MicroStrategy CEO: Company’s Investors Pleased with Decision to Buy Bitcoin

MicroStrategy has been making headlines throughout the past couple of months, with the Virginia-based company announcing in August their plans to convert their treasury reserves from USD to Bitcoin.

The aim of this unprecedented action is to guard against inflation and devaluation of the US Dollar, which could have sizeable impacts for companies with cash reserves in the hundreds of millions.

Despite MicroStrategy’s move being somewhat unorthodox, its CEO explained in a recent interview that some of its top investors are pleased with the decision, offering support and compliments.

This shows that large investors are beginning to recognize the dangers of using USD as a reserve asset. MicroStrategy’s CEO believes that the trend of companies adopting Bitcoin will pick up steam in the months and years ahead.

MicroStrategy’s Investors are Pleased with the Decision to Buy Bitcoin 

In August, MicroStrategy made headlines when it became one of the first public companies to purchase massive sums of Bitcoin.

This purchase took place shortly before the cryptocurrency saw a notable spike in price, leading many to suspect that BTC investors were taking that as a positive development.

Earlier this month, Michael Saylor – the company’s CEO – explained in a tweet that MicroStrategy doubled down on their BTC holdings, acquiring a total of 16,796 BTC on the open market via 88,617 trades.

“To acquire 16,796 BTC (disclosed  9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds. ~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike.”

This put the company’s total Bitcoin holdings at 38,250.

While speaking to Bloomberg in a recent interview, Saylor noted that some of the company’s investors expressed support for the decision, explaining that the top ten investors were “very supportive and complimentary.”

MicroStrategy Isn’t Looking to Sell Their BTC Anytime Soon 

Despite being net-negative on their Bitcoin purchases due to recent market-wide turbulence, Saylor explained that the company has no intention of offloading its BTC anytime soon.

“Volatility isn’t really a reason to sell… Right now this is the only thing we can find with a positive real yield.”

That being said, he did state that Bitcoin’s high liquidity does make it an attractive asset to hold.

“We can liquidate it any day of the week, any hour of the day… If I needed to liquidate $200 million of Bitcoin, I believe I could do it on a Saturday. If I took a haircut, I believe it would be 2%.”

Depending on how well MicroStrategy fares following this decision, other public and private companies may adopt a similar approach to protect their capital.

Featured image from Unsplash.

Chainlink Reaches Critical Support as Analysts Forecast a Strong Rebound

Chainlink’s price action has been quite grim as of late, with it facing unusual inflows of selling pressure as investors begin jumping ship.

The mass exodus of capital away from the cryptocurrency has caused its price to decline from highs of $20.00 that were set just a matter of weeks ago, to lows of $7.80 tapped earlier today.

This is a significant decline and indicates that the previously bullish altcoin’s macro market structure is beginning to degrade.

It is important to note that LINK has seen parabolic advances and drawbacks similar to this one in the past, but it often takes it quite some time before it can resume its bull trend.

One trader does believe that the cryptocurrency is oversold at its current price level, offering a chart showing that Chainlink has now reached a critical support level that could be followed by some significant upside in the days and weeks ahead.

This comes as open interest for the token begins surging, suggesting that traders are betting on it seeing heightened volatility as its price approaches this crucial level.

Chainlink Sees Further Weakness as Sellers Continue Building Momentum

At the time of writing, Chainlink is trading down over 6% at its current price of $8.20. This marks a notable decline from daily highs of $9.00 that were set around this time yesterday.

The crypto has been facing relentless selling pressure ever since its price peaked at $20.00. The parabolic rally up to these highs was positive and led many analysts to anticipate further upside.

That being said, the selling pressure placed on the token once it broke into this price region was tremendous, and it has been sliding lower ever since.

One trend to consider in the near-term is the mounting open interest for Chainlink across carious futures platforms. This could indicate that a big move is brewing.

Chainlink LINK

Data and Chart Courtesy of Coinalyze.

Analyst: LINK May Soon Post a Strong Rebound as It Nears Critical Support 

While speaking about the cryptocurrency’s near-term outlook, one analyst explained that Chainlink might be nearing a crucial support level that could spark a bounce.

This support exists around $8.00, and his upside target seems to sit around $15.20.

“Chainlink – Very eager to take some spot longs on link at the only reasonable support it has left.”

Image Courtesy of Calmly. Chart via TradingView.

It appears that Chainlink’s current price action is somewhat detached from that of the aggregated crypto market. As such, where it trends next may not depend on Bitcoin and other major altcoins.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s UNI Token Reclaims Crucial Support as Analysts Eye a Macro Bottom

Uniswap’s token (UNI) has been bearing witness to immense volatility throughout the past few days, with its post-launch price action being surprisingly strong – considering that all users of the platform were airdropped a sizeable quantity of tokens.

After rallying to highs of $8.50 in the days following its launch, the token has since witnessed massive inflows of selling pressure that brought its price down to lows of $3.75.

Bulls have since stepped up and absorbed this selling pressure, pushing it back up towards the $5.00 region as they aim at reversing its recent downtrend.

There’s still a long way to go before bulls can propel the crypto back up to its highs, but the recent price action seen by UNI does seem to indicate that its multi-day lows will mark a long-term bottom.

One analyst is now explaining that the construction of a higher low could indicate that the mid-to-upper $3.00 region is a strong base of support that will ultimately become a mid-term bottom.

Uniswap’s UNI Token Gains Momentum Following Sharp Drawdown

Throughout the past few days, Uniswap’s governance token – called UNI – has been caught within the throes of an intense downtrend. This decline came about rather suddenly after it rallied to highs of $8.50 in the days following its launch.

This rally was hype induced, with retail investors and traders all pouring massive sums of capital into the crypto.

Once it reached the $8.00 region, its momentum began slowing, and bulls were no longer able to maintain their control over its trend.

The rejection at $8.50 was grim and ultimately caused Uniswap’s UNI token to set lows of $3.75 yesterday.

Analyst: UNI Could Form a Long-Term Bottom as Bulls Attempt a Trend Reversal 

At the time of writing, UNI is trading up over 17% at its current price of $4.58. This marks a massive surge from its daily lows.

One analyst believes that this potent reaction to the cryptocurrency’s recent lows indicates that a long-term bottom is in sight and that further upside could be imminent.

“Uniswap: Slight trend shift? Nice higher high occurring here, through which I’d want to see $3.75-3.90 hold as support. If so, a higher low is constructed and the price of $UNI can continue moving upwards.”

Uniswap UNI

Image Courtesy of Crypto Michael. Chart via TradingView.

Because Uniswap’s UNI token has been able to rise in the face of turbulence in the rest of the market, this may indicate that it has been oversold and that further upside is imminent in the days ahead.

Featured image from Unsplash.
Charts from TradingView.

This Analysis Suggests December Will Be a Crucial Month for Bitcoin

Bitcoin’s price action has done little to offer investors with clarity into its near-term outlook. The benchmark digital asset has been trading around $10,500 for the past few days, with each push higher or lower resulting in a move back to this price level.

The lack of directionality seen in the time following its $11,000 rejection seems to indicate that the market is at a turning point, with bulls and bears reaching an impasse as both sides battle for control over its near-term outlook.

One analyst explained in a recent tweet that a Gann-based analysis of Bitcoin’s near-term timeline seems to indicate that mid-December is a pivotal point for the cryptocurrency.

As such, it may not be able to garner any clear directionality until this time, meaning that the coming few months may result in it seeing a prolonged bout of sideways trading.

That being said, the same analyst also notes that he is bull-biased on BTC at the present moment, saying that only a decline beneath $10,000 on its weekly chart would be enough to invalidate this sentiment.

Bitcoin Consolidates as Market Loses Momentum

The cryptocurrency market doesn’t have any strong momentum in either direction at the present moment.

Both bulls and bears have reached an impasse, resulting in Bitcoin – as well as most major altcoins – entering tight consolidation channels.

The two short-term levels to watch closely sit at $10,400 and $10,600. These mark the upper and lower boundaries of the range formed by BTC in the time following its rejection at highs of $11,200.

Where the entire market trends next may depend on which of these levels is broken first.

Trader: This Analysis Indicates Mid-December is a Turning Point for BTC 

One analyst recently stated that a Gann-based time analysis of Bitcoin suggests that mid-December is a pivotal moment for the cryptocurrency. This means that how it trends heading into this time frame could set the tone for 2021.

The analyst does note that he is bullish on BTC so long as it remains above $10,000 on its weekly candle. A close beneath here would be grim.

“BTC Gann based price & time analysis. Current time pivot to be resolved – I remain biased bull until we lose 10K on weekly. Mixed signals but clear invalidation for the bulls and downside targets included in chart which I’ll trade. Next time pivot mid-December,” he explained.

Bitcoin

Image Courtesy of Bitcoin Jack. Chart via TradingView.

The coming few weeks and months will likely be imperative for understanding Bitcoin’s macro outlook for 2021 and beyond.

Featured image from Unsplash.
Charts from TradingView.

Ripple co-founder moves $115m worth of XRP – sparking fears of a selloff

The massive hype surrounding Ripple’s XRP token throughout 2017 created an enormous community that carried over into 2018 and 2019, but this community of investors appears to have been dissolving as of late.

Interest in the token has fallen off a cliff, with the lack of significant banking partnerships and tempered utility slowing the cryptocurrency’s growth.

That being said, it is still one of the largest cryptocurrencies by market cap, with plenty of investors from 2017 and beyond still holding onto their tokens in hopes of it seeing growth and adoption in the future.

One short-term event that could place some pressure on the cryptocurrency is the transfer of $115m worth of the token by Chris Larsen – an early Ripple executive.

It’s possible that these tokens are being moved from his wallet to be sold via OTC.

Any pressure this news could place on the crypto may be offset by the secondary market token purchases that Ripple has been making in recent months.

XRP price remains stagnant within the $0.20 range as Ripple starts buying 

XRP’s price has been struggling to gain any notable momentum in recent days and weeks, with it remaining stagnant within the mid-$0.20 region.

At the time of writing, XRP is trading up marginally at its current price of $0.23. This is around the price at which it has been trading throughout the past several days and weeks.

XRP Ripple
XRPUSD Chart via TradingView.

During the peak of the recent market-wide uptrend, its price was able to stretch as far as $0.32 before it faced massive inflows of selling pressure.

One trend that may be bolstering XRP in the near-term is the secondary market purchasing Ripple has been conducting. They spoke about this in their Q2 2020 update, saying:

“A healthy, orderly XRP market is required to minimize cost and risk for customers, and Ripple plays a responsible role in the liquidity process… That said, Ripple has been a buyer in the secondary market and may continue to undertake purchases in the future at market prices.”

Ex-Ripple executive transfers $115m worth of the crypto

Per a recent note from the wallet tracking platform Whale Alert, Chris Larsen – a Ripple co-founder and former executive – just moved over $115m worth of XRP.

“499,999,979 XRP (115,847,491 USD) transferred from Chris Larsen to unknown wallet.”

He later stated in a follow-up tweet that these tokens were moved to NYDIG – a custodial solution for crypto. However, some users have observed that this would be one platform through which someone could sell a massive token stake OTC.

It remains unclear as to whether or not he intends to sell these tokens, but his potential exit from the ecosystem could strike a blow to investor sentiment.

The transaction can be viewed by navigating to this link.

The post Ripple co-founder moves $115m worth of XRP – sparking fears of a selloff appeared first on CryptoSlate.

This On-Chain Indicator Signals Bitcoin May Soon Go Parabolic

Bitcoin’s price action has been largely favoring sellers throughout the past several days and weeks, with bulls unable to catalyze any strong momentum while the cryptocurrency continues facing intense selling pressure each time it attempts to push higher.

The lack of sustainable momentum seen throughout the past few days and weeks has struck a serious blow to the benchmark digital asset’s technical outlook.

Part of this weakness has come about due to the turbulence seen within the stock market, coupled with mounting strength seen by the US Dollar.

Despite not being able to break above $11,000, on-chain data indicates that the cryptocurrency is fundamentally strong, and it may only be a matter of time before it can push higher.

One indicator suggests explicitly that the crypto could be on the cusp of seeing parabolic upside.

This metric usually only dips below one key level in the months preceding a massive push higher.

Bitcoin Stabilizes Following Recent Downtrend: Stock Prices Boost BTC Bulls

Last week, Bitcoin’s price rallied as high as $11,200 before it found significant selling pressure that slowed its ascent and caused it to see heightened selling pressure.

Initially, this selling pressure only caused it to consolidate around $11,000 for a brief period, but it eventually led BTC to plunge to lows of $10,400.

This plunge was perpetuated by weakness in the U.S. stock market, which opened the week yesterday deep in the red.

Traditional investors have been growing increasingly fearful about the lack of any progress surrounding any further stimulus packages. The lack of news surrounding a potential vaccine may also be troubling some traders.

Until stocks stabilize or resume their uptrends, Bitcoin and the rest of the crypto market may continue struggling.

On-Chain Indicator Suggests Upside is Imminent

Despite being in a precarious position, Bitcoin’s on-chain strength indicates that upside is imminent.

One data analyst pointed towards the cryptocurrency’s “spent output profit ratio,” explaining that it is currently dipping below a level that historically indicates a bull run is imminent.

“Spent output profit ratio (SOPR) is dipping below one right now. In bull markets this is a buy the dip opportunity. I believe there is sufficient technical and fundamental evidence to suggest we are in the early stages of a bull market right now,” he said.

Bitcoin

Image Courtesy of Philip Swift. Chart via Glassnode.

In the near-term, the stock market will likely continue influencing Bitcoin, but the crypto’s underlying strength may ultimately allow it to incur an uptrend of its own.

Featured image from Unsplash.
Pricing data from TradingView.

Here’s What Could Be Fueling Uniswap Token’s Rapid Descent Below $4.00

Uniswap’s newly released governance token – called UNI – has seen some immense volatility in the time following its launch. After rallying from lows of $1.00 to highs of $8.50, the cryptocurrency’s price has been descending rapidly.

It appears that those who received 400+ tokens as a result of the recent airdrop are beginning to sell them to sure up their free profits, while the present lack of incentives for token holders continues placing pressure on the token.

It has now broken below $4.00 and appears to be poised to see even further near-term downside.

While speaking about where UNI may trend next, one analyst explained that he is watching for a dip down to the lower-$3.00 region before finding any meaningful support.

Another trader recently observed that this selloff is possibly fueled by low yields on the liquidity pairs that users are farming, which is significantly lower than those offered on some competing platforms.

Uniswap Struggles to Gain Upwards Momentum as Selling Pressure Mounts

At the time of writing, Uniswap’s UNI token is trading down over 6% at its current price of $3.99.

The cryptocurrency has been trading around this price level throughout the morning hours, with bulls unable to catalyze any significant strength.

The hype surrounding Uniswap was intense when it first launched, mainly because everyone who had ever used the platform partook in its meteoric price rise.

This rally allowed it to climb 900% from its lows, but it has since erased over half of these gains.

Where the token trends in the near-term may depend largely on its reaction to a key support level that it is fast approaching. This level sits at roughly $3.25, and can be seen on the below chart put forth by an analyst:

Uniswap UNI

Image Courtesy of Mac. Chart via TradingView.

Here’s One Factor Behind UNI’s Decline

While speaking about why the token has dipped so much from its highs, another trader explained that the lack of profitability for farming the token might be one reason why demand isn’t that high.

The four pools that Uniswap support for UNI farming are all yielding around roughly 30-40% APY. This number decreases as the amount of capital locked within the pools grows, and as UNI’s price declines.

“My $4 UNI target was based on 30-40% yield expectations of a farm with high IL risks. It played out much faster than expected. You get 1000 bps yield pickup with SUSHI and double if you do the sUSD-ETH pair.”

Unless there’s a mass exodus out of these pools that causes yields to spike, liquidity providers may shift their focus towards other platforms.

Featured image from Unsplash.
Charts and pricing data via TradingView.

Chainlink Could Soon “Nuke” Lower if It Breaks Below Critical Support

Chainlink’s price has been sinking like a stone throughout the past few days and weeks, with buyers being unable to garner any sustainable bullish momentum as the cryptocurrency faces immense inflows of selling pressure.

This has caused the crypto to dive down to a crucial support level that has proven to be historically significant.

As such, how it reacts to this level in the days and weeks ahead could provide some serious insights into its near-term outlook, with a strong bounce here providing bulls with a serious boost.

A break below this level, however, could cause LINK’s price to nuke lower, potentially reeling to price levels not seen since the start of the year.

One highly respected trader recently offered a grim outlook on Chainlink, explaining that he believes the crypto is poised to see some serious near-term downside if the support level just below its current price is shattered.

Chainlink Struggles to Rebound as Selling Pressure Persists 

Chainlink has undoubtedly been one of the most bullish digital assets throughout the past several months and even years, with its price consistently pushing higher despite the turbulence seen throughout the aggregated crypto market.

This strength has not stopped it from seeing massive downside throughout the past few days and weeks.

After rallying as high as $20.00 in August, LINK faced a grueling rejection that threw it into an intense downtrend.

Although bulls previously stopped it from breaking below $10.00, this key support was shattered just a matter of days ago.

At the time of writing, Chainlink is trading down marginally at its current price of $8.80. This is around where it has been trading throughout the past day, with bulls beginning to establish $8.50 as a support level.

Trader: LINK May “Nuke” Lower if $8.50 Support Breaks

While speaking about Chainlink’s near-term outlook, one respected trader noted that $8.50 is a critical historical support level that must be ardently defended by bulls.

He explained that a dip below this level would allow things to “get pretty ugly” for the cryptocurrency.

“Chainlink at absolute Gigasupport. Link marines have an opportunity to save LINK from the giga nuking. Below $8.50 would probably get pretty ugly, as everyone from the last month and a half would be underwater…”

Chainlink LINK

Image Courtesy of Flood. Chart via TradingView.

How Bitcoin trends in the near-term may also have some heavy influence on where Chainlink trends in the days and weeks ahead.

Featured image from Unsplash.
Charts from TradingView.

On-Chain Analyst: Bitcoin Likely to Decouple from Stock Market in Coming Months

Bitcoin has been forming a strong correlation to the stock market once again, with this typically occurring during times of global uncertainty.

At the moment, traditional investors are consumed with fears regarding the lack of a second domestic stimulus package within the U.S., as well as the lack of progress in reeling in the pandemic.

The upcoming presidential elections are also creating some uncertainty. There’s a high likelihood that these fears will go unresolved in the near-term, and this could create further turbulence amongst equities.

That being said, it is important to note that this could have an adverse impact on Bitcoin as well, as the benchmark cryptocurrency has never been able to rally as the traditional markets see bear-favoring chaos.

One on-chain analyst, however, is noting that he expects the correlation between BTC and the traditional markets to break in the coming months.

He specifically notes that a sharp decline in stock prices will eventually stop dragging Bitcoin lower as the crypto sees its sell-side pressure diminish. At this point, it may be able to break this correlation and rally independently.

Bitcoin Stagnates as Stock Market’s Descent Slows

At the time of writing, Bitcoin is trading up marginally at its current price of $10,490. This is around the price at which it has been trading throughout the past couple of days.

Last week, bulls stepped up and attempted to reverse BTC’s recent downtrend, pushing the cryptocurrency up to highs of $11,200. The rejection here was rather harsh and ultimately caused it to decline towards its current price levels.

The stock market has been able to post a slight recovery today, which is why Bitcoin’s recent plunge lower has stalled.

That being said, the lack of any fundamental developments surrounding stimulus, or the pandemic, may continue to weigh heavily on the crypto.

Here’s When BTC Could Break Its Connection to the Stock Market

While speaking about the strong correlation between Bitcoin and equities, one on-chain analyst explained that a serious stock plunge will eventually cause BTC to break its correlation.

Essentially, he explains that stocks have much greater sell-side potential than BTC.

“SPX looking very weak, if that plummets, I’ll go out on a limb as say BTC will decouple in coming months. Post halvening and reduced derivative trading volumes fundamentally reduce BTC’s sell pressure against bullish fundamentals of an anti-inflationary hedge.”

The stock market’s price action in the coming week or two should offer significant insights into Bitcoin’s mid-term outlook.

Featured image from Unsplash.
Pricing data from TradingView.

Bitcoin is About to See Its Largest Quarterly Options Expiry Ever

It has been a rough past few days for Bitcoin and the aggregated cryptocurrency market, with sellers gaining full control after BTC following the benchmark digital asset’s inability to stabilize above $11,000.

This selling pressure has struck a potentially lethal blow to BTC’s macro market structure, as the cryptocurrency now appears to be positioned to see further near-term downside, potentially declining as low as $10,000 before it finds any significant buying pressure.

One factor that could contribute to the cryptocurrency’s volatility in the near-term is the imminent expiry of 87,000 quarterly BTC options contracts. Traders rolling over these positions or moving to cover them before the close could catalyze some turbulence.

The head of risk & product at Deribit – the largest crypto options trading platform – explained that there could be some spikes in trading volume based on a trend seen while looking towards BTC’s option skew.

Bitcoin Price Sees Turbulence as Sellers Catalyze Momentum

At the time of writing, Bitcoin is trading down nearly 5% at its current price of $10,450. This marks a massive decline from its recent highs of $11,200 set just before the crypto faced a strong rejection.

The selling pressure here was significant, leading BTC to enter a prolonged consolidation phase within the upper-$10,000 region.

Bears gained an edge over bulls, with a confluence of different factors helping catalyze today’s sharp selloff.

A few factors that likely perpetuated this recent downside volatility are stock market turbulence, strength in the US Dollar, and weakness amongst overheated DeFi altcoins.

The confluence of these factors placed some immense pressure on Bitcoin, and it now appears to be poised to see further near-term downside. The next key support level to watch sits around $10,000.

BTC About to See a Massive Quarterly Options Expiry

This Friday, a total of 87,000 Bitcoin quarterly options contracts are set to expire, making this the largest ever seen.

Options trading platform Deribit explained in a recent note that this could lead to heightened volatility in the days and hours before the expiration.

Shaun Fernando, the head of risk and product at Deribit, spoke about this, saying:

“The 1 month ATM volatility hit a high of 70% before falling to its level of 46% and we have seen volatility in the skew. The Deribit Index is currently trading more than 2.5% below the settlement of nearly 4 hours ago which could suggest some interesting realised vs implied strategies. If the trend carries, expect a run on [volume]…”

Watching the market dynamic heading into this option expiry will offer insight into where the entire market may trend in the near-term.

Featured image from Unsplash.
Pricing data from TradingView.

Yearn.finance (YFI) plunges to “do or die” support despite positive developments

Yearn.finance’s governance token (YFI) has been hit hard by the recent downtrend seen across the aggregated cryptocurrency market, with the token now trading down nearly 50 percent from where it was at its peak.

Despite this bearish price action, it is important to note that the Yearn.finance ecosystem is still thriving, and YFI holders may soon be able to receive instant rewards for tokens staked in the governance contract.

This will allow governance participants to claim rewards that have been accumulated throughout the past several weeks.

Although this may not catalyze any shift in the cryptocurrency’s price trend, incentives like this will encourage more users to buy and stake their YFI tokens.

From a technical perspective, one analyst noted that the Yearn.finance token has reached a crucial technical support level. A dip below here would be grim and potentially lead it to see some serious losses.

Yearn.finance governance continues seeing positive developments

Yearn.finance has become a benchmark project within the DeFi ecosystem. Their introduction of yVaults and other projects has been incredibly promising, with the project being one of the largest innovators in the market.

From a governance perspective, the project is also advancing positively, with holders with staked tokens now voting to allow governance participants to claim instant rewards from the pool.

This may incentivize users to be more active in governing the platform, which could, in turn, cause more YFI tokens to be locked within the staking contract.

BlueKirby – an anonymous Yearn.finance advocate – spoke about the governance development in a recent tweet, saying:

“Looks like instant rewards coming in 3 days to YFI staked in governance. – 12,385 YFI addresses – 20.46% in staked in governance.”

Yearn.finance YFI
Image Courtesy of Blue Kirby

YFI price plunges to crucial support

Despite the plethora of positive fundamental developments currently underpinning Yearn.finance, the YFI token’s value has depreciated heavily throughout the past couple of weeks.

After reaching highs of over $40,000, the token’s price has been caught in a strong downtrend that has pushed it down its current price of $23,800.

Cantering Clark, a respected cryptocurrency analyst, explained that the mid-$22,000 region is a critical support level that must be held by buyers.

“If YFI loses this level it likely drags a lot more Defi down with it. I think it has become the benchmark and index much like Bitcoin is. An exit crisis in Defi might only be slowed down by the network congestion. Maybe a built-in safeguard after all.”

Image Courtesy Cantering Clark. YFIUSD Chart via TradingView.

A break below this level could arise if the market continues to express immense signs of weakness in the days ahead.

The post Yearn.finance (YFI) plunges to “do or die” support despite positive developments appeared first on CryptoSlate.

Yearn.finance (YFI) plunges to “do or die” support despite positive developments

Yearn.finance’s governance token (YFI) has been hit hard by the recent downtrend seen across the aggregated cryptocurrency market, with the token now trading down nearly 50 percent from where it was at its peak.

Despite this bearish price action, it is important to note that the Yearn.finance ecosystem is still thriving, and YFI holders may soon be able to receive instant rewards for tokens staked in the governance contract.

This will allow governance participants to claim rewards that have been accumulated throughout the past several weeks.

Although this may not catalyze any shift in the cryptocurrency’s price trend, incentives like this will encourage more users to buy and stake their YFI tokens.

From a technical perspective, one analyst noted that the Yearn.finance token has reached a crucial technical support level. A dip below here would be grim and potentially lead it to see some serious losses.

Yearn.finance governance continues seeing positive developments

Yearn.finance has become a benchmark project within the DeFi ecosystem. Their introduction of yVaults and other projects has been incredibly promising, with the project being one of the largest innovators in the market.

From a governance perspective, the project is also advancing positively, with holders with staked tokens now voting to allow governance participants to claim instant rewards from the pool.

This may incentivize users to be more active in governing the platform, which could, in turn, cause more YFI tokens to be locked within the staking contract.

BlueKirby – an anonymous Yearn.finance advocate – spoke about the governance development in a recent tweet, saying:

“Looks like instant rewards coming in 3 days to YFI staked in governance. – 12,385 YFI addresses – 20.46% in staked in governance.”

Yearn.finance YFI
Image Courtesy of Blue Kirby

YFI price plunges to crucial support

Despite the plethora of positive fundamental developments currently underpinning Yearn.finance, the YFI token’s value has depreciated heavily throughout the past couple of weeks.

After reaching highs of over $40,000, the token’s price has been caught in a strong downtrend that has pushed it down its current price of $23,800.

Cantering Clark, a respected cryptocurrency analyst, explained that the mid-$22,000 region is a critical support level that must be held by buyers.

“If YFI loses this level it likely drags a lot more Defi down with it. I think it has become the benchmark and index much like Bitcoin is. An exit crisis in Defi might only be slowed down by the network congestion. Maybe a built-in safeguard after all.”

Image Courtesy Cantering Clark. YFIUSD Chart via TradingView.

A break below this level could arise if the market continues to express immense signs of weakness in the days ahead.

The post Yearn.finance (YFI) plunges to “do or die” support despite positive developments appeared first on CryptoSlate.

Chainlink Faces Grim Outlook as it Nears Bedrock Support Level

Chainlink’s price has been witnessing massive inflows of selling pressure throughout the past few weeks, with buyers being unable to garner any control of its mid-term trend in the time following its rejection at $20.00.

The cryptocurrency has now firmly broken below its previous support level at $10.00 and appears to be in a precarious position as analysts watch for further downside in the near-term.

While speaking about the cryptocurrency’s current outlook, one analyst explained that he is now targeting a decline down towards $7.90, which appears to be a bedrock support level for the token.

He notes that there is a possibility that LINK begins rallying now, with the support here potentially being enough to send it rocketing back up towards its previous highs.

One trader is noting, however, that a loss of a key parabolic support level against its Bitcoin trading pair could soon come to fruition, with this potentially causing it to see some serious macro downside.

Chainlink Plummets Lower as Sellers Maintain Control

At the time of writing, Chainlink is trading down 10% at its current price of $8.80, which marks a notable decline from daily highs of $10.60 that were set during a relief rally seen yesterday.

After holding above $10.00 for an extended period of time, the cryptocurrency eventually faced a massive influx of selling pressure that caused its price to reel to fresh multi-month lows.

The last time LINK was trading this low was in early August, just before it incurred a parabolic uptrend that sent its price surging up to highs of over $20.00.

This marked a long-term top for the crypto, as it has since plummeted lower and is showing few signs of finding any long-term support.

One trader did state that a dip towards $7.90 could be enough to help send it up towards its all-time highs.

“Just one more little push, grant me this marines,” he said while pointing to the below chart.

Chainlink LINK

Image Courtesy of Teddy. Chart via TradingView.

LINK Could Invalidate Its Macro Uptrend if Bulls Fail to Defend One Key Level 

While speaking about the cryptocurrency’s near-term outlook, another analyst explained that it is now at risk of breaking a parabolic trendline formed against its Bitcoin trading pair.

“Important note: lose current support and it looks grim. Either way, LINK looks to provide some proper volatility and thus opportunity,” he explained while pointing to the below chart.

Image Courtesy of Bitcoin Jack. Chart via TradingView.

If Chainlink dips below this level in the near-term, it could create some headwinds that stunt its growth against its USD pair as well.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s UNI Token May Reel to $3.30 as Selling Pressure Ramps Up

Uniswap’s UNI token launch generated massive hype for around 24 hours, leading the token’s price to surge up to highs of $8.50 before the hype faded and the cryptocurrency’s price plunged lower.

It doesn’t appear that the hype will return anytime soon, as the token has since erased the vast majority of its gains and is showing heightened signs of weakness.

This weakness has come about in tandem with that seen by Bitcoin and the aggregated cryptocurrency market.

BTC’s price has reeled down towards the lower-$10,000 region today and is showing few signs of strength as sellers continue taking profits off the table. Similarly, Ethereum’s price has also crashed, reaching the $330 region before finding some slight buying pressure.

This market-wide weakness may continue hampering UNI’s growth, and potentially lead it lower.

One analyst is even setting his sights on a move down towards $3.30, noting that this may be the price it plunges to before it is able to find some significant support.

Uniswap’s UNI Token Struggles to Maintain Its Hype as Momentum Fades

At the time of writing, Uniswap’s UNI token is trading down over 14% at its current price of $4.24. This is around the price at which it has been trading throughout the past several days and weeks, with buyers being unable to catalyze any strong momentum.

UNI’s weakness likely stems from a combination of factors, including fading hype following the intense $8.50 rejection, as well as technical weakness seen throughout the past few days.

It is important to note that it is still trading up considerably from its post-launch lows of $1.00.

At the moment, investors in UNI may be concerned about the lack of benefits that token holders currently receive, but it is probable that incentives – like a fee distribution – will eventually be proposed and voted through.

Trader: UNI Likely to Target $3.30 as Selling Pressure Ramps Up

While speaking about Uniswap token’s current technical outlook, one trader explained that he believes its price will dive down towards $3.30 before it is able to find some strong support that boosts it higher.

“If you liked UNI at $5.2, you gonna love it at $3.3,” he said while pointing to the support level marked on the below chart.

Uniswap UNI

Image Courtesy of Mac. Chart via TradingView.

How altcoins like Uniswap’s token trend in the coming few days should depend largely on Bitcoin and Ethereum.

Featured image from Unsplash.
Charts from TradingView.

Indicator Shows Bitcoin’s Selloff May be Running Out of Steam

It has been a rocky past day for Bitcoin, with the benchmark crypto posting massive losses as buyers struggle to garner significant momentum.

This selling pressure has sent shockwaves throughout the entire cryptocurrency market, causing altcoins to see massive selloffs that have erased the bulk of their recent gains.

One trader is specifically noting that the cryptocurrency could be on the cusp of seeing its ongoing selloff come to an end, however, as one indicator points to slowing downside momentum.

That being said, the declining delta seems to indicate that BTC may plunge towards $10,100 before it is able to find any significant support.

A continued defense of the lower-$10,000 region is imperative for bulls. A break below this level would strike a blow to the cryptocurrency’s macro market structure and potentially lead it to see further losses in the days and weeks ahead.

Analyst: This Technical Factor Suggests a Move to $10,100 is Imminent 

At the time of writing, Bitcoin is trading down over 3% at its current price of $10,600. The cryptocurrency’s descent has slowed at this price region, indicating that there is some buying pressure here.

This recent decline came about rather unexpectedly and was likely the result of turbulence in the stock market. The strength currently being expressed by the US Dollar may be further compounding BTC’s weakness.

While speaking about the benchmark cryptocurrency’s near-term outlook, one trader explained that a downwards expansion of BTC’s delta seems to indicate that a move to the high $10,000 region is imminent.

“Delta expanding to the downside, looking at high 10100s,” he said while pointing to the below chart.

Bitcoin

Image Courtesy of RedXBT.

If this decline does occur, it will likely create even further weakness for BTC in the days and weeks ahead.

Indicator Suggests BTC’s Downturn is Slowing

On a slightly more optimistic note, there is one indicator that suggests that Bitcoin’s downtrend may be losing its momentum for the time being.

Fund manager Mohit Sorout offered a chart with this indicator in a recent tweet, showing that the intensity of the selling pressure may be slowing as Bitcoin reaches its key range-low support at just above $10,000.

“Where is the btc blood you guys keep talking about,” he asked while referencing the below chart.

Image Courtesy of Mohit Sorout. Chart via TradingView.

The coming few hours and days should offer some insights into the present state of both Bitcoin and the crypto market.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s UNI Token Shows Signs of Weakness as Analysts Target $4.80

Uniswap’s token (UNI) has seen immense volatility throughout the past few days and weeks, with aggressive buying pressure following its launch pushing it up towards $8.50 before witnessing a massive inflow of selling pressure.

This selling pressure has caused its price to collapse below $5.00, although it is still trading up significantly from its recent lows of $1.00 that were set just after its introduction to the market.

Analysts are now noting that a combination of increased selling pressure and positive funding rates for UNI perpetual swaps indicates that downside could be imminent in the near-term.

One analyst noted that the support within the mid-$4.00 region is quite significant, but it may not be enough to stop it from sliding lower.

While speaking about where he thinks Uniswap’s token will trend next, he also said that it all depends on Bitcoin and Ethereum.

These two digital assets have been seeing heightened weakness throughout the past few days, indicating that their prices will slide lower in the near-term.

Uniswap’s UNI Token Plunges Below $5.00 as Aggregated Market Sees Weakness 

At the time of writing, Uniswap’s UNI token is trading down over 20% at its current price of $4.95. The cryptocurrency has been struggling to gain any momentum ever since it rallied to highs of $8.50 earlier this week.

Despite currently sitting well below its weekly highs, it is important to note that it is still trading up from its post-launch lows of $1.00 that came about directly after the token was listed on Uniswap.

This decline occurred due to the sudden influx of 400 UNI sell orders seen directly after its listing, during which time recipients of the token airdrop frantically offloaded their tokens.

Analyst: UNI’s Short-Term Outlook is Dim as BTC and ETH Flash Warning Signs 

While speaking about the cryptocurrency’s near-term outlook, one analyst observed that although Uniswap’s token is entering a massive support region, the intensity of the selling pressure being placed on Bitcoin and Ethereum could force UNI lower.

“UNI update: Had some bids fill in the gray box, but I’m simply exiting them here in small profits. There’s a potential (not saying it will happen), but there’s a potential for ETH and BTC to continue downwards, and I doubt UNI will hold if so,” he said.

Uniswap UNI

Image Courtesy of Chase_NL. Chart via TradingView.

Altcoins like Uniswap’s governance token are currently expressing weakness across the board, which is a trend that will likely persist until Bitcoin and Ethereum find stability.

Featured image from Unsplash.
Charts from TradingView.

Chainlink Reaches an “Accumulation Zone” as Potential Long-Term Bottom Forms

Chainlink has been seeing intense weakness throughout the past few weeks, which has come about following a period of macro strength that allowed its price to rally up to highs of $20.00.

The cryptocurrency has since posted enormous losses that have erased months of upside, leading some analysts to now anticipate further losses in the near-term.

LINK is currently in the process of breaking below its macro support at $10.00, with bears beginning to garner full control of its near-term outlook.

One analyst is noting that the $8.00 to $9.00 region is a strong support zone that could ultimately mark a long-term bottom.

That being said, he still believes that its macro outlook is incredibly bright, noting that he is setting his sights on a move up towards $32.00 during the course of its next bull run.

Chainlink Shows Signs of Weakness as Bulls Lose Their Strength

At the time of writing, Chainlink is trading down over 2% at its current price of $9.83. This marks a notable decline from its recent highs of $10.80 that were set just a matter of hours ago.

These highs came about when bulls attempted to invalidate its near-term weakness and catalyze a sharp uptrend.

The rejection here, however, struck a blow to its technical outlook, with this weakness being compounded by the massive pressure being placed on altcoins by both Bitcoin and Ethereum at the present moment.

Until BTC and ETH find some stability or resume their uptrends, there’s a strong possibility that they will continue creating headwinds for altcoins like Chainlink.

This recent dip also forced LINK below its long-time support level at $10.00. If it is unable to reclaim this level in the near-term, it could indicate that further downside is imminent.

Analyst: LINK Likely to Dip Towards $8.00 Before Seeing Strong Rebound 

While speaking about Chainlink’s near-term outlook, one analyst explained that he is confident that it will see a strong push up towards $32.00 during the next bull phase.

He does believe that it may first see some downside, pointing to the region between $8.00 and $9.00 as somewhere where he will be placing bids.

“Stinkbids on LINK at $8-9 and accumulating some now around $10. Invalidation if price starts [dipping] below stinkbids & will build more size if trend confirms. I think this is going to $28-32 on the next run. BTC pair also looks ready to turn around soonish,” he explained.

Chainlink LINK

Image Courtesy of Bitcoin Jack. Chart via TradingView.

How the aggregated market trends in the days and weeks ahead should hold heavy influence over Chainlink’s mid-term outlook.

Featured image from Unsplash.
Chart from TradingView.

Ethereum network congestion rockets as ETH supply moves into smart contracts

The Ethereum network has been placed under immense pressure to handle significant demand for its blockspace, with users interacting with smart contracts, DEXs, and AMMs directing massive transactional volume to the network.

This has resulted in high fees – the likes of which have never been seen before. These high fees have driven investors’ capital towards other layer ones, with debates mounting regarding which “Ethereum killer” may capture a sizeable share of the market.

One interesting trend that the DeFi crazed has created for Ethereum – in addition to sky-high fees – is a migration of ETH tokens away from centralized exchanges and into smart contracts.

Data reveals that there is now more ETH held within smart contracts than there is on centralized exchanges.

This could bode well for Ethereum’s price, as it makes these tokens less readily available for trading, which could, in turn, provide some stability.

Ethereum network congestion reaches new heights as DeFi trend persists

The DeFi ecosystem is nearly exclusively built upon Ethereum and drives demand to the blockchain through multiple different facets.

Users looking to acquire tokens use AMMs and DEXs to do so, with each conversion requiring both an approval and an actual swap. This alone has placed some strain on Ethereum.

The yield farming trend has compounded this, as investors lock their tokens within smart contracts and liquidity pools to generate returns on their capital.

Analytics platform Santiment explained in a recent tweet that the current congestion that the Ethereum network is facing is the highest ever seen.

“ETH gas fees have notably skyrocketed the past couple months as DeFi solutions and ‘yield farming’ platforms have extensively risen in popularity. The Ethereum network has NEVER faced a congestion hitch quite this drastic before.”

During peak activity times on the platform, users often have to pay north of $60 worth of gas to have their transactions processed promptly.

ETH supply largely shifts away from centralized exchanges and towards smart contracts

High fees and network congestion aren’t the only impacts that DeFi has had on Ethereum.

Data also shows that the amount of ETH being held on centralized exchanges has seen a drastic decline in recent times, with most of it being shifted into smart contracts.

Glassnode, an analytics firm focused on on-chain data, recently put forth a chart showing that nearly 16 percent of the Ethereum supply is now held within smart contracts, whereas 11.5 percent is held on centralized exchanges.

Ethereum
Data Source: Glassnode

This trend suggests that high transaction fees may not go away anytime soon. Still, it also indicates that the cryptocurrency’s price could be well-positioned to see heightened stability in the weeks and months ahead.

The post Ethereum network congestion rockets as ETH supply moves into smart contracts appeared first on CryptoSlate.

Uniswap’s UNI Sees Funding Flip Negative Once Again as Bulls Roar

Uniswap’s token UNI has been seeing massive inflows of capital throughout the past few days and weeks, with investors flocking to try to garner governance rights over Uniswap – which has rapidly become the most popular AMM in the market.

This has caused the price of UNI to surge, hitting highs of over $8.40 yesterday before witnessing massive inflows of selling pressure that slowed its ascent and caused it to erase some of its recent gains.

Nevertheless, it is still trading up well over 600% from its lows of $1.00 that were set just after its launch.

These lows came about due to the sudden influx of 400 UNI token sell orders from individuals who had just received their token airdrops.

Now that the dust is settling, UNI appears to be garnering some stability around its current price region.

That being said, some analysts are beginning to flip long on the token, pointing to its negative funding coupled with the strong base of support just below where it is currently trading.

Uniswap’s UNI Token Stabilizes Following Harsh Selloff from $8.40 Highs

At the time of writing, UNI is trading up 3% at its current price of $6.69, which marks a slight rebound from its recent lows of $6.00 that were set just after witnessing the inflows of selling pressure that caused it to plunge from highs of $8.00.

The intensity of this decline certainly struck a blow to its technical outlook, but analysts are noting that the likelihood it seeing further upside is beginning to grow.

One factor signaling that there is room for a push higher is the negative funding rates seen on the Uniswap token’s perpetual swaps, which are making it costly for investors to be short on the crypto.

One analyst spoke about this in a recent tweet, putting forth a chart showing the trend.

“UNI funding going negative again,” he explained.

Bitcoin

Image Courtesy of Byzantine General.

Here’s How High UNI May Surge in the Near-Term

While speaking about where he anticipated the cryptocurrency’s price to trend in the near-term, one analyst noted that a move up towards $7.70 could be imminent in the days ahead.

“UNI: Taking this scalp. Funding reaching equilibrium. I think we will slow down after this hits,” he said while pointing to the below chart.

Image Courtesy of Mac. Chart via TradingView.

Whether or not the Uniswap token’s price begins drifting lower as the hype fades remains to be seen, but it is important to keep in mind that its diluted market cap is already close to $7 billion.

Featured image from Unsplash.
Charts from TradingView.

Bitcoin is About to Tap a “Do or Die” Level; Will Bulls Break It?

Bitcoin’s price action has been somewhat stagnant as of late, with the selling pressure found throughout the lower-$11,000 region proving to be too much for bulls to break.

Today, however, buyers have been stepping up and attempting to generate some significant buying pressure, likely with the aim of breaking above $11,300. Because this is the last resistance level before $12,000, a break above it could catalyze a considerable upswing.

That being said, how BTC trends as its weekly candle close fast approaches should provide analysts and investors alike with some serious insights into its near-term outlook.

One analyst explained that flipping $11,200 into support is an imperative next step for BTC to see further gains in the near-term.

He does note that it will not be easy for bulls to achieve this, but it is vital to maintain BTC’s macro bullishness.

Because of the slight strength it has expressed throughout the past few days, there’s a possibility that a test of this level is imminent.

Bitcoin Pushes Past $11,000 But Still Faces Heightened Selling Pressure

At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,080. This is around the price at which it has been trading at all morning, with bulls and bears largely reaching an impasse.

It is important to note that BTC’s buyers did try to push it up to $11,200 earlier today, but it was stopped short by just a hair, and subsequently began plunging lower.

Where it trends next may depend primarily on whether or not buyers can hold it above $11,000 during its upcoming weekly candle close.

Holding above here could allow it to see significantly further upside, and maybe even spark the next leg up in its macro uptrend.

Analyst: $11,200 is a Key Macro Level for Analysts to Watch

While speaking about Bitcoin’s present technical outlook, one trader explained that he is closely watching to see how it reacts to $11,200.

“BTC HTF Update: Target / Major resistance finally hit, if you worried about price dropping from here and using leverage then close out your position and wait for this level to be flipped support… $11,200 is a key HTF level for flipping it will not be easy,” he explained.

Bitcoin

Image Courtesy of Cactus. Chart via TradingView.

The coming few days and weeks should elucidate the benchmark cryptocurrency’s mid-term trend.

Featured image from Unsplash.
Charts from TradingView.

Here’s how Nasdaq-listed MicroStrategy went about buying $175m in Bitcoin

MicroStrategy has become the poster child of mainstream Bitcoin adoption amongst corporations. It is the only publicly listed company to turn towards BTC as a reserve asset to store their capital in.

Their announcement last month regarding their decision to ditch the US Dollar in favor of BTC to store their capital was a big one, because it showed that the benchmark digital asset is gaining utility as a store of value.

For a company with hundreds of millions of dollars in cash, the decision makes sense, as the crypto’s scarcity allows them to avoid the massive losses that would otherwise be incurred due to inflation.

Acquiring this much BTC without going through over the counter (OTC) venues is no easy task, however, and the company’s CEO explained in a recent tweet how they went about doing this.

MicroStrategy now holds 38,250 Bitcoin 

Earlier this week, Microstrategy CEO Michael Saylor announced that his company had doubled down on their Bitcoin bet, adding $175m worth of the digital asset to their holdings.

This massive purchase came about just weeks after the company had revealed its plans to switch to an alternative Bitcoin-focused financial strategy. They now intend to hold their entire capital reserves in BTC to avoid inflation and devaluation of the US Dollar, which is being printed at unprecedented rates.

This strategy is unprecedented and was kicked off by the purchase of a whopping $250m worth of the digital asset.

The company revealed on September 15th that they were buying even more BTC, conducting a $175 million purchase via the spot retail markets. This may have caused Bitcoin’s price to rally to $10,900 while the rest of the market trended lower.

Their total holdings now stack up to 38,250 Bitcoin, with an aggregated purchase price of $425 million.

Here’s how MicroStrategy market-bought 16,796 BTC

During their latest bout of purchasing, MicroStrategy used the retail market to acquire their crypto, with the company’s CEO explaining that they purchased 16,796 BTC throughout 74 hours of continuous trading.

“To acquire 16,796 BTC (disclosed  9/14/20), we traded continuously 74 hours, executing 88,617 trades ~0.19 BTC each 3 seconds. ~$39,414 in BTC per minute, but at all times we were ready to purchase $30-50 million in a few seconds if we got lucky with a 1-2% downward spike.”

The massive amount of capital that was introduced into the market as a result of these 74 hours of continuous trading likely had lasting impacts that may still be influencing Bitcoin.

The post Here’s how Nasdaq-listed MicroStrategy went about buying $175m in Bitcoin appeared first on CryptoSlate.

Ethereum’s Market Dominance is Poised to Surge; Here’s How Uniswap May Fuel It

Ethereum has been at the center of some of the largest developments within the crypto market throughout the past several weeks and months.

Nearly the entire DeFi ecosystem is built upon the Ethereum blockchain, which has driven massive demand for blockspace on the network. This has caused gas fees to rocket to all-time highs, with the trend showing few signs of slowing down anytime soon.

Despite the massive amount of capital that has flooded the DeFi ecosystem, it is imperative to note that this has not been fully reflected in ETH’s price action, as the cryptocurrency has remained somewhat stagnant as of late.

This may soon change, as one analyst is noting that he is expecting the cryptocurrency to see a massive surge in its dominance over the market in the near-term. He specifically believes it may rally as high as 17-18%.

There’s a possibility that Uniswap’s token launch will help fuel this.

Analyst: Ethereum Market Dominance to Surge Towards 18%

Ethereum’s price has been stagnant below $400 throughout the past few weeks, with buyers being unable to break back above this key level.

It is important to note that the selling pressure found around this key price region has catalyzed multiple harsh rejections, although ETH is finally beginning to garner some sustainable upwards momentum.

Whether or not it is able to hold above $380 could be the factor that determines its near-term outlook.

One trader believes that Ethereum will gain against the rest of the market, potentially rallying enough to cause its market dominance to hit 18%.

“ETH dominance is heading to 17-18% and there is nothing you can do to stop it,” he said while pointing to the chart seen below.

Ethereum

Image Courtesy of Wolf. Chart via TradingView.

Here’s How Uniswap’s Token Launch Could Fuel ETH’s Dominance Rise 

Demand for Ethereum may be disproportionate to that of Bitcoin and other cryptocurrencies in the near-term.

This could be due to liquidity providers looking to earn UNI tokens buying ETH to stake it in the four pools offering Uniswap token incentives.

Each of these four pools requires Ethereum as one of the pairs, which means investors must have, or acquire, ETH to become an LP.

Already these pools have a collective total value locked of nearly $1 billion, which amounts to $500 million worth of ETH.

As this number grows, it could place further buy-side demand on Ethereum, and there’s a decent chance that the vast majority of this ETH will be held onto for the next two months while the UNI incentives remain intact.

Featured image from Unsplash.
Chart and pricing data via TradingView.

XRP Could Be Gearing Up for a “Moon Mission” as Bulls Reclaim Key Level

XRP and the aggregated altcoin market is currently caught within a consolidation phase as Bitcoin struggles to gain any decisive momentum.

It does appear that these tokens are awaiting more directionality from BTC before they make any sizeable movements. This has, in turn, caused smaller altcoins to also fall into bouts of sideways trading.

Although it remains unclear as to where the market may trend next, XRP’s recent technical developments indicate that any market-wide upside could allow it to enter a full-blown moon mission.

One analyst explained in a recent tweet that the cryptocurrency was able to reclaim a crucial technical level that it had previously broken below.

Its ability to reclaim this level and confirm it as support does indicate that upside may be imminent in the near-term.

Whether or not it launches higher, however, still likely remains primarily premised upon whether or not the rest of the market can show continued signs of strength. This could all depend on Bitcoin’s reaction to its $11,000 resistance.

XRP Stagnates as Bitcoin Fails to Surmount $11,000 Resistance 

At the time of writing, XRP is trading down over 2% at its current price of $0.25. This is around the price at which it has been trading throughout the past several days.

It is important to note that this marks a notable rise from its weekly lows of $0.23 set just a few days ago when the aggregated market faced a sharp selloff.

This selloff caused BTC and the rest of the cryptocurrency market to post some losses, but most digital assets have since recovered.

XRP is now ceding some of the gains seen in the time following this movement, being unable to hold above $0.25.

Here’s Why the Token Could be Poised to Push Significantly Higher 

While speaking about XRP’s current technical outlook, one analyst said that it remains well-poised to see further upside, despite its recent weakness.

He specifically points to the cryptocurrency’s BTC trading pair, noting that it was just able to reclaim a key level.

“XRP on both pairs looks good but using this LTF chart for reference. Clear deviation and reclaim taking place. Make way for Moon No target because I’m building a position for Swell and will re-evaluate as we get closer. Market conditions much different,” he said while pointing to the below chart.

XRP

Image Courtesy of Pentoshi. Chart via TradingView.

How Bitcoin continues responding to the resistance that sits just above where it is currently trading should have some serious implications for its near-term outlook.

Featured image from Unsplash.
Charts from TradingView.

Uniswap’s Token UNI Stable Above $5.50 as Negative Funding Rates Soar

Uniswap’s recently released token – called UNI – has seen massive inflows of investments throughout the past day, with the large buy-side orders far outweighing the relatively small sell orders from users who received 400 tokens via an airdrop.

This uptrend has been further perpetuated by multiple exchange listings, with the likes of Coinbase, FTX, and Binance all listing the token within 24-hours of its launch.

This has given retail investors unprecedented access to it, which appears to be what is helping to offset the instant sell-side pressure that came about as a result of the airdrop.

It is important to note that perpetual funding for UNI is also giving bulls fuel to push it higher, with funding rates currently sitting at over 280,000% annualized.

Massive negative funding rates are incentivizing traders to open long positions on the cryptocurrency. The costly nature of short positions will likely reduce the selling pressure coming from those trading UNI perpetual swaps.

Uniswap Price Climbs Above $5.00 as Bull Trend Resumes 

At the time of writing, Uniswap’s token price is currently sitting at around $5.80. This marks a fresh all-time high for the cryptocurrency, which has been steadily climbing higher throughout the past several days and weeks.

It is important to note that this marks a massive rise from its $1.00 lows set just after its listing.

These lows came about due to the intensity of the initial selling pressure from users who sold the 400+ UNI tokens that were airdropped to them.

Shortly after its launch, however, it garnered listing on multiple major exchanges, including Binance, FTX, and Coinbase.

This led to massive inflows of buying pressure from investors and has helped fuel its ongoing upswing.

The crypto is now trading right around its all-time highs as bears struggle to make any impact on it.

UNI Perpetuals See Massive Negative Funding Rates on Binance

Another factor that may further fuel Uniswap’s uptrend is the massive negative funding rates for the token’s perpetual swaps.

One trader spoke about this in a recent tweet, explaining that the roughly -0.1% that users are paying each hour to short UNI is making a strong bull case for the crypto.

“At -0.75% every 8 hours, or -0.0994% every hour, you are being paid 2.2% – 2.4% a day to be long UNI via perps,” he noted.

Uniswap UNI

Image Courtesy of DegenSpartan.

Assuming this trend surrounding Uniswap perpetual futures persists, the token could rally significantly higher in the days, weeks, and months ahead.

Featured image from Unsplash.

Bitcoin Whales Aren’t Selling Their BTC; It May Be Boosting Its Price

Bitcoin’s price action has been rather mixed as of late. Although the cryptocurrency has been slowly grinding higher, the lower-$11,000 region has proven to be a heavy resistance zone that is hampering its growth.

The intensity of the selling pressure here seems to indicate that bulls may not be quite as strong as they previously appeared to be, indicating that the benchmark digital asset may be on the cusp of seeing further downside.

Despite these short-term signs of weakness, one factor that is boosting Bitcoin and could indicate that a massive upside move is imminent is a trend seen while looking towards the wallets of whales.

These large BTC holders have not been selling into this recent push higher, which is a historically positive sign that indicates upside could be imminent.

Because these large sellers can move the market, their sustained holding pattern indicates that they are waiting for higher prices before they start selling.

It could also provide the market with a boost, as there is currently less selling pressure on BTC than typically seen when it consolidates below key resistance levels.

Bitcoin Consolidates Below $11,000 as Momentum Begins Faltering 

At the time of writing, Bitcoin is trading down marginally at its current price of $10,950. This is around the price at which it has been trading throughout the past few days.

Bulls have been unable to shatter the heavy selling pressure that exists between $11,000 and $11,300. Each attempt to do so has been met with spikes in selling pressure that send it back down to its current price level.

This consolidation may be coming about as bulls attempt to build up greater strength, but the multiple rejections it has faced so far does seem to spell trouble for its near-term outlook.

CryptoQuant: BTC Whales Hold Steady Despite $11k Rejections 

Data from analytics firm CryptoQuant shows that whales are holding their crypto despite Bitcoin’s multiple $11k rejections.

The firm’s CEO spoke about this in a recent tweet, explaining that the Exchange Whale Ratio has now hit a yearly low, with lower whale selling rates providing a boost to BTC.

“Exchange Whale Ratio hits the year low—the fewer whales moving to exchanges, the less dumping, and makes the higher BTC price.”

Bitcoin

Image Courtesy of CryptoQuant.

Assuming that this trend persists, it could indicate that Bitcoin will continue facing less macro selling pressure.

This would bolster its outlook and potentially lead it to see significantly further upside in the days and weeks ahead.

Featured image from Unsplash.
Pricing data courtesy of TradingView.

Bitcoin Hit $20k the Last Time This Fundamental Indicator Flashed; It’s Back

Bitcoin’s price action has given investors mixed signals as of late, with the benchmark cryptocurrency oscillating between $10,000 and $11,000.

The resistance found at the upper boundary of this trading range has proven to be quite significant, as it has catalyzed numerous rejections throughout the past few weeks.

Analysts are now widely offering mixed outlooks on BTC in the near-term, noting that its mid-term trend depends almost entirely on whether or not it is able to break above $11,000 in the near-term.

Despite a foggy technical outlook, the cryptocurrency’s fundamentals remain incredibly strong, and one indicator is even suggesting that a massive upside move could be right around the corner.

This on-chain indicator has been declining for a while, but just bounced at a historically significant level. In the past, reversals at this level hint that a parabolic rally is imminent.

Bitcoin Struggles to Maintain Its Momentum as $11,000 Selling Pressure Grows

At the time of writing, Bitcoin is trading down marginally at its current price of $10,850. This marks a notable surge from its recent lows of $9,900 that were set just over a week ago, but the cryptocurrency still remains down from recent highs of $12,400 that were set at the end of August.

The cryptocurrency’s price action in recent days has mostly consisted of it slowly grinding higher until it tapped highs of $11,100.

The selling pressure at this level was significant and nearly instantly catalyzed a sharp selloff that caused the crypto to plunge down towards $10,750.

It has been trading sideways ever since, and where it trends in the near-term will likely depend on its continued reaction to the selling pressure that has been established at this price.

On-Chain Indicator Signals a Bull Run May Be Imminent

While looking towards the cryptocurrency’s “short-term holder unrealized profit/loss” (STH-NUPL) indicator, it appears that Bitcoin could be on the cusp of making a strong push higher in the near-term.

Rafael Shultze-Kraft – the CTO of analytics platform Glassnode – explained that he believes this indicator is now flashing a signal that is historically only seen before the market enters bull runs.

“Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo! That bounce of the 0-line was important, is very characteristic for previous bull markets, and historically a good buying opportunity,” he explained.

Bitcoin

Image Courtesy of Glassnode.

If history rhymes and this indicator continues to maintain its accuracy, this could be a sign that significant upside is imminent for Bitcoin in the months ahead.

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Charts from TradingView.

Uniswap token launch “sparks life” into Ethereum as DeFi uptrend resumes

The recent Uniswap token (UNI) launch has excited the crypto industry, sending shockwaves throughout the market and even catalyzing an Ethereum upswing.

This was an unprecedented token introduction, as it granted all the platforms’ users with a minimum of 400 UNI worth over $1,300 at the time of writing.

Investors and users have been speculating about the imminent release of a Uniswap token for weeks. However, little concrete information was available until the platform released a blog post detailing the token release yesterday.

In this post, the decentralized AMM outlined the distribution curve of the token, and the governance rights holders are entitled to. They also announced that UNI rewards would be spread across four pools for the next 60 days for liquidity providers.

The launch of the token kindled an Ethereum uptrend that is showing few signs of slowing down, leading one analyst to forecast further gains in the near-term.

Uniswap launches highly anticipated governance token

Yesterday evening, users began noticing activity on Etherscan surrounding a token called Uniswap (UNI). Sure enough, just a handful of minutes later, the protocol released a blog post announcing the launch of their governance token.

The token, which has a total supply of one billion, but a circulating supply of 65 million at the present moment, saw an extremely successful launch, despite the widespread distribution.

It even caused Ethereum gas fees to rocket higher, at one point reaching an average gwei of 900.

After dropping below $1.00 during its initial listing, the cryptocurrency eventually surged up towards $4.00.

In the time since, its price has settled within the mid-$3.00 region, with its stability in the face of relentless sell pressure from those who received the 400 airdropped tokens not outweighing the buy-side pressure.

Ethereum price rockets following UNI launch 

In addition to causing Ethereum gas prices to spike, the Uniswap token launch also caused ETH’s price to appreciate, surging from pre-launch lows of around $360 to highs of $388.

Currently, Ethereum is trading just below these highs at its current price of $387.

Luke Martin, a respected analyst, explained that he expects this ongoing ETH upswing to extend a bit further.

“One of the most interesting parts about this UNI launch is how it *might* have sparked some life back into $ETH. The launch announcement last night marked the low for price this week. Up about 7% in less than 24hrs. I would not be surprised to see it jump another 10-15%”

Ethereum
Image Courtesy of Luke Martin. ETHUSD Chart via TradingView.

This is an interesting sentiment, as it indicates that UNI’s launch is driving demand to Ethereum on possibly two fronts.

Either it is causing investors to buy ETH to then acquire UNI tokens, or it is sparking an ETH accumulation trend amongst users looking to stake tokens in the various liquidity pools that provide UNI incentives.

The Uniswap token launch appears to have reinvigorated the markets – and the DeFi sector in particular – which could mean that another phase of intense upside for altcoins is imminent.

Charts and pricing data for ETHUSD courtesy of TradingView.

The post Uniswap token launch “sparks life” into Ethereum as DeFi uptrend resumes appeared first on CryptoSlate.

Chainlink is “On the Horizon” of Making a Massive Push Higher

Chainlink has seen some mixed price action in recent weeks, with the cryptocurrency’s price plunging as low as $10.00 and facing another rejection around $12.00.

This price action has primarily favored sellers, as the inability for it to make a sustained push off of its support around $10.00 seems to point to some underlying weakness amongst buyers. It may also suggest that the recent downtrend has done serious damage to its mid-term market structure.

That being said, the strong base of support it has been establishing throughout its recent price action may ultimately act as a springboard that helps propel LINK significantly higher.

One analyst, in particular, is setting his sights on a move up towards $13.50 in the near-term, explaining that its technical outlook is beginning to grow brighter as its downtrend stabilizes.

Chainlink Shows Signs of Slowing Its Descent as Support at $10.00 Holds Strong

At the time of writing, Chainlink is trading up marginally at its current price of $10.78. This is around the price at which it has been trading throughout the past few days.

Buyers have been ardently defending against a dip below the lower-$10.00 region, as this has been a historically strong support level for the crypto.

A sustained dip below here could throw Chainlink into a tailspin and lead it to see significantly further downside in the days and weeks ahead.

Where Chainlink trends in the near-term may be somewhat dependent on Bitcoin, Ethereum, and the rest of the cryptocurrency market, which are all currently caught within a bout of sideways trading.

If BTC or any other major cryptocurrencies plunge, it could create a headwind that forces Chainlink below the crucial $10.00 level.

Analyst: LINK Could Surge Towards $13.50 Due to Strong Support

One analyst, while speaking about Chainlink’s present technical outlook, explained that he believes the cryptocurrency could be poised to see a notable short-term rally.

He specifically points to the price region between $13.00 and $13.50 as the area to watch, noting that the support at $10.00 is rather significant and may spark an uptrend.

“The higher timeframe levels are quite clear on LINK. Lower timeframe potential entry zones are approaching with the potential of bouncing towards $12. Breaking $12 and $13-13.50 is on the horizon,” he said.

Chainlink

Image Courtesy of Crypto Michael. Chart via TradingView.

If the market continues stagnating, the support just below Chainlink’s current price could begin eroding, leading it to see a sharp downside move in the near-term.

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Charts from TradingView.

Uniswap’s UNI Holds Steady Despite Sell-Side Pressure; What Analysts are Saying

Uniswap – the decentralized crypto exchange of choice amongst traders and investors – sent shockwaves throughout the market with the launch of their native governance token called UNI.

The launch of UNI was unlike any other seen before because everyone who had used the platform to trade – or contributed to its liquidity – prior to September first could receive a minimum of 400 UNI tokens.

Naturally, this excited platform users who received a free $400-$1,600 USD, with the token’s price fluctuating between $1 and $4 following its listing and distribution.

It is important to note that although some anticipated UNI to see a sharp selloff due to the widespread distribution of somewhat valuable tokens, it appears that the buy-side pressure has outweighed the inflows of 400 token sell orders from the platform’s users.

Analysts are now noting that they anticipate the Uniswap token to see further upside in the near-term.

One trader is specifically setting his sights on a move to $5.00, which would mark a significant surge of its current sub-$3.00 price.

Uniswap Protocol’s UNI Token Provides Platform Users with a Windfall

Uniswap has been leading the DeFi market’s adoption trend, being the platform of choice for both liquidity providers and token investors alike.

It is important to note that the launch of their governance token was unlike any other seen before, with users of the platform essentially being granted ownership of it via a 400 UNI token distribution.

Some users who traded on the platform while it was in its V1 stage even received far more than 400 tokens.

As for the cryptocurrency’s prospects, its upside may be somewhat limited due to it already have a diluted valuation of nearly $3 billion.

That being said, most of the total supply won’t be released for years, making its current market cap of $177 million quite low compared to the overall utilization rates of the protocol.

One analyst noted that its strength in the face of “insane sell pressure” seems to indicate that it is poised to see further upside.

“UNI insane sell pressure, biggest free monies drop in crypto, all other alts bleeding & still price holds, why? maybe it’s because it’s the most legit, respected and used thing in crypto right now. i don’t think uniswap price crashes badly…”

Trader: UNI Token Likely to Rally Towards $5.00 Next

At the time of writing, the Uniswap token (UNI) is trading just below $3.00, marking a notable rise from recent lows around $1.00.

One analyst believes that a rally towards fresh post-listing highs of $5.00 could be imminent in the near-term, offering the below chart showing this possibility:

Uniswap UNI

Image Courtesy of Mac. Chart via TradingView.

So long as the DeFi trend remains hot, so too does the outlook of UNI.

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Charts from TradingView.

Selling Pressure Mounts as Bitcoin Nears Key Resistance; Trends to Consider

Bitcoin and the aggregated cryptocurrency market are flashing some mixed signs as BTC hovers beneath the $11,000 region.

Currently, the market is relatively stable, with the hype surrounding the launch of Uniswap’s governance token helping to drive Ethereum’s price towards $380, creating a tailwind for smaller altcoins.

It is important to note that the impasse reached between bulls and bears also comes amidst weakness in the traditional markets, which may spill over into crypto and create a headwind that makes it difficult for Bitcoin to surge higher.

The key price level to watch in the near-term is $11,100, as this has proven to be strong resistance for BTC.

One analyst is now noting that there are a few crucial levels he is closely watching as Bitcoin consolidates, with a continued defense of one key support level potentially sparking a move up towards $11,100.

Bitcoin Shows Signs of Strength in the Face of Stock Market Turbulence 

The macro uncertainty surrounding the global economy has sent shockwaves throughout the crypto market, with most of the benchmark indices to begin erasing some of the gains seen throughout the past couple of months.

This macro uncertainty has had impacts on Bitcoin as well, with the crypto once again rekindling its correlation to equities.

Although Bitcoin is stable today, this has no doubt placed some pressure on its price action, which comes as it reaches a pivotal level that bulls are attempting to defend.

Currently, all the benchmark indices are trading down well over 1%, suggesting that the rest of the week could be turbulent for equities. If this is the case, then Bitcoin’s growth may be hampered in the near-term.

Analyst: These Key Levels Will Determine BTC’s Future

While speaking about the benchmark cryptocurrency’s outlook, one analyst explained that there are a few crucial levels he is watching.

One Bitcoin support level he mentions sits at $10,750, noting that a defense of this level could mean another bid at $11,100 is imminent. Earlier this morning, BTC tapped this level before rebounding – a sign that upside could be right around the corner.

“The levels I’m watching on BTC are structured here. The short term still trending upwards, but on a crucial resistance to break. If $10,750 fails to hold, $10,600 is next, and most likely the area around $10,200. If $10,750 holds, another test of $11,100 seems likely.”

Bitcoin

Image Courtesy of Crypto Michael. Chart via TradingView.

How Bitcoin trends as the end of the week approached should offer investors with some insights into its mid-term trend.

Featured image from Unsplash.
Charts from TradingView.