The cryptocurrency conglomerate known as Digital Currency Group (DCG) is apparently getting ready to generate cash and maintain its liquidity by selling its assets in cryptocurrency funds that are managed by a subsidiary of the company known as Grayscale Investments.
According to a report that was published on February 7 by the Financial Times, which cited United States securities filings, DCG sold approximately one quarter of its shares in Grayscale’s Ether (ETH)-based fund for approximately $8 per share, despite the fact that each share held a claim to nearly double that amount in ETH. The filings were cited in the report.
In addition to this, it is said to have sold down small share parcels in Grayscale’s Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC)-based trusts. This is in addition to its Digital Large Cap Fund, which is a single fund that invests in Bitcoin (BTC), Ether, Polygon (MATIC), Solana (SOL), and Cardano (ADA).
The response that DCG gave when queried about the share sales was that “it is just part of our regular portfolio rebalancing.”
In spite of this declaration, there are others who feel that Barry Silbert’s DCG might be heading for some kind of financial difficulty.
Another of its companies, the cryptocurrency lending business Genesis Global Capital, filed a bankruptcy petition on January 19 and is reported to owe its creditors more than $3 billion.
Companies controlled by DCG have been significantly impacted by the contagion that has resulted from FTX’s downfall. Over the last several weeks, these companies have been forced to let go of over 500 people.
However, DCG has taken a number of actions to maintain liquidity in 2023, such as informing its shareholders in a letter dated January 17 that it would be discontinuing its quarterly dividend payments as it seeks to improve its balance sheets. This was one of the many initiatives that DCG has done.
After stating that it had received offers for the cryptocurrency media outlet CoinDesk that were greater than $200 million, DCG has reportedly sought the assistance of the financial advisory firm Lazard in order to assist it in weighing up options to sell CoinDesk, which is another of its subsidiaries.
According to the company’s website, DCG’s venture capital portfolio includes about 200 crypto-related startups, some of which include Grayscale, Genesis, and CoinDesk. Additionally, DCG has interest in a number of other businesses, such as the cryptocurrency exchange Luno and the advising company Foundry.
Barely a week after the news of the brawl with Ethereum Classic made the rounds, Cardano founder Charles Hoskinson has publicly declared he is cutting ties with the XRP community.
According to the conversation gleaned from his tweet, Charles seems to have been the main figure behind a ton of trolls associated with the XRP community.
As an outspoken critic of many projects, it comes off as though many supporters of the XRP coin have been taking their pound of flesh on the legendary blockchain developer. Per his tweet, all of the trolling may be coming to an end.
“I think I’ve blocked most of the XRP trolls who continue to harass unprovoked. I’ve never seen a group so radically pick up a few words and run with it. Great job turning an ally into someone disgusted and totally checked out,” he said.
While many support Charles’ actions, a renowned XRP advocate, XRPcryptowolf, jumped into the conversation and advised Charles not to stereotype an entire community based on the behaviour of a selected few. However, Charles seems unperturbed in his stance, stating further;
“It isn’t a few trolls. It’s been an endless harassment campaign for days. I’m done with it. I want nothing more to do with XRP. The community has accomplished nothing but harming itself. Congratulations.”
Actions and reactions are often tagged as balanced in what comes off as an open industry. Charles earlier confiscated the Twitter account that has served the Ethereum Classic community since 2016 and recently re-purposed it for the Ergo Community. The account has over 600k followers forcing the Ethereum Classic protocol to start building its community all over again.
A number of industry observers were not cool with the events and how things played out, and for that reason, many may still be coming for Charles in ways he may not have envisaged.
Charles Hoskinson, the blockchain leader known as one of the key figures responsible for creating Ethereum Classic and Input Output Hong Kong (IOHK), the parent company of Cardano recently converted the Twitter account of Ethereum Classic ( ETC) to that of Ergo Proof-of-Work network on the 6th of October.
In a Twitter thread, Ethereum’s Classic Cooperative executive director Bob Summerville alerted the change of account. According to Summerville, the conversion of the Twitter account is an aftermath of ETC’s withdrawal of support for the 20% treasury protocol proposed by Hoskinson. This is the second time IOHK would be withdrawing from the ETC community, the first was in 2018 for similar reasons.
Summerville also claims that the account change by Hoskinson will damage both communities because Hokinson is creating drama to feed on his ego.
He, therefore, asked Hokinson to stop using ETC’s Twitter account of over 600k plus followers as opposed to Ergo’s actual 60k plus Twitter account because Hoskinson wasn’t the creator of the account, a Twitter user @ChuckSRQ created and built it in July 2016 up to the level where the account was verified.
Hoskinson has responded by saying that he would not give up the account because he has put in so much time and millions of dollars in efforts to support the ETC blockchain community. He, therefore, promised to be even with ETC because of their stand in preserving their status quo.
Support for Ethereum Classic
So many Twitter users are condemning Hoskinson for his refusal to give back the account.
According to a Twitter user (@CryptoHolon), many people have given their free time to the ETC network and supporting principles of decentralization.
“You were trying to change ETC’s nature with your proposal, the intentions of ETC’s twitter handle were always seen as a community handle. It’s a simple gesture, Charles.”
AntPool, a Bitmain-run Chinese mining pool, declared its support for Ethereum Classic in July and contributed $10 million to the ecosystem. Ethereum Classic is also now supported by Ethermine, the largest ETH mining pool in the world.
Based on data from CoinMarketCap on Friday, the price of ETHW tokens from Ethereum’s proof-of-work fork has dropped by over 65% since the launch of its mainnet hardfork after the highly-anticipated Ethereum Merge took place on September 15th.
ETHW spiked as high as $60.68 in the early hours of Thursday morning following The Merge. At the time of writing, the tokens were trading at $12.80, a loss of 61% in the past 24 hours, according to CoinMarketCap.
The lowest point the price of ETHW exchanged hands was $8.20. The tokens traded at over $42 on Thursday before the Merge but plunged as much as 78% to as low as $8.20 in early European hours Friday.
ETHPoW is a separate Proof-of-Work (PoW) blockchain, forked from Ethereum’s Merge on September 15. However, its chain suffered technical issues after the launch, which put downward pressure on its ETHW token.
The team behind ETHPoW recognized the issue and fixed the network’s ChainID later on the same day. But several miners appeared to have abandoned the network despite a few major pools continuing to mine the PoW chain.
As a result, the ETHPoW hash rate dropped to 66.64 TH/s on Friday after peaking at 80.56 TH/s earlier in the day.
Meanwhile, the hash rates of other PoW alternatives for Ethereum miners like Ethereum Classic (ETC), Ravencoin, and Ergo, have experienced all-time high levels after the merge. After Ethereum’s successful merge, miners started switching their rigs to other blockchains such as the above mentioned.
According to data from crypto mining pool 2miners, the Ravencoin blockchain’s hashrate doubled from 8.29 TH/s to 18.47 THs over the past 24 hours.
Ergo (ERG), another PoW blockchain that supports GPU mining, also saw its hash rate rise over 372% in the last 24 hours from 29.05 TH/s to 157.56 TH/s currently. ERG, the native coin of Ergo, is also up 14.51% to $4.93 over the past 24 hours.
Eric Wall, the Chief Investment Officer at cryptocurrency investment firm Arcane Assets, explained that ETHPoW miners could not sustain the chain at current ETHW prices. He further added: “The daily rewards are 13100 ETH, $354k instead of $20m. There is no way miners can just ‘keep mining’ the ETHPoW chain, no matter how you adjust the difficulty. There simply aren’t enough rewards in the system to pay for the electricity bills.”
The price of ETHW fell in the past 24 hours, likely because users received the new tokens and instantly sold them on the open market. The tokens are listed on several major cryptocurrency exchanges, including FTX, Huobi, and OKX.
According to data from mining pool 2miners, Ethereum Classic’s hash rate has experienced a 200% growth in the last 30 days, jumping to now at its all-time high of 64 TH/s from 30 TH/s on August 15.
Ethereum Classic has hit an all-time high hash rate of 65.49 terahashes per second (TH/s), having grown more than 40% during September ahead of The Merge.
Hash rate refers to the computational power used to mine a cryptocurrency on a proof-of-work blockchain. Cryptocurrencies such as Bitcoin, Ethereum Classic, and Ether (before the merge) use a proof-of-work system, which requires lots of powerful computers and energy to process transactions.
Today, Ethereum is set to make its long-awaited shift from its proof-of-work consensus to an energy-friendly proof-of-stake blockchain consensus mechanism.
Ethereum’s move to shut down its proof-of-work consensus is set to leave Ether miners with potentially nothing to do. So, miners have announced their intent to migrate to Ethereum Classic, amongst several other proof-of-work blockchains.
These miners plan to mine Ethereum Classic and other compatible coins like Ravencoin. According to 2Miners, mining on Ethereum Classic and others like Ravencoin and Ergo is the “safest post-Merge strategy” at least in the first few days after the Ethereum Merge event.
“Currently, the most profitable coins after Ethereum are Ravencoin, Firo, Cortex, Ergo, Aeternity, Beam, Bitcoin Gold, Ethereum Classic, and Callisto,” 2Miners elaborated.
The Merge Getting Ready
The mass migration of crypto miners to Ethereum Classic has been one of the major driving forces pushing its hashrate to reach new highs.
As a result, the Ethereum Classic’s native cryptocurrency (ETC) was also up by 7.53%, trading at $38.12 at the time of writing.
In July, AntPool, a mining pool based in China and owned by Bitmain, signalled support for Ethereum Classic and injected a $10 million investment in the ecosystem. Ethermine, the world’s largest Ether (ETH) mining pool, also announced support for Ethereum Classic.
Ethereum Classic’s algorithm, Ethash is compatible with equipment used for mining Ethereum. Due to this, ETC can be mined using the same GPU and ASIC machines designed for Ethereum mining.
Ethereum is about to change its consensus from proof of work to proof of stake, an update called The Merge. The upgrade is estimated to take place around 4:23 UTC on Thursday, late into the evening of September 15.
Ethereum Classic had experienced a sharp fall in prices on the 17th January, however, at press time ETC was seen recovering. Over the last 24 hours, ETC had gained close to 7% and was seen trading at $28. In the past week, ETC logged gains of about 17% and had broken past the $25 price mark.
ETC struggled near the aforementioned price level for the past few weeks. However, with close to 17% gains in the past seven days ETC has now managed to break the downtrend. Bitcoin was bordering $39k at the time of writing. As Bitcoin had climbed up on its chart, major altcoins followed the same price movement.
Price Analysis: ETC/USD Four Hour Chart
Source: TradingView ETC/USD
At the time of writing, ETC was priced at $28. In the past trading sessions, the coin was seen oscillating between $25 and $27 price levels respectively. Immediate resistance for ETC was at $30.31 and additional resistance marks for the coin stood at $34.22 and then at $38.68.
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On the flipside, ETC was resting in the support line of $25.84. For Ethereum Classic to move past the immediate resistance level of $30.31. The coin has to continue to trade above the $28 mark and form higher highs and lows.
ETC hadn’t traded beneath the $28 mark since January 18, the coin’s value dropped as the coin met with an intense sell-off. Over the past week, ETC buying pressure rose slowly and at press time, the asset stood near the overbought zone.
Related Reading | Bitcoin Steadies At $37,000, But What Are Options Traders Doing?
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The Relative Strength Index was parked above the 80-mark, which meant that the asset was overvalued at the time of writing. RSI was last seen hovering around the same level last in the month of November. A push from the buyers can also correct ETC’s prices over the upcoming trading sessions.
On Balance Volume also recovered considerably as OBV had met with an uptick which signalled and volume inflow had increased, which signified bullishness in the market. Awesome Oscillator depicted green signal bars which were seen amplifying at press time.
The technical outlook for Ethereum Classic remained quite optimistic. With continued demand, ETC could soon trade above the immediate resistance mark.
What’s Next For Ethereum Classic
Image Source: TradingView ETC/USD
Ethereum Classic was moving close to the $28 mark, however, in the last few days, ETC witnessed price action around the same area. Fibonacci Retracement was strong at 50% level. A fall from the current price level would push ETC back to $25 and then finally to $22.
A move above the current price level might cause ETC to experience another pullback at $31.80 at the 78.6% Fibonacci level. A major resistance point for ETC lay at $34.55 level, Ethereum Classic last traded at this price mark just a few weeks back in early January.
Strength from the broader crypto market would be required for Ethereum Classic to continue trading in an upward direction. If Bitcoin trades above the $40k mark, then major altcoins could also remain optimistic on their charts.
Related Reading | TG DAO 3.0: How a Truly Decentralized Organization Works
American financial services giant Robinhood is rolling out the beta version of its crypto wallets program after months of anticipation.
According to a new blog post, the company will hand out crypto wallets to the 1,000 customers who were on top of the program’s waitlist for testing and safety checks.
Robinhood says that by March, the number will be increased to 10,000 before the wallets are eventually distributed to every person on the waiting list.
Participants will be responsible for testing out the core features of the wallet, including potential updates as well as its safety features. The beta version of the wallet will allow users to send and receive crypto assets from Robinhood to external crypto wallets, connecting holders of digital assets on the popular trading app to blockchain projects for the first time ever.
“Beta testers will help us test core functionality and provide critical feedback to inform the final version of the product…
Connecting millions of Robinhood customers to the blockchain ecosystem in a safe, accessible setting is a massive undertaking. We take this responsibility seriously, which is why we’re rolling out wallets methodically.”
Beta testers will have a daily limit of $2,999 in total withdrawals and will be limited to just 10 transactions per day.
Robinhood first announced the crypto wallets projects last September. Currently, the trading giant supports trading for seven digital assets: Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC).
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Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.
Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers.
Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. AlphaWallet also supports ENS avatars.
Zhang, also known as @Victor928, is among the top 30 delegates with the most voting power. When asked about how he plans to keep contributing to the DAO, Zhang said:
My biggest concern currently is voting power. The second largest voting power is Coinbase, a big corporation. We need to make sure the ENS is always a public group, always a neutral service, not influenced or controlled by any single party for its own interest.”
Related:ENS’ director of operations says that DAO-based governance ‘has always been the plan’
During the ENS Token airdrop, 100 million total ENS Tokens were distributed. While 25% went to users with .eth domans, another 25% of the tokens were allocated to those who “contributed in significant ways to ENS over the last four years.” The other 50% remains in the DAO community treasury.
As an external contributor, Zhang received 46,296.3 tokens. At the time of publication, this number of tokens amounted to $3,320,311.15. Zhang is among 27 contributors to receive this exact amount.
Zhang confirmed that he is, “holding it all. I’m not cashing any tokens out. As long as ENS continues to grow in the right direction, I don’t see any competitors. So that means the value is much bigger than the current market cap, if we’re looking at it as an investment.”
The day of the airdrop, Brantly Millegan, AKA “Brantly.eth,” ENS’ director of operations, tweeted about the “responsibility” bestowed upon users and added how it’s up to the ENS community to use decentralized identity “wisely.”
you were not airdropped free money, you were airdropped responsibility
— brantly.eth (@BrantlyMillegan) November 9, 2021
Gregory Rocco from Spruce discussed this concept of decentralized identity with Cointelegraph. He developed Spruce, a secure sign-in with Ethereum, or SIWE software, precisely to help users own and control their digital identities, rather than give up that data to large corporations.
He is referring to large centralized corporations such as Google, Twitter or Facebook that offer web2 users the option to login to third-party apps and services using their respective Gmail or Facebook details instead of having to create and remember individual usernames and passwords for each new account.
According to Rocco, these traditional logins have the “ultimate control” over user identifiers because “if Google pulled the rug on you, you wouldn’t just lose access to Google services, you’d also lose access to every service that you signed into using Gmail.”
The Ethereum Foundation and ENS recognized this issue and announced a Request for Proposal for the creation of a Sign-In with Ethereum package using Oauth. Spruce was selected to offer a decentralized identity alternative in September.
The goal of SIWE is to enable users to control their public identifier by owning their private keys or as Rocco put it: “‘your keys, your crypto’ but also ‘your keys, your identifier.’” Not only does Spruce’s toolkit establish a blockchain-based identity, it also enables verifiable proof of identity, ownership of assets and DAO membership. This is important in order for a user to prove his or her value to the ENS ecosystem and earn rights to upcoming airdrops.
When asked how it feels to be a delegate, Rocco said:
“I feel this motivation to stay on top of everything for ENS and be on board and establish that social contract. I believe in the future of ENS and support participation in user-controlled systems. That paradigm is the first step towards enabling users to have more control over their identity and data.”
Decentralizing identity ultimately empowers the ENS DAO and builds up its credibility as a truly decentralized organization. Both Zhang and Rocco are champions of collective ownership and hope to further promote the usage of ENS in the web3 ecosystem.
Billionaire CEO of American hedge fund Citadel Kenneth Griffin thinks a currency on the Ethereum (ETH) network will replace Bitcoin (BTC) as crypto’s top dog. Citadel manages over $40 billion of capital — a quarter of the trading volume in the US stock market.
During this Wednesday’s Nov. 10 DealBook summit hosted by The New York Times, Griffith said that he anticipates that the “Bitcoin-based conception [will be] replaced by the Ethereum-based conception in the next generation of cryptocurrencies.”
He added that Ethereum-based cryptocurrencies have “the benefits of higher transaction speeds [and] lower cost per transaction.”
Ethereum is only slightly faster than Bitcoin at present, but will significantly scale up transaction speeds and lower costs when Eth2 is fully implemented.
Griffin is a long-time crypto skeptic, especially of Bitcoin — which he claims there are “no commercial use cases for.”
Although he noted that crypto and its underlying blockchain technology is a “really interesting technology” and “a powerful way to maintain a decentralized ledger around the world,” he ultimately said that “for most problems, it’s really not the solution that we need.”
“People are very focused on a world of new ideas and new creation,” he said, “I worry that some of this passion is misplaced when it comes to cryptocurrencies.”
During the summit, he claimed that “there’s a number of issues that haven’t been addressed by crypto,” including the risk of fraud, high costs, and energy expenditure.
“Bitcoin is incredibly expensive to manage payments on,” he said. It currently costs approximately $4.1 per Bitcoin transaction. Typical credit card transaction fees range from 1.4% and 3.5% on popular networks such as Mastercard, Visa and American Express. The recommended surcharge cost for debit cards is around 0.5%.
In terms of sustainability, Griffith claimed that Bitcoin is “a bigger contributor to global warming than any form of payment we use around the world today in aggregate.”
Bitcoin’s annual carbon footprint is around 90.48 tonnes of CO2. Each Bitcoin transaction has the equivalent carbon footprint of 2,008,657 VISA transactions, according to the Bitcoin Energy Consumption Index.
On the flip side, Bitcoin mining also utilizes the lowest cost forms of energy, such as renewable energy and surplus power that would otherwise be wasted. It is also significantly more difficult to actually quantify the amount of emissions that banks and financial institutions are responsible for.
Related:Billionaire Ken Griffin slams crypto as ‘jihadist call’ against the greenback
When asked if he was concerned that he may have already missed the crypto train, he said: “I think that the train is, in some sense, still in the station…. I think it’s very much in the early innings still.”
Earlier this year, there were rumors claiming Citadel was behind the trading limits placed on Robinhood for Gamestock shares. He denied any personal involvement in the saga during the summit, calling it a “bad comedy joke,”
Bitcoin (BTC) is facing a stiff challenge from the bears near the $48,000 mark. As Cointelegraph reported earlier, the buy and sell levels show that sellers on Binance have held their ground at $48,000.
PlanB, the creator of the stock-to-flow Bitcoin price model, said if Bitcoin manages to close August above $47,000, the year-end “worst-case scenario” target price of $135,000 may come into play.
Despite the slight downturn, the institutional adoption of Bitcoin continues to increase. Filings with the United States Securities and Exchange Commission show that four wealth management firms have bought shares in Grayscale’s Bitcoin Investment Trust.
Crypto market data daily view. Source:Coin360
A survey of about 42,000 people in 27 countries by product comparison website Finder, showed a high adoption rate in Asia. Among the countries polled, Vietnam had the highest adoption rate at 41% while India and Indonesia had a 30% adoption rate.
Compared to their Asian counterparts, the respondents in the United Kingdom and the United States reported a low 8% and 9% adoption rate. However, the report warned that “due to the varying Google infrastructure in each territory, not all surveys were nationally representative.”
Will Bitcoin’s hesitation near the $48,000 mark result in profit-booking? Could altcoins attract funds that exit Bitcoin? Let’s study the charts of the top-5 cryptocurrencies that may extend their up-move in the next few days.
BTC/USDT
Bitcoin turned down from the resistance line of the rising wedge pattern on Aug. 14. This suggests that the bears have not given up and are defending the resistance line aggressively.
BTC/USDT daily chart. Source:TradingView
The BTC/USDT pair could now drop to the support line of the wedge, which could attract buyers. If the price rebounds off this level, the bulls will again try to resume the up-move. A breakout and close above the wedge will invalidate the bearish pattern and open the doors for a rally to $53,000 and then $60,000.
The upsloping moving averages and the relative strength index (RSI) in the positive zone suggest that bulls are in control.
Contrary to this assumption, if bears sink the price below the wedge, the pair could drop to the 20-day exponential moving average ($42,682). If the price rebounds off this level, the bulls will make one more attempt to resume the up-move.
But if the price slips below the 20-day EMA, the pair may drop to the 50-day simple moving average ($37,176).
BTC/USDT 4-hour chart. Source:TradingView
The bears are posing a stiff challenge in the zone between $46,743.47 and $48,144. They have pulled the price down to the 50-SMA on the 4-hour chart. If the price breaks below this support, the pair could drop to $43,770 and later to $42,451.67.
The flattening 20-EMA and the RSI near the midpoint suggest that the bullish momentum may be weakening.
If the price rebounds off the current level and rises above the overhead resistance zone, it will indicate that bulls are buying on every minor dip. That will suggest the resumption of the up-move.
ETC/USDT
Ethereum Classic (ETC) broke and closed above the overhead resistance at $63.56 on Aug. 13, completing an ascending triangle pattern. This bullish setup has a pattern target at $94.91.
ETC/USDT daily chart. Source:TradingView
Usually, after breaking out of a pattern, the price turns down and retests the breakout level. In this case, the ETC/USDT pair could retest the $63.56 level in the next few days. If bulls flip this level into support, the pair could start a new uptrend.
The rising 20-day EMA ($57) and the RSI in the overbought zone suggest that bulls have the upper hand. If the price breaks below $63.56, the pair could drop to the 20-day EMA.
A strong rebound off the 20-day EMA will suggest that the bullish sentiment remains intact. The buyers will then make one more attempt to resume the up-move. This positive view will be negated if bears pull the price below the 20-day EMA. That could result in a decline to the 50-day SMA ($51).
ETC/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that the pair is in an uptrend. The bears are attempting to stall the up-move at $76.16 but the positive sign is that the bulls have not given up much ground. The rising moving averages and the RSI near the overbought territory indicate advantage to the buyers.
If bulls propel the price above $76.16, the next stop could be $84.16. On the contrary, if bears sink the price below $70, the pair could decline to the 20-EMA. A strong bounce off this level will suggest that the sentiment remains positive but a break below it may pull the price down to $63.56.
LUNA/USDT
Terra protocol’s LUNA token has been trading inside an ascending channel for the past few days. The breakout and close above the downtrend line suggest the start of a new uptrend.
LUNA/USDT daily chart. Source:TradingView
The bears have been defending the overhead resistance at $18 for the past four days. If the price rises from the current level or rebounds off the support line, the bulls will make one more attempt to propel the LUNA/USDT pair above $18. If they manage to do that, the next stop could be $19.54 and then $22.
Alternatively, if the price breaks below the channel and the 20-day EMA ($14), it will suggest that the bullish momentum has weakened. The pair could then retest the breakout level at the downtrend line.
LUNA/USDT 4-hour chart. Source:TradingView
The bears have twice stalled the up-move at $18, which makes it an important level to watch out for. The 20-EMA has flattened out and the RSI is just above 50, which points to a possible consolidation in the near term.
If the price rebounds off the 50-SMA, the pair could trade between $15.81 and $18 for some time. A breakout and close above $18 could start the next leg of the uptrend that could reach $20.81. Conversely, a break below $15 may signal the start of a deeper correction to $13.
KLAY/USDT
Klaytn (KLAY) rose above the $1.81 resistance on Aug. 14 but the bulls could not sustain the higher levels. The long wick on the candlestick of the past two days suggests that bears are aggressively defending the overhead resistance.
KLAY/USDT daily chart. Source:TradingView
The sharp rally of the past few days has pushed the RSI deep into the overbought zone, indicating the possibility of a minor correction or consolidation in the next few days. Any dip is likely to find support at $1.60 and then at $1.40.
If the price rebounds off either support, the bulls will make one more attempt to rise above $1.81. A breakout and close above this level will complete a rounding bottom pattern, which has a target objective at $2.90.
This positive view will invalidate if the price turns down and breaks below the 20-day EMA ($1.32). That could result in a decline to the 50-day SMA ($1.07).
KLAY/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows that bears thwarted two attempts by the bulls to push the price above the $1.81 resistance. If bears sustain their selling pressure and sink the price below the 20-EMA, the decline could extend to the 50-SMA.
Conversely, if the price rebounds off the 20-EMA, the bulls will make one more attempt to clear the hurdle at $1.81. If they succeed, the KLAY/USDT pair could rally to $2.18. The rising moving averages and the RSI is in the positive zone, indicate advantage to the bulls.
Related:Bullish Ethereum traders can place risk-averse bets with this options strategy
AXS/USD
Axie Infinity’s native token AXS has been in a strong bull run in the past few weeks, hitting a new all-time high at $77.48 on Aug. 11. The long wick on the day’s candlestick showed that traders booked profits at higher levels.
AXS/USDT daily chart. Source:TradingView
The AXS/USDT pair has corrected to the immediate support at $63. If bears sink the price below this level, the pair could drop to the 20-day EMA ($51). The previous two corrections reversed direction from the 20-day EMA.
Therefore, the bulls are again likely to buy the dip to the 20-day EMA. A strong rebound off this level will suggest that the sentiment remains positive and traders are buying the dips. The bulls will then again try to resume the uptrend.
A breakout and close above $77.48 could clear the path for a possible run to $91 and then to psychological resistance at $100. Alternatively, a breakdown and close below the 20-day EMA may signal the start of a deeper correction.
AXS/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the formation of a descending triangle pattern, which will complete on a breakdown and close below the support at $63. This reversal setup has a pattern target at $48.52. The flattening 20-EMA and the RSI near the midpoint indicate that the bullish momentum is weakening.
Contrary to this assumption, if the price rises from the current level and breaks above the downtrend line, it will invalidate the bearish setup. That could increase the possibility of a retest of the all-time high at $77.48.
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.
