Blockchain

September is gearing up to be a pivotal month in the crypto space, with a series of substantial token unlocks for Solana, ApeCoin, Worldcoin, Optimism, dYdX and Aptos on the horizon. Popular crypto voices, @TheDeFinvestor and @wacy_time1, have taken to Twitter to provide insights, speculations, and analyses on these impending events. Here’s a consolidated look at their perspectives.

ApeCoin (APE)

Set to witness one of the most significant unlocks this month, APE will release $54.8 million, which represents 11% of its circulating supply, on Sept. 17. Both influencers highlighted the magnitude of this event. @TheDeFinvestor pointed out that most of the unlocked tokens would go to insiders, specifically launch contributors. Drawing from history, the last time a large amount of APE tokens entered circulation, the price experienced a sharp dip.

@wacy_time1 mentioned the potential risks of shorting APE, especially given its current position. Since the beginning of the year, the APE is in a steep downtrend which saw price decline by 80%.

Worldcoin (WLD)

WLD is set for a daily unlock of $3.38 million. @TheDeFinvestor emphasized that in a year, the circulating supply of WLD would be three times its current amount.The token’s value has reportedly decreased by almost 50% since its launch. Despite this downtrend, both influencers cautioned against shorting it due to its large VC backers and potential price manipulations.

Solana (SOL)

Solana is set for an unlock of $10.3 million from staking on September 7. @wacy_time1 provided an analysis suggesting that a majority of the 2756 stakers receiving 531,574 SOL might not immediately sell. The influencer believes that any price drop could be an accumulation opportunity, emphasizing the potential of Solana.

Remarkably, just yesterday, Solana announced that payments giant Visa is scaling their USDC settlement pilot to include the Solana blockchain, enabling enterprise-grade throughput at virtually no cost for Visa issuers and merchant acquirers on Solana. The SOL price reacted with a 5% surge but couldn’t take out the 50% Fibonacci retracement level on the 1-day. As long as this mark is not surpassed on a daily closing basis, further upside potential seems ruled out.

Optimism (OP)

OP will unlock $32.3M, or 3.03% of its circulating supply, on Sept. 30. These tokens are designated for core contributors and investors. @TheDeFinvestor mentioned that these groups are typically the ones most likely to sell. However, @wacy_time1 expressed a more optimistic view, suggesting that the price might not react negatively. The influencer emphasized the potential of Optimism following the success of Coinbase’s Base and hinted at accumulation opportunities if any negative price reaction occurs.

dYdX

On Sept. 26, $13.7 million, about 3.8% of the dYdX circulating supply, will be unlocked. These tokens are allocated to the community treasury, liquidity provider rewards, and trading rewards. @TheDeFinvestor highlighted the mid-long term selling pressure these unlocks might introduce, while @wacy_time1 did not express significant concerns regarding this token’s unlock.

Aptos (APT)

A standard linear unlock of $25 million is scheduled for APT on September 12. @wacy_time1 shared that he doesn’t anticipate a significant price reaction and might consider buying APT for speculative purposes if it drops below $3.

In light of these impending unlocks, the crypto community is advised to stay informed and exercise caution. The events of September are poised to offer both challenges and opportunities for crypto investors.

SHIB price (Shiba Inu) is struggling below the $0.000008 resistance against the US Dollar. Shiba Inu could start a recovery wave if it settles above $0.000008.

Shiba Inu price extended its decline and tested the $0.0000074 zone against the US Dollar.
The price is now trading below $$0.000008 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $0.0000077 on the 4-hour chart of the SHIB/USD pair (data source from Kraken).
The pair could start a recovery wave if it clears the $0.0000078 and $0.0000080 levels.

SHIB Price Faces Uphill Task

In the past few days, SHIB price saw a steady decline below the $0.0000088 level. The bears were able to push the price below the key support at $0.0000080.

Finally, Shiba Inu found support near the $0.0000074 zone. A low is formed near $0.00000739 and the price is now attempting a recovery wave, like Bitcoin and Ethereum. It is now consolidating near the 23.6% Fib retracement level of the downward move from the $0.00000845 swing high to the $0.00000739 low.

However, SHIB price is trading below $$0.000008 and the 100 simple moving average (4 hours). Besides, there is a key bearish trend line forming with resistance near $0.0000077 on the 4-hour chart of the SHIB/USD pair.

On the upside, the bears are protecting the $0.0000077 level and the trend line. The next major resistance is near the $0.0000078 level or the 50% Fib retracement level of the downward move from the $0.00000845 swing high to the $0.00000739 low.

Source: SHIBUSD on TradingView.com

The main resistance is now forming near the $0.0000080 level. A close above the $0.0000080 level might send the price toward the $0.0000088 level. Any more gains might send the price towards the $0.0000092 level.

More Losses In Shiba Inu?

If Shiba Inu price fails to clear the $0.0000078 resistance, it could start another decline. Initial support on the downside is near the $0.0000075 level.

The first major support is near the $0.0000074 level. The next major support is near the $0.0000072 level. If there is a downside break below the $0.0000072 support, there could be an extended decline towards the $0.0000070 zone.

Technical Indicators

4 Hours MACD – The MACD for SHIB/USD is losing pace in the bearish zone.

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

Major Support Levels – $0.0000075 and $0.000074.

Major Resistance Levels – $0.0000078, $0.0000080 and $0.0000088.

Ethereum price is attempting a recovery wave above $1,620 against the US Dollar. ETH must settle above $1,650 to start a decent increase.

Ethereum is slowly moving higher from the $1,600 support zone.
The price is trading near $1,630 and the 100-hourly Simple Moving Average.
There was a break above two bearish trend lines with resistance near $1,620 and $1,630 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a steady increase if there is a close above the $1,650 resistance.

Ethereum Price Holds Key Support

Ethereum’s price managed to stay above the $1,600 support zone. ETH price is forming a base and is currently attempting a recovery wave above $1,620, like Bitcoin.

There was a break above two bearish trend lines with resistance near $1,620 and $1,630 on the hourly chart of ETH/USD. The pair retested the 23.6% Fib retracement level of the main decline from the $1,750 swing high to the $1,600 low.

Ether is now trading near $1,630 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1,645 level. The next resistance is near the $1,660 level, above which the price could rise toward the $1,675 level.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the main decline from the $1,750 swing high to the $1,600 low is also near $1,675. The next major barrier is near the $1,700 level. A close above the $1,700 level might push Ethereum into a positive zone. The next resistance might be near $1,750. Any more gains might send the price toward the $1,800 resistance.

Another Decline in ETH?

If Ethereum fails to clear the $1,660 resistance, it could start another decline. Initial support on the downside is near the $1,620 level. The first key support is close to $1,600. A downside break below $1,600 might increase selling pressure.

The next major support is near the $1,580 level. If there is a downside break below $1,580, the price could revisit the key $1,540 support level. Any more losses might send the price toward the $1,480 level or even $1,440.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.

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

Major Support Level – $1,600

Major Resistance Level – $1,660

Bitcoin price is consolidating above $25,650 and $25,500. BTC could start a decent increase if the bulls manage to push it above the $26,200 resistance.

Bitcoin is trading in a range above the $25,650 support zone.
The price is trading below $26,000 and the 100 hourly Simple moving average.
There is a short-term 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 it continues to struggle below the $26,200 resistance zone.

Bitcoin Price Starts Consolidation

Bitcoin price remained in a range and settled well below the $26,200 resistance zone. It seems like BTC bulls are currently protecting a downside break below the $25,650 and $25,500 support levels.

It is clearly consolidating above the $25,650 level. However, it is also below $26,000 and the 100 hourly Simple moving average. Besides, there is a short-term 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 and the trend line. The first major resistance is near the $26,000 level or the 23.6% Fib retracement level of the main decline from the $28,150 swing high to the $25,330 low.

The next major resistance is now near the $26,200 level. A proper close above the $26,200 level might start a decent recovery wave toward $26,750. It is close to the 50% Fib retracement level of the main decline from the $28,150 swing high to the $25,330 low.

Source: BTCUSD on TradingView.com

The next major resistance is near $27,000, above which the bulls might gain strength. In the stated case, the price could test the $28,000 level.

Another Drop 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 $25,650 level.

The next major support is near the $25,350 level. A downside break and close below the $25,350 level might send the price further lower. In the stated case, the price could drop toward $24,800 or even $24,500.

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 above the 50 level.

Major Support Levels – $25,650, followed by $25,350.

Major Resistance Levels – $25,800, $26,000, and $26,200.

Bitcoin (BTC), the leading cryptocurrency in the market, continues to exhibit a stagnant price movement. However, a notable development has emerged as BTC struggles to sustain consolidation above the critical $26,000 threshold. This could potentially present challenges for the cryptocurrency’s performance.

Currently trading at $25,700, Bitcoin is on the cusp of a significant breakout. This breakout can exert pressure on short positions and liquidity pools positioned above or to fill the gaps on lower levels of the Chicago Mercantile Exchange (CME). 

What’s more concerning is that these gaps are located near what many experts believe to be the bottom of the Bitcoin bear market. 

Bitcoin Double Top Formation And Implications For Price

Renowned crypto analyst Rekt Capital has recently shared valuable insights on Bitcoin’s price action and charts, shedding light on the likelihood of the cryptocurrency filling the CME gap at $19,500 and $20,500. 

In a YouTube video uploaded on September 5, Rekt Capital emphasizes the significance of BTC’s weekly chart in understanding its recent movements.

According to Rekt Capital’s analysis, Bitcoin’s weekly chart reveals a double top formation at $30,800, a pattern historically followed by symmetrical downside movements. Drawing from this observation, Rekt Capital suggests that the current price action could potentially open the doors to filling the CME gap at $19,500 in the short term.

Another factor highlighted by Rekt Capital is the importance of the $26,000 support level, which Bitcoin is currently losing. 

The analyst suggests this loss could further extend BTC’s downside price action, bringing it closer to the CME gap. Adding to the concern, Rekt Capital points out a bearish fractal published on August 30, in which Bitcoin’s weekly chart indicates a lower high, signaling a continuation of the downtrend.

In the event of a revisit to the sub $20,000 level, Rekt Capital notes the possibility of a head and shoulders pattern forming on BTC’s weekly chart. While the right shoulder of the pattern is yet to be completed, the overall structures indicate that the pattern could eventually be fulfilled.

Rekt Capital’s analysis underscores the significance of BTC’s current price action and charts, highlighting potential scenarios such as filling the lower CME gap and navigating the obstacle presented by the already filled gap at $28,000. 

The outcome of these scenarios for the dominant cryptocurrency in the market is yet to be determined. However, what is evident is the prevailing bearish sentiment that has gripped the Bitcoin market, instilling apprehension among investors.

BTC has experienced a 0.8% decline over the past 24 hours and a 7.8% decrease over the seven days, with its current trading price falling below the $25,800 mark.

Featured image from iStock, chart from TradingView.com

The crypto market has witnessed several fluctuations, but specific sectors’ resilience within this domain remains attractive. Recently, despite a noticeable dip in the broader crypto market, one area seems poised to touch its peak, demonstrating the potential and adaptability within the crypto ecosystem, per a report. 

Liquid staking, a sector that facilitates rewards for token pledges supporting blockchain operations, shows signs of resurgence. This re-emergence occurs despite an overarching downturn in crypto assets.

Recovery Amid Crypto Crisis

According to Bloomberg, citing data from DefiLlama, there is a roughly 292% surge in assets secured in liquid staking services, reaching a monumental $20 billion from a low in June 2022. This ascent is all the more significant considering the broader crypto slump during that period.

Bloomberg noted a recovery in liquid staking’s position as “the titan of decentralized finance (DeFi).” Thanks to blockchain-based automated software, this crypto framework enables individuals to trade, borrow, and lend without intermediaries.

Notably, once the crown jewel of DeFi applications, liquid staking has overtaken lending. Protocols specialized in liquid staking, such as Lido and Rocket Pool, witnessed their zenith in April of the previous year.

They amassed assets slightly exceeding $21 billion. However, this momentum was disrupted by the destabilization of TerraUSD, leading to a massive $2 trillion setback in the crypto market.

Despite the gloomy overtones in the crypto sector, where major tokens and a majority of DeFi services are yet to recover from the blows of 2021 and 2022, liquid staking stands out, showcasing a comeback, as seen in the chart below.

Global Regulatory Stance On Staking

Liquid staking plays a pivotal role, especially in the Ethereum blockchain. It offers a mechanism where users can stake their tokens and, in return, receive a liquid token representing their staked amount.

This process allows users to participate in securing the network while maintaining liquidity. Simply put, they can earn staking rewards without locking up their assets, ensuring flexibility and maximizing potential gains.

Kunal Goel, a research analyst at Messari, parallels these services to “the on-chain equivalent of government bonds.” The analyst elaborates that while these aren’t devoid of risks, they exude a comparatively lower risk profile and, thus far, have remained untainted by hacks or exploits.

This resurgence in liquid staking doesn’t go unnoticed and has been juxtaposed with regulatory decisions concerning crypto globally. The US, for instance, has intensified its regulatory lens on the crypto sector, especially on staking products.

Such measures prompted key players like Kraken and Bitstamp to halt their regional staking products. Richard Galvin, co-founder at DACM, noted:

The regulatory crackdown around staking products offered by centralized exchanges has definitely helped liquid staking.

Featured image from iStock, Chart from TradingView

Ethereum has seen the price of its native token ETH drop alongside Bitcoin as the bear market continues to gain group. This has triggered fear among investors, leading to high selling pressure on the digital asset. Even the Ethereum whales are now dancing to the tune of the bear market as they have begun to send large amounts of ETH to centralized exchanges.

Ethereum Whales Push Toward Selling

A recent Santiment report posted on the X (formerly Twitter) platform has shown that Ethereum whales may be looking to exit stage left at this time. The chart which was posted by the on-chain data tracker shows that whales were moving 300,000 ETH to centralized exchange Coinbase.

The transfer took place across two transactions carrying 150,000 ETH each. At the time, each of the transactions was carrying ETH worth $243 million to the exchange. So in total, both transactions saw a total of $486 million in ETH moved to Coinbase.

Despite being such closely watched transactions, there have been no indications of what the whales intend to do. Usually, coins moving toward centralized exchanges means sell-offs, especially for large investors, who do so to minimize the impact of their selling as much as possible.

However, the price of Ethereum is still trading close to where it was on Monday, and if these whales were looking to sell, then such activities would’ve led to a fast plunge in the price of ETH.

There is also the fact that once the ETH was transferred to Coinbase’s hot wallet, they would be further broken down into smaller chunks of 4,282 ETH, which were then moved to other wallets. But even this doesn’t paint a clear picture of why the ETH was moved to Coinbase in the first place.

Bears Take Over With Negative Sentiment

The selling pressure that the Ethereum price has been under recently has not come out of nowhere. The Crypto Fear & Greed Index had moved into the fear territory following the market crash. This meant that investors were more likely to sell their holdings than put new money into the market.

Related Reading: On-chain Sleuth Potentially Unveils Shiba Inu Founder With Shocking Affiliates

For ETH, it has now become a battle for the bulls given that the bears have successfully dragged the price below the 50-day moving average. This points toward more bearish momentum for the asset in the short term. However, it is not all bad.

Usually, when indicators have dropped so low, it can often be a bounce-off point for a recovery. So while ETH may be looking toward more bear movement for the near term, the digital asset could be close to another rally, possibly pushing its price above $1,700 once more.

ETH’s price is changing hands at $1,624 at the time of this writing. It’s down 0.90% and 1.31% on the daily and weekly charts, respectively.

Payment giant VISA has significantly moved in the digital currency space by expanding its stablecoin settlement services to the Solana (SOL) blockchain. 

According to recent announcements, the company aims to enhance the capabilities of traditional payment systems through this pilot program, which is currently in the testing phase. 

This initiative is expected to improve cross-border settlement speeds and offer a modern option for clients to send and receive funds through Visa’s treasury. 

In collaboration with merchant acquirers Worldpay and Nuvei, this expansion reinforces Visa’s commitment to staying at the forefront of digital currency and blockchain innovation, according to VISA’s head of Crypto, Cuy Sheffield. 

VISA Expands Stablecoin Settlement Services To Solana

Solana, a blockchain platform known for its scalability, has been chosen by VISA to extend its stablecoin settlement capabilities. With Solana’s existing support for Ethereum (ETH), VISA is leveraging the strengths of both platforms to facilitate efficient and secure transactions. 

Per the announcements, VISA aims to enhance cross-border settlement efficiency by leveraging stablecoins such as USDC (USD Coin) and utilizing the global blockchain networks of Solana and Ethereum. 

This integration allows users to benefit from the advantages of Solana’s blockchain, such as fast transaction speeds and low fees. 

Furthermore, integrating VISA’s stablecoin settlement services with Solana provides increased utility and credibility to the platform and its native cryptocurrency, contributing to the SOL value surge.

Overall, VISA’s decision to expand its stablecoin settlement services to the Solana blockchain signifies the company’s recognition of the potential offered by blockchain technology and digital currencies. 

VISA’s selection of Solana as a partner underscores its reputation as a scalable and efficient blockchain platform. The positive market response, as evidenced by the surge in SOL’s price, highlights the growing confidence in the potential of both Solana and stablecoin solutions. 

As VISA continues to explore and embrace digital currency innovations, it reinforces the ongoing transformation of the global financial landscape.

Bullish Momentum For SOL

The recent announcement of VISA’s expansion into the Solana blockchain has notably impacted the price of SOL, Solana’s native cryptocurrency. 

Since the news broke, SOL has surged by 5.2% in the past 24 hours, currently trading at $20.46. This surge reflects the market’s positive response to VISA embracing Solana’s capabilities.

In the immediate term, bullish investors will face a key resistance level of $20.82, which was lost on August 30 after a consolidation period of 15 days following a sharp decline influenced by the overall market trend.

Should bulls successfully overcome this resistance level, the next hurdle to watch out for would be the 50-day Moving Average (MA) at the $21.89 level. This moving average could act as a further resistance level for the token.

On the downside, if any of these possibilities don’t play out, SOL bulls will need to defend the $19.15 level and strive to consolidate above this crucial point.

Conversely, Solana’s circulating market capitalization currently stands at $8.25 billion. However, over the past 30 days, it has declined 12.47%.

Featured image from iStock, chart from TradingView.com 

Cross-chain bridge Synapse has seen the value of its native token SYN plummet after a liquidity provider (LP) dumped all their tokens. According to data from CoinGecko, the token’s price declined by nearly 25% a few hours after the sell-off.

On Tuesday, 5th of August, Synapse Labs announced – via a post on X (formerly Twitter) – that one of the liquidity providers sold their SYN tokens and removed liquidity from the Synapse protocol. 

Lookonchain reported a whale dumping 9 million SYN tokens an hour after this disclosure. According to the on-chain analytics platform, the whale sold the tokens for roughly 2.35 million USDC in two separate transactions at $0.26.

Additionally, Lookonchain revealed that the whale received these offloaded funds from the “Synapse: Executor 2” wallet, establishing a link with Synapse Labs’ recent announcement.

Meanwhile, Colin Wu’s report corroborated this on-chain discovery while adding that $37.537 million in stablecoin liquidity was removed from the Synapse protocol. 

Crypto Community Points Finger At Nima Capital

Various reports have emerged in the last few hours, speculating on the identity of the liquidity provider responsible for the 9 million token sell-off and liquidity removal. Crypto researcher Wazz claims that Nima Capital is the LP behind these actions and has broken its liquidity-provisioning agreement eight months early.

Even VCs are rugging now @NimaCapital dumped 9M $SYN and removed all stablecoin liquidity 8 months before the agreed gov proposal

Their site went offline and twitter protected too https://t.co/ShlYcZhFbz pic.twitter.com/1ncxP13XYV

— Wazz (@WazzCrypto) September 4, 2023

In March, Nima Capital, a crypto venture capital firm, was designated Synapse’s first liquidity provider. According to the proposal, the firm committed to providing $40 million in actively managed stablecoin liquidity over twelve months while receiving 33% of bridge and swap fees.

Nima Capital appears to have limited its digital presence. As of this writing, the company’s website is offline and inaccessible to the public. Meanwhile, access to the firm’s X account has been restricted and is only available to confirmed followers. 

It is worth noting that Synapse Labs didn’t reveal the identity of the liquidity provider in its announcement, and the team has yet to provide any further updates on the situation.

The liquidity removal and token sell-off have also impacted Synapse’s total value locked (TVL). According to DefiLlama data, the cross-chain protocol’s TVL has dipped by nearly 20% in the past day.

SYN Succumbs To Selling Pressure, Price Dips By 25% 

As noted earlier, the value of SYN suffered an almost 25% decline after the liquidity provider dumped its holdings. The token’s price crashed from $0.401 to $0.309 in hours.

SYN has since been showing glimpses of recovery, as it now trades above $0.35. According to CoinGecko data, the token is valued at 0.356092, with a 0.5% price increase in the past hour.

A broader look at its price performance shows that the SYN token has struggled in the last few months. After notching a yearly high of $1.59 in late February, the cryptocurrency has reversed all its gains, trading 77% beneath the 2023 peak.

On-chain data shows that 44.2% of all Ethereum investors are now carrying their coins at a loss, a sign that the bottom may be close for the asset.

Ethereum Percentage Of Holders In Loss Has Surged Recently

According to data from the market intelligence platform IntoTheBlock, the percentage of ETH investors in loss has grown sharply since early July. The relevant indicator here is the firm’s “Historical In/Out of the Money,” which tells us about the percentage of Ethereum investors in profits and losses and those that are just breaking even.

The metric determines whether an investor is in profit or loss by looking at their address history to check for the average price at which they acquired their coins. Naturally, if the asset’s current spot price is less than a holder’s cost basis, then that particular holder is carrying their coins at a net profit.

Similarly, the cost basis being equal to and less than the spot price would imply that the investor is breaking even on their investment and holding at a loss, respectively.

Now, here is a chart that shows the trend in the Historical In/Out of the Money indicator for Ethereum over the past few years:

IntoTheBlock has only listed the data for the Ethereum investors in losses, as this is the number of interest in the current discussion. The combined percentage of the investors breaking even and carrying profits can also be deduced from this value, as the total percentage must add up to 100%.

In early July, Ethereum holders underwater were at about 27%. It’s visible in the graph, however, that the indicator has observed a notable uplift since then, as the price of the cryptocurrency has registered a drawdown.

Today, the indicator’s value is at 44.2%, meaning that almost half of the Ethereum user base is holding their coins at losses. Generally, the more the investors get into profits, the more likely they become to sell to harvest those gains.

Due to this reason, corrections in the asset become more probable to form whenever an extreme majority of the market is enjoying profits. A large percentage of the holders being in losses instead, however, can have the opposite effect on the price since they can lead towards bottoms as profit sellers become exhausted.

Related Reading: This Could Be The Metric To Watch For A Bitcoin Bounce: Santiment

Since the start of the bear market last year, the highest the metric’s value has gone is 50%, implying that exactly half of the investors had been in losses back then. This value isn’t too far off from the current one, suggesting that Ethereum may be close to forming a bottom.

If a similar loss percentage is hit with the bottom this time, ETH would first suffer from some more downtrend so that enough investors drop underwater.

ETH Price

Ethereum has continued to move flat recently; as of this writing, it trades at about $1,600.