Blockchain

Terra Luna Classic (LUNC) has been on the radar of crypto enthusiasts and investors, but its recent price performance has left many scratching their heads. Since mid-August, the altcoin has been caught in a pronounced downtrend, drawing the attention of traders worldwide. 

This intriguing price movement is marked by the presence of two distinct descending trend lines, which have consistently acted as dynamic barriers of support and resistance.

The continuous interplay between Terra Classic’s price and these trend lines has given birth to a descending channel pattern. This pattern, shaped by the seesawing between support and resistance, holds the potential to offer insights into the altcoin’s trajectory in the days to come.

Terra Classic At A Crossroads

The current LUNC price, as per CoinGecko, hovers at $0.00005745 with a modest 24-hour gain of 0.3%. However, over the past seven days, it has seen a slight decrease of 0.4%. The price chart has been marked by short-bodied daily candles adorned with extended wicks, indicative of market indecision. 

Yet, history suggests that within falling channel patterns, such as the one LUNC is currently in, a bullish breakout often occurs. This hints at the possibility of LUNC breaking through the upper trend line and potentially experiencing a 6.3% surge.

Analyzing The Potential For A Bullish Rally

Experts in the crypto space suggest that such a bullish move could amplify the demand pressure for Terra Luna Classic, potentially propelling the coin to rally by as much as 25%. This would put the next major resistance level at $0.000075 squarely in the altcoin’s sights, offering hope for those holding LUNC tokens.

However, it’s worth noting that the crypto market is currently under the shadow of uncertainty. Renowned crypto analyst Nicholas Merten recently sounded a cautionary note in a YouTube strategy session. 

Merten predicted a prolonged bearish trend for Bitcoin (BTC) and altcoins, expressing concern that this downturn could lead to widespread liquidations and the removal of excess money from the system, potentially contributing to economic challenges.

Terra Luna Classic’s price behavior, ensnared within the confines of a descending channel pattern, is a topic of keen interest among crypto enthusiasts. While historical patterns hint at the possibility of a bullish breakout, the broader market climate remains uncertain. 

As investors brace for potential turbulence, all eyes are on Terra Classic to see if it can break free from the gravitational pull of its descending trend lines and defy the prevailing market sentiment.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Sport Découverte

Crypto analyst Nicholas Merten has given an insight into the future trajectory of the Bitcoin price, suggesting that the flagship cryptocurrency may experience turbulent times ahead. 

The Calm Before The Storm For Bitcoin

In a recent episode of his YouTube channel DataDash, Merton mentioned that Bitcoin, other altcoins, and the broader asset market were on the brink of a major move as several macro factors were coming together. He further went ahead to discuss how these different “dominos”  could “potentially cause a lot of pain in the economy.”

The first macro factor he mentioned was equities. According to him, the direction of equities and the broader assets are going to have a “direct impact” on Bitcoin. He showed a direct relation between the equity market and the crypto market as coins began to pick up at the beginning of the year, right around when the former was on a high.

However, he pointed out that the equity market has been relatively quiet as the narratives that are meant to push it higher haven’t done the job. As such, he believes that if stocks like Apple’s, Microsoft’s, and Fang’s (basically the stocks of major tech companies) don’t start picking up, then there could be a “really big problem” (most likely in reference to the crypto market).

Re-Inflation On The Rise

Another factor that he emphasized was the inflation data. Merton seemed to suggest that the Fed wasn’t doing enough to curb inflation and bring it down to the target of 2%. According to him, the Fed could have taken a more stringent approach by raising the rates by 75 basis points or even 100. 

The inflation rate is known to have a significant impact on the crypto market, as a higher rate means that investors may have little or nothing to spend in the crypto market. Merton noted that it is evident that the Fed isn’t doing enough as the prices of several goods and services (including energy) seem to be re-inflating. 

He made a comparison to the ‘70s when inflation was also at an all-time high and stated that if this time is nearly similar to then or if there is a trend, then it could be a “huge problem.”

Some may argue that the ‘70s were extreme times, especially with the oil embargo, which makes it different from this period. However, Merton noted that there isn’t much difference as we have the situation with BRICS, which suggests that the world is de-globalizing and nations are less trusting of one another. 

This would invariably affect trade deals and foreign relations, something which Merton believes would have “inflationary pressures,” and the Fed is well aware of this. He stated that the major reason we are experiencing this re-inflation is because supply and demand aren’t balanced. 

According to him, there is excess money in the system due to the “excess printing of money” which people got rich off and the stimulus checks during the COVID era. As such, there is so much purchasing power without there being enough supply to meet these demands.

Dogecoin enthusiasts are buzzing with anticipation following recent developments at X, the platform previously known as Twitter. As part of its ambitious expansion to enhance its “Everything app”, X is introducing a range of payment integrations, and with Elon Musk at the helm, many speculate that Dogecoin could be among the supported cryptocurrencies.

Linda Yaccarino, X’s CEO, today unveiled a video outlining the app’s prospective features. From sharing information and participating in community discussions to making calls and tuning into community chats, the updated app promises to be a comprehensive platform.

Particularly striking is the video’s revelation that X aims to evolve into a payments app, revealing features that allow users to promptly make online purchases, remit money, and harness income from ad revenues when participating in Elon Musk’s creator community.

This step is significant, solidifying rumors and speculations that had been swirling in recent months regarding X’s ambitions in the payments domain. Elon Musk, having taken the reins of Twitter last year and rebranding it to X, is known for his holistic vision of creating an all-in-one app experience.

Given his vocal support for cryptocurrencies, especially Dogecoin, there’s been rampant speculation about the potential introduction of DOGE payments on X. Notably, there’s not (even a small) hint about the integration of DOGE or crypto in general in the video released today.

a hint of what’s to come. who’s in? https://t.co/TYEevYJlfL pic.twitter.com/G0DTLeHQic

— Linda Yaccarino (@lindayaX) September 20, 2023

Cause Of Concern For Dogecoin Investors?

Nevertheless, the DOGE community remains hopeful. Dogecoin’s price trajectory witnessed a sharp surge last year when news of Musk’s acquisition of Twitter began circulating. Although the coin has seen a downtrend since, it remains firmly within the top ten cryptocurrency assets by market capitalization.

While Musk has not recently made overt Dogecoin-related posts, such as sharing a DOGE meme or donning a DOGE shirt like in the past, he continues to be deeply engaged with its community. Evidence lies in his interactions on X, where he frequently communicates with notable Dogecoin figures, such as DogeDesigner (@cb_doge).

A look at his X feed and communications reveals that Dogecoin community member DogeDesigner is one of his favorite accounts to interact with. In the last 24 hours alone, Musk has written 11 replies to tweets from DogeDesigner. Musk is also in regular communication with Dogecoin creator Billy Markus. So there are good reasons to argue that Musk’s fondness for Dogecoin has not diminished.

In a noteworthy development, three weeks ago, X procured money or currency transmitter licenses in seven US states, including Maryland, New Hampshire, and Rhode Island and has thus laid the groundwork for today’s revelation. Interestingly, while the Rhode Island license does encompass crypto payments, it also covers more general payment providers like PayPal and Venmo.

Since June, X has secured similar licenses from other states, including Arizona, Maryland, Georgia, Michigan, Missouri, and New Hampshire. These licenses, though broad in scope, are important building blocks for Musk’s ambitions to potentially venture X into a worldwide payment processor.

DOGE Price

At press time, DOGE was trading at $0.0627. Thus, the Dogecoin price is trading almost exactly at the same level as a month ago. On the higher time frames (1-day chart), DOGE shows a clear downtrend (black line) that needs to be broken in order to unleash a new upward momentum.

Polygon (MATIC) enthusiasts remain undeterred as they continue to push the price of the digital asset higher despite a prevailing bearish market structure, While the higher timeframe structure paints a bearish picture, buyers have been steadily driving prices upwards. 

At the time of writing, MATIC is priced at $0.541671 on CoinGecko, marking a 2% gain in the past 24 hours and a noteworthy 4.5% increase over the course of a week.

Derivatives Market Wary Despite MATIC’s Resilience

Market participants in the derivatives sector have, however, approached MATIC’s recent bullish moves with caution. Data provided by Coinalyze reveals a consistent dip in Open Interest, even in the face of decent price gains. This dip suggests a lack of conviction among traders regarding MATIC’s price rebound.

However, there are underlying indicators that may paint a more optimistic picture for Polygon, according to price analysis. The Funding Rate has remained positive since last week, and the Spot CVD (Cumulative Volume Delta) has maintained its upward trend. These factors hint at a growing demand for MATIC, which could play a pivotal role in supporting a sustained bullish surge.

Moreover, buyers found renewed enthusiasm as Bitcoin (BTC) made a swift climb to the $27,000 price range, igniting fresh bullish sentiment.

Technical Signals Point Toward Growing Confidence

A closer look at the technical indicators shows that buying pressure has been gradually increasing. The Relative Strength Index (RSI) currently stands at 58, underscoring the rising bullish sentiment among MATIC investors. Similarly, the Chaikin Money Flow (CMF) has flipped positive with a reading of +0.04, indicating an influx of capital into the asset.

Examining the 12-hour chart for MATIC reveals a conservative yet sustained bullish approach to the price rebound. These signals collectively point towards a growing bullish confidence in the short term. While the broader market may appear bearish, MATIC enthusiasts seem determined to defy the prevailing sentiment and drive the digital asset’s value higher.

Polygon (MATIC) buyers have remained resilient in the face of a bearish market structure. The digital asset’s price has shown steady progress, and key indicators suggest that demand for MATIC remains intact. 

With growing buying pressure and positive technical signals, MATIC enthusiasts may have reason to believe that the tide could turn in their favor, despite the overarching market conditions. Investors will be closely watching the coming days to see if this bullish momentum can be sustained.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from YouWorkForThem

Polkadot’s DOT is recovering higher from the $3.92 support against the US Dollar. The price could gain pace if it clears the $4.20 and $4.35 resistance levels.

DOT is slowly moving higher above the $4.05 resistance zone against the US Dollar.
The price is trading just above the $4.15 zone and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $4.175 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
The pair could gain bullish momentum if there is a close above $4.20 and $4.35.

Polkadot’s DOT Price Faces Uphill Task

After a sharp decline, DOT price found support near the $3.90 zone. A low is formed near $3.91 and the price is now attempting a fresh increase, like Bitcoin and Ethereum.

There was a break above the $4.00 and $4.05 resistance levels. The price surpassed the 23.6% Fib retracement level of the downward move from the $4.80 swing high to the $3.91 low. DOT is now trading just above the $4.15 zone and the 100 simple moving average (4 hours).

Immediate resistance is near the $4.20 level. There is also a key bearish trend line forming with resistance near $4.175 on the 4-hour chart of the DOT/USD pair.

Source: DOTUSD on TradingView.com

The next major resistance is near $4.35. It is near the 50% Fib retracement level of the downward move from the $4.80 swing high to the $3.91 low. A successful break above $4.35 could start a strong rally. In the stated case, the price could easily rally toward $4.80 in the coming days. The next major resistance is seen near the $5.0 zone.

Another Decline?

If DOT price fails to continue higher above $4.20 or $4.35, it could start another decline. The first key support is near the $4.05 level.

The next major support is near the $3.90 level and the last low, below which the price might decline to $3.75. Any more losses may perhaps open the doors for a move toward the $3.50 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.

Major Support Levels – $4.05, $3.90 and $3.75.

Major Resistance Levels – $4.20, $4.35, and $4.80.

Ethereum price corrected lower from the $1,670 resistance against the US Dollar. ETH could take a major hit if it breaks the $1,600 support.

Ethereum started a bearish wave from the $1,660 resistance.
The price is trading below $1,640 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must stay above the $1,600 support zone to start another increase in the short term.

Ethereum Price Slides Further

Ethereum’s price failed to clear the $1,660 and $1,670 resistance levels. As a result, ETH started another decline and traded below the $1,630 support, like Bitcoin.

The price moved below the $1,620 support as well. However, the bulls are active near the $1,600 level. A low is formed near $1,606 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the downward move from the $1,659 swing high to the $1,606 low.

Ether is now trading below $1,640 and the 100-hourly Simple Moving Average. There is also a key bearish trend line forming with resistance near $1,640 on the hourly chart of ETH/USD.

On the upside, the price might face resistance near the $1,630 level and the 100-hourly Simple Moving Average. The next resistance is near the $1,640 level and the trend line. The trend line is also near the 61.8% Fib retracement level of the downward move from the $1,659 swing high to the $1,606 low.

Source: ETHUSD on TradingView.com

The main resistance is now forming near $1,660. A close above the $1,660 resistance might send the price toward the $1,720 resistance. The next major barrier is near the $1,750 level. A close above the $1,750 level might send Ethereum further higher toward $1,820.

More Losses in ETH?

If Ethereum fails to clear the $1,640 resistance, it could start another decline. Initial support on the downside is near the $1,600 level.

A downside break below $1,600 might accelerate losses. The next key support is close to $1,540, below which the price could even test the $1,500 level. The next key support is $1,440.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 level.

Major Support Level – $1,600

Major Resistance Level – $1,640

CoinEx, a cryptocurrency exchange, has announced plans to resume its deposit and withdrawal services. The crypto platform was forced to shut down operations after roughly $70 million worth of cryptocurrencies were drained from its hot wallets a week ago.

On Saturday, September 16, the CoinEx team offered an update on their investigation, which showed that 18 different crypto assets, including BTC, ETH, XRP, and BCH, were stolen from the exchange. The exchange, however, asserted that assets in its cold wallets were not affected by the September 12 attack.

Furthermore, CoinEx revealed that it is working with various blockchain security firms to trace the hackers’ addresses and recover the stolen assets. Interestingly, many security organizations and on-chain investigators have linked the attack to the North Korean hacker group Lazarus Group.

CoinEx To Allow Deposit And Withdrawal Of These Cryptocurrencies

In the latest update published on September 20, CoinEx disclosed its plans to resume deposit and withdrawal services for certain crypto assets on Thursday, September 21. Users will be able to interact with about ten cryptocurrencies, including Bitcoin (BTC), Ether (ETH), USDT (on the ERC20 and TRC20 networks), USDC (on the ERC20 network), Tron (TRX), Binance Coin (BNB), etc.

As per the announcement, CoinEx will resume operations after implementing a new wallet system. During this process, the deposit addresses for certain tokens will be upgraded and new ones will be generated for all users.

However, CoinEx warned users not to deposit into any old wallet addresses, as this could result in the permanent loss of transferred assets. The crypto exchange added:

Please be sure to double-check that you are using the new address before depositing.

After addressing that, CoinEx assured users that it will gradually resume deposits and withdrawals for other cryptocurrencies. 

The crypto exchange also asked customers to exercise patience, as there may be many pending withdrawals over the next few days. Hence, processing all withdrawal requests for the available assets may take longer than usual.

Will Users Be Able To Withdraw 100% Funds?

CoinEx has maintained that users’ assets were not lost in this exploit. In the September 16 update, the company said that its User Asset Security Foundation would cover the financial losses from the incident.

Moreover, CoinEx CEO Haipo Yang posted on X (formerly Twitter) two days after the attack, assuring “affected users” of 100% compensation. “Your assets with CoinEx remain safe. That’s our commitment to all of you,” Yang added.

CoinEx claims it has always implemented a 100% reserve policy to ensure user asset protection in the face of security threats. And the crypto exchange promised to improve its security infrastructure and invest more in its risk systems.

Bitcoin (BTC) held by leading crypto exchanges like Coinbase, Binance, and Kraken are near a six-year low, CryptoQuant data on September 20 reveals.

The contraction was recorded when the broader market steadied after posting sharp losses in the better part of August and the first half of September. As of September 20, BTC prices are still below $30,000, but with important sideways movement over the past few weeks. 

Bitcoin Reserves On Exchanges Falling 

According to trackers, exchanges control 2.09 million BTC when writing. In total, the Bitcoin network will issue 21 million coins.

However, as of 2023, over 19.7 million are in circulation, and public firms such as Tesla—the electric car automaker—and MicroStrategy—the business intelligence firm—have been loading up. Generally, entities can hold cryptocurrencies in non-custodial wallets or exchanges like Binance or Coinbase.

Exchanges offer custodial wallets where users can store their coins to trade or even HODL. Users who hold their coins on exchanges can easily swap them for USDT or other altcoins. As mentioned, the number of coins held in exchanges continues to contract—which, while on the surface can be bullish, doesn’t necessarily mean prices will recover.

Typically, coin outflows from exchanges can signal a firming market and expectation of price expansion. However, considering the current regulatory environment, traders and Bitcoin holders might prefer taking control of their coins as fear sets in.

Accordingly, more holders secure their coins in their non-custodial wallets as a protective measure, possibly explaining the dropping Bitcoin exchange reserves.

SEC, Regulators Tough On Exchanges

The number of Bitcoin held in exchanges has been falling throughout 2022 but appeared to have dropped faster in late 2022. Around that time, FTX, a popular crypto exchange, collapsed, locking billions worth of clients’ funds. 

Outflow slowed down in Q1 2023 following the collapse of some regional banks in the United States but has since continued falling. The dip can be attributed to the bear market but primarily because the United States Securities and Exchange Commission (SEC) is cracking the whip on Binance and Coinbase, accusing them of non-compliance.

In June, Binance and Coinbase were sued by the SEC. The regulator claimed that the two exchanges were issuing unregistered securities, citing some, like Cardano (ADA), as examples.

Amid this crackdown, Binance US became a focal point. Since then, there have been major staff resignations, layoffs, and disruption of operations. Trading volume in Binance US is now down by over 95%. 

Polygon (MATIC) zkEVM, a zero-knowledge scaling solution designed to be compatible with the Ethereum Virtual Machine (EVM), has achieved a significant milestone by completing its first upgrade. 

The upgrade, known as the Dragonfruit Upgrade, marks a significant step forward for Polygon zkEVM since its launch in mainnet beta in March 2023.

Polygon zkEVM Implements Key Improvements

As an EVM equivalent ZK rollup scaling solution, Polygon zkEVM aims to ensure seamless compatibility with existing smart contracts, developer tooling, and wallets. This compatibility allows for a “smooth transition” and continued operation without disrupting the ecosystem. 

Developers can leverage the benefits of Polygon zkEVM’s zero-knowledge proofs, specifically validity proofs, to reduce transaction costs and increase transaction throughput while maintaining the robust security provided by the Ethereum base layer.

The successful completion of the Polygon zkEVM Mainnet Beta upgrade, including bridge operations, signifies a notable achievement, according to the protocol’s announcement on September 20. 

Dragonfruit Upgrade: successful

Polygon zkEVM Mainnet Beta upgrade + bridge operations have completed successfully. System resumes full activity.

Devs, the list of EVM networks that support PUSH0 opcode:
1) Ethereum
2) Polygon zkEVM Mainnet Beta https://t.co/YEjDhHDD6w

— Polygon (@0xPolygon) September 20, 2023

With the completion of the upgrade, the system has resumed full activity, providing users with enhanced functionality and improved scalability.

Regarding the PUSH0 opcode support, Polygon zkEVM Mainnet Beta is now included in the list of EVM networks that support this opcode. 

Including Polygon zkEVM Mainnet Beta alongside Ethereum demonstrates its compatibility with existing Ethereum-based networks and further expands the options available to developers.

Completing the first major upgrade for Polygon zkEVM represents a notable advancement in zero-knowledge scaling solutions. 

By combining the benefits of zero-knowledge proofs, lower transaction costs, increased throughput, and Ethereum’s base-layer security, Polygon zkEVM aims to provide an efficient and secure environment for decentralized applications and blockchain development.

With the successful upgrade and its continued commitment to compatibility and scalability, Polygon zkEVM strengthens its position as a scaling solution within the broader Ethereum ecosystem. 

Developers and users alike can leverage the capabilities of Polygon zkEVM to build and interact with decentralized applications while enjoying the benefits of improved efficiency and reduced costs.

MATIC Sees Modest Gain, Holding Significant Seven-Day Increase

Despite ongoing developments within the Polygon ecosystem, the native token of the protocol, MATIC, has remained range-bound for the past two days, failing to test upper resistance levels. 

Currently, the token is consolidating between the price range of $0.536 and $0.5472, trading at $0.5426. It has maintained relative stability for over 24 hours, with a slight gain of 0.5% during this time frame.

However, MATIC has still held significant gains over the seven days, with a 5.9% increase. This allowed the token to reclaim the $0.500 level after losing it and experiencing a decline to $0.419 on September 11, following the overall market trend. This marked the lowest point of the year for MATIC.

MATIC faces resistance at two key levels, namely $0.5587 and $0.5930. These resistance walls pose challenges for the token’s recovery and upward momentum. MATIC must surpass these obstacles in the short term before it can regain the $0.600 mark.

On the other hand, a concerning factor is that MATIC only has a support level at a 1-year low of $0.4614. Bulls must defend this threshold to prevent a significant downtrend leading to new yearly lows. 

However, MATIC could break free from the lower lows zone if the market conditions become more favorable for altcoins, potentially leading to a price surge.

Featured image from iStock, chart from TradingView.com 

Bitcoin price is struggling to clear the $27,500 resistance. BTC is slowly moving lower and might revisit the $26,200 support zone in the coming sessions.

Bitcoin is still struggling to clear the $27,500 resistance.
The price is trading above $26,800 and the 100 hourly Simple moving average.
There is a key bullish trend line forming with support near $26,810 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a bearish wave below $26,800 if it continues to struggle below $27,500.

Bitcoin Price Faces Rejection

Bitcoin price made a couple of attempts to gain strength for a move above the $27,500 resistance zone. However, BTC failed to continue higher and slowly moved lower after the Fed interest rate decision.

The Fed kept the rates steady at 5.5% and it did not impact Bitcoin much. The price is now moving lower below the $27,200 level. There was a break below the 50% Fib retracement level of the upward move from the $26,656 swing low to the $27,495 high.

Bitcoin is now trading above $26,800 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support near $26,810 on the hourly chart of the BTC/USD pair.

If the price remains stable above the trend line, it could rise again. Immediate resistance on the upside is near the $27,280 level. The first major resistance is near the $27,500 zone, above which the price could gain bullish momentum.

Source: BTCUSD on TradingView.com

The next key resistance could be near the $28,200 level. A close above the $28,200 resistance could push the price toward the $29,500 resistance. Any more gains might call for a move toward the $30,000 level in the coming days.

Downside Break In BTC?

If Bitcoin fails to start a fresh increase above the $27,280 resistance, it could continue to move down. Immediate support on the downside is near the $26,855 level or the 76.4% Fib retracement level of the upward move from the $26,656 swing low to the $27,495 high.

The next major support is near the $26,800 level and the trend line. A downside break and close below the $26,800 level might spark more bearish moves and the price could decline toward the next support at $26,200.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $26,800, followed by $26,200.

Major Resistance Levels – $27,280, $27,500, and $28,200.