Blockchain

Cardano (ADA) closed out 2023 with a rollercoaster ride, soaring towards $0.70 before plummeting back to $0.52 by the new year. While this sharp correction was anticipated, concerns linger about an ongoing bearish sentiment despite room for growth.

Recovery won’t be a walk in the park. Currently trading at $0.52, Cardano faces an uphill battle. However, glimmers of hope remain.

Cardano (ADA): Resilient Support Amid Development

Notably, ADA hasn’t breached the crucial support level of the 200-day EMA, suggesting an underlying bullish bias for the long-term trend that began in mid-October.

This technical indicator points towards potential for a rebound, although sustained upward momentum will require additional catalysts.

Cardano’s 2024 started with a development bang, not a price boom. Development activity surged 250% in 30 days, showcasing a vibrant ecosystem buzzing with innovation.

Cardano Surges Nearly 250% In Development Activity, Whale Buying Appetite – Details | Crypto Breaking News #Cardano #cardanofeed #trading #ADA #crypto #CardanoCommunity #bitcoin #blockchain @otaviolima #cryptocurrency #CardanoADA #btc $ADA https://t.co/tiJaI73LeQ

— Cardano Feed ($ADA) (@CardanoFeed) January 6, 2024

Unfortunately, this internal optimism hasn’t translated to external cheer. The bears remain firmly in control, driving ADA’s price down 18% in a week and 10% in 24 hours.

At $0.52, ADA currently ranks 8th by market cap, but its chart is decidedly red. This disconnect between bustling development and bearish price action highlights the complex cocktail of factors influencing cryptocurrency markets.

While a thriving ecosystem bodes well for the future, short-term sentiment reigns supreme, swayed by news, speculation, and overall market trends.

On the fundamental side, Cardano’s ecosystem continues to flourish. The recent Vasil hard fork and growing DeFi activity inject optimism, but external factors like broader market sentiment and regulatory uncertainties could throw wrenches in the recovery gears.

Cardano’s Outlook: Navigating Uncertainty For Growth

Cardano’s near-term outlook remains somewhat cloudy. While the recent dip was expected, complete bearish dominance seems unlikely.

Technical indicators hint at a potential uptrend, but navigating choppy waters will require a confluence of positive catalysts and a watchful eye on the broader market.

So, what’s next for Cardano? The recent development surge suggests a project on the move, but overcoming bear dominance requires more than just internal progress.

Catalysts like positive news events or broader market recovery could be the wind beneath ADA’s wings. For now, investors face a classic crypto conundrum: weigh long-term potential against the immediate sting of a bearish market.

Cardano finds itself at a crossroads in the early days of 2024, with the clash between internal development strides and external market dynamics shaping its narrative.

Despite a remarkable surge in development activity, ADA’s price has faced a significant downturn, reflecting the intricate dance between optimism and market sentiment.

Featured image from Shutterstock

Standard Chartered Bank is the latest to give its predictions on the impact Spot Bitcoin ETFs could have on Bitcoin’s price in the long term. The bank took a bullish stance as they predicted that BTC could rise to unprecedented heights by the end of 2025. 

Bitcoin Could Hit $200,000 By End Of 2024

According to a report by Standard Chartered shared on the X (formerly Twitter) platform, BTC’s price could reach $200,000 by end-2025. There is the potential for Bitcoin to hit this price level with $50 to $100 billion flowing into the Spot Bitcoin ETFs, says the bank’s Head of Digital Assets Research Geoff Kendrick and Precious Metal Analyst Suki Cooper.

Their projections stem from the fact that an approval of these Spot Bitcoin ETFs could happen as soon as this week. If that happens, Kendrick and Cooper state that will be a key driver of Bitcoin’s price to the upside, something similar to what happened with Gold ETPs. Interestingly, Standard Chartered predicts that BTC could hit $100,000 before this year runs out. 

Elaborating on BTC enjoying similar gains to Gold (when Gold ETPs were approved), the bank expects that such gains will materialize over a shorter period for the flagship crypto token. This is based on their view that the Spot BTC ETF market will develop quicker than the Gold ETPs did. 

The amount of inflows that these Spot Bitcoin ETFs could witness has continued to be up for debate. Crypto research firm Galaxy Digital took a more conservative stance as they project that only about $14 billion will flow into these funds in the first year. Meanwhile, VanEck’s advisor, Gabor Gurbacs, is only choosing to look at the long term.

“Trillions, Not Billions” In The Long Term

Commenting on Standard Chartered’s report, Gurbacs mentioned that he prefers to look at how much could flow into these funds in the longer term rather than now. With that in mind, he projects that trillions of dollars will flow into Spot Bitcoin ETFs in the long term. Specifically, he makes a case for $2.5 trillion flowing into these BTC assets. 

He explained that this could easily happen, considering that there are roughly $500 trillion in assets globally. As such, $2.5 trillion, representing just 0.5% of the global allocation, flowing into the Bitcoin ecosystem shouldn’t be a problem. He also bases his projection on the fact that Bitcoin won’t stop rising in value as fiat currencies continue to weaken. BTC has no top because fiat has no bottom, he says.

Gurbacs also expects that Bitcoin will enjoy more acceptance once these Spot Bitcoin ETFs are approved. He says that banks, financial service firms, and regulators will turn from “enemies of Bitcoin to allies of Bitcoin.” This is “immeasurably valuable” as BTC adoption can level, he remarked.

Although the broader market is experiencing a strong start this year, Filecoin has opened the year at a snail’s pace. According to Coingecko, the token is up over 4% in the past 24 hours. However, the week started with FIL bleeding nearly 27%. 

With investors uninspired by the ongoing broader market rally, FIL might be in for a rough few months after ending 2023 on a positive note. 

On-Chain Growth Prevents A Bigger Disaster 

In their most recent blog post, they highlight the recent achievements of the ecosystem. Over 2,442 unique smart contracts deployed on-chain, with over 3,000 projects native on Filecoin. But overall, Filecoin has been fairly silent in terms of development, despite boasting an extremely active developer base with over 15,000 contributors on GitHub.

Swan Chain – a layer-2 protocol powered by Filecoin itself – is the one creating a positive noise. In their recent post on X, the protocol posted a roadmap for this year. 

If Swan’s planned roadmap is followed and implemented, it may reverse the overall bearish attitude on FIL. However, this will inevitably take time, costing investors precious moments on the red rather than starting the year on the green. 

But 2023 was a bountiful year for Swan Chain. In the blog post detailing the protocol’s achievements last year, their testnets Lagrange and Mars covered different aspects of the ecosystem and saw great success. This might be a sign that investors should be in for the long term rather than expect short-term gains. 

Filecoin: More Pain In The Short To Medium-Term?

As of writing, the token is completely in the red after an impressive year-end rally. The bulls are now fighting over control of the $5.825 price level which will provide a better platform for higher highs in in the long term. However, this may not be the case in the next couple of days. 

FIL’s market is dominated by the bears that will inevitably bring the token’s price to sub-$5 if the bearishness continues. But this also presents the opportunity for the bulls to slow the token’s descent until they find strong support for the long haul. 

At the moment, $5.231 will be the point at which the bulls will slow FIL’s downward spiral. If they can hold on to this price level in the long run, investors and traders will see gains trickle in little by little. 

Featured image from Shutterstock

Egrag Crypto, a crypto analyst on X, has released a technical analysis that suggests a potential surge in the price of XRP to as high as $220, drawing a vivid parallel to the astronomical event known as a Gamma-Ray Burst (GRB). In financial charting, the GRB analogy reflects a surge in price with a significant magnitude and rapidity, akin to the intense energy release of a cosmic GRB.

Egrag utilizes a Fibonacci Channel (Fib Channel) for his forecast, a technical analysis tool that traders employ to identify potential levels of support and resistance based on the Fibonacci sequence. A Fib Channel is constructed by drawing a trendline between two extreme points, typically a high and a low, and then dividing the vertical distance by the key Fibonacci ratios. These levels are parallel lines that run across the chart, which can act as markers for price targets or reversals.

Cosmic XRP Price Targets

The 1-month chart of XRP/USD shared by Egrag on X outlines these Fib levels. Egrag notes, “Reflecting on XRP’s potential to mirror its 2017 trajectory, analyzing current price positions reveals crucial figures within The Fib Channel.” Accordingly, the significant future price points are at $2.2 (0.236 Fib), $5.8 (0.382 Fib), $11 (0.5 Fib), $33 (0.702 Fib), and finally, the zenith at $220 (1.0 Fib).

Furthermore, the analysis identifies the two “Bull Market Lines” on the chart, which have been instrumental in past XRP price movements. Egrag’s analysis anticipates a third encounter with these lines, a possible indicator of a new uptrend.

The first encounter was when the XRP price crossed the first “bull market line” in March 2017. The XRP price rose by a whopping 60,000%, from $0.005 to $3.30, the current all-time high. This now also forms the starting point for the second “bull market line”, with its second connection point derived from its April 2021 high at $1.97.

According to Egrag, the XRP price currently needs to overcome the $1.20 mark in order to cross the “Bull Market Line – 2”. An impulse for this could be a crossover of the Simple Moving Average (SMA) and 24 SMA in the 1-month chart.

Egrag notes, “Once the bullish cross happens, almost 1 month later, the XRP bull run starts,” aligning with historical price actions marked on the chart as ‘Cross 1’ and ‘Cross 2’. The analyst suggests that a similar crossover is imminent, forecasting a shift from a bearish to a bullish market. Notably, the crossover happened at the end of December 2023 and the beginning of January 2024.

Egrag’s commentary on the social platform X adds a rallying call to the XRP community: “XRP Army: STAY STEADY And Get Ready, the shift from Red to Blue, and eventually to Green, is imminent. It will be a GRB Event.”

The Momentum Still Has To Turn Bullish

In conclusion, Egrag’s analysis presents a bullish case for the altcoin, with precise price targets and technical indicators serving as a guide for potential future movements. However, as with all market analyses, investors are advised to approach with caution and conduct their own research.

The XRP price has not fared well in recent months. Despite Ripple’s big win in the XRP lawsuit, the price has lost all its gains. At press time, XRP traded below the 200-day exponential moving average (EMA), which is considered to be the “bull line” in technical analysis.

As we step into 2024, Bitcoin opens the year with a remarkable price of $47,000, signaling a potential shift in the market dynamics. 

This new year brings with it a historic moment for Bitcoin – its first-ever ‘Golden Cross’ involving the 50-week and 200-week moving averages (MAs). This rare occurrence is not just a technical anomaly but potentially a harbinger of a significant market movement.

What Is A Golden Cross In Crypto?

To understand the implications of this event, we must first delve into what a Golden Cross is in the context of cryptocurrencies. In technical analysis, a Golden Cross occurs when a shorter-term moving average crosses above a longer-term moving average from below.

In Bitcoin’s case, the 50-week MA has risen above the 200-week MA for the first time in its history. This event is traditionally viewed as a bullish signal in various markets, including stocks and commodities, and is now making its mark in the crypto domain.

The Golden Cross is significant because it potentially reflects a shift in market sentiment from bearish to bullish over a substantial period. It’s not just a fleeting moment of upward price movement but instead points to a sustained trend that has been building over weeks and months.

This historic crossover indicates a strong, long-term upward trend, shaking off the shackles of previous bearish periods.

Will The Buy Signal Push Bitcoin Higher?

The emergence of this Golden Cross in Bitcoin’s chart is bound to catch the eyes of trend-following traders and investors. Trend-following trading systems are programmed to identify such signals and take positions accordingly.

These systems, often automated and based on algorithmic strategies, play a significant role in today’s trading landscape. They analyze historical data and current market trends to make predictions and execute trades.

With Bitcoin’s first Golden Cross, we are likely to see a surge in interest from these systems. The signal could trigger a wave of buying activity as trend-followers jump in, anticipating a continued upward movement. This influx of buying could, in turn, push Bitcoin’s price even higher, creating a self-fulfilling prophecy of sorts.

However, it’s crucial to approach this with a balanced perspective. While the Golden Cross is a strong bullish signal, it’s not infallible. Daily Golden Crossed have been known to uncross daily’s later, only to Death Cross in the weeks ahead. A Death Cross is the opposite signal, when a shorter-term MA crosses a longer-term MA from above. 

In conclusion, Bitcoin’s first-ever Golden Cross between its 50-week and 200-week MAs is a momentous event in its history. It’s a signal that could potentially lead to significant market movements, particularly if trend-following systems take action based on this development.

Counter-trading CNBC’s Jim Cramer has gone from being a meme to something that Bitcoin investors have begun to take seriously. As the inverse of what Cramer says has usually been the case, taking a stand in the opposite direction has proved positive for some investors. Once more, Cramer has shared his thoughts on where the BTC price is headed, so is it time to buy or sell?

Jim Cramer Calls The Bitcoin Top

In a new episode, the Mad Money host, a show hosted on the CNBC Network, called out a possible top for Bitcoin. Now, the price of BTC has been steadily rising this week, which saw the price eventually rise above $47,000 for the first time in almost two years.

Following this brief surge, Cramer took to the show to reveal that he thinks the price of the asset has reached a possible top. However, instead of the usual one-sided argument, Cramer would go on to tell investors to buy BTC if they want. So while the former hedge fund manager did call for Bitcoin to top out, he is not advising investors to not buy the cryptocurrency.

“Let’s stop fooling around,” Cramer states. “You want Bitcoin, buy Bitcoin. I think Bitcoin is topping out, by the way. So I’m going to say enough is enough.” This statement tends to play on both sides of the coin for now, no longer discouraging investors from buying the asset.

BTC Goes The Opposite Way Of Cramer

Going through the path of counter-trading Jim Cramer would actually see investors buying Bitcoin at this time. If the same inverse correlation holds, then the Bitcoin price could be rocketing up from here once more.

This school of thought did not just emerge out of nowhere as even as recently as last week, the act of counter-trading Cramer seems to remain a profitable venture. Last week, Cramer had taken to his Mad Money show to praise Bitcoin after being previously bearish. Cramer explained that Bitcoin cannot be killed, saying BTC was “here to stay” and the likes of Charlie Munger were blind to it.

However, in true Cramer fashion, the price of Bitcoin would tank not long after, crashing from above $45,000 to below $42,000 on January 3. This is also not limited to crypto as there was an ETF dedicated to investing in the opposite direction of Cramer’s stock picks, although that ETF was closed in 2023.

Nevertheless, as news of Cramer’s new stance hits the headlines, it’ll be interesting to see where the BTC price goes from here. If it follows previous trends, then the BTC price could be headed toward a price crash once again.

Maker is making waves as it enters Coingecko’s top gainers list this week with massive bullish pressure on the market. MKR is up nearly 34% in the bi-weekly timeframe, but long-term investors are enjoying bigger rewards as the token is up 205% year-to-date, and currently trading a little above $1,800.

The market started the year on a bullish note, with some altcoins leading the charge. The latest market data shows that the broader market is up nearly 6% in the past 24 hours.

The Spark

Spark, a DeFi infrastructure protocol on the MakerDAO, is breaking boundaries this year. According to their latest tweet, 2024 continues the bullishness it experienced last year.

In total, over $2.87 billion is supplied by the community as lenders. Total borrowing within the protocol now surpassed $1 billion, with available liquidity sitting safely at $1.81 billion. 

Happy New Year!

New year, same graphs going

2024 looking promising pic.twitter.com/htlyiu7058

— Spark (@sparkdotfi) January 2, 2024

It is by far the biggest news for Spark this year. Last year, the protocol made progress in several other fields, like the deployment of the brand-new stablecoin, sDAI.

Market Enters Bullish Phase 

As 2023 ended, the broader market has entered into a bullish frenzy. CCData’s 2023 Digital Asset Market Review reveals that the market entered 2024 with a big jump in important metrics, like assets under management (AUM) which increased by nearly 15%. The growth observed was last seen in 2022. 

Digital asset management companies also benefited heavily from this bullishness, with AUMs on companies like Grayscale, Bitwise, and Van Eck growing steadily as the year ended.

This brings the focus to Maker. With the current bullishness observed in this market environment, the opportunity for growth is significant as new and seasoned investors enter the market. 

However, this phase of the market also has its nuances. 

Maker: Overhyped And Overconfident? 

As of now, MKR’s market is completely overtaken by the bulls, as they attempt to push the price toward the $2k mark. This is great news for investors in all time frames. However, the current situation demands caution. 

The majority of the top coins and tokens are experiencing meager gains, only being propped up by minor cryptocurrencies that started the year on the green.

This can lead to pain in the short to medium term depending on the circumstance. However, if the bullishness continues, MKR hitting above $2k is not far-fetched. 

Still, investors should exercise caution on this price level as the market will eventually correct itself toward a more manageable price range. 

Featured image from Shutterstock

Amid the anticipation circling the Bitcoin Spot Exchange-Traded Fund (ETF) approval, crypto analyst CryptoQuant has made a bold prediction for the digital asset beforehand.

2 Major Scenarios For Bitcoin Price

CryptoQuant, a well-known cryptocurrency expert, has revealed two major scenarios for Bitcoin in advance to BTC Spot Exchange-Traded Fund (ETF). According to the analyst, BTC will undergo a bullish and bearish scenario before approval from the United States Securities and Exchange Commission (SEC).

The analyst’s prediction delves into Bitcoin price support and resistance analysis. CryptoQuant’s forecast was based on on-chain data of the average unit price of BTC holders.

The post read:

2 Scenarios Before Bitcoin Spot ETF Approval and How to Respond. This post explains how to analyze the Bitcoin price support and resistance using on-chain data of the average unit price of #Bitcoin holders.

For the bullish scenario, CryptoQuant noted that the percentage of daily to weekly holders is expected to increase by 8% if BTC reaches $48,500. This suggests “an overheated market and reinforces a correction.”

The analyst asserted that the $48,500 price mark is the “average unit price” for holders between 2-3 years. In addition, a primary resistance can also be formed at this level.

Meanwhile, for the bearish scenario, CryptoQuant noted a drop in Bitcoin price around 2-30% in the past during its upswing. The crypto expert also added that BTC could form a support level between $30,000 to $34,000 if the price plummets.

Furthermore, CryptoQuant highlighted an average unit price of $34,000 for both the 18-month to two-year and one-week to one-month holding periods. Meanwhile, the average unit price for the holding period of three to twelve months is $30,000.

So far, the expert has highlighted rising dangers and uncertainty as the approval outcome of the Bitcoin Spot ETF approaches. CryptoQuant has issued a warning to the crypto community not to take on the risk as this is “unnecessary.”

BTC Price Dip After Approval Outcome

Institutional trading analyst MacroScope has forecasted a price dip for Bitcoin following the ETF approval outcome. “We know there will be a dip at some point after approval,” MacroScope stated.

The analyst further added that the dip could take place a day or week after the outcome. However, he asserted that the exact timeframe is “hard to predict, but it should surprise no one.”

MacroScope also highlighted a few factors to watch out for during the dip. The expert noted that “once the dip stabilizes, the next upward move could be a ripper.”

In addition, billions of funds will be waiting for the turn, trying to time it just right. However, MacroScope has suggested allocating a starting position in order not to miss this turn.

As of the time of writing, Bitcoin was trading at $46,860, indicating an increase of over 6% in the past day. Its trading volume is significantly up by over 70% in the past 24 hours, according to CoinMarketCap

Fantom (FTM) investors have endured a brutal week, witnessing their holdings shrink by over 20% in just seven days. The latest blow came within the past 24 hours, with a nearly 10% plunge leaving the token hovering around $0.37.

This stark price decline stands in stark contrast to the encouraging surge in Fantom’s network activity, raising questions about what’s driving the disconnect.

While increased transactions and user engagement are typically seen as positive indicators for a blockchain project, Fantom’s price remains stubbornly bearish.

Related Reading: Polygon NFTs Explode: 6-Month High Volume Ignites Market – Details

Will Fantom Network Volume Lift FTM Price?

This suggests that external factors, potentially broader market sentiment or negative news surrounding the project, are playing a more significant role in shaping the token’s value.

Investors are now left grappling with the uncertainty of whether Fantom’s robust network activity will be enough to overcome these headwinds and paint its chart green again.

FTM Price Analysis

The path forward for Fantom remains shrouded in some degree of mystery. A close examination of technical indicators and further analysis of the broader market and project-specific news will be crucial for deciphering the token’s next move.

Fantom (FTM) has faced a recent price slump, prompting closer investigation into investor behavior. Analysis reveals a contradictory picture.

While FTM tokens held by whales and large transactions exceeding $100k have both seen a decline, suggesting potential long-term support, a different story unfolds regarding exchange activity.

Supply on exchanges has steadily risen since December 23rd, indicating increased selling pressure and a likely contributor to the current price dip.

Meanwhile, FTM held outside of exchanges has dwindled, hinting at potential accumulation by long-term investors.

This divergent picture suggests a temporary imbalance between selling and buying forces, pushing FTM lower in the short term.

However, the underlying support from stable top holdings and reduced whale activity might offer a glimmer of hope for a potential rebound in the longer term.

Despite the bad market condition in 2023, @FantomFDN has been growing and shining like a phoenix from the ashes

#Fantom has had 128M+ new unique addresses in 2023 and is ranked in 3rd place compared to other top EVM blockchains

With the mainnet launch of… pic.twitter.com/oA27loqrtf

— Fantom Insider (@fantom_insider) January 7, 2024

As the token faced a decline in value, Fantom Insider took to Twitter to unveil a notable accomplishment for Fantom in 2023.

The tweet highlighted that, despite the token’s temporary downturn, FTM had secured an impressive position, ranking third in terms of unique addresses among Ethereum Virtual Machine (EVM) blockchains for the year.

This disclosure positioned Fantom closely behind established entities like Polygon and Binance Chain, signaling a noteworthy achievement for the platform in expanding its user base and ecosystem engagement throughout the course of 2023.

(Featured image from Zipmex)

In a recent interview with Bloomberg, Reggie Browne, Co-Global Head of ETF Trading and Sales at GTS, shared insightful predictions regarding the potential trading dynamics of spot Bitcoin exchange-traded funds (ETFs). Browne foresees these ETFs trading at a significant premium, estimating as high as 8% above their net asset value (NAV).

Why Spot Bitcoin ETFs Could Trade At A 8% Premium To NAV

“I think the spreads will be very competitive and tight. The market maker community is resilient and prepared to offer a lot of liquidity,” Browne stated. However, he highlighted a critical concern, saying, “I think it’s going to be the premium to NAV… US broker dealers can’t trade Bitcoin cash inside their broker dealers. So you’re going to have to trade hedges over futures and trade it on a premium, and then take that off, and I think there is a lot of complexity there.”

This complexity, according to Browne, arises from the cash creation model forced by the SEC and regulatory constraints that limit direct Bitcoin trading within US broker dealers, compelling them to rely on futures for hedging. He expressed, “What I think, potentially, you could see 8% of premium above fair value. It’s a big number, but let’s see how it plays out.”

Additionally, Browne touched upon the subject of in-kind creations and redemptions, aspects that were points of contention during negotiations with the Securities and Exchange Commission (SEC). Despite the challenges, he remains optimistic about their future implementation. “Absolutely, I think this was really just to get the ball moving… the in-kind will come after we climb a couple of mountains,” Browne remarked.

Echoing Browne’s sentiments, Eric Balchunas, a Bloomberg ETF expert, commented on the potential premium, expressing surprise at the anticipated high rate. He drew a comparison with Canada’s spot ETFs, which are also cash creations but have much smaller premiums, despite occasional spikes.

[Browne] thinks bid-ask spreads on spot ETFs will be tight but (thx to cash only creations) premiums could be as high as 8%. That’s really high and I’m a bit shocked tbh. For context Canada spot ETFs are cash creations and their premiums are very small.. albeit the occasional 2% day.

The crypto community is closely monitoring the SEC as it approaches a critical deadline to decide on the first batch of several spot Bitcoin ETF applications by tomorrow, January 10. Prominent asset managers such as BlackRock, Fidelity, Ark Invest, Bitwise, Franklin Templeton, Grayscale, WisdomTree, and Valkyrie are among those with pending applications.

Browne believes that the approval of spot Bitcoin ETFs could attract substantial investor interest, projecting massive inflows over the first year. “I expect investors to add at least $2 billion to spot Bitcoin ETFs within the first 30 days they trade, if approved. For the full year, I see $10 billion-$20 billion in the funds,” he noted. This prediction underscores the significant interest and potential market impact of spot Bitcoin ETFs.

At press time, BTC traded at $46,768.