Blockchain

In a recent development, the Shiba Inu community has warned of a “scam” project that may be responsible for some of the FUD attacks that have plagued the Shibarium network since it launched on August 16. 

Shibarium Admin Warns Of Scam Project

In a tweet on the X (formerly Twitter) platform, a member of the Shibarium tech team (known as Digarch) shared a screenshot of the admin warning of a scam project set to be deployed on the layer-2 network. According to the Shibarium tech admin named DaVinci, “Pawswap” is the scam project responsible for funding attacks on Shibarium. 

Besides funding these attacks, Pawswap allegedly uses its community to spread fear, uncertainty, and doubt (FUD) about the network. DaVinci said the project and its team had infiltrated the Shibarmy by passing off as Pawzone, a credible project set to launch on the Shibarium network.

As a result of this, he urged the Shib community to stay safe from Pawswap, which he called a “Scam or Shitcoin,” and that they defend the ecosystem from such projects. 

Meanwhile, Digarch, who shared the screenshot, clarified that Pawzone was different from Pawswap, which DaVinci had mentioned, and stated that Pawzone was the team behind the NFT marketplace Pawzaar, which will be one of the NFT marketplaces that will be launching on Shibarium soon. 

Pawswap Legit Or Not?

Following Digarch’s tweet, another user on the X platform said that Pawswap wasn’t a scam and pointed out that the project was certified by Certik, a leading blockchain security firm, and certification always inspires confidence in the minds of the public about a particular project.

Upon further investigation, this user’s assertion is correct, as Certik awarded a silver KYC badge to the project on September 3, according to data from their website. As part of the verification process, Certik also verified 8 of the project’s core team members and reviewed its token contract. 

It is also worth mentioning that the project plans to launch its decentralized exchange (DEX) on the Shibarium network. As such, one might wonder why the Pawswap team would be looking to cause Shibarium to fail when it does not benefit the team. The project also seems to have a significant following, with over 13,000 followers on its X platform. 

While there are no assurances that Pawswap is legit or a scam like DaVinci has asserted, it is important for the community to always do their research. 

This is something that Shibarium’s lead developer, Shytoshi Kusama, has always emphasized in the network’s updates as he mentioned the influx of tokens and projects into the Shibarium ecosystem.

Optimism (OP) has been at the forefront of the blockchain industry with its incentive program, which recently led to the protocol’s cumulative trading volume exceeding an impressive $3.8 billion.

Analyst Ryan Holloway has shed light on the remarkable impact of Optimism’s incentive program. The availability of OP trading rewards and incentives on various platforms, including Polynomial, played a pivotal role in this surge in usage metrics.

The incentivization strategy employed by Optimism has proven wildly successful, resulting in an astounding 23-fold increase in trading volume for the protocol. This achievement, however, comes with a caveat, as it raises questions about the composition of this newfound trading activity.

Just dropped an analysis with @t__norm on the impact of @PolynomialFi‘s OP incentive program that ultimately led to the protocol’s cumulative trading volume surpassing $3.8B

pic.twitter.com/UahucTcVJ0

— Ryan Holloway (@raholloway) September 9, 2023

Rise In Trading Volume Masks Optimism’s Growth In Daily Traders

While the surge in trading volume is undoubtedly impressive, a deep analysis reveals a more nuanced picture. The growth in daily traders has been relatively modest, suggesting the possibility of a significant rise in power users or, in a less favorable scenario, potential wash trading activities.

But what exactly is wash trading? Wash trading involves artificially inflating trading volumes by executing simultaneous buy and sell orders for the same asset, giving the illusion of increased demand and activity. This practice is illegal in traditional financial markets and is viewed negatively in the cryptocurrency space due to its potential to mislead investors.

Optimism Faces DeFi Sector Headwinds

Optimism has faced its fair share of challenges in gaining a foothold in the competitive DeFi sector. Recent reports indicate a notable decrease in total value locked and decentralized exchange volumes on the network in recent weeks. This decline in activity is reflected in the network’s financials, with revenue plummeting by 37.5% in the last month, accompanied by an overall activity decrease of 19.7% over the same period.

Despite these setbacks, Optimism’s native token, OP, currently holds a price of $1.26 according to CoinGecko, with a 0.9% gain in the last 24 hours. However, it has seen a 6.2% decline over the past week.

Sustainability And Challenges In Optimism’s Post-Incentive Era

The sustainability of Polynomial’s retention rates after the conclusion of the incentive program will be a crucial factor in determining its long-term impact on Optimism. As the network navigates the challenges posed by wash trading concerns and its struggles to establish a firm presence in DeFi, the cryptocurrency community will be closely watching for signs of resilience and adaptability.

While Optimism’s incentive program has undeniably driven an astonishing surge in trading volume, the sustainability of this growth and the resolution of its challenges will determine the protocol’s long-term success in the highly competitive world of cryptocurrency.

(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 Insperity

Amid the bankruptcy proceedings of crypto exchange FTX, the market is in a state of heightened anxiety, and Solana (SOL) in particular saw a 7% drop in price yesterday following the spread of rumors. FTX is scheduled to appear in Delaware Bankruptcy Court on Wednesday, September 13, to seek approval for the liquidation of $3.4 billion in SOL, FTT, BTC, ETH and other crypto assets.

The event has led to widespread concerns among market analysts and participants, who speculate that the liquidation could exert significant selling pressure on an already fragile market. As of January 17, FTX’s crypto holdings were estimated to include $685 million in Solana (SOL) tokens, $529 million in FTT tokens, $268 million in Bitcoin (BTC), $90 million in Ethereum (ETH), and various other assets such as Aptos, Dogecoin, Polygon, XRP, and stablecoins.

The Solana Situation

Solana, which represents FTX’s largest holding, experienced a sharp decline in its price yesterday. This can be largely attributed to the rumors circulating on crypto Twitter (X) suggesting a massive dump of SOL by FTX. But, as it turns out, this rumor lacks substance. A screenshot that surfaced on Twitter, detailing the assets held by FTX debtors as of January 17, 2023, confirms that FTX is in possession of approximately 47.51 million SOL.

However, there’s a crucial detail that many seem to have overlooked. The SOL tokens held by FTX debtors are not readily available for sale. Contrary to the narrative presented in the visual data shared, these SOL tokens are under a lockup agreement. FTX, in collaboration with Alameda, had previously acquired 16% of the SOL supply directly from the Solana Foundation.

This acquisition came with strings attached, namely a lockup schedule. The current stash of 47.51 million SOL, which represents 8.82% of Solana’s total eventual supply, is bound by this agreement.

Thus, the misconception that this SOL reserve is liquid and primed for a market dump is fundamentally flawed. The reality is that these tokens are locked and will undergo a linear vesting process spanning from 2025 to 2028. Accessing these funds prematurely is not an option.

As per the terms of the agreement, the SOL tokens will undergo linear monthly unlocks until January 2028. Furthermore, specific tranches, such as the 7.5 million SOL acquired from Solana Labs by Alameda Research, will only become available on March 1, 2025. Another tranche of 61,853 SOL is slated for unlocking on May 17, 2025.

In light of these facts, any fear, uncertainty, and doubt (FUD) suggesting an imminent SOL dump by FTX can be confidently labeled as misinformation.

SOL/USD 1-Day

Yesterday’s 7% drop in the Solana price may have been an overreaction by the market, which believed the rumors of an upcoming dump and sold en masse out of panic. However, not much has changed in the technical chart picture for SOL in the 1-day chart.

Already on August 31, SOL fell below the 50% Fibonacci retracement level at $20.26. The attempts to regain it failed in the second half of the week last week. Yesterday’s slide has now left SOL vulnerable to a correction lower to the 61.8% Fibonacci retracement level at $17.39.

A price recovery can be expected at this level. A rise above the 20-day EMA, below which Solana fell in mid-August, would be an important step for the bulls on the road to recovery. As then, a recapture of the 50% Fibonacci would be crucial.

In a bearish scenario, which currently looks less likely, SOL also loses the 61.8% Fibonacci retracement level. A drop to $13.30 would then be the bears’ next target.

Solana is gaining bearish momentum below $20 against the US Dollar. SOL price is struggling and could drop further toward $16.50 or even $15.00.

SOL price is showing bearish signs below $20.00 and $20.50 against the US Dollar.
The price is now trading below $20 and the 100 simple moving average (4 hours).
There is a major bearish trend line forming with resistance near $19.20 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to down if there is a close below the $17.80 support.

Solana Price Drops Further

In the past few days, Solana’s price made a couple of attempts to clear the $22.00 resistance. However, SOL failed to gain strength for a move above the $22.00 level.

As a result, there was a fresh bearish reaction below the $21.20 support, like Bitcoin and Ethereum. More importantly, FTX’s news of a possible selling of SOL is also putting a lot of pressure on the bulls. The price gained bearish momentum and traded below the $20.00 support.

Finally, it found support near $17.80. A low is formed near $17.78 and the price is now consolidating losses. SOL is now trading below $20 and the 100 simple moving average (4 hours).

Besides, there is a major bearish trend line forming with resistance near $19.20 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $18.50 level or the 23.6% Fib retracement level of the downward move from the $20.59 swing high to the $17.78 low.

Source: SOLUSD on TradingView.com

The first major resistance is near the $19.20 level or the trend line. The next key resistance is near the 76.4% Fib retracement level of the downward move from the $20.59 swing high to the $17.78 low at $20.00. A clear move above the $20.00 resistance might send the price toward the $21.20 resistance. Any more gains might send the price toward the $22 level.

More Losses in SOL?

If SOL fails to clear the $19.20 resistance, it could continue to move down. Initial support on the downside is near the $17.80 level.

The first major support is near the $17.20 level. If there is a close below the $17.20 support, the price could decline toward the $16.50 support. In the stated case, there is a risk of more downsides toward the $15.00 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $17.80, and $17.20.

Major Resistance Levels – $19.20, $20.00, and $22.00.

Ethereum price failed to settle above $1,650 and trimmed gains against the US Dollar. ETH is now trading in a bearish zone and could decline heavily.

Ethereum peaked near $1,670 and started a fresh decline.
The price is trading below $1,650 and the 100-hourly Simple Moving Average.
There is a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bearish momentum if there is a close below $1,600 and $1,580.

Ethereum Price Turns Red

Ethereum’s price attempted a fresh increase above the $1,620 pivot level. ETH even broke the $1,650 resistance but the bears were active near the $1,670 level.

As a result, the price failed to continue higher and started a fresh decline below $1,650, like Bitcoin. There was a downside break below the $1,620 level and the 100-hourly Simple Moving Average. The price even retested the $1,600 support zone.

A low is formed near $1,600 and the price is now consolidating losses. Ether is now trading below $1,650 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance near $1,620 on the hourly chart of ETH/USD. The trend line is close to the 23.6% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.

On the upside, the price might face resistance near the $1,620 level and the trend line. The next resistance is near the $1,635 level or the 50% Fib retracement level of the downward move from the $1,669 swing high to the $1,600 low.

Source: ETHUSD on TradingView.com

The first major resistance is near $1,650, above which the price could rise toward the $1,670 level. The next major hurdle is near the $1,700 level. A close above the $1,700 level might send Ethereum further higher toward $1,750.

Downside Break in ETH?

If Ethereum fails to clear the $1,620 resistance, it could start another decline. Initial support on the downside is near the $1,600 level.

The first key support is close to $1,580. The next key support is $1,540. A downside break below $1,540 might start a major decline toward $1,450. If there is a downside break below $1,450, the price could test the $1,320 support level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining 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 – $1,650

Bitcoin price is struggling to recover above $26,500. BTC is clearly struggling and there is a risk of a downside break in the near term.

Bitcoin is facing a lot of hurdles above the $26,200 resistance zone.
The price is trading well below $26,000 and the 100 hourly Simple moving average.
There is a key bearish trend line forming with resistance near $25,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could take a major hit if there is a close below $25,350.

Bitcoin Price Remains At Risk

Bitcoin price remained in a bearish zone and all attempts to start a decent recovery failed. BTC peaked near $26,500 and started a fresh decline.

There was a close below the $26,000 pivot level. The price even spiked below $25,650. A base seems to be forming near the $25,600 level but upsides are still capped. The price is consolidating below the 23.6% Fib retracement level of the downward move from the $26,487 swing high to the $25,650 low.

Bitcoin is also trading well below $26,000 and the 100 hourly Simple moving average. Besides, there is a key bearish trend line forming with resistance near $25,800 on the hourly chart of the BTC/USD pair.

Immediate resistance on the upside is near the $25,800 level. The first major resistance is near the $26,050 level or the 50% Fib retracement level of the downward move from the $26,487 swing high to the $25,650 low.

Source: BTCUSD on TradingView.com

The next key resistance is near $26,200. A proper close above the $26,200 level might start a decent increase. The next major resistance is near $26,500, above which the bulls could gain strength. In the stated case, the price could test the $27,000 level.

More Losses In BTC?

If Bitcoin fails to clear the $26,200 resistance, it could continue to move down. Immediate support on the downside is near the $25,600 level.

The next major support is near the $25,350 level. A downside break and close below the $25,350 level might increase selling pressure. In the stated case, the price could drop toward $24,500 or even $24,000.

Technical indicators:

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

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

Major Support Levels – $25,600, followed by $25,350.

Major Resistance Levels – $25,800, $26,050, and $26.200.

As the general crypto market experiences a slight gain in total market cap, Stellar (XLM) stands out with a substantial amount of price increase over the last week. According to data from CoinMarketCap, the XRP competitor is up by 17.61%, outperforming every other top 100 cryptocurrency in the past seven days. 

XLM To Reach $1?

With XLM currently hovering around the $0.13 price zone, there are speculations on the next movement. Interestingly, a crypto analyst with the name EGRAG CRYPTO on X (formerly Twitter) predicts that XLM could rise to $1 if certain conditions are met. 

According to the analyst’s post on September 8, this bullish prediction is formed on a potential crossover between two technical indicators, namely the 200-day Moving  Average (MA)and the 21-day Exponential Moving Average (EMA).

#XLM Heading for $1:

When the Bullish Cross occurs on the weekly time frame with the 21 EMA (Exponential Moving Average) and the 200 MA (Moving Average), I’m anticipating a potential surge of approximately 500% .

The chart below is showing promising signs that the next… pic.twitter.com/33TrI2znLb

— EGRAG CRYPTO (@egragcrypto) September 8, 2023

To explain, the MA indicator reflects the average price data over a specific period of time, e.g., 200 days. It is constantly updated and can be used to identify trade areas and recognize market trends.

On the other hand, The EMA performs a similar function but with a focus on more recent price points. Due to its method of calculation, the EMA reacts to price changes faster than the MA. 

Based on EGRAG CRYPTO’s prediction, if there is an upward crossover of the 21 EMA and 200 MA on XLM’s weekly chart, there is a possibility the token could experience a 500% price surge in the coming months, surpassing the dollar mark to trade at $1.10. 

This prediction is mainly based on historical price data, as XLM witnessed a similar massive price gain when this crossover occurred between 2020 and 2021. 

However, it is worth stating that all predictions are speculations without guarantees and should not be relied on as investment advice. 

Another Partnership For Stellar?

In other news, the Stellar community appears to be expecting a massive positive update in the next few days. On September 2, Stellar Development Foundation shared with its crypto community that “Something cool is dropping in 10 days”. 

Something cool is dropping in 10 days.

Get ready to gear up for a change that’s got us all excited. Stay curious pic.twitter.com/CgNzfzwqmc

— Stellar (@StellarOrg) September 2, 2023

This announcement was well received, with the XLM token rising by 10% in the next 24 hours. Interestingly, some enthusiasts predict Stellar could announce a new partnership in the coming week.

The blockchain network has already collaborated with companies such as American remittance firm MoneyGram and Circle, the company behind the USDC stablecoin. In fact, Stellar announced a minority investment in MoneyGram earlier in August. 

For now, it remains unknown what this new development could be. However, there is the possibility it could elicit some effect on XLM’s price trajectory.

At the time of writing, XLM is trading at $0.132, having gone up by $0.132 in the last day. In tandem, the token’s daily trading volume has gained by 21.33% and is valued at $119.14 million.

The price of Ethereum seems to be back under the influence of the current market sentiment despite enjoying a relatively positive week. On Wednesday, September 6, Ark Invest filed for the first Ethereum spot exchange-traded fund (ETF) in the United States.

This ETF application had a tame impact on the price of Ether, with the cryptocurrency only climbing to $1,650 the following day. Moreover, the token has almost fully reversed the minor gains from the significant development.

Ethereum Price Registers 0.1% Rise Last Week – Here’s Why

Ethereum currently changes hands at about $1,628, according to data from CoinGecko. A negligible 0.1% price increase in the last seven days underscores the struggling market performance of the second-largest cryptocurrency.

A spot ETH exchange-traded fund is an investment vehicle that tracks the price of Ethereum on the spot market, allowing investors to buy and sell the crypto asset via a brokerage account. A product of this kind is expected to boost interest and investment in the Ether token.

Nevertheless, the price of ETH has remained relatively unmoved this week despite the optimistic news. A recent report by blockchain analytics firm IntoTheBlock has provided insight into why the news barely impacted the price of Ethereum.

‘Supply & Demand Balance’

According to the data analytics platform, the current supply and demand balance is one of the primary reasons why the ETH price continues to move sideways. “Large holdings are concentrated close to ETH’s current price, consolidating prices in a tight range,” IntoTheBlock said.

IntoTheBlock data shows that a total of 5.1 million ETH was acquired below the $1,600 mark to create support, while a total of 6.5 million ETH was purchased at a price above this level to establish resistance. The blockchain analytics firm concluded that traders agree to transact within a narrow range with a large concentration of ETH positions.

‘Automated Buying, Discretionary Selling’ 

Additionally, IntoTheBlock believes that while bullish traders seemed to have bought the news, “discretionary sellers” overtook the narrative not too long after. 

“A key factor behind the discretionary selling is likely to be FTX’s upcoming liquidation of reportedly $3B in crypto holdings,” the report read.

While FTX has yet to disclose when it intends to execute these liquidations, it is likely that recent activity on the exchange’s wallets alarmed the market. 

This sentiment also seems to be reflected in the performance of SOL after global payment giant VISA disclosed that it will use the Solana network for payment settlements. While the value of SOL jumped by more than 5% to trade above $20 immediately after the announcement, the cryptocurrency is back trading beneath $19.5.

With the Ethereum and Solana tokens constituting a significant portion of FTX’s holdings, it is likely that the slow market performance of these assets is driven by traders being cautious because of the impending liquidation.

PEPE, the meme coin that has garnered a cult following in the cryptocurrency world, made headlines once again as an anonymous whale, rumored to go by the name “Alleged Mattfurie,” executed a huge transaction. 

According to a new PEPE price update,  this enigmatic figure exchanged a staggering 726 billion PEPE tokens for approximately 345.7 Ethereum (ETH). What’s more, the acquired ETH swiftly found its way to the Coinbase exchange, adding intrigue to an already sensational move.

As of the latest data from CoinGecko, PEPE is currently valued at $0.00000078, with a 24-hour slump of 2.8% and a marginal seven-day loss of 0.1%. However, the impact of this whale behavior is sending ripples through the meme coin’s market dynamics.

PEPE’s price saw a brief 3.48% rise on September 7th, but it quickly dropped back to $0.0000007857. This likely indicates that a significant PEPE holder sold their 762 billion tokens at a loss.

PEPE Price Conundrum: Caught In A Triangle

PEPE’s journey in the world of cryptocurrencies has been nothing short of remarkable. It has not only become a symbol of internet culture but also a fascinating experiment in the world of decentralized finance. 

While the PEPE token continues to capture the imagination of traders, its price appears to be tightly ensnared within a converging triangular pattern. A separate report suggests that as long as this pattern remains intact, the coin’s price may persist in moving laterally over the coming days. This predicament leaves traders in a precarious position.

For traders with a bearish outlook on PEPE, the recent whale transaction may present an enticing opportunity. Some are considering the possibility of short-selling the coin, anticipating a potential breakdown. If this bearish sentiment takes hold, the report notes that PEPE’s price could tumble by as much as 10%, potentially retesting the psychological support level at $0.0000007.

Insights And Speculation Abound

The sudden influx of PEPE coins into the market has raised several questions about its potential impact. The cryptocurrency market, known for its unpredictability, continues to offer intrigue and speculation, with events like Alleged Mattfurie’s massive PEPE token exchange sparking intense discussions. 

While some view it as a simple profit-taking move, others see it as a signal of larger market shifts. The meme coin space, in particular, thrives on such dramatic twists, and PEPE enthusiasts remain divided on the implications of this whale’s actions.

In the world of cryptocurrency, where every move is scrutinized and analyzed, the PEPE whale’s exchange of 726 billion tokens for Ethereum serves as a reminder of the volatility and excitement that come with these digital assets.

As PEPE continues to occupy a unique niche in the crypto landscape, observers and traders alike eagerly await the next chapter in this ever-evolving story.

(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 The Currency Analytics

Binance Coin (BNB) has experienced a notable setback, retracing from its overhead resistance for the third time in just two months. This downward trajectory has formed a falling wedge pattern, a technical indicator characterized by declining peaks and troughs confined within two converging trend lines.

As of the latest data from CoinGecko, BNB is currently trading at $214.94, with a 24-hour decline of 0.9% and a modest seven-day gain of 0.6%. On August 31, the BNB price dipped below the critical $220 local support level, signaling the possibility of further bearish movement.

However, amidst the prevailing market uncertainty, BNB’s price has turned sideways, leaving both buyers and sellers in a state of indecision.

The falling wedge pattern, often referred to as an ending diagonal pattern, can be seen as a potential signal of exhaustion within a prevailing bearish phase, hinting at a potential trend reversal. If the recent breach below $220 fails to sustain, it could open the door for buyers to challenge the overhead resistance.

Binance Coin Potential For Turnaround

Price analysis suggests that a successful breakout from this falling wedge pattern would signify a bullish turnaround for BNB. This could potentially propel the coin’s price to target levels of $234, and if momentum continues to favor buyers, it may even reach heights of $247 or even $263.

In a parallel development, PancakeSwap (CAKE) has achieved a significant milestone in the cryptocurrency ecosystem. According to a post by glebk.eth, PancakeSwap’s monthly revenue has surpassed that of BNB Chain over the last 30 days.

.@PancakeSwap surpassed @BNBCHAIN in terms of monthly revenue

Data source: @tokenterminal $CAKE $BNB #BNB #BNBChain pic.twitter.com/Vp1bHg8o6N

— glebk.eth (@glebk_eth) September 7, 2023

PancakeSwap operates on BNB Chain due to its lower transaction costs, which allow users to swap tokens with significantly reduced fees compared to Ethereum (ETH).

Token Terminal data reveals that, as of September 6, PancakeSwap generated fees totaling $96,237, indicating a substantial increase in user transactions compared to the previous day.

In contrast, BNB Chain’s 30-day revenue stood at $931,700 on September 7. PancakeSwap’s revenue during the same period, however, exceeded expectations, reaching $970,800.

Implications For The Crypto Market

These developments in the crypto market highlight the ongoing battle between various blockchain platforms and decentralized exchanges. BNB’s struggle with overhead resistance underscores the challenges faced by cryptocurrencies in maintaining upward momentum amid market volatility.

As the crypto landscape continues to evolve, investors and enthusiasts will closely monitor these trends to assess the potential impact on the broader market and the long-term viability of different blockchain ecosystems. 

(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 Fortune