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Terra’s Fork-Recovery Plan Invites Huge Opposition, Will This Adversely Impact the LUNA Price?

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Terra’s Fork-Recovery Plan Invites Huge Opposition, Will This Adversely Impact the LUNA Price?

In a recent update, the proposal to fork the current LUNA chain into LUNC has been strongly opposed by their own community. The proposal is said to have received huge negative reactions as they mainly intended to create a new chain without the algorithm stablecoin. On the other hand, the community believed burning LUNA tokens is the only option to uplift the price.

Do Kwon had earlier proposed a revival plan according to which a new chain will be forked into a new chain. However, the official governance vote will begin on May 18 and the above sentiment as a result of a preliminary vote carried out on nearly 10,000 validators. And hence as per the latest reports, the validators are against forking the chain and rather insist on burning the excess LUNA tokens. 

Will This Impact the LUNA Price

Well, it is not the first attempt that the Terraform labs tried to bring the LUNA price and the UST peg to normal levels. But eventually failed to do so and the price kept depleting heavily until it reached the lower support. However, the bearish scenario is slowly gearing up and ready to pull the price towards the south.                 

However, after preliminary voting, the proposal is expected to be tabled on May 18, 2022, and further the Terra Core will begin with the oracle, treasury and markets modules begin removed. The network launch instructions are to be made available for the validators on May 21.     

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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What of Ethereum now that $1.4B worth of ETH are sold

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What of Ethereum now that $1.4B worth of ETH are sold

Ethereum [ETH], the king of altcoins has failed to register any significant improvement in the month of June. It is still stuck with the bears at the $1k level. Notably, this level was previously visited by the coin at a time when the market crash wiped out 46.4% of the ETH’s value. But with Q3 of 2022, circumstances might take a positive turn for ETH holders.

Ethereum needs a boost

Observing the entire Ethereum network, one can simply say that Ethereum needs a boost from its investors. Well, on the fundamental level, the network is making progress in all directions. Evidently, the arrival of ETH 2.0 and anticipation of ‘Merge’ has somewhat failed to accelerate ETH’s growth.

Thus, it’s important that the broader market cues turn positive at once since ETH is currently dependent on it. The bearishness prevalent in the market over the past couple of weeks has blocked Ethereum’s all attempts to rally. Consequently, investors have been forced to sell and prevent further losses.

In the month of June alone, about 1.3 million ETH worth over $1.45 billion was sent back to exchanges, most of which was a part of panic selling that was triggered by the crash of 9 June.

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However, most of this selling did not come from Ethereum’s loyalists, the long-term HODLers. Primarily, because the HODL waves made it evident that the one-month to three-month cohort took the charge of selling.

Their control over the supply reduced from 14% to a little over 9%, resulting in an increase in the domination of the HODLers who have held their supply for less than a month.

What is ETH looking for?

What Ethereum needs now is some patience from investors and a quick market-wide recovery. Patience because the investors need to hold off on moving their supply around until the mark price is at level with the buy price.

Doing the opposite of that may result in transactions that would be conducted at a loss, and such transactions combined have caused the spent output profit ratio to fall below 1.0.

Trading at $1,092 at press time, ETH needed to retrace its steps back to pre-June levels at the least to correct this decline, which may take a while considering the alt’s price decline of 5.2% in the last 24 hours.

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Source: TradingView

Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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FTT: Unraveling implications of recent drawdowns on technicals

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FTT: Unraveling implications of recent drawdowns on technicals

FTT’s bearish break below the $28.7-level led the alt to retest and eventually breach the $25-support (now immediate resistance). The recent patterned break took a plunge below the seven-week trendline resistance (white, dashed) on the 4-hour timeframe.

A compelling close below the $25-level could expose FTT toward a downside before any bullish revival chances.

Due to the relatively high correlation with Bitcoin alongside the broader sentiment, the altcoin could see trend invalidations. At press time, FTT was trading at $25.127, down by 8.12% in the last 24 hours.

FTT 4-hour Chart

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Source: TradingView, FTT/USD

From a near-term outlook, FTT’s rising wedge breakdown has pulled the alt below its 20 EMA (red) and the 50 EMA (cyan). Furthermore, a convincing bearish crossover of these EMAs could impair the near-term buying efforts. 

A close below the $25-level could aid near-term selling efforts to test the $23-$24 range in the coming sessions. However, an immediate bounce-back from the $25-zone could delay the bearish tendencies. In this case, the buyers would aim to test the 20 EMA near $26 before a reversal.  

FTT Daily Chart

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Source: TradingView, FTT/USD

In this timeframe, FTT saw a strong reversal from the 38.2% level. sustained close below the 23.6% level could propel a low volatility phase in the $24-$25 range in the coming days. Thus, the potential shorting targets would remain in the $24-zone. Also, with increasing trading volumes, the 24-hour losses depicted a rather strong bear move.

Source: TradingView, FTT/USD

The Relative Strength Index (RSI) plunged below the midline after barely sustaining itself above the 50-mark. Looking at its south-looking tendencies, the buyers still had a long way to alter the broader outlook in their favor.

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Also, the CMF dipped below the zero-line and reaffirmed the bearish strength. But any comebacks along its trendline support can aid near-term recovery efforts.

Conclusion  

Given the break below the $25-level on the H4 alongside the patterned break and bearish indications on the daily timeframe, FTT could test the $23-$24 range. The targets would remain the same as mentioned above.

Any bearish invalidations should likely find a rebounding region in the $26-zone. Also, investors/traders must keep a close eye on Bitcoin’s movement as FTT shares a 58% 30-day correlation with the king coin.

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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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Solana [SOL] traders going short can take-profit at this level

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Solana [SOL] traders going short can take-profit at this level

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

In a previous article, we explored how crucial the $37-$39 area was for the bulls to defend. If the bulls had been able to defend this demand zone, a move higher could have been on the cards for Solana. Yet, the selling pressure behind Bitcoin acted as a catalyst and sent many major altcoins reeling. Solana had been fighting to break above $42.5. At press time, it appeared to be headed back to a support level where the rally to $42 had begun.

SOL- 1 Day Chart

Source: SOL/USDT on TradingView

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On the daily timeframe, some important levels close to the price were marked. The low of May, the swing high of June as well as the swing low, were all likely to be important levels in the weeks to come. A hidden bearish divergence (orange) developed just as the price knocked on the $42.5 mark. This signaled a continuation of the former downtrend, and SOL came tumbling down in recent days.

The swing low of May at $37.37 has acted as support and resistance over the past month. It was expected that the bulls would attempt to defend this zone, which was a support zone on lower timeframes.

Yet, the price crashed right through it and reinforced a bearish bias for Solana. Given the fact that Bitcoin also faced selling pressure, it appeared that the direction for SOL in the next few days would be southward.

SOL- 2-Hour Chart

Source: SOL/USDT on TradingView

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The 2-hour chart showed the price to slip beneath the 38.2%retracement level and cruise lower. The $37.37 was broken and was not yet retested as resistance. The RSI approached oversold territory, while the Stochastic RSI was in the oversold region. Hence, a possible bounce toward the $37 area could occur before a subsequent drop in prices.

There is also the possibility of a move lower without a bounce from $33.75. The A/D line has been going lower and lower, and the selling pressure could see SOL drop without a bounce.

Conclusion

The $32 region was a good area for short positions to take-profit at. A bounce to $37 could offer an ideal entry. Short positions can use the Supertrend indicators to set a stop-loss. Both the daily and the hourly timeframes showed selling pressure behind Solana.

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