Blockchain

UNI price is moving higher from the $5.65 support. Uniswap is up 5% and it seems like the bulls could aim a fresh surge toward the $8.00 zone.

UNI started a fresh increase above the $6.00 and $6.20 resistance levels.
The price is trading above $6.50 and the 100 simple moving average (4 hours).
There was a break above a key bearish trend line with resistance near $6.60 on the 4-hour chart of the UNI/USD pair (data source from Kraken).
The pair is showing bullish signs and might rally if it clears the $7.25 resistance.

UNI Price Aims Higher

After forming a support base above $5.65, UNI started a fresh increase. The bulls were able to push Uniswap’s price above the $6.00 and $6.20 resistance levels, outperforming Bitcoin and Ethereum.

There was a break above a key bearish trend line with resistance near $6.60 on the 4-hour chart of the UNI/USD pair. The pair even cleared the $6.75 resistance level. It is now approaching the 50% Fib retracement level of the downward move from the $8.24 swing high to the $5.67 low.

UNI is now trading above $6.50 and the 100 simple moving average (4 hours). Immediate resistance on the upside is near the $6.95 level. The next key resistance is near the $7.250 level. It is close to the 61.8% Fib retracement level of the downward move from the $8.24 swing high to the $5.67 low.

Source: UNIUSD on TradingView.com

A close above the $7.25 level could open the doors for more gains in the near term. The next key resistance could be near $7.65, above which the bulls are likely to aim a test of the $8.00 level. Any more gains might send UNI toward $8.25.

Dips Supported in Uniswap?

If UNI price fails to climb above $6.95 or $7.25, it could correct further lower. The first major support is near the $6.60 level or the 100 simple moving average (4 hours).

The next major support is near the $6.25 level. A downside break below the $6.25 support might open the doors for a push toward $6.00.

Technical Indicators

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

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

Major Support Levels – $6.60, $6.25 and $6.00.

Major Resistance Levels – $6.95, $7.25 and $8.00.

Ethereum price corrected lower and tested the $2,440 support. ETH is now trading in a range and facing hurdles near the $2,550 and $2,585 levels.

Ethereum is attempting a fresh increase from the $2,450 level.
The price is trading just above $2,500 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $2,510 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if it clears the $2,550 and $2,585 resistance levels.

Ethereum Price Holds Key Support

Ethereum price started a downside correction below the $2,620 support zone. ETH even declined below the $2,550 support, but the bulls were active near $2,440. A low was formed near $2,469 and the price is now trading in a range, like Bitcoin.

There was a minor increase above the $2,500 level. The price climbed above the 50% Fib retracement level of the recent decline from the $2,588 swing high to the $2,469 low.

Besides, there was a break above a connecting bearish trend line with resistance near $2,510 on the hourly chart of ETH/USD. Ethereum is now trading just above $2,500 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,540 level or the 61.8% Fib retracement level of the recent decline from the $2,588 swing high to the $2,469 low.

Source: ETHUSD on TradingView.com

The next major resistance is now near $2,585. A clear move above the $2,585 level might start a decent increase. In the stated case, the price could rise toward the $2,650 level. The main resistance is now forming near the $2,720 level. A close above the $2,720 resistance could start another major increase. The next key resistance is near $2,780. Any more gains might send the price toward the $2,880 zone.

Another Drop in ETH?

If Ethereum fails to clear the $2,585 resistance, it could start another decline. Initial support on the downside is near the $2,495 level.

The next key support could be the $2,445 zone. A downside break below the $2,445 support might send the price further lower. In the stated case, Ether could test the $2,380 support. Any more losses might send the price toward the $2,320 level.

Technical Indicators

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

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

Major Support Level – $2,445

Major Resistance Level – $2,585

Bitcoin price is struggling below the $43,500 resistance zone. BTC could start another decline if it stays below the 100 hourly SMA.

Bitcoin price started a major decline from the $49,000 resistance zone.
The price is trading below $43,250 and the 100 hourly Simple moving average.
There is a key declining channel forming with resistance near $43,050 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline if it stays below the $43,250 resistance zone.

Bitcoin Price Turns Red

Bitcoin price started a major decline from the $49,000 resistance zone. BTC traded below the $46,500 and $45,000 support levels to enter a short-term bearish zone.

The bears even pushed the price below the $42,500 support zone before the bulls appeared. A low was formed near $41,476 and the price is now consolidating losses. It recovered a few points above the $42,000 level. The price tested the 23.6% Fib retracement level of the key drop from the $49,000 swing high to the $41,476 low.

Bitcoin is now trading below $43,250 and the 100 hourly Simple moving average. There is also a key declining channel forming with resistance near $43,050 on the hourly chart of the BTC/USD pair.

On the upside, immediate resistance is near the $43,000 level and the channel zone.  The first major resistance is $43,250 or the 100 hourly Simple moving average. A clear move above the $43,250 resistance could send the price toward the $44,450 resistance.

Source: BTCUSD on TradingView.com

The next resistance is now forming near the $45,250 level. It is near the 50% Fib retracement level of the key drop from the $49,000 swing high to the $41,476 low. A close above the $45,250 level could start a strong increase and send the price higher. The next major resistance sits at $47,000.

More Losses In BTC?

If Bitcoin fails to rise above the $43,250 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $42,120 level.

The next major support is $41,500. If there is a close below $41,500, the price could gain bearish momentum. In the stated case, the price could drop toward the $40,000 support in the near term.

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 – $42,120, followed by $41,500.

Major Resistance Levels – $43,050, $43,250, and $44,450.

Elon Musk-backed meme coin Dogecoin (DOGE) has seen a significant price correction in recent days, falling over 14% in the past 30 days, due to the market’s waning sentiment surrounding the hype generated by the approval of Bitcoin Exchange Traded Funds (ETFs), and the lack of bullish catalysts.

After reaching an 11-month high of $0.1073 on December 11, 2023, DOGE witnessed a decline to the $0.0743 level. However, over the past 7 days, the meme coin has managed to break the downtrend, recording a 2% surge.

This positive movement has led a prominent crypto analyst to predict a potential upward movement towards the previously lost $0.10 mark. However, there is a crucial support cluster that the cryptocurrency must maintain for this anticipated rise to occur.

Rebound Opportunity For Dogecoin

Renowned crypto analyst Ali Martinez has provided insightful analysis on the prospects of Dogecoin following its recent price correction. Martinez has drawn attention to the TD Sequential indicator, a technical analysis tool used to identify potential trend reversals and price exhaustion points.

According to Martinez, the TD Sequential indicator has recently presented a buy signal on the 3-day chart of Dogecoin as seen in the chart below. 

According to Martinez’s analysis, the TD Sequential indicator suggests a potential rebound opportunity for DOGE. However, he emphasizes the critical importance of a key support cluster centered around the $0.074 mark. Maintaining this support level is crucial for Dogecoin to realize its upward potential and regain positive momentum.

Key Levels To Watch 

In addition to this pivotal support, several other key levels should be closely monitored as they could significantly impact the future price action of the meme coin. 

The first noteworthy level is the support near $0.078. This level plays a vital role as a foundation for maintaining price stability. It represents a zone where buying pressure is expected to outweigh selling pressure, indicating a higher probability of DOGE sustaining its upward trajectory.

Another level of significance is the $0.075 level, which has recently demonstrated strong support for the token. Dogecoin has rebounded from this level and is currently trading just above it, reinforcing the importance of this price point in determining future price movements.

Conversely, resistance around $0.088 poses a significant barrier to DOGE’s continued upward movement. To sustain its positive trajectory and reach higher levels such as $0.09, the token must overcome this resistance. 

Subsequently, it would face further hurdles at the $0.940 and $0.9824 levels before attempting to regain the $0.10 mark.

The future price movements of Dogecoin remain uncertain, and it is yet to be determined which side, whether bullish or bearish, will prevail. The outcome of this battle could significantly influence the mid-term direction of the token’s price.

Featured image from Shutterstock, chart from TradingView.com 

CoinGecko’s most recent report details the failure rate of cryptocurrencies in the last 10 years. Exhibiting the increasing number of “dead” altcoins over the years as projects deactivate, rebrand, lose trading activity, or are revealed to be scams.

Related Reading: These Altcoins Are Showing Most Bullish & Bearish Divergences: Santiment

An 11.01% Failure Rate For The Altcoin Sector

The first half of the ten-year period that CoinGecko studied showed 1,546 dead cryptocurrencies, 11.01%% of the total amount.

2014 saw the death of 37 cryptocurrencies, 2015 had a lower number with only 27, and 2016 closed this period with 32 dead coins. The 2014-2016 period saw the death of 96 cryptocurrencies in three years, accounting for less than 1% of the total of altcoins that have died over the last decade, as seen in the chart below.

During the 2017-2018 Bull run, Almost 1,500 of the launched projects have since shut down, as CoinGecko explained:

In comparison, 1,450 projects launched during the 2017 – 2018 bull run have since shut down. This is on the back of over 3,000 cryptocurrencies listed, resulting in a similar failure rate of ~70%.

An Increase In Failed Projects Over The Last Five Years

The report shows that over 88% of the failed cryptocurrencies come from the second half of the period analyzed. Just 2019 increased 2018 year’s number by 50, reaching 1,150 failed cryptocurrencies and closely matching the total number of dead coins of the previous half.

However, most dead cryptocurrencies came from the 2020-2021 bull run. “Over 11,000 cryptocurrencies were listed on CoinGecko during the previous bull run, with ~70% having shut down since,” they detailed. 7,530 cryptocurrencies from launched projects during 2020-2021 have failed, accounting for 53,6% of all dead coins alone.

2021 is when cryptocurrencies suffered the most, with 5,724 dead coins—resulting in the worst year for projects launched, with over 70% of the cryptocurrencies listed having died as of January 2024.

The report attributes the high number of failures over 2020-2021 to the “ease of deploying tokens and the rise in popularity of meme coins.” They noted that many memecoin projects launch without a product, and most are “abandoned over a short period of time.”

In 2022, the number of failed projects declined from the previous year, with 3,520 dying. A 60% rate out of the total listed cryptocurrencies.

Related Reading: Renowned Crypto Analyst Predicts The Top 5 Altcoins For 2024

Ultimately, the number of failed projects declined further in 2023, as only 289 cryptocurrencies, out of the over 4,000 listed on CoinGecko, died. This represents a failure rate of <10%.

However, although the number of dead cryptocurrencies declined in the last two years, perhaps suggesting a more positive trend, the precise percentage of failed projects launched in 2023 stood at 289. It remains to be seen if the trend will be sustained over the coming months or if the rise of a new bull phase will push the nascent sector back into a spike in altcoin failures.

On-chain data suggests that whales are accumulating large amounts of Maker (MKR) and Aave (AAVE), two leading decentralized finance (DeFi) tokens. This accumulation trend coincides with a broader cooling-off period in the crypto scene days after the United States Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs. 

Whales Accumulate MKR And AAVE

According to ScopeScan data, Anchorage Digital, a digital asset custody firm, purchased a significant amount of MKR on January 15. The firm acquired 12,103 MKR tokens, valued at approximately $24.7 million, from Coinbase, a leading crypto exchange in the United States. 

Two whales, “0xbb5f” and “0x4a7,” also accumulated large quantities of MKR and AAVE. Specifically, “0xbb5f” bought 50,000 AAVE and 2,452 MKR worth around $5.03 million and $4.95 million from Binance, a leading cryptocurrency exchange. Meanwhile, 0x4a7 purchased 39,000 AAVE and 2,350 MKR, valued at approximately $3.95 million and $4.75 million, also from Binance.

These whale purchases signal a strong belief in the long-term potential of MKR and AAVE. Maker and Aave are two of the world’s leading decentralized lending and borrowing protocols across DeFi. MKR serves as the governance token for MakerDAO, which also manages the DAI decentralized stablecoin. On the other hand, AAVE is the governance token of Aave, a top decentralized lending platform. 

According to the latest DeFiLlama data, Maker and Aave have total value locked (TVL) of over $8.4 billion and $7.3 billion, respectively.

Notably, whales are accumulating MKR and AAVE when the DeFi scene is recovering following the sharp contraction from 2022. The industry manages over $56 billion, with Ethereum hosting more liquid DeFi protocols, including Lido DAO when writing in mid-January 2024. 

Will Maker and Aave Rally To New 2024 Highs On Recovering DeFi?

Last year, MKR and AAVE were among the top-performing DeFi tokens, with MKR rising by over 200% and AAVE appreciating by more than 150%. Protocol-specific fundamentals, including the launch of Spark in Maker, partly drove this strong performance.

Aave launched the GHO stablecoin and the Lens protocol on the Ethereum sidechain, Polygon. Moreover, expectations of the spot Bitcoin ETF forced aggressive traders to consider top DeFi protocols, lifting altcoins.

As whales accumulate, there is more headroom for these tokens to grow. Presently, AAVE and MKR are lower, based on their respective performance in the daily chart. However, overly, the uptrend remains. To illustrate, MKR is within a bullish breakout formation with a critical support level of around $1,560. Any surge past $2,300 might ignite demand, lifting the token to new 2024 highs.

An analyst has explained that Dogecoin could rally towards $0.10 based on a pattern forming in its price if a support cluster continues to hold.

Dogecoin Has Observed A Buy Signal On Its 3-Day Chart

As explained by analyst Ali in a post on X, a TD-Sequential buy signal recently appeared for DOGE on its 3-day price. The “Tom Demark (TD) Sequential” here refers to an indicator in technical analysis that helps pinpoint locations of probable tops and bottoms in any asset’s price.

This indicator is made up of two phases. The first is called the “setup” phase, and it’s nine-candles long. During this phase, nine candles of the same polarity are counted, and following the ninth, the asset could be assumed to have hit a point of reversal.

Whether the setup would indicate a buy or sell signal naturally depends on the prevailing price trend. If the price were going up during the setup (the candles were green), then the setup’s completion would indicate a potential point of selling. Similarly, the TD Sequential would mark a sell signal in the opposite case.

Once the setup is complete, the second phase of the indicator, called the “countdown,” begins. This phase is thirteen candles long, and once these candles are in, the asset could once again be considered to have reached a probable bottom or top.

Now, here is a chart shared by Ali that highlights the completion of a TD-Sequential setup phase for the 3-day price of Dogecoin:

The above graph shows that the Dogecoin 3-day price has recently finished a TD-Sequential setup with red candles. This would imply that the indicator has given a buy signal for the asset.

So far, since this setup has formed, DOGE has registered two green candles on this chart, implying that the meme coin’s price may have indeed witnessed a change of direction.

In the same chart, the analyst has also highlighted a support cluster for the coin, where some important lines have converged around the $0.074 level. Based on this and the TD-Sequential pattern that has formed, Ali notes, “as long as the $0.074 support cluster continues to hold, DOGE has a great chance of rebounding to $0.100 or higher!”

From the current spot price of the cryptocurrency, a potential rally to this $0.100 target would mean a surge of around 24% for the asset. If DOGE retests the $0.074 support level and rebounds to this high, the coin would see a rally of over 35%.

DOGE Price

Dogecoin opened 2024 with a deep plunge, and the memecoin has so far been unable to recover from it, as its price has mostly been stuck in consolidation. At present, DOGE is trading around the $0.0804 mark.

Ash Crypto, a prominent figure in the crypto trading community, predicted that the US spot Bitcoin Exchange-Traded Funds (ETFs) could propel BTC’s price to $500,000.

Bitcoin To Follow Gold’s ETF Success Story

The rationale behind Ash Crypto’s forecast stems from a comparison with gold, whose market capitalization witnessed a significant surge after the introduction of its ETFs. Historically, gold’s market cap escalated from approximately $2 trillion before the ETFs to roughly $16 trillion over the following years.

Ash Crypto posits that with its finite supply and growing popularity, Bitcoin might not only replicate but potentially exceed gold’s post-ETF trajectory. Considering Bitcoin’s current market cap of around $840 billion, reaching even half of gold’s market cap would catapult BTC’s value to “$500,000 in the coming years.”

Bitcoin is going to $500k after the
Spot ETF is approval. Here is the
evidence –

When Gold ETF was approved, it’s
mcap was around $2 Trillion. After
ETF gold saw huge inflows of liquidity
and reached $16 Trillion in few years.
( Don’t forget gold supply is not fixed,
we… pic.twitter.com/uE6XKkHWtU

— Ash Crypto (@Ashcryptoreal) January 14, 2024

The implications of Bitcoin’s rising market cap extend beyond the crypto sphere, encroaching on traditional financial markets. Ash Crypto points out the colossal market capitalizations of the global stock and bond markets, amounting to $109 trillion and $133 trillion, respectively.

The crypto trader suggests that as Bitcoin continues to establish itself as a legitimate financial asset, it will likely absorb a significant portion of the market cap from these traditional markets. This belief is grounded in the notion that Bitcoin offers a “novel value proposition, aligning with the investment preferences of a new generation of investors.”

Adding to this perspective, several trillion-dollar companies have begun promoting Bitcoin, signaling the advent of institutional investors in the crypto market.

These developments indicate a growing recognition of Bitcoin as a mainstream financial asset, further supporting the potential for a significant increase in its market cap. The crypto trader noted:

Now we have trillion dollar companies shilling Bitcoin for us with ads. Institutions are finally here and trillions are coming into crypto boyz!!

Ash Crypto further emphasizes that the journey to an $8 trillion market cap is a “long-term” vision that won’t “happen overnight,” advising investors to maintain focus beyond the market’s short-term volatility.

Global Mega Bank Foresees $200,000 Price Target

Furthermore, echoing Ash Crypto’s bullish stance, Standard Chartered’s Head of Digital Assets Research, Geoff Kendrick, and Precious Metal Analyst, Suki Cooper, forecasted a six digit price target for Bitcoin.

They project a potential target of $200,000 for Bitcoin, contingent upon an influx of $50 to $100 billion into the Spot Bitcoin ETFs. Their predictions draw parallels between the historical impact of Gold exchange-traded products (ETPs) and the expected trajectory of Spot Bitcoin ETFs, foreseeing a rapid development for the latter compared to the former.

Meanwhile, over the past week, Bitcoin has shown bearish price action. The asset has notably plunged over 5% over this period and has continued to decline even in the past 24 hours by 1.1%, with a current trading price of $42,419 at the time of writing.

Featured image from Unsplash, Chart from TradingView

Crypto YouTuber Jake Gagain has shared his “insane price prediction” for Solana (SOL) as he said that the crypto token will climb to $750. The crypto analyst didn’t stop there as he also provided a timeframe for when this price level would be attained. 

Solana Price To Rise To $750 In 2025

Gagain said that he expects Solana to hit this price level by 2025 in an X (formerly Twitter) post. In the accompanying video, he outlined several reasons for this bullish sentiment. For the first, he alluded to the fact that the Solana network happens to be “quicker, safer, and much more affordable” than Ethereum. 

According to him, more users from Ethereum and other networks are likely to migrate to the Solana network as more projects get built on it. This is based on his expectation that Solana will be the “top competitor” for Ethereum in the next bull run. Gagain further asserted that SOL will end up becoming the third largest token by market cap, only behind Bitcoin and Ethereum.

The second reason why the analyst is bullish on SOL is because of how it has impressively recovered from the FTX scandal. Solana was at the heart of it as the crypto exchange’s founder, Sam Bankman-Fried (SBF), was one of the token’s biggest backers. SOL dropped below $10 as a result of this while being in the middle of a bear market. 

However, it has recovered nicely since then, climbing above $100 towards the end of last year. That is why Gagain believes that the crypto token could go as far as hitting its all-time high of $260 and surpassing it. 

SOL Is Also Making Its Way Into The Traditional Market

Jake Gagain also highlighted the fact that Solana was making its way into the traditional market as another reason he was so bullish on SOL. Solana’s entry into the traditional market is said to be happening through its partnerships with notable brands. One of them, which the crypto analyst mentioned, was its partnership with Shopify. 

Back when the partnership was confirmed, NewsBTC highlighted how it could help onboard more users into crypto and specifically into the Solana ecosystem. The network was projected to see more activity, considering the number of users Shopify already has. 

Interestingly, the number of transactions Solana records daily is another reason why Gagain is most bullish on SOL. Network activity is known to be another factor that can affect a token’s price. 

At the time of writing, SOL is trading at around $95, down over 2% in the last 24 hours, according to data from CoinMarketCap.

The decentralized Oracle network Chainlink and its native token LINK have grown impressively in the past month. Despite experiencing a correction since late December, where LINK reached a 20-month high of $17.6, the token has shown signs of renewed bullish momentum. 

Key Resistance Levels For LINK’s Price Rally

Renowned crypto analyst Ali Martinez has identified a robust demand zone for Chainlink between $14.8 and $15.2, slightly below its current trading price of $15.415. 

Within this range, many addresses (17,650) purchased 85.12 million LINK. With limited resistance, LINK appears to be well-positioned to advance towards the $20 mark.

Based on the analyst’s observations, if the current bullish momentum witnessed over the past seven days persists, LINK could swiftly reach the $20 price level. Looking at LINK’s 1-day chart, the next resistance levels to overcome before potentially climbing toward $20 are $15.55, $16.69, and $16.92. Breaching these levels would pave the way for a clear path towards the $20 milestone.

However, it is important to note that in the absence of major resistance walls, the battle for the next direction of LINK’s movements remains equally balanced. In the event of another price correction or selling pressure, the token lacks significant support walls to rely on.

Analyzing LINK’s 1-day chart, the first support level in the event of a drop would be around $14.22. If this level is breached, the next support stands at $13.31. A further decline could test the support at the $11 price level. A breach of this level could signify a breakdown in the four-month bullish structure of LINK.

Chainlink Ecosystem Growth

Despite the battle for supremacy between LINK’s bulls and bears, the protocol’s ecosystem has shown notable growth in key metrics since the last update. For example, Chainlink’s circulating market capitalization is $8.35 billion, reflecting a positive growth rate of 3.58%.

According to Token Terminal data, in terms of revenue over the past 30 days, Chainlink has generated $11.67 thousand. However, this figure shows a decline of 54.16% compared to the previous period, indicating a decrease in earnings during this timeframe.

Considering the fully diluted market capitalization, which considers the maximum number of Chainlink tokens that could exist in the future, the value stands at $14.82 billion. This metric has experienced a slight increase of 3.48% recently.

When it comes to revenue on an annual basis, Chainlink has generated $219.81 thousand. This represents a positive growth rate of 2.64%, indicating an upward trend in the company’s earnings over a year.

Regarding financial ratios, Chainlink’s price-to-fully-diluted ratio is calculated at an astonishing 68,246.47x. This metric compares the company’s market capitalization to its fully diluted market capitalization. It reflects the premium investors will pay for each unit of potential future tokens.

Similarly, based on the fully diluted market capitalization, the price-to-sales ratio is reported to be 68,246.47x. This ratio measures the company’s valuation relative to its annualized revenue and indicates how much investors will pay for each dollar of sales generated.

Featured image from Shutterstock, chart from TradingView.com