As other altcoins suffered severe decimation to their prices during intraday trading on 14 June Polkadot’s native token, DOT, saw some relief. The token recorded an uptick in price which was lost by the end of the day.
In the early hours of 15 June, the token traded as high as $7.66. However, it went on a 5 % decline by press time. What else have we seen in the last 24 hours?
According to data from LunarCrush, the volatility rate of the DOT token jumped by 31% in the last 24 hours. The gains and losses that have plagued the DOT token in the last 24 hours are proof of this.
During trading hours on 14 June, the token recorded a 5% uptick in price. By the end of the day, however, it proceeded to shed all of these gains.
In the early hours of 15 June, a 7% jump in price was registered. However, by press time, the token went on to shed 5% on these gains. At the time of gains, the DOT token exchanged hands at $7.15 with a total of 3.45% decline in price per DOT token in the last 24 hours.
Price chart analysis revealed that the DOT token has suffered from the hands of bears since 4 May. The price of the token has since embarked on a steady decline. Ever since the Relative Strength Index (RSI) has been housed beneath the 50 neutral zone. Oversold at press time, the RSI was spotted at 30.
A bullish run might be far from sight- With the MACD line intersecting the trend line on a downward curve since 11 June, the bears might be here for a while.
The DOT token registered a decline in its street cred in the last 24 hours. Its social dominance saw a 5% drop. The social volume within the same window period also saw a whopping 75%.
A decline in developmental activity was also seen on the Polkadot network in the last 24 hours. It saw a 0.18% drop.
Now, with a spike in bearish sentiment in the last 24 hours, buyers need to exercise caution.
Ethereum investors should know this reasoning behind ETH’s crash in June
It has been hard for ETH traders to avoid panicking in the last few months as ETH continued to sell with no end in sight. The bears have been easing off their assault every once in a while, paving the way for minor relief rallies. However, even those have been short-lived and the bears continue to show their strength.
A similar scenario is taking place right now following ETH’s latest crash. The market has experienced a few days of relative calmness and some upside. Investors might, thus, expect ETH to experience another sell-off sometime soon if the market continues on the same trajectory. Understanding the key sources of the selling pressure is essential in order to gauge where the market might be headed.
It turns out exchange-traded funds (ETFs) holding large amounts of ETH have been selling off their holdings. 3iQ CoinShares Ether ETF (ETHQ.U) and Ether Fund (QETH.U) holdings are among the top ETFs that invested heavily in ETH in the past. Their Glassnode metrics reveal that they offloaded a significant amount of ETH in June.
The 3IQ Coinshares ETF offloaded roughly 82,886 Bitcoin between 1 June and 20 June. The Ether Fund ETF sold off roughly 87,385 ETH between 31 May and 20 June. Although these ETFs sold off large amounts of ETH, each of them holds more ETH than the amount they sold.
Catching the next wave
It is easily assumed that this means they will likely continue selling in the next few months given the amount they have left. However, the lower prices have been attracting heavy accumulation and strong growth in the number of users. ETH addresses holding more than 100 ETH have steadily increased in the last 12 months.
There were just over 42,000 addresses holding 100 ETH and above at the start of July 2021. That number grew to 44,343 addresses by 23 July. ETH had just over 121.5 million addresses by the start of July last year. However, those addresses had increased to 155.1 million by 23 June.
The increase in ETH addresses and balance in addresses especially since mid-June confirms the strong accumulation near the $1,000 price level. ETH’s 30-day MVRV ratio confirms that some address balances that accumulated near the latest lows are already in profit.
The MVRV ratio aligns with ETH’s latest recovery. It suggests that there is a strong buy wall near the $1,000 price level. However, the market is still full of uncertainty and the ETFs still have a lot of firepowers if they decide to sell some more.
Will Solana’s latest stunt of ‘crypto to go mobile’ help SOL go up price chart
The Solana Foundation has taken a huge leap recently. They have finally released the launch of Saga, the latest addition to Web3. And, SOL’s prices have been reacting positively.
Back in the game
In an interesting development, Solana has released its flagship mobile phone, Saga. The $1000 android mobile phone will be the latest addition to Web3. The Solana team announced the release late on 23 June in the following tweet.
— Solana (@solana) June 23, 2022
Reportedly, the mobile phone has “unique functionality and features tightly integrated with the Solana blockchain, making it easy and secure to transact in web3 and manage digital assets, such as tokens and NFTs.”
Saga powers the Solana dApp store which is an app distribution store on android for decentralized apps. The phone also accompanies other exciting features including the Solana Mobile Stack (SMS). It also includes a Seed Vault built to secure the hardware for users.
However, the news wasn’t well-received across the crypto community. Cardano founder Charles Hoskinson took a dig at the launch of Saga in a recent tweet. According to Hoskinson, people would need to find seven of their friends in Discord to reboot the mobile phone. This was probably in reference to Solana’s outages over recent months.
And all you need to do is find seven of your friends over discord to reboot it… https://t.co/580TodWOAA
— Charles Hoskinson (@IOHK_Charles) June 23, 2022
Did it affect the SOL price?
Saga has generated a lot of chatter on social media since its official launch on Twitter late on 23 June. SOL prices have shot up ever since. It is currently up 12.5% in the past day to $40.8, at press time. The SOL prices have also recovered tremendously over the last week with a 31% bullish surge. The volume has also spiked to a 32% surge at $1.89 billion in the past day.
The social dominance metric skyrocketed after the announcement of Saga. As shown clearly in the chart below, the metric shot up to 15.35% but later dipped to 5.18% by 24 June evening.
Decoding the how and why of MATIC’s unprecedented hike
The broader market is reeling under significant sell pressure. However, MATIC’s bulls have successfully been able to bring impressive demand to its network. On 23 June, MATIC, out of all the top 20 coins, registered the most gains over the last 24 hours.
It saw a spike of 24.33% while its seven-day valuation rose by 30.02%.
The pricey tale
After hitting a bottom of $0.3178 on 18 June, the altcoin saw buyers recognizing its price value. Consequently, bulls entered the picture to take the crypto up to $0.5055 at press time. Even though MATIC has been forming green candles post 18 June, its current rally is not backed by enough volume.
Nonetheless, if bulls exert more pressure, MATIC might go up high to test its near-term resistance at $0.5735. Upon breaching it, MATIC will enter its supply zone. Only a rally supported by massive volumes can help the alt reach its 44-day long resistance at $0.7402.
The RSI, at press time, stood at 48.51, and was looking north. The MACD lay above its neutral line. This goes to show that traders can definitely expect some positive momentum before MATIC starts retracing back.
Reason for the sudden spike?
In a recent blog post, the Polygon network disclosed that it took the first step towards becoming carbon negative with the retirement of $400,000 in carbon credits representing 104,794 tonnes of greenhouse gasses, ‘or the entirety of the network’s CO2 debt since inception.’
As it were, the company’s step toward its first sustainability milestone strengthened investors’ faith in its ecosystem.
Furthermore, on-chain data provider Santiment revealed that MATIC’s sharks and whales have been showing renewed interest in the token. There has been a big accumulation trend forming for about six weeks.
🦈🐳 $MATIC sharks and whales have been in a pretty big accumulation trend for about six weeks. The tiers of holders ranging from 10k to 10m coins held have collectively added 8.7% more to their bags in this timespan. 📈 https://t.co/oasCn72rxt pic.twitter.com/lm4au2fWkn
— Santiment (@santimentfeed) June 22, 2022
Now, it’s important to note that whale accumulation can both be a boon and a curse. In the future, if whales decide to dump, MATIC’s price may suffer drastically.
Notably, for MATIC, whales’ volume constituted a share of 73.58% whereas retail volume had a share of 13.67%. It further signals the fact that long-term investors need to tread with absolute caution.
Furthermore, a quick on-chain analysis of the blockchain reveals that a total of 401.35k addresses are currently at loss, only 27.97k addresses are in profit. That is to say, just 6.38% of addresses are making money at the current price.
Another worrying sign for MATIC could be its rising correlation with BTC. The metric had dropped down to 0.32 on 9 June. However, it quickly surged to touch a value of 0.97 at press time. Evidently, Bitcoin’s capitulation event can reflect in MATIC’s price action.
Undoubtedly, MATIC holders are relieved looking at the current spike. But, they shouldn’t forget that this positive momentum is not going to last for many days.
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