocolreferredto as “Smart Liquidation” to avoid complete liquidation of the user’s position whenever possible. But temporary difficultiesemergedduring the recent crash, resulting in massive losses despite those policies.
Other Liquidation Policies
Accordingto market data provider The TIE, issues on Binance are common during periods of high volatility. By contrast, FTX and Bitfinex have proved to be some of the most “unlevered and safest exchanges to trade on” thanks to their liquidation policies.
On-chain analyst Willy Woo also affirmedthat FTX traders “survived” the flash crash. The exchange significantly reduces the likelihood of clawbacks by using a three-tiered liquidationmechanism.
Because it managed to withstand issues during the crash, FTX nowaccountsfor more than 10% of the global cryptocurrency trading volume, according to FTX CEO, Sam Bankman-Fried.
A Lesson for Traders?
Given the current state of the bullish cycle, the recent flash crash could serve as a lesson for overleveraged traders.
High periods of volatility are usually followed by issues in trading platforms caused by a spike in the number of visitors. An exchange’s inability to handle high traffic while prices are plummeting can prevent any trader from cutting his or her losses short.
Therefore, implementing a robust risk management strategy is a must to keep profits and reduce losses.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
This news was brought to you by Phemex, our preferred Derivatives Partner.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Crypto analyst and YouTuber Tyler Swope says there are two altcoins whose prices are set to surge after their holders get airdrops.
In a new video, Swope tells his 227,000 subscribers to be cautious of coins launching airdrops as these crypto assets tend to follow a cycle of markup and profit-taking before another leg up.
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One crypto asset that the trader says is about to follow the same scenario is FLX, an “ungovernance token” from reflex indexes platform Reflexer Labs. Reflex indexes are free-floating stable tokens not pegged to any underlying asset or security.
“I’m saying in the next week… week and a half this could be a pretty dang good opportunity because it is hyped up and you can claim your airdrop right now...
They’re going to do an airdrop and basically if you provide the liquidity there to their pools you’d be eligible for it. So all you have to do is go to the app – reflexer.finance – and be like ‘Hey, give me my airdrop.’”
Swope then lists notification protocol Ethereum Push Notification Services token PUSH as the other coin that is set to rally on the back of an upcoming airdrop.
The YouTuber points out that the token, which is ranked just above the 1,000th position by market capitalization on CoinMarketCap, is currently trading at a much lower price relative to its introductory price.
“EPNS basically, Ethereum Push Notification Service, they did their airdrop here recently. This one’s massively hyped too. A lot of big Ethereum developers are excited about this one. They got their drop of course, so it’s getting crushed. I mean it’s only been out for a couple [of] days. [It] hit $8 peak and now we’re going down hitting $2.56 right there.”
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Uniswap is the top decentralized exchange on the Ethereum network.
It’s managed to stay popular despite the blockchain’s high transaction fees
Despite the high transaction fees on the Ethereum blockchain, people continue to flock to the network’s DeFi platforms.
For evidence, look no further than Uniswap.
The decentralized exchange has recorded more than $10 billion in weekly transaction volume for the first time, according to statistics from Uniswap Analytics. The $10.17 billion haul is a 26% increase over the previous seven days.
Decentralized exchanges, orDEXs, allow users to swap tokens without giving up custody of their coins to a third party. They’re the primary onramp to the world of decentralized finance (DeFi), which enables people to earn interest and take out loans in cryptocurrencies without going through financial institutions.
Uniswap is one of the original decentralized exchanges built atop Ethereum. Users can trade ERC20 tokens—a type of cryptocurrency that uses the Ethereum blockchain’s infrastructure. They include stablecoins such as Tether and USDC as well as tokens for DeFi protocols like Aave and Celsius—and, notably, Uniswap’s own UNI governance token, which allows users to vote on platform changes.
Uniswap faces pressure for customers from SushiSwap, 1inch, and other Ethereum-based DEXs. But it also faces competition from non-Ethereum DEXs such as Binance Smart Chain’s PancakeSwap as traders look to evade Ethereum’s high fees, which average north of $20, according to BitInfo. By contrast, the relatively uncongested Binance Smart Chain charges in the pennies while being compatible with Ethereum applications.
That’s too big a difference to ignore for financially conscious traders to ignore. As a result, PancakeSwap tallied over $4 billion in volume in the last 24 hours alone compared to Uniswap’s $1.8 billion, according to numbers from CoinGecko.
So, while Uniswap can certainly celebrate reaching this milestone, there’s work left to be done on the network it calls home.
Uniswap is aware of the need to stay competitive. Uniswap V3 is set to go live on May 5 with improvements to both liquidity and trading efficiency. Once Optimism, a solution to scale Ethereum goes live (it was delayed in March until later this year), Uniswap V3 will launch there as well. Said Uniswap in a March 23 blog post, “Even with these groundbreaking design improvements, the gas cost of v3 swaps on Ethereum mainnet is slightly cheaper than v2. Transactions made on the Optimism deployment will likely besignificantlycheaper!”
Emiliano Grodzkiis CEO and a founder at Bitfarms, one of the largest public bitcoin mining operations in the world.
What We Learned From Bitcoin’s Hash Rate Drop
Bitcoin has been riding high of late. Yet over the weekend, panic ensued following a significant drop in its network hash rate, down roughly 49%, the biggest 24-hour reduction in Bitcoin’s history.
Much is being speculated as to the cause of this, including coal mine explosions and electrical grid blackouts in the Chinese province of Xinjiang. And with a decline in Bitcoin’s hash rate, a price correction pushed its value down to a low of ~$50,000. Yet, despite the panic selling, we didn’t break the important $50,000 level. Why?
Simply because Bitcoin carries on functioning 100% in spite of the hash rate drop. Transactions are being processed, blocks are mined, and coins carry on trading and exchanging freely.
Bitcoin’s hash rate may have dropped over 40% in a single day, but what global monetary standard or payment network could survive something similar and not have a single user denied service? Swift? Visa? Mastercard? The dollar, the pound, the euro, or the yen? There are none.
Far from being a concern with where Bitcoin is heading, this is a testament to the resilience of the Bitcoin protocol and the strength of its decentralized design. Independent of any single entity to function, Bitcoin can’t be stopped by any one event, which is what global lawmakers and governments are quickly realizing.
According to Garrick Hileman, head of research at Blockchain.com and fellow at the London School of Economics, 2021 is the year governments will start to hodl bitcoin. He puts this down to outsized government spending and money printing and economic and geopolitical tension between the United States and China.
Of course, regardless of whether these factors push governments to turn to bitcoin, it’s thanks to the millions of people worldwide that Bitcoin exists. By investing our capital, time, and effort into bitcoin mining and its infrastructure, we are choosing for Bitcoin to exist. And as long as there is one miner, the Bitcoin network will keep going.
Sure, the processing of blocks would be slow, but they would still get processed and after a period of time when enough blocks have been added to the network, the difficulty would adjust and performance and processing times would return to normal levels.
There are still bumps in the road to smooth out, but what is being created with Bitcoin is a new monetary system for anyone who understands what’s wrong with the current one. Open, transparent, resilient, and voluntarily driven by economic incentives, Bitcoin is now too big to fail.
A sell-off due to temporarily slower block times is not backed by any reason other than panic and is a strong indicator of how much new money has come into bitcoin recently and the learning curve that capital is undertaking.
The past year has shown how bitcoin isn’t going anywhere anytime soon and how important a role it’ll play in our financial lives going forward. Drops in bitcoin’s value will be certain in the future, but the outlook has never looked so bright.
This is a guest post by Emiliano Grodzki. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
The Dogecoin community coordinated its Apr. 20 social media campaign today to boost awareness of the coin.
Snack food company Slim Jim took note of the event and created a Dogecoin-themed non-fungible token in response.
The collectible token is being auctioned on OpenSea over the next four days. Proceeds will go to charity.
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Slim Jim took part in the Dogecoin community’s “Doge Day” event today by creating a non-fungible token or cryptocollectible.
Slim Jim Creates NFT
The company behind Slim Jim snack foods has created a piece of NFT artwork featuring a rocket and a Shiba Inu, the iconic breed of “meme” dog that represents the cryptocurrency.
Slim Jim’s Dogecoin NFT
“In honor of Doge Day on 4/20, Slim Jim is taking the Doge philosophy of Doing Only Good Everyday even higher with its first-ever NFT,” a representative of the company was quoted as saying in a report from the financial news site Benzinga.
Though themed after Dogecoin, the NFT was actually built on the Ethereum blockchain, and it is currently being auctioned via the Ethereum NFT marketplace OpenSea.
Bidding will last until Apr. 24 at 2:59 AM. So far, the collectible item has attracted 0.06 ETH (worth approximately $136) as the highest bid. Auction proceeds plus $10,000 with be donated to World Central Kitchen, a charity that provides meals after natural disasters.
Slim Jim’s social media presence has largely been built on memes, making this a fitting event for the company to participate in.
However, Slim Jim’s decision to create an NFT is part of a larger trend. Other companies—or employees acting on behalf of those companies—have also created similar tokens. Notable participants include TIME, Microsoft, Nasdaq, and the New York Times.
Is Dogecoin Gaining Legitimacy?
Dogecoin has become a rapid success this year, largely thanks to promotions from celebrities such as Elon Musk, combined with coordinated campaigns that originated in Reddit’s /r/WallStreetBets community. The price of DOGE has seen more than 16,000% growth over the past year thanks to those campaigns.
Meanwhile, critics such as Cardano leader Charles Hoskinson have warned that this trend is unsustainable, cautioning investors that Dogecoin will face a price crash eventually.
However, if Dogecoin continues to attract attention from mainstream companies, it could maintain its position as a leading cryptocurrency for a significant amount of time.
Acceptance is growing steadily, despite the coin’s previously minor stature. Newegg took advantage of Doge Day to add Dogecoin as a payment method. Plus, last month, Mark Cuban and the Dallas Mavericks began to accept DOGE as payment for merch and tickets.
According to Cryptwerk, over 1200 other companies accept the coin.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
A view of Bitcoin token. A split in the Bitcoin community is set to create a new incompatible … [+]version of the cryptocurrency. They plan to offer existing investors a matching amount of a new virtual asset – called Bitcoin Cash – which could put pressure on the value of original bitcoins. The bitcoin (BTC) hard fork will be happening on midday in London i.e. 12:20 UTC. (Photo by Manuel Romano/NurPhoto via Getty Images)
NurPhoto via Getty Images
An IRS Memorandum released on April 9, 2021 (Number: 202114020) further clarifies when cryptocurrency hard forks should be taxed.
The memorandum specifically talks about bitcoin (BTC) & bitcoin cash (BCH) hard fork occurred on August 1, 2017 at 9:16 AM EDT. Pursuant to the hard fork, people who held BTC received an equivalent amount of BCH. Although the fork occurred on August 1, 2017, not every BTC holder got access to BCH at that time. For example, people who used Coinbase had to wait until January 1, 2018 to get access to their BCH. Other centralized exchange users also had to wait several days or weeks before being able to withdraw their newly received BCH.
Hard Fork Taxation
The memorandum explains that you have a taxable event at the time you gain dominion and control (the ability to transfer out funds) over the asset received after a hard fork as opposed to the time at which the hard fork actually occurred.
Let’s use an example to illustrate this. Say Samantha had 1 BTC on Coinbase on August 1, 2017. After the hard fork, she was eligible to receive 1 BCH. As Fortune reported, 1 BCH was trading at $200 on this day. However, Samantha was not able to get access to her BCH until January 1, 2018. This is when Coinbase allowed users to withdraw BCH. On January 1, 2018, BCH was trading at approximately $2,500 on Coinbase.
In this situation, Samantha gains dominion and control over BCH on January 1, 2018. She has to report $2,500 of ordinary income on her 2018 tax return. That said, if she held BTC in a self-custodied wallet with full access to private keys, she would have had a taxable event on Aug 1, 2017 resulting in only $200 of taxable income.
MORE FOR YOU
If you went through the Bitcoin fork, it’s important to see when your exchange supported the coin and when you received dominion and control to accurately figure out your income for tax purposes.
Disclaimer: this post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
The Tyler and Cameron Winklevoss-owned Gemini exchange announced a major milestone on Tuesday, as total cryptocurrency held in custody surpassed $25 billion for the first time.
In charting its impressive growth, Gemini touted growing participation from institutional investors over the past year. Gemini Custody’s assets have more than doubled since the start of 2021.
“Our custodial services are used by some of the worlds largest asset managers including BlockFi, Blockchange CoinList, CI Global Asset Management, DAiM, BTG Pactual, Caruso, Eaglebrook Advisors, and WealthSimple,” the company said in a statement.
The outspoken Tyler Winklevoss tweeted about the milestone on Tuesday:
.@Gemini now has over $25 billion in crypto under custody. To the moon! https://t.co/SQahRISOsH
— Tyler Winklevoss (@tyler) April 20, 2021
As of Tuesday, Gemini’s 24-hour trade volumes had eclipsed $381 million, putting it in the 13th spot, according to Messari.
Gemini has carved out a reputation as being one of the most compliant digital currency exchanges on the market. Whereas most major exchanges scrambled to delist XRP in the wake of a Securities and Exchange Commission lawsuit, Gemini was never persuaded to list the controversial cryptocurrency.
In 2020, Gemini became the first digital currency exchange to complete a SOC 2 Type 2 evaluation, which proved its operational security. The company completed its SOC 2 Type 1 compliance review in January 2019.
In addition to its main exchange and custody solutions, the company introduced Gemini Fund Solutions in March 2021. The new service provides fund managers with a range of tools and capital market services to expand their crypto fund services.
Charles Hoskinson, Cardano’s inventor, and Input-Output Global (IOG) CEO, talked about the current regulatory outlook in the United States. Hoskinson believes the crypto market will see a “long overdue” regulatory framework in the coming months.
IOG CEO stated in a new video for his YouTube channel that the current market cap of the entire crypto market will force regulators and authorities in that country to take measures. Over the past years, under the previous presidential administration, there was an environment with a lack of unity from the political parties, according to Hoskinson.
However, the current president of the U.S. Joe Biden has built his career in Washington. Therefore, has more experience negotiating with the political forces. In 2016 and 2017, the crypto market could have been regulated and taken out of its “gray zone” with a different administration.
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As a result of Biden’s political skills, he managed to pass a new stimulus bill. Its new target could be an infrastructure bill with an estimated $2 trillion. Later, the presidential administration could seek an individual tax increase. This could be the turning point for the crypto market, Hoskinson said:
It is very likely that there are going to push cryptocurrency regulation in that bill, as a consumer protection package. Just as with infrastructure they rolled some part of the Green New deal it in. It is vey likely that this is going to happen.
Cardano’s Inventor Blames It On The DOGE
According to IOG’s CEO, there is a perception of a “Ponzi-like trading behavior” within the crypto market and its major trends: non-fungible tokens (NFTs), decentralized finance (DeFi), and the Dogecoin (DOGE) craze. The latter has been particularly responsible for attracting negative attention, said Hoskinson.
He further added that “copy projects” like DOGE and their total market cap, sitting right behind ADA with $40B, at the time of writing, are not “normal”. Hoskinson highlighted other flaws in DOGE design like its inflationary supply and centralization.
DOGE with heavy losses in the daily chart. Source: DOGEUSDT Tradingview
Cardano’s inventor is positive a crypto regulation will be approved because there is “unity” in the House of Representatives and the appointment of Gary Gensler as Securities and Exchange Commission (SEC) Chairman. Hoskinson said:
Gensler has a history of being very proactive with enforcement for his prior time at the CFTC and he understands our industry exceedingly well, he taught a class at MIT about cryptocurrencies. The SEC is in a position where, through enforcement and soon regulatory mandate, will be more active on enforcement towards things they will are wrong.
Hoskinson predicts the SEC, along with FinCEN and other U.S. law enforcement branches will first act on DeFi. Clarifying that he is not “endorsing” the regulator’s alleged future actions, Cardano’s inventor said these entities tend to “act” this way under a democratic administration.
Cardano, according to Hoskinson, has enough “flexibility” to endure a possible regulatory crackdown. This platform biggest strengths are “its monetary policy, and philosophy”, Hoskinson added:
When you talked about activity which could be classified as regulated, you create a toolbox for people to participate in that activity to scale and be able to do that in a way that makes their government comfortable (…). Once you have that capability (of Decentralized Identities) you can talk about regulated DeFi (…).
ADA is trading at $1,26 with a 1.9% profit in the daily chart. In the weekly and monthly, ADA has 1.9% and 4.7% profits, respectively.
ADA with small gains in the daily chart. Source: ADAUSDT Tradingview
A lot of hype was built up before the Coinbase listing on the Nasdaq on April 14 and several cryptocurrencies rallied in the run-up to the event.
However, traders usually buy the rumor and sell the news. In this case, they bought until the event, and then several investors seem to have booked profits aggressively. This resulted in a correction in several major cryptocurrencies, including Bitcoin (BTC).
Crypto market data daily view. Source:Coin360
In the run-up to the Coinbase listing, several exchange tokens rallied as traders bid up their price in relation to Coinbase’s $100 billion valuation. Now that COIN has been trading on Nasdaq for nearly a week, let’s take a look at how exchange tokens are performing since the listing.
BNB/USDT
Binance Coin (BNB) was quoting at $256.72 on Feb. 19 and from there, it rallied to an all-time high at $638.56 on April 12, giving 148.73% returns to investors.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BNB on April 2, before the rally picked up momentum.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs.BNB price. Source:Cointelegraph Markets Pro
As seen from the one-month chart above, the VORTECS™ Score for BNB flipped green on April 2 when the price was close to $335.
Barring small periods, the VORTECS™ Score remained in the green all through the rally to $601 on April 13. Thus the indicator could have assisted traders in sticking with the rally even while other analytical methods may have warned of overbought levels.
The coin witnessed profit booking above $600 and corrected to the 20-day exponential moving average ($463) on April 18. However, a positive sign is that the bulls did not allow the price to hang below the 20-day EMA.
BNB/USDT daily chart. Source:TradingView
Both moving averages continue to slope up and the relative strength index (RSI) is above 68, indicating that the bulls are in control. Buyers may face resistance at $600 but if they can clear this hurdle, the BNB/USDT pair could march up to $638.56.
The bears will again try to stall the uptrend in the $600 to $638.56 zone. If the price turns down from this zone, it could once again dip to $428 and the pair may remain range-bound for a few days.
However, if the bulls drive the price above the all-time high, the pair could pick up momentum and rally toward $832. This bullish view will invalidate if the bears sink and sustain the price below $428.
Such a move will suggest that supply exceeds demand and that could pull the price down to $348.69.
FTT/USDT
FTX Token (FTT) rallied from $28.82 on Feb. 19 to an all-time high at $59.59 on April 14, clocking gains of 106.76%. Since then, the token has been in a corrective phase but the positive sign is that the bulls have not allowed the price to sustain below the 20-day EMA ($48.70). This suggests strong buying on dips.
The news of the FTX exchange burning over $6.4 million worth of FTT, $2 million more than their previous record, is likely to attract buyers as it shows the exchange has been doing robust business. As more tokens are burned, the supply will reduce and with increasing demand, the price is likely to move higher.
FTT/USDT daily chart. Source:TradingView
If the bulls can push the price above $52.55, the FTT/USDT pair could rally to $59.59. If the bulls can thrust the price above this resistance, the momentum is likely to pick up and the pair could rally to $71.89.
However, if the bulls fail to propel the price above $52.55, it will suggest that demand dries up at higher levels. That could strengthen the bears and they will then try to sink the price to the 50-day simple moving average ($41.32).
This is an important support to watch out for because the price has not closed below it since mid-November of last year. Therefore, a break below it will suggest a change in trend and open the gates for a deeper correction to $32.
HT/USDT
Huobi Token (HT) was trading at $18.94 on Feb. 19 and from there it moved up to an all-time high at $26.89 on Feb. 20, but since then, it has not been able to come close to the level.
The token witnessed a sharp correction after hitting the all-time high and it dropped to an intraday low at $12.13 on March 25, losing about 55% from the highs.
HT/USDT daily chart. Source:TradingView
Generally, after a deep fall the price consolidates in a range before starting the next trending move. The same thing happened with the HT/USDT pair as well. The pair traded between $12.13 and $18 until the bulls pushed the price above the resistance on April 10.
However, the bulls could not sustain the breakout as the price turned down from $22.76 on April 12 and re-entered the range on April 18.
The bulls are trying to defend the 50-day SMA ($16) but are struggling to sustain the price above $18. This shows selling at higher levels. If the price turns down and breaks below the 50-day SMA, the pair could drop to $12.13 where buyers may step in.
Contrary to this assumption, if the bulls can sustain the price above $18, the pair could rally to $22.76. A break above this resistance could challenge $26.89. The bulls will have to clear this resistance to resume the uptrend.
OKB/USDT
OKEx (OKB) jumped up from $12.50 on Feb. 19 to an all-time high at $24.74 on April 12, a gain of 98%. However, it was not a one-way move but a roller coaster ride for the investors.
The coin had hit an intraday high at $23.80 on Feb. 22 but it witnessed a sharp fall and dipped to $12 on March 25, losing about 50% from the highs. However, instead of forming a range, the price quickly started a V-shaped recovery.
OKB/USDT daily chart. Source:TradingView
Although the bulls cleared the $23.80 hurdle on April 12, they could not sustain the higher levels. The OKB/USDT pair again witnessed a sharp decline and hit an intraday low at $13.92 on April 18.
The bulls are currently attempting to start a relief rally but have hit a wall at the 20-day EMA ($17.98). This suggests the sentiment has turned negative and traders are selling on rallies. If the price turns down and breaks below $14, the pair could drop to $12.
A break below this level could intensify the selling and the pair could drop to $8. The 20-day EMA has started to turn down and the RSI is just below the midpoint, suggesting a slight advantage to the bears.
This negative view will invalidate if the bulls push and sustain the price above the 20-day EMA. Above this resistance, the pair could move up to the 61.8% Fibonacci retracement level at $20.60. This level is again likely to act as stiff resistance but if it is scaled the pair could retest $24.74.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
