Connect with us

Altcoins

Binance Coin: BNB attempts a recovery but this is what lies on its way

Published

on

Binance Coin: BNB attempts a recovery but this is what lies on its way

Phew! What a week this has been in the history of cryptocurrency. 

A week marked by a significant decline in price for most cryptocurrencies which led to massive sell-offs on exchanges.  With hodlers on one hand advising investors to tarry and paper hands, on the other hand, exiting to salvage what was left of their investments.

Amidst all this madness, we also experienced the de-pegging of the UST stablecoin. This was followed by a severe decline in the value of the Terra LUNA token which led to its delisting from several exchanges.

As markets began to ‘heal’ on 14 May, Binance Coin (BNB) rallied 10% replacing LUNA as the fourth largest by trading volume. How else did this coin perform?

Highs then, Lows

During intraday trading on 13 May, BNB marked a high of $312.27. This was followed by a corresponding spike in trading volume of the coin to $3.07b placing the coin as the 4th largest cryptocurrency by trading volume. 

However, a retracement occurred 24 hours later. At the time of writing, the price of the coin stood at $287.65 a 4% decline in price.  Trading volume within the same time frame also declined by a whopping 55.42%. 

Also recording a high of $51.04 billion in market capitalization yesterday, in just 24 hours, this quickly declined by 8% to $46.9b. 

Attempting an uptrend yesterday, the RSI and MFI reversed with both indicators standing at 32 and 20 at writing. This indicated increased selling pressure for BNB within the last 24 hours. Following the temporary pump, investors started taking profits pushing the price of the coin further downwards.

Advertisement

Source: TradingView

On-Chain Analysis

In addition to what was gleaned from the price charts, data from the chain revealed significant traction for the token when crypto markets recovered yesterday. Data from BSC Scan showed that the number of transactions on the BNB network increased significantly, a spike the network last recorded in December last year.

Source: BSCscan

However, this uptrend suffered a reversal within a 24-hour period. A look at the Active Addresses on the BNB Network showed an 8% decline with this metric standing at 16.2k at the time of writing.

Source: Santiment

Similarly, on a social front, with increased transactions recorded on the BNB Network, the Social Volume for the coin recorded a high of 2,821 yesterday. This however since declined by 80% and stood at 483 at the time of press. The Social Dominance hinted towards nothing significant as it has been on a steady decline since 11 May. 

Source: Santiment

Advertisement

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

Advertisement

Altcoins

Bitcoin [BTC]: Here are a few signals that point to a strong possibility of a recovery

Published

on

Bitcoin [BTC]: Here are a few signals that point to a strong possibility of a recovery

Bitcoin price seems to have found its stable footing at $29,100 after a recent flash crash below it. This quick recovery and retest will be a testament to the bulls’ power and determine the next course of action for BTC.

Bitcoin price to provide temporary gains

Bitcoin price created a bearish continuation pattern known as a bear flag between November 2021 and April 2022. After a brief consolidation in late April, BTC triggered a breakout from the setup, triggering a massive sell-off.

The pattern contains a massive downswing known as “flagpole” followed by a consolidation phase known as “flag.” A breakout from this coiling-up often results in the price continuing its descent, which is why the setup is referred to as the continuation pattern.

This technical formation forecasts a 46% downswing, determined by adding the flagpole’s height to the breakout point. On April 22, BTC breached the flag’s lower trend line at $40,032, forecasting a target of $21,584.

So far, the post-FOMC volatility combined with the LUNA-UST debacle has stirred the market and caused it to crash violently. As a result, BTC dropped to $25,333, taking altcoins with it. However, the recovery of Bitcoin price seems to be going well as it is back above the $29,100 support level.

If bulls can manage a successful retest, it will reveal that a further uptrend is likely. In such a case, investors can expect a move to $35,100. This uptrend would constitute a total of 17% gain and is likely where the upside is capped.

BTC Perpetual Futures | Source: Tradingview

Further removing the uncertainty for the retail investors’ minds is the recent tweet from the Luna Foundation Guard (LFG). The announcement stated that LFG has sold 80,081BTC from its reserve that held 80,394 BTC.

Advertisement

1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:

· 80,394 $BTC

· 39,914 $BNB

· 26,281,671 $USDT

· 23,555,590 $USDC

· 1,973,554 $AVAX

· 697,344 $UST

· 1,691,261 $LUNA

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

This news suggests that a further sell-off seems unlikely, which could push buyers to start bidding.

The tweet further stated,

“The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating through various distribution methods, updates to follow soon.”

Supporting this outlook for Bitcoin price is the supply on the exchanges chart. This index tracks the number of BTC held on exchanges, which could be interpreted as a potential sell-side pressure. In case of a sell-off, investors would not think twice and could panic sell, causing a cascade of sell orders that could steepen the downswing.

However, for Bitcoin, the number of tokens held on centralized entities has fallen by 50,000 BTC, denoting an effective decline in the potential sell pressure. This development falls in line with the bullish outlook from a technical perspective

Therefore, investors can expect BTC to rally in the near future.

Supply on Exchanges | Source: Santiment

Advertisement
Continue Reading

Altcoins

Cyptopunks: Despite 560% spike in sales volumes, why’s there fear in the air

Published

on

Cyptopunks: Despite 560% spike in sales volumes, why’s there fear in the air

In March, Yuga Labs, the creators of the Bored Ape Yacht Club announced the acquisition of CryptoPunks. CryptoPunks have captured plenty of attention- thanks to endorsements from celebrities and athletes. However, despite the fame, the project has witnessed significant backlash from the community.

Analyzing this ‘punk’

At press time, the NFT marketplace yielded an overall sales volume of around $20 billion as per CoinMarketCap. Although, given the ongoing bearish sentiment in the crypto market, many projects have suffered a fall. However, CryptoPunks recorded a new milestone that placed the project just below Axie Infinity when it comes to the all-time ranking of NFTs by volume.

The 24-hour trading volume of CryptoPunks increased by 371% to $3.98 million, ranking second in the 24-hour trading volume of the NFT market. In fact, at press time, the platform witnessed a 560% rise as the trading volume crossed the $5.1 million mark.

Source: CryptoSlam

Looking at insights on OpenSea, CryptoPunks, indeed enjoyed a much needed uptick in the sales domain as seen in the graph below over 90 days.

Likewise, given the demand, holders’ count increased by more 3% within the same period. Likewise, given the need, the current floor price rose to 53.8 ETH, with a market value of $1.67 billion.

Since January 2022, the NFT project grew substantially in total transaction counts, including a surge in unique monthly users, reaching 501 transactions and an approximate sales volume of $6.1 million.

All smiles here?

Well, this certainly isn’t the case here for this project. The investor who bought CryptoPunk #273  for more than $1 million less than seven months ago sold the NFT for $139,530 — at a massive almost 80% loss. Out of the last 10 CryptoPunks that have been sold, eight were sold at a loss.

Advertisement

Such headwinds did create a lot of speculations and FUDs for this project.

Shubham is a full-time journalist at AMBCrypto. A Master’s graduate in Accounting and Finance, Shubham’s writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.

Advertisement

Continue Reading

Altcoins

Chainlink: Key levels where investors can considering creating a position

Published

on

Chainlink: Key levels where investors can considering creating a position

Since striking its ATH a year ago, Chainlink (LINK) bears have made a visible effort to find fresher lows. The lower peaks coupled with even lower troughs helped the sellers pierce through the 15-month trendline support (now resistance).

An extended selling vigor can now drag LINK to retest its $6.5-support before the bears give a leeway to the buyers. At press time, LINK traded at $7.37.

LINK Daily Chart

Source: TradingView, LINK/USDT

Despite upholding the $12-mark for over 16 months, the bulls failed to defend this level after the bears made the most of the fear sentiment and provoked liquidations. Without a surprise, it became viable for them to pull off a nearly 60% drop from the $12.6-level. In this bloodbath, LINK took a plunge toward its 22-month low on 12 May.

The current price was slightly overstretched from the alt’s 20 SMA (red) and 50 SMA (cyan). Also, the gap between the 20 EMA and 50 EMA has significantly risen to display a one-sided bear dominance. Historically, the buyers have bridged the overextended gap between the 20/50 EMA by propelling short-term rallies.

Rationale

Source: TradingView, LINK/USDT

The Relative Strength Index failed to show a strong revival after undertaking a bearish divergence with price. An undesired fall below the 30-mark could lead to a much-needed recovery from the oversold region.

Advertisement

After peaking at its record high, the -DI line showed some slowing signs. Keeping in mind its past tendencies, it could head south and thus lead to an ease in the selling pressure.

Conclusion

Taking cognizance of the one-sided bearish dominance revealed by the indicators, a continued fall could see testing grounds at the $6.5-level. With the overstretched readings on its Moving averages, RSI and DMI, the buyers would be keen to show up in the $6.5-$7 zone. In which case, they would mount on buying volumes to snap the $8-level in the coming sessions.

Even so, an overall market sentiment analysis becomes vital to complement the technical factors to make a profitable move.

With a background in financial analysis and reporting, Yash is a full-time journalist at AMBCrypto. He has a keen interest in blockchain technology, with a primary focus on technical analysis of cryptocurrencies.

Advertisement

Continue Reading

Trending