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MANA recovers by 61% in 24 hours thanks to its relentless…

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MANA recovers by 61% in 24 hours thanks to its relentless…

Decentraland, the largest Metaverse in the crypto space, has been a pioneer with its wearables, and further demand for similar features has led to the platform noting higher traffic on both the DeFi as well as investor front. 

Decentraland jumps back up

While some cryptocurrencies continue to take damage from the crash of 9 May, others have already begun recovering. Over the last 24 hours, ironically, TerraUSD (UST) is leading the rise, but following it close is the Metaverse token MANA from the Decentraland.

From trading at $0.7 to trading at $1.14 on 14 May, MANA has made a stark recovery of 61% within 24 hours. This rise in the price also pulled MANA out of the oversold zone it had been lingering around for over three weeks now [ref. Relative Strength Index (RSI)]

The only trigger enabling such a drastic reaction is the demand of the Metaverse, and Decentraland being the leader of that space, is seeing the most traction. 

Recently, Linked Wearables have been observing a lot of interest from investors and Metaverse users.

Linked wearables, unlike regular wearables, do not exist within the traditional wearable collection category. As they have no rarity of any kind and cannot be sold into any primary market, they basically serve the purpose of being an in-world only representation mapped to external NFTs by a third party.

To establish a presence among the same, Dogecoin-inspired Baby Dogecoin, as well as NFTStudios, submitted their proposals to include their linked wearables in the Metaverse.

But while Decentraland is noting an increase in the NFT aspect, its Metaverse front is looking a little weak.

With falling investors’ interest, Decentraland has noted a decline in its LAND sales consistently. Having sold about 392 units of LAND up until 14 May, it looks like at most Decentraland would only note the sale of 800 units of land by the end of the month.

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This would help the transactions’ volume exceed the figures from last month.

Currently, at $1.5 million, LAND sales for the month of May would cross April’s $2.3 easily, but it won’t be easy for the same to establish a new all-time high soon since LAND sales will never make it back to $9.4 million.

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

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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.

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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

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

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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.

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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.

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Chainlink: Key levels where investors can considering creating a position

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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.

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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.

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