Polkadot’s native cryptocurrency DOT has so far managed to remain on the list of top 20 cryptocurrencies by market cap. The latest market events have forced investors to re-evaluate their portfolios in favor of digital currencies that have strong fundamentals, but does DOT fit these criteria?
Polkadot’s multi-chain approach can provide better insights into whether investors consider DOT to be worth having in their portfolio. It announced that interoperability and multi-chain as the future of blockchains are among the key areas of focus during the WEF22 conference on 16 May.
Polkadot’s ecosystem has been growing rapidly as it continues to onboard more projects through para-chain auctions. While this approach bolsters the interoperability agenda, it also boosts organic demand for DOT from projects running as parachains. The para-chain approach allows the community to support projects that align with Polkado’s values and can provide value to the ecosystem.
DOT’s price action and on-chain metrics
Although DOT is slated to leverage organic growth as the Polkadot ecosystem continues growing, it is also heavily correlated with Bitcoin. It struggled to maintain a healthy recovery after last week’s market crash in which it bottomed out at $7.30. However, it bounced back to $10.07 at the time of writing.
It seems DOT’s recovery is currently limited by low buying volumes. It is currently trading at a 58% discount from its April 2022 top. DOT’s price is also at an 82% discount from its current ATH of $55.09 which it achieved in November 2021.
DOT’s supply held by whales metric registered an uptick between 16 May and 17 May, courtesy of slight accumulation. However, the same metric recorded outflows which have so far pushed back to monthly lows. The metric shows that whales are selling and it reflects the lack of adequate buying volumes and failure to register a significant rally.
DOT’s developer metric achieved a significant uptick and is currently in its highest monthly range. The uptick is due to the recently announced Polkadot which also highlights the network’s commitment to security.
XRP: Analyzing what growth in active address could mean for long-term holders
Despite the uncertainty that plagues the future of XRP as a result of the legal tussle with the Securities and Exchange Commission (SEC), during intraday trading hours on 30 June, it performed better than most altcoins. While most altcoins recorded a decline in price during the trading session yesterday (30 June), the price of XRP lodged some gains.
As per data from Santiment, on 27 June, the index for the unique addresses interacting on the network exceeded 200k for the first time since February 2020. While such an increment is usually indicative of a price rally, let’s take a closer look at the general performance of XRP in the last seven days.
A ‘Ripple’ing decline
Seven days ago, data from Santiment showed that the price of XRP was pegged at $0.37. However, exchanging hands at $0.3139 at the time of writing, the price of the coin declined by 16% in the last seven days. Similarly, within this window period, its market capitalization saw a drop from $17.63 billion to $15.17 billion.
Trading at its January 2021 levels, the XRP token has been steadily declining since May 2021. Marking an all-time high of $3.30 on 4 Jan 2018, the altcoin is 90.46% shy of touching that high once again.
According to data from CoinMarketCap, in the last 24 hours, the price of XRP stood at a 4% loss. However, trading volume rallied by over 45%. The Relative Strength Index (RSI) at the time of writing was 37.96 indicating increased selling pressure. Also in a downward trend at press time, the Money Flow Index (MFI) for the token was 47.16.
Head with caution
As per data provided by Santiment, XRP hit a high of 200k daily active addresses that transacted the alt on 26 June. However, this number took on a downward spiral since then. At 7,969 during press time, the number of daily active addresses has declined by over 90% in about five days.
Similarly, on a social front, the altcoin embarked on a decline since 27 May. After marking a high of 1.46% in social dominance on 27 May, over the last three days, this metric has dropped by 47%.
At press time, this metric was spotted at 0.76%. The social volume also registered a high of 828 on 27 May. Since then, it suffered an 86% decline.
Interestingly, while the daily unique addresses transacting the XRP coin dropped steadily, the number of new addresses created on the network increased in the last seven days. At 1,790 during press time, this has grown by 25% in the last week. Similarly, the transaction volume for the token saw a 116% growth in the last five days.
Ethereum traders should know this reason behind ETH’s latest sell-off
Ethereum [ETH] concluded June with a 27% bearish push in the last five days of the month after enjoying a brief relief rally. The bearish end of June resulted in the token dropping below $1,000, followed by a pullback. Could this be a sign of a strong buy wall within the $1,000 price level?
June was one of the most bearish months for ETH in recent history. It dropped from a monthly high of $1,972 at the start of the month, to a monthly low of $881 on 18 June. ETH fell below $1,000 twice in the same month. Both instances yielded a quick recovery back above the same price level.
ETH’s end-of-June performance reveals that the price had a higher low, while the RSI hovered just above the oversold zone. Furthermore, the MFI’s uptick, despite the sell-off, confirms that investors have been buying up ETH at lower prices.
A look at ETH addresses confirms that accumulation outweighed the sell-off in the last 24 hours, resulting in strong support near $1,000. However, it also reveals that active addresses have reduced, reflecting the volatile market conditions.
Active addresses dropped sharply from 402,586 on 29 June to 212,569 on 30 June. Sending addresses (addresses offloading ETH) reduced from 182,304 to 92,459 during the same period.
ETH’s receiving addresses dropped from 209,268 on 29 June to 94,002 on 30 June. However, the key point to note here is that receiving addresses slightly outweighed sending addresses in the last 24 hours. Even the whales have been buying the dip as indicated by the supply of the top 1% addresses metric. The latter registered a significant upside from 27 to 30 June.
ETH’s last sell-off was characterized by heavy sell pressure coming from the liquidation of long positions. The previous three days of June resulted in an uptick in the number of liquidations from just over $11 million on 27 June to $48.37 million by 30 June.
In contrast, the number of liquidations during ETH’s mid-June price crash peaked at $136.5 million. This means we can expect less selling pressure from the liquidation of leveraged long positions in the latest downside.
The futures long liquidations metric reveals why ETH’s latest sell-off was not as severe as the mid-June sell-off. Moreover, healthy accumulation has contributed to the higher lows. Now, it will be interesting to see how ETH will shape up in the first month of Q3.
Chainlink: Effects of this pattern’s break on LINK’s technicals could be…
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Although its early June rally bagged in decent gains, the bears quickly regained control of the near-term trend. Thus, Chainlink [LINK] has been consolidated in the $5.45-$7.36 range for nearly three weeks now.
With the price falling below 200 EMA (green), sellers have ensured a long-term bearish outlook.
Further, considering the recent reversal from the Point of Control (POC, red), LINK could continue on its bearish track. At press time, LINK was trading at $6.1.
LINK 4-hour Chart
After an expected reversal from the $7.3 ceiling, LINK’s descent transposed into a short-term falling-wedge setup. The sellers propelled a 21% drop from 26-30 June.
The last 24 hours marked a decent buying attempt while the alt broke above its reversal pattern. But with the POC standing sturdy, the price action struggled to jump above the $6.3-level.
Furthermore, LINK saw a shooting star candlestick pattern after dropping from its POC. Thus, the bears re-enforced the near-term selling edge. Further, the recent selling volume has been slightly higher than the buy volumes. So the buyers needed to amplify their pressure to retest the POC.
Any drop below the $5.9-mark could expose the alt to an 8% downside toward the $5.45-support. An immediate recovery would likely see a squeeze phase near the POC in the $6.3-$6.2 range.
The Relative Strength Index (RSI) failed to breach the boundaries of its equilibrium for the last five days. After its recent bearish divergence with the price, it has visibly depicted a bearish bias.
Also, the Aroon up (yellow) indicator corresponded with the bearish outlook by staying at the 0%-mark. A gradual jump above the 30%-level could help the buyers challenge the POC. However, the ADX displayed a substantially weak directional trend for the alt.
Given the shooting star candlestick causing a reversal from the POC, LINK could see a near-term bearish pull. Any fall below the $5.9-mark could propel a further downfall. The targets would remain the same as above.
Any bearish invalidations could see a relatively sluggish phase near the POC zone. Finally, an overall market sentiment analysis becomes vital to complement the technical factors to make a profitable move.
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