How to Minimize Your Risks Investing in Stablecoins?

The main idea of a stablecoin is to hedge your on-chain funds against the volatility of the cryptocurrency market. Stablecoins are pegged to fiat currencies, primarily to the U.S. dollar; and for this reason, their value stays stable in USD terms.

With the growing popularity of decentralized finance (DeFi), stablecoin holders have earned an opportunity to put their stablecoins to work and generate passive income off DeFi’s liquidity pools. Stablecoins are vastly used in the whole of the cryptocurrency market as a measure of dollar to trade genuine cryptocurrencies like ethereum or bitcoin, without having to resort to the fiat dollar.

This has drastically increased the usability of stablecoins in liquidity pools of decentralized exchanges (DEXes) where the value of cryptocurrencies and layer 2 tokens is largely established in USD-pegged stablecoins.

Lending pools on lending DeFi platforms like AAVE have also opened up new opportunities for income for stablecoin holders. There you can stake your stablecoins in a liquidity pool for an interest that varies depending on supply and demand.

If you are holding a cryptocurrency and a stablecoin, you can become a liquidity provider for the relevant trading pool on a decentralized exchange. You will be able to collect your trading fees in the LP tokens of that particular exchange and thus receive an APY on the otherwise idle liquidity locked in your stablecoins. The most prominent harbor of stablecoin liquidity is Ethereum’s Curve Protocol where you can capitalize on opportunities for profit with any stablecoins.

Things to factor in when investing in stablecoin

If you are looking to commit a share of your investment capital to stablecoins, please consider a few factors that will influence the security of your funds. The first parameter is the type of stablecoin. The most reliable ones are fiat-backed and overcollateralized.

The fiat-backed stablecoins are those that you can get for a fiat currency. An example of these stablecoins is Coinbase’s USD Coin (USDC). It functions on the principle of IOU: the issuer owes you the liquidity that you grant them in fiat money. This is a very reliable way to keep your liquidity safe while retaining the opportunity to use your on-chain liquidity on the respective blockchain for profit. One of the best-known overcollateralized stablecoin is Tether (USDT), which is over collateralized by fiat funds, securities, USD, etc

There are also algorithmic stablecoins backed with cryptocurrencies. There are different ways of their backing, for example, MakerDAO and its DAI utilize the mechanism of overbacking where the amount of collateral exceeds the amount of token issuance. It is over collateralized by Ether (ETH) locked in the MakerDAO smart contracts. Such a mechanism must be very reliable.

Most algorithmic stablecoins are algorithmically backed by the blockchain’s native cryptocurrency. This system is used in Terra’s UST stablecoin that is backed by LUNA – Terra’s native cryptocurrency. Its algorithm lets users burn 1 USD worth of LUNA to mint 1 UST and vice versa.

When the price of UST, for example, climbs to 1.01 USD, users can burn LUNA for UST and sell UST for USD with a profit of 0.01 USD per UST. This will increase the supply of UST and increase the LUNA supply to bring the UST price back to $1.

If the UST price falls below $1, for example, to $0.99, the algorithm allows users to buy 1 UST for 0.99 USD and burn it for 1 USD worth of LUNA, similarly getting a profit of 0.01 USD. This will reduce the supply of UST and increase the LUNA supply to bring the UST price back to $1.

However, this might fail to work. And it did fail in the rapid downfall of Terra’s UST to $0.29 and the more than 97% crash in LUNA’s price. The algorithm simply could not cope with the scale of the UST selloff and mint enough LUNA to back its price. And when the UST fell as much as it did, it required such a big additional supply of LUNA to recover its price back to $1 that it caused the price of LUNA to drop as much as it did.

This example shows how risky algorithmic stablecoins can be.

The other parameter to consider in choosing a stablecoin is decentralization. If a stablecoin is centrally issued it is very reliable, but it can get blocked due to legal issues if the governing entity gets into a fiscal jeopardy with regulators. Such a scenario can damage the price of the stablecoin. Besides, the money in the account of a holder must be transparent and legal otherwise it may also be blocked.

But there are also decentralized stablecoins that have no centralized control. They are backed by non-centrally issued cryptocurrencies locked in non-centrally controlled smart contracts. And that makes it practically challenging to devalue the price of such a stablecoin through any legal issues. It suits if investors have assets of ambiguous origin, but it’s worth keeping in mind the Luna story, which is decentralized.

The Tether USDT stablecoin is the most prominent example of a centrally issued stablecoin. In April Tether Holdings Ltd. unveiled more details on its reserves, which confirmed their validity.

So, which stablecoins to go for?

In order to hedge your funds securely against cryptocurrencies’ volatility, it will be best to put your liquidity into several stablecoins on various blockchains. For example, the BUSD stablecoin can allow you to generate an APY on the largest DEX on Binance Smart Chain – Pancakeswap – while USDC and USDT can allow you to make use of demand for stablecoin liquidity on the Ethereum blockchain.

I would also advise going for non-centrally-issued stablecoins, for example, DAI, and try to abstain from investing large portions of your capital into stablecoins that lack proper backing.

And if you are dealing with chunky sums of money, it will be best for you to do your own research before committing your funds to one or another stablecoin rather than buy them rashly. Having a good understanding of how a stablecoin’s price is regulated will already allow you to have a notion of how securely your funds are stored and not be worried about their safety.

Dmitry Mishunin, the founder and CEO of a a DeFi security and analytics company HashEx

Can Bitcoin and top Altcoins Have a Bullish Week Ahead?

Key Insights:

  • Bitcoin’s price has presented signs of extending the recovery to the $35,000 mark.
  • Ethereum still presents a high BTC correlation.
  • With volatility still high, altcoins could face hurdles going forward.

After the recent flash crash, the top crypto asset found a solid support at the $29,100 price level. Bitcoin price has been coiling up around the range of $29,000 – $30,000 for quite some time.

On Monday, BTC price started on a high note, rising to as high as $31,350. While technicals point towards range formation, indicating that an up move is likely in the coming days, the larger sentiment around cryptos remains ‘Extreme Fear.’

Nonetheless, with BTC establishing a solid footing at the $30,500 mark for the short-term, investors can expect altcoins like Ethereum, Ripple, Solana, Algorand, and others to do the same.

Bitcoin price presenting bullish signs?

BTC bulls are making attempts at recovery from the under $30,000 zone. This time, a strong comeback (if at all it happens) would be a testament to the bulls’ power and could determine bitcoin’s price path going forward.

Last week saw one of the most significant price losses in the history of the cryptocurrency market as BTC almost tested the $25,000 mark. BTC’s price was up by nearly 15% from last week’s price lows.

The top coin’s price still moved in the tight price channel of $29,050 – $31,250.A strong push from bulls would be needed to fuel buying pressure in the market over the coming days.

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BTC 1-day price chart | Source: FXEmpire

Notably, bitcoin’s RSI on a daily chart was still in the oversold zone, a recovery above the oversold mark could indicate some sustained positive momentum for the top coin.

Additionally, with Bollinger bands on BTC’s 24-hour chart looking wide open, the market participants should expect high volatility going forward.

While BTC’s recent price lows have been swept at the moment, a significant price uptick seems unlikely in the short term due to the coincidence of Monday’s high and weekly open at the $31,268 price level.

Investors and traders could be cautious of a pullback towards Monday’s low at $29,027 and contemplate going long BTC. However, if bulls can push BTC price higher and flip Monday’s high at $31,250, the same would reveal a stronger conviction amongst buyers suggesting the likelihood of a short-term rally.

In case of a near-term uptrend, Bitcoin price could first retest the range high at $32,650. Once that is cleared, the next major resistance would fall at the $34,750 level.

After the $34,750 level is breached and BTC’s price is above the psychological support at the $35,000, more volatility and pressure from bears could be expected.

Institutions running the show?

Just last week, bitcoin and the larger cryptocurrency market fell as the Terra ecosystem collapsed. Bitcoin plummeted to under $30,000; however, institutional players took advantage of the circumstance, buying into BTC at a discounted price.

According to a CoinShares report, institutions invested $300 million into exchange-traded bitcoin funds last week. The previous week recorded record weekly crypto inflows for the year 2022, while the net weekly inflows were $274 million during the last week.

Additionally, it was noted that North American investors pumped $312 million into cryptocurrency while European investors saw a $38 million net outflow last week.

FXempire, BTC, Crypto
Source: CoinShares

The head of research at CoinShares, James Butterfill, spoke about the unprecedented volume of bullish investments in bitcoin funds despite increased market volatility. He said,

“It’s the highest weekly total since October 2021, and the 19th highest since records began in 2015.”

Can altcoins gain strength?

On BTC’s renewed short-term momentum, ether’s price saw a minor 2.5% price rise over the last day. ETH’s price had finally stabilized above the $1,980 support level, and while it can retest the $2,200 resistance, the same wouldn’t be possible without BTC’s bullish moves.

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ETH 1-day price chart | Source: FXEmpire

On the other hand, bearish momentum in BTC’s price trajectory could pull ETH back to the $1945 support.

That said, some of the top market gainers in terms of price were – KAVA, Aave, Elrond, Kusama, Litecoin, and IOTA, among a few others.

Kava (KAVA) traded at $2.58 and was up by 11.06% in the last 24-hours while Elrond (EGLD) was up by 9.68% and oscillated at $100.03. That said, Litecoin (LTC) was up by 7.11% and traded at $71.28, at the time of writing.

Alogrand’s ALGO, Ripple XRP, and Solana’s token SOL were up by 6.84%, 3%, and 4%, respectively, over the last 24-hours but still traded below key resistance marks.

Some altcoins seemed to make notable gains, but sustained gains don’t seem to be on altcoins’ cards due to high volatility.

Crypto Market Daily Highlights – May 17

Key Insights:

  • The global crypto market cap is back above the $1.3trillion mark. 
  • BTC’s price has tested the $30,300 resistance. 
  • Both bullish and bearish news is driving market volatility higher.

 The larger cryptocurrency market has been rangebound for most of this month, as the global crypto market cap oscillated between the $1.2 trillion low and $1.34 trillion. 

Data from Coin Market Cap top 100 suggested that Kadena (KDA) jumped by 14.70%, and Algorand (ALGO) saw 11% daily gains leading market the crypto majors. 

It has been an eventful 24 hours for the crypto market, with BTC jumping back above the $30,000 mark and several altcoins in the top 100 making gains. Sustained gains, however, still remain in question as the market continues to be volatile. 

BTC risks falling to $20,000

According to some market experts, BTC’s chances of revisiting the lower levels are still high. The Luna Foundation Guard (LFG) recently revealed that it had sold almost all of its BTC reserves during last week’s Terra (LUNA) and TerraUSD meltdown. The higher amount of circulation BTC in the market added to price volatility. 

Famous trader Phoenix said in a recent Twitter post that if bitcoin’s price falls below the $29,494 mark, the next price range to watch would be $21,800-23,800. 

As highlighted in an FXEmpire article earlier this morning, the Bitcoin Fear & Greed Index fell from 10/100 to 8/100, its lowest level since March 14, 2020. 

The early-week BTC losses witnessed this week could be blamed on global investors in the equity markets and the crypto market responding to dire economic data from China.

Despite short-term price gains, weak technical signals and low buying pressure left bitcoin’s price in a rangebound movement. That said, in the traditional market, weak stats coupled with the threat of a recession left the NASDAQ 100 down 1.20%.

Even though Federal Reserve chair Jerome Powell’s assurances on the rate hike front have delivered support, the same has failed to change the larger economic outlook. Furthermore, the correlation between bitcoin and the NASDAQ strengthened marginally on Monday.

On a one-day chart, BTC’s price made some positive progress; however, high gains didn’t seem to be on bitcoin’s cards as RSI highlighted high selling pressure in the market. 

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BTC 1-day price | Source: FXEmpire

Analyst Rekt Capital pointed out that the $20,000 zone is an area of interest should current levels fail to hold and buyers not materialize.

LUNA and UST Debacle Continues

The South Korean Conservative Party has requested a parliamentary hearing on the dramatic fall of Terra’s LUNA and its algorithmic stablecoin UST. 

On Tuesday, the South Korean National Assembly’s Political Affairs Committee summoned Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue. The committee’s representative, People’s Power’s Yoon Chang-Hyeon, said,

“There is a part that raises questions about the behavior of exchanges during the crash. Coinone, Korbit, and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.”

However, amid the negative commentary, TerraUSD’s price managed to register 11.83% gains trading at $0.1216 at the time of writing. 

High Volatility Sends Altcoin Prices Up

A recent Santiment report highlighted that for those ‘expecting less volatility for crypto markets in the first weeks of May after the rocky first four months of 2022, a continued pattern of downswings shook even crypto’s optimistic traders to their cores.’

After the second FOMC meeting that resulted in the US Fed increasing interest rates by another 0.5%, crypto markets showed some life for 24 hours. At press time, some of the top gainers were altcoins like Elrond (EGLD), Kava (KAVA), Aave (AAVE), and Kadena (KDA)

Algorand (ALGO) also gained close to 7.82% as the token traded at $0.49 at the time of writing. On the other hand, BAYC’s ApeCoin (APE) also noted 7% gains, trading at $8.73. 

Interestingly, Litecoin’s price saw a bounce of over 6% in the last 24-hours as it traded at $70.83. 

One of the most interesting news came from China, as bitcoin mining was back in the news this week, with new data showing China as the second-largest bitcoin mining nation, despite an outright ban.

A recent, FXEmpire article also highlighted that the world’s largest digital currency asset manager, Grayscale, confirmed that it would be bringing its first European ETF called the Grayscale Future of Finance UCITS ETF (GFOF).

Thus, with both bullish and bearish developments taking place in the crypto market, volatility could continue to push BTC and the global crypto market’s boat in the near term. 

Bitcoin Falls Below $35,000 as Tron Continues Its Rally

Key Insights:

  • BTC’s price fell to as low as $34,200, on May 8.
  • Fee reward ratio presented a dominantly bearish market-like situation for the larger crypto market.
  • However, Tron’s TRX token rallied on bullish sentiment.

Bitcoin (BTC) made lower lows, over the past four days, slipping past some of its crucial support zones as volatility and losses knew no bounds. As highlighted in a previous FXEmpire article, most top tokens like AVAX, LUNA, and AAVE registered losses on their daily and weekly charts.

Strangely, however, Tron’s TRX made a power-packed comeback, rallying even as the global crypto market cap continued its downtrend.

Tron rallies against odds

The Tron ecosystem has been on fire lately, which has ensured a bullish narrative for TRX even as the larger crypto market falls in heavy losses. Tron’s algorithmic stablecoin USDD went live last week and has since been listed on several platforms for decentralized finance (DeFi) protocols.

Tron DAO Reserve subsequently announced that it purchased 504.6 million TRX to back the algorithmic stablecoin, as the project aims to leverage a decentralized forex reserve similar to Terra’s UST reserves.

On Saturday, Tron’s founder Justin Sun revealed that the team behind the project had purchased 504,600,250 TRX at an average price of 0.07727 per unit. According to the Tron DAO Reserve, this buy aims to “safeguard the overall blockchain industry and crypto market.”

Notably, TRX’s price rose in tandem with the ecosystem-centric announcements. TRX’s price jumped by almost 47% since May 1 amid heightened positive social sentiment for the ecosystem and its native token.

At the time of writing, TRX traded at $0.09067, noting 7.77% daily and 32.64% weekly gains.

FXempire, TRX, Crypto, Tron
TRX Price Action | Source: FXEmpire

Notably, Tron following Terra’s UST reserve system for its USDD stablecoin has acted in favor of TRX’s trajectory. However, the question remains whether TRX gains could be sustained. Well, sustaining long-term gains could depend on the larger crypto market, so let us look at BTC and the larger trajectory.

Short-term holders trigger BTC losses

One of the reasons for the recent BTC losses could be short-term investors taking quick profits or exiting the market too soon. Looking at the exchange inflows for BTC, it was clear that inflows involved coins dormant for a maximum of three months and thus likely to be owned by more speculative investors.

Additionally, CryptoQuant analysts suggested that the Fee/Reward Ratio indicated that we are in a bear market. Miner’s Fee to Reward Ratio is usually high during the bull market, while at its lowest point during the bear market.

FXempire, Tron, Crypto
Source: CryptoQuant

After BTC registered $65,000 ATH, the Fees to Reward Ratio has dropped significantly, indicating a bear market and miners’ incentive to sell their reserves to cover their expenses.

Looking at the larger market’s bearish condition, it would be interesting to see how TRX’s rally pans out.

Top DeFi Token Price Analysis – LUNA, AVAX, UNI, and AAVE

Key Insights:

  • BTC’s over 10% fall ensured larger market sell-offs, over the last week.
  • DeFi tokens had a no different fate as most tokens saw double-digit losses.
  • While AVAX, LUNA, and AAVE saw the most losses, UNI maintained above the key support level.

It was a bearish week for the larger cryptocurrency market, as the global crypto market cap sunk below the $1.6 trillion mark. BTC’s fall below the critical support levels pushed the top coin by almost 10% to visit sub-$35,000 for the first time since February.

As highlighted in the FXEmpire’s Crypto Weekly Review, investor angst over inflation and Fed monetary policy hit the appetite for riskier assets, which affected the crypto market, triggering a fall for most top coins.

As bears took over the market, the broader market sell-offs saw $146 billion wiped out to leave the total crypto market cap at $1,571 billion on Sunday evening.

DeFi tokens, much like the rest of the market had a high correlation to Bitcoin facing the brunt of the larger market sell-offs. This piece shall delve into the price action of some of the top DeFi tokens like AVAX, LUNA, Uniswap, and Aave.

Terra (LUNA)

After gaining significantly in terms of price for the first quarter of this year, Terra’s LUNA finally took a break from gains. LUNA’s price fell under the $65 mark for the first time since Feb. 26, triggering major sell-offs for the token.

At the time of writing, LUNA traded at $65.74, noting a 10.43% price loss on the daily time frame and 17.35% losses on the weekly chart. LUNA started the year on a high note recording $91 as the daily price high on Jan. 1; since then, the coin has lost value, trading below $70, at press time.

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LUNA Price | Source: FXEmpire

While Terra’s ecosystem saw considerable strategic developments, over the last 48 hours, the same couldn’t do much for LUNA’s price. Notably, Terra increased the native stablecoin TerraUSD’s (UST) liquidity and utility across ecosystems. Additionally, the blockchain also welcomed a new Inter-Blockchain Communication Protocol (IBC) called Evmos, which is the EVM compatible hub of Cosmos.

That said, LUNA’s total value locked in DeFi saw one of the biggest drops falling by over 17% over the last day.

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Source: Defilama

Avalanche (AVAX)

The beginning of the last week brought decent gains for AVAX as many in the market anticipated a rally. Avalanche saw a strong rebound, over the last week, after testing a key inflection area as its support; however, the recent BTC fall to $35,000 pulled back AVAX’s price.

At the time of writing, AVAX’s price oscillated at $52.66, noting 7.75% daily and 11.37% weekly gains. AVAX was testing the crucial long-term support at $52, and a fall below the same could fuel further losses.

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AVAX Price Action | Source: FXEmpire

The relative strength index for AVAX was back in the oversold zone after making a recovery from the same on May 1. A push by bulls triggering an RSI reversal could be key to AVAX’s trajectory in the coming week.

Uniswap (UNI)

UNI’s daily chart presented a bearish outlook for the token as the coin traded at $7.21, noting a 3.98% daily loss in price. While UNI’s losses relative to the larger market were sustained, a persistent downtrend could be observed in the coin’s trajectory.

Notably, a price downfall was reinforced in late March when the coin’s rally halted around the $12 resistance mark. UNI’s price has continued the downtrend following the rejection at the $12 mark.

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UNI Price Action | Source: FXEmpire

HOWEVER, the RSI for UNI was still battling at the border of the oversold zone. In the coming days, a push from bears can push the RSI in the oversold zone sending the token below $6 if sell-side pressure continues.

Nonetheless, since UNI’s daily gains weren’t as aggressive as some of the other DeFi tokens, the same could prove to be a turning point for UNI if buyers can push prices above the $10 zone in the near term.

Aave (AAVE)

At the time of writing, AAVE traded at $129.20, noting 6.14% daily and 8.61% weekly losses. The coin’s RSI had made lower lows since March-end presenting domination of sellers in comparison to buyers. However, despite the daily gains, the RSI had still maintained just above the oversold zone.

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AAVE Price Action | Source: FXEmpire

That said, AAVE’s TVL had fallen to the $10 billion mark after recording the high of $19 billion in October last year.

Price-wise, AAVE saw a brief rally following the interest rate hike announcement in the US. For now, the coin was testing the long term support at $129 mark, a fall below this level could cause further sell-side pressure.

Bitcoin and ETH Struggle To Hold Gains, ApeCoin Could Resume Surge

Key Insights:

  • Bitcoin is slowly trimming gains from the $40,750 resistance.
  • Ether (ETH) might test the key $2,915 support.
  • APE is showing bullish signs and might resume uptrend above $18.00.

Bitcoin

After a strong move above $40,000, bitcoin price faced sellers. The bears remained active near the $40,750 level. The price reacted to the downside and traded below $40,400.

There was a move below the $40,000 support and the 21 simple moving average (H1). Bitcoin even traded below the 23.6% Fib retracement level of the recent wave from the $38,250 zone to $40,750 high.

Bitcoin

It seems like the price might extend decline and test $39,500. It is near the 50% Fib retracement level of the recent wave from the $38,250 zone to $40,750 high. On the upside, $40,500 and $40,750 are important breakout levels.

Ethereum (ETH)

ETH also attempted an upside continuation above $3,000. However, the price struggled to clear the key $3,035 resistance zone.

It is moving lower below the $3,000 level and the 21 simple moving average (H1). There was a move below the 38.2% Fib retracement level of the recent wave from the $2,800 support to $3,035 high.

Ether

On the downside, there is a major support forming near the $2,915 level. It is near the 50% Fib retracement level of the recent wave from the $2,800 support to $3,035 high. Any more losses might send the price towards the $2,840 level.

ApeCoin (APE)

APE started a major increase after it broke the $12.50 resistance zone and the 21-day simple moving average. Besides, there was a break above a key bearish trend line with resistance near $13.00 on the daily chart.

The price even climbed above $18.00, but it struggled to test the $20.00 resistance. It is correcting gains and trading below the $18.00 level.

ApeCoin (APE)

However, the bulls are protecting the $17.50 support zone. If they remain active, the price could start a fresh surge above $18.00. The next key resistance on the upside may perhaps be near $19.50 or $20.00.

If there is a downside break below the $17.50 support, the price might correct sharply. In the stated case, APE might slide and test the $15.00 support zone in the near term.

ADA, BNB, and DOT price

Cardano (ADA) struggled to gain pace above the $0.885 resistance zone. It is correcting gains and trading below the $0.860 level.

Binance Coin (BNB) failed to stay above the main $400 support zone. It is now moving lower towards the $388 support. The next major support is near $385.

Polkadot (DOT) faced selling interest above the $17.50 level. It is sliding and seems like the bears might aim a test of the $17.00 support zone.

A few trending coins are DOGE, LUNA, and AAVE. Out of these, DOGE is showing a lot of positive signs above the $0.150 level.

Top 5 Cryptocurrencies to Watch this Week: BTC, DOGE, APE, AAVE, and XMR

Key Insights:

  • BTC was still under the $40K mark, trading at $38,796 at press time.
  • While most of the top assets noted losses on their daily charts, Dogecoin noted decent gains.
  • Nonetheless, sell pressure dominated buy pressure at press time. 

Bitcoin’s price for the better part of April has been on a downtrend. At the time of writing, with bitcoin’s price below the $40K level, the larger market was painted red as most of the top altcoins shed their value.

The total crypto market cap depreciated by close to 3% over 24-hours and stood at $1.7 trillion at press time. Over the last week, the cryptocurrency market has been largely unmoved due to BTC’s rangebound movement.

Nonetheless, some tokens like the popular meme token Dogecoin (DOGE) registered gains owing to external news surrounding the coin. So amid a larger market consolidation, here could be the top cryptos to watch in the coming week:

Bitcoin (BTC)

Bitcoin’s price attempted recovery on April 19 and continued its uptrend for three days, reaching as high as $42,916 on April 21. However, as the weekend approached, bears came into action and pulled the coin’s price down by almost 8% over a day.

Data from Coinglass highlighted that funding rates across crypto derivatives exchanges returned to the negative territory during the weekend, tilting towards bearish. Furthermore, BTC’s failed attempt at a recovery pulled the Crypto Fear & Greed Index into ‘extreme fear.’

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BTC Price Action | Source: FXEmpire

At the time of writing, RSI’s downward slope towards the negative territory indicated a minor advantage to bears. Since the price had fallen below $39,100, a rise in selling pressure could be expected.

If selling pressure pushed BTC’s price further down, the asset could test the next support near $37,500.

Nonetheless, many in the market were still optimistic about the top coin’s movement. Technical analyst ‘Crypto Rover’ pointed out on Twitter that BTC’s price structure looks ‘ultra bullish.’ he further added that risk-off assets like BTC could see price in times of uncertainty with war and interest rate hikes gains.

Notably, according to the analyst, BTC has moved up against the SPX and seems to be forming similar consolidation patterns like 2017-2020.

 

Dogecoin (DOGE)

After reports claiming that Tesla CEO Elon Musk could probably become Twitter’s new owner, the entrepreneur’s favorite token, Dogecoin, saw an almost 15% spike in price. DOGE’s price jumped from $0.1254 to nearly $0.1418 in a few hours.

Despite the larger market’s bearish momentum, DOGE’s price picked as the Musk-Twitter saga continued. Interestingly, the Dogecoin price was retracing a bullish pattern on the weekly time frame.

DOGE traded at $0.1389, noting a 4.41% rise on the daily and 2.17% rise in the weekly time frame. The meme token traded close to the $0.147 resistance, and a move above the same could further aid the coin’s uptrend in the short term.

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DOGE Price Action | Source: FXEmpire

However, once the social attention around Twitter, Musk, and DOGE fades, a pullback from the higher price range could be seen. If the price falls below the $0.130 mark in the coming week further bearish momentum could trigger a price downtrend.

ApeCoin (APE)

Yuga Labs’ ApeCoin – the native token for the BoredApeYachtClub NFT project, was one of the best-performing cryptocurrencies in the past week. The coin surged by over 50% as the platform’s developer community dropped hints about an upcoming metaverse project.

Following the high social sentiment, APE rallied to a high of $18.3. The token even surpassed Decentraland’s MANA to become the market’s largest metaverse token.

At the time of writing, APE was the 29th coin by market cap and traded at $17.63, noting a 2.34% rise in 24-hours and a 56.95% rise over the last week.

FXempire, APE, Crypto, ApeCoin
APE Price Action | Source: FXEmpire

APE broke out from its larger downtrend on April 18 as RSI on its daily chart finally picked up. The same indicated a rise in buying pressure, and technicals flashed bullish signals. APE’s recovery above the $14.19 mark ensured the coin’s uptrend.

With the next significant resistance at $18.4, if bulls could push the token above that mark, APE’s price could witness another leg up in the near term.

Aave (AAVE)

Over the last week, DeFi token AAVE rose by almost 10%, trading at a one-week high of $196. The coin’s quick recovery outpaced the larger market’s short-term gains as AAVE’s rallied on the back of high trade volumes indicative of retail interest going up.

After two days of retail-backed gains, AAVE’s price faced rejection $190 mark and made its way downwards. Over the last four days, AAVE’s price has slumped by close to 20%.

At press time, the DeFi coin traded at $161.97, noting a 4.17% fall on the daily time frame.

FXempire, AAVE, Crypto
AAVE Price Action | Source: FXEmpire

The RSI for AAVE presented a steady decline indicative of sell-side pressure taking over in the market. If the price fails to maintain above the key support level at the $158 mark, the coin could face further price losses.

Monero (XMR)

After rallying by almost 20% from April 17-22, privacy token Monero’s price has started to correct. On April 22, XMR’s price faced a strong rejection near the psychological level of $300.

The coin’s rejection around the $290 level indicated that bears were active around the higher price levels. With XMR oscillating below the 20-day EMA of $245, sellers outpaced buyers for the coin at press time.

FXempire, XMR, Crypto, Monero
XMR Price Action | Source: FXEmpire

The $245 mark has acted as strong support and a price fall under that level indicated that bulls were not too keen on buying the XMR dip and expected further downward momentum.

At the time of writing, XMR traded at $240.60 noting a 5.23% decrease in price in 24-hours and a 4.87% decrease in price over the last week.

Further rise in sell-side pressure could pull the coin’s price down to the $233 mark in the near term.

Ethereum Trumps Bitcoin As Crypto Gains Cross $162B: Chainalysis

Key Insights:

  • Investors in 2021 noted $162 billion worth of gains.
  • Most gains stemmed from Ethereum instead of Bitcoin, as one would expect.
  • Both the coins are currently on the path to recovery.

According to Chainalysis’ 2021 Cryptocurrency Gains report, the crypto market experienced one of the most successful years, with Bitcoin and other altcoins building on the bullish momentum generated towards the end of 2020. 

Crypto Gains 2021

Last year most of the cryptocurrencies achieved their all-time highs around May before the Elon Musk/Tesla induced market crash hurt investors. But the recovery of half the market towards October and November helped the market end the year on a profitable note.

In doing, so, investors managed to gain a total of $162 billion across all cryptocurrencies. This marks a 400% increase in profits compared to 2020, when investors only made $35.6 billion in addition to their investments.

The United States realized the highest profits | Source: Chainalysis

The United States realized the highest profits, which alone managed to rake in $47 billion, followed by the UK, Germany, Japan, and China, with profits ranging between $8.1 billion to $5 billion.

However, crypto gains do not represent the true economic status of the country as the likes of Ukraine, which ranks 40th in GDP at $576 billion, managed to climb to the 13th place in realized cryptocurrency gains at $2.8 billion.

When we look at the individual currency’s profits beyond geographical prosperity, surprisingly, Ethereum surpassed the king coin Bitcoin is realized gains in 2021. Bitcoin was followed by XRP, Dogecoin, and AAVE, while the likes of Cardano, Solana, and LUNA didn’t even make it to the list. 

Ethereum profits were higher than Bitcoin’s | Source: Chainalysis

They could certainly make it to this year’s list, provided they can manage to mark a new ATH significantly higher than the previous one by the end of this year.

Ethereum and Bitcoin on the Charts

As Ethereum proved to be a more preferred and profitable investment than Bitcoin in 2021, investors will once again try to capitalize on that success by investing in the two coins this year.

And most of it could take place now as the broader market is beginning to recover.

Bitcoin has risen by 6.81% in the last 72 hours, with the price crossing the $42k mark. The rise significantly helped BTC retest the 100-day Moving Average (blue) as support and is looking to do the same with the 50-day Moving Average (red).

Bitcoin is above $42k at the moment

Ethereum, on the other hand, was also saved from falling below $3k over the week and is currently trading at $3,131.

However, it still stands 34.85% away from the all-time high of $4,811 but above the 50-day MA and 100-day MA, inching towards soon testing the 200-day MA (yellow) as resistance at $3.5k.

Ethereum is still over 34% away from its all-time high

Bitcoin and ETH Target Additional Gains, AAVE Eyes Crucial Bullish Break

Key Insights:

  • Bitcoin extended gains and traded above the $42,000 level.
  • Ether (ETH) spiked and tested the $3,165 resistance.
  • AAVE is up over 10% and seems to be setting up for a larger rally.

Bitcoin

After a steady move above $40,650, bitcoin price extended gains. The price was able to surpass the $41,250 and $41,400 resistance levels.

It even spiked above the $42,000 level and settled above the 21 simple moving average (H1). The price is now correcting gains and trading below $42,000. An immediate support is near a key bullish trend line at $41,650 on the hourly chart.

Bitcoin

The next major support is near the $41,250 level. Any more losses might increase selling pressure and the price could decline to $40,700.

Ethereum (ETH)

ETH gained pace above the $3,080 resistance level and the 21 simple moving average (H1). It even spiked above the $3,150 level, but faced sellers near $3,165.

The price is now consolidating gains above the $3,100 support level. There is also a connecting bullish trend line with support near $3,100 on the hourly chart. A downside break and close below the trend line could spark a sharp decline to $3,030.

Ether

On the upside, the price could face resistance near $3,165. A clear move above the $3,165 resistance zone could open the doors for another increase. In the stated case, the price could even rally above $3,200.

AAVE

AAVE started a downside correction from the $250-$260 resistance zone. The price corrected lower and traded below the $220 support zone.

There was a clear move below the $200 support zone and the 21-day simple moving average. However, the bulls were active near the $150-$155 zone. A low was formed near $155 and the price started a fresh increase.

There was a move above the 23.6% Fib retracement level of the key decline from the $260 swing high to $155 low. The bulls are now facing resistance near the $200 level and the 21-day simple moving average.

AAVE

The next key resistance might be $210 or the 50% Fib retracement level of the key decline from the $260 swing high to $155 low.

A clear move above the $200-$210 resistance zone could set the pace for a move towards the next barrier at $250 in the coming days.

ADA, BNB, and DOT price

Cardano (ADA) is slowly moving higher towards the $0.988 resistance. The key breakout zone is still near the $1.00 level.

BNB is consolidating near the $425 level. The next key resistance is near the $435 level, above which the price could start a strong rally to $450.

Polkadot (DOT) is up 4% and trading above the $19.00 level. If the bulls remain in action, there are chances of a move towards the $20.00 level.

A few trending coins are LUNA, APE, and SNX. Out of these, SNX is gaining pace above the $6.5 resistance level.

Brazil To Begin CBDC Pilot in Second Half of 2022

Key Insights:

  • Brazil’s central bank chief says the CBDC pilot would begin in the second half of 2022.
  • The CBDC will be guaranteed by the Brazilian real, and banks can issue stablecoins upon deposits.
  • Brazil chose nine projects in March, including Aave, Visa, and Microsoft, to develop CBDC.

The Central Bank of Brazil chief said Monday that it would begin the CBDC pilot later this year.

The President of Banco Central do Brasil (BCB), Roberto Campos Neto, announced the move during an event presented by TradersClub (TC) and Arko Advice.

Neto said that Brazil would start piloting its central bank digital currency (CBDC) in the second half of 2022.

CBDC Pilot Roll Out Coming Soon

The central bank gave a hint in November 2021 that it would roll out the CBDC pilot this year. However, earlier reports say that the asset will not be ready for use until 2024.

According to Neto, the sovereign national digital currency would be pegged to the country’s official currency— the Brazilian real (BRL). He also confirmed that the CBDC dubbed “Digital Real” would have a fixed supply, similar to Bitcoin.

“This is a way of creating the digitalization of the currency without creating a rupture in the banks’ balance sheets. This project should have some kind of pilot in the second half of the year.”

Neto stressed that the bank has been exploring and studying the process of CBDC for a long time. He believes that crypto is more prominent as a form of “investment rather than payment” but could change with broader adoption and acceptance.

It is unknown whether the pilot project would make the CBDC available to the public or would restrict the asset to the central bank itself.

Brazil Picks up Pace in the Crypto Marathon

The central bank joined hands with nine partner projects to complete its CBDC goals. Announced in March, the selected partners include Aave, a DeFi lending platform, Visa of Brazil, ConsenSys, and Microsoft.

Brazil has been catching up pace in the crypto space by introducing various “pro-crypto” measures. CBDC development isn’t Brazil’s only crypto-related pursuit. The city of Rio has been at the forefront of the crypto adoption movement.

Rio de Janeiro announced that it would allow its citizens to pay their real-estate taxes in cryptocurrencies. Additionally, the city plans to expand its crypto-friendly measures to stimulate arts, culture, and tourism.

Rio Secretary of Finance and Planning Pedro Paulo stated last month,

“Going further, we will use these crypto assets to stimulate the arts, culture, and tourism, through NFTs, and create a sound and responsible governance policy to evaluate the realization of crypto investments.”

The city announced early this year that it would buy Bitcoin as a store of value for city reserves. The seaside city said it intends to invest 1% of the Treasury in Bitcoin, and the mayor of Rio, Eduardo Paes, has promised to launch its coin dubbed “Crypto Rio.”

Uniswap Labs Takes Aim at Web3 with New Ventures Division

Key Insights:

  • Uniswap Labs targets Web3 with a new ventures division.
  • The ventures division will focus on broad-ranged projects, including tool development and customer apps.
  • More platforms are likely to target Web3 to drive innovation and Web3 integration into the real world.

It’s been a big first quarter for Web3, which has broken out of its shell as more mainstream players target NFTs, the Metaverse, and beyond.

While it has been an impressive start to the year, Web3 is still nascent and has a long way to go before integration into everyday life.

Investment and innovation remain the key to the success of Web3.

Uniswap Labs Launches Uniswap Labs Ventures to Drive Web3 Innovation

On Monday, Uniswap Labs (UNI) announced the launch of Uniswap Labs Ventures (ULV), a new division targeting Web3.

According to Monday’s announcement,

“Uniswap Labs Ventures will invest in teams at different stages and levels of the Web3 stack, from infrastructure to developer tools and consumer-facing applications.”

The new division aims to support innovation and growth by actively participating in on and off-chain governance and collaborating with communities.

Immediate Uniswap Lab Ventures plans include participation in MakerDAO (DAI), Aave (Aave), Compound (COMP), and Ethereum (ETH) Name Service protocols.

To date, Uniswap Lab Ventures has invested in 11 companies and some native protocols within the Web3 ecosystem.

On Twitter, Uniswap Labs tweeted,

“At Labs, we want to onboard millions of users into the Web3 economy, with the goal of unlocking universal ownership & exchange for all. But we know we can’t achieve our mission alone.”

Uniswap Labs added,

“And in keeping with our ethos of decentralization and community engagement, ULV will be participating in the governance of portfolio protocols. To start, these include @AaveAave, @compoundfinance, @MarkerDao, and @Ensdomains.”

Uniswap Labs is not alone in targeting Web3 through investment and partnership to drive innovation and growth.

Investment Funds Target Web3 to Drive Innovation and Growth

Uniswap Labs Ventures follows in the footsteps of Cake DeFi Ventures (Cake) and FTX Ventures, which are looking to support growth in the Web3 space.

One of the biggest VC names in the game is Andreessen Horowitz, also known as 16z, which raised $9bn to further its involvement in both crypto and tech.

According to Institutional Investor, VCs invested $32.8bn in crypto-based projects in 2021.

The 2021 total was reportedly more than all previous years combined, suggesting another strong year for 2022.

17% of the 2021 total went into NFT start-ups, DAOs, Web3, and the Metaverse.

LINK, MATIC and Others: Top 6 Coins That Could Rally in 2022

But if we consider the medium-term planning horizon, there are several highly attractive tokens that have considerable growth potential this year. While the crypto market is still in uncertain territory, we recommend that you first look at projects with strong community support, important upcoming updates, and positive forecasts.

Most of the projects corresponding to such criteria are from the decentralized finance (DeFi) and oracles domains and their prices are susceptible to events that may influence the value of their coins in the near future.

Polygon (MATIC)

Polygon regularly attracts the interest of large investors and can win more than others if the crypto market rises. Despite its explosive growth in 2021, the token has not exhausted its potential for further appreciation. The MATIC token managed to ramp up more than 10,000% in price in 2021, and is a contender for an early update of the historical maximum. Its capitalization currently stands at $11.5 billion, and the exchange rate at the time of writing hovered in the $1.5 region.

MATIC is interesting primarily due to its connection with the Ethereum infrastructure, which is growing year-over-year due to the high prospects of the DeFi segment. Polygon is an Ethereum sidechain that allows users to reduce transaction costs for investors and carry them out faster with the full support of most dApps and projected startups.

Polygon’s scaling solutions increase the popularity and appeal of the MATIC cryptocurrency. In November 2021, the developers at Polygon introduced the ZK-Rollups-based Ethereum scaling solution called Miden.

In addition, the Polygon team announced a new division last year, Polygon Studios, which is focused on the NFT ecosystem and the GameFi sector. The main goal of the division is to promote targeted products and support developers in these segments. The development of the new and popular sector can also drive up the value of MATIC.

Solana (SOL)

The “Visa of digital assets” — this is how the likely future of the Solana (SOL) cryptocurrency was described by Bank of America. The project team has done a lot of work on the implementation of its roadmap, which gives room for possible growth prospects this year.

Key news includes the release of the Phantom wallet, which has already attracted over 10 million users, and has gained the recognition of OpenSea – the largest NFT marketplace with a turnover of $23.5 billion. In April, Solana was added to the list of blockchains supported on OpenSea, making it the fourth alongside Ethereum, Polygon and Klaytn. The introduction of Solana as the largest NFT platform will likely increase demand for SOL, as the coin has already risen in price by 6% this week

Solana’s undeniable advantage is its ability to carry out faster and cheaper transactions, which will play into its hands against the background of the “reloaded” Ether. Solana significantly outperforms Ethereum in both transaction processing speed (over 50,000 TPS at its peak) and fees (less than a cent). The network still lags behind in terms of security and decentralization, which sometimes leads to disruptions.

However, the number of nodes is growing steadily, and with a capitalization of $39.7 billion, Solana is challenging Ripple, aiming for sixth place in the Coinmarketcap ranking.

Luna (LUNA)

The LUNA token can benefit from rumors that are spreading in the community amid increased geopolitical tensions. Previously, the secondary qualities of centralized stablecoins have become their most discussed properties. Against the backdrop of more frequent cases of political involvement of major global brands in all sectors of the economy, even the theoretical possibility of companies like Tether or Circle blocking funds in the wallets of residents of a particular country has sent shockwaves of panic across the market.

An alternative to these projects are the so-called algorithmic stablecoins, which are secured by cryptocurrency assets frozen on smart contracts, and not by dollars on issuers’ accounts. In the medium term, the popularity of Dai (DAI) and TerraUSD (UST) will grow, followed by an increase in liquidity and the circulating supply of tokens, which will lead to an increase in the volumes of frozen assets that will support the increased emission.

The freezing of assets will result in a decrease in supply on the open market, creating an imbalance in the relation between supply and demand, thus contributing to the growth of the price of Terra (LUNA) in the medium and long terms.

Polkadot (DOT)

Polkadot is another project benefiting from the rapid growth of the DeFi sector. The value of Polkadot (DOT) has increased by 191% over the past 12 months. In the coming year, the token may continue its appreciation rally. One of the reasons could be the launch of the first parachain auction in the altcoin network at the end of 2022. Polkadot’s parachain is developed to solve Ethereum’s flaws, making transactions faster and cheaper. As a result, Polkadot is considered to be one of the few of Ethereum’s rivals, with a competitive throughput of 1,000 transactions per second.

If technological development is not yet a guarantee of a project token’s growth, then price dynamics are doomed to failure without the support of the masses. Take DOGE, for example. Polkadot has gained support not only from investors, but also from tech-savvy users who are increasingly migrating to Polkadot and launching their projects there. The platform managed to attract different categories of users including traders, investors, and even developers to use the platform.

Chainlink (LINK)

Chainlink (LINK) is another front-runner that could benefit from the development of both DeFi and oracles in particular. The expectations of investors who had been pouring their funds into this token throughout 2021 may come true this year. Last year, the altcoin did not have the time to demonstrate lightning-fast growth, but the coin retains the potential to update its historical maximum.

Thanks to the broad possibilities of the project, its prospects look great. It seems that not only private investors, but also large companies share the sentiment, as partnerships have already been concluded with many of them, and the list is being updated regularly. Perhaps the fact is that there are now too few projects on the market working closely with oracles.

Dogecoin (DOGE)

Today it is one of the most talked-about coins, with its price rising or falling in the hundreds of percent based solely on the attention of the community.

Dogecoin (DOGE) has a very strong and unique community that is not made up of more than just investors. Due to the high binding of the token to the Elon Musk brand, the community reacts explosively to any statements made by the billionaire regarding the crypto market.

Musk may soon launch a token to the moon, both literally and figuratively — in May of last year, he announced the launch of the Doge-1 satellite, which was funded by Dogecoin. As the countdown timer to launch ticks, citation in the global media may rise to unprecedented heights, which will trigger a viral effect and result in the self-sustaining growth in the price of the token.

Supporting Dogecoin’s bullish price movement is the recent spike in network volume from $689 million to $5.95 billion in the span of just the past three days. Such dizzying growth in on-chain volumes indicates that investors are showing immense interest in the price of Dogecoin at current levels.

Therefore, capital may be flowing into the DOGE blockchain and may hint at a massive uptrend for DOGE just waiting around the corner.

Other projects

The Cardano (ADA) and Aave (AAVE) tokens may also exhibit impressive growth in the next 12 months. The latter’s team recently announced plans to create a mobile wallet, which may contribute to the rise of its price in the future. Cardano was the most active project throughout last year in terms of development, according to analysts. A number of upcoming technical upgrades can also have a positive impact on the financial component of the ADA token.

Grayscale Kicks SushiSwap and Synthetix Out of Its DeFi Fund

Key Insights:

  • During the quarterly rebalance, Grayscale made some changes to all its funds.
  • Avalanche and Polkadot were added to the Digital Large Cap Fund.
  • SushiSwap and Synthetix were cut out of the DeFi Fund.

In a press release today, the world’s biggest crypto asset manager Grayscale Investments announced the quarterly rebalance of their portfolios. For those unversed in this, Grayscale has multiple investment funds which track multiple digital assets within them.

And every three months, these funds are analyzed and based on the investors’ reviews, changes are made to them.

Grayscale Makes New Changes

Now that the second quarter of the year has begun, Grayscale has adjusted its portfolios by removing some assets while also adding some or simply redistributing the money distributed amongst them.

The first was the Digital Large Cap fund (GDLC) which witnessed addition instead of subtraction this quarter.

After adding Solana and Uniswap last quarter, a substantial amount of money was removed from the existing assets to dedicate it to buying two new assets for the fund – Avalanche and Polkadot.

Now holding 1.77% and 1.56% domination in the GDLC, these assets have been given more preference than Litecoin, Chainlink, Uniswap, and Bitcoin Cash.

The second significant change came to the Grayscale DeFi Fund (DeFi Fund), which during this rebalance, lost SushiSwap and Synthetix.

Despite the latter performing exceptionally well over the last couple of weeks in terms of price, Grayscale decided to remove it. Both the assets combined held 6.24% weighting in the DeFi Fund, most of which went to Curve, whose weighting rose from 10.63% to 17.56%.

However, a reduction in asset distribution doesn’t always mean that money is being pulled out of the assets. Grayscale explained this by saying,

“Neither the Digital Large Cap Fund, the DeFi Fund, nor the GSCPxE Fund generate any income, and all regularly distribute Fund Components to pay for ongoing expenses. Therefore, the amount of Fund Components represented by shares of each fund gradually decreases over time.”

The DeFi Pulse Index

Similar to how the Grayscale DeFi Fund works, another DeFi asset tracking fund from Scalara, the DeFi Pulse Index (DPI), is also looking at a rebalance today. While the exact details are yet to be revealed, the elimination of Instadapp from the portfolio has been confirmed.

With 14 DeFi assets under its hood, led by Uniswap, AAVE, and MakerDAO, DPI has performed significantly better this month, rising by 31.43%.

The DeFi Pulse Index is up by 31.43% since its last rebalance | Source: TokenSets

Thus, while GBTC, ETFs, and other spot investment vehicles will have a higher preference, the rise of DeFi funds can also see investors diversifying their money into these indexes.

Blockchain.com Launches Asset Management for Wealthy Customers

Key Insights:

  • Crypto exchange Blockchain.com launches asset management for institutional investors.
  • The firm created the service in partnership with the investment firm Altis Partners.
  • It is based on a strategy that tracks the price of Bitcoin versus the USD.

Blockchain.com, which is now a decacorn after raising a Series D funding, has launched an asset-management brand dubbed ‘BCAM.’

Targets Wealthy Customers

Launched Wednesday, the new service will serve high-net-worth customers, institutional investors, and family offices, a Bloomberg report said.

The London-based crypto firm that provides various services, including trading and custody, has partnered with a macro investment manager Altis Partners, for the launch.

The asset management brand will work on strategies that will:

  • Track the price of Bitcoin versus the U.S. dollar.
  • Offer Bitcoin Smart Beta, an “algorithm-based risk-managed exposure” to reduce the volatility while investing in Bitcoin.

The company noted in its blog post

“BCAM provides robust risk management and client services to crypto-assets, integrating them into sophisticated investment strategies.”

Additionally, BCAM will also launch a product that manages exposure to decentralized finance (DeFi) coins such as Decentraland (MANA), Uniswap, and Aave, to name a few.

According to Charlie McGarraugh, chief strategy officer at Blockchain.com, the DeFi coins tied to the application will let users trade, lend and borrow without intermediaries. He said,

“Blockchain.com is doubling down on its institutional business with the launch of the new service… It’s a big opportunity.”

Institutional Demand for Active Crypto Fund Increases

With the rising institutional demand for more actively managed digital asset investments, BCAM combines the traditional financial markets with the new world of crypto to meet the demand, said McGarraugh. He added,

“The advent of distributed ledger technologies and crypto-assets has the potential to change the structure of global capital markets while presenting new opportunities for investors.”

Recently, Abra, a crypto-focused wealth management platform, launched its asset management arm, Abra Capital Management. The service allows clients to access five actively managed funds with exposure to various digital assets, including Ethereum and stablecoins such as Tether.

Top 5 Cryptocurrencies to Watch This Week – BTC, SOL, NEAR, THETA, AAVE

Key Insights:

  • BTC’s bullish momentum has pushed the crypto market cap above the $2 trillion mark.
  • However, as BTC is still around the $45,000 mark, bullish action in altcoins seems to be weakening too.
  • SOL, NEAR, THETA, and AAVE were a few coins that noted higher gains at press time. 

After a relatively bullish fortnight, bitcoin’s price is still around the $45K mark attempting to hold above its closest support level. BTC charted close to 30% gains in the second half of March, paving the way for altcoins to note gains. 

At the time of writing, data from CoinMarketCap presented that the global crypto market cap stood at $2.14 trillion, a 0.68% decrease over the last day. As traders closely watched BTC consolidate near the $45K mark, the total crypto market volume in the previous 24 hours saw a 9.60% decline. 

Of the top cryptocurrencies, Solana (SOL), Near Protocol (NEAR), Theta (THETA), and Aave (AAVE) could be the tokens to follow in the coming week. To better understand what to expect from these coins, let’s look at their price movements as a new week begins.

Bitcoin (BTC)

At the time of writing, the king coin traded at $45,860.66, noting a 0.82% decline in 24-hours and a 2.68% decrease over the last week. BTC faces an intense tussle from bulls trying to keep the coin’s price above the key $46,500 mark and bears aiming to keep it under the same. 

BTC’s price is still under the 2022 yearly open price of $46,200. However, with the beginning of another quarter, fresher capital pumping into the top coin can further provide bullish momentum to BTC’s trajectory. 

FXempire, BTC, Crypto
BTC Price Action | Source: FXEmpire

At the time of writing, the daily RSI for BTC was lower than the March-end levels highlighting a drop in buying pressure. The 200-day simple moving average (SMA) at $48,276 can be a critical bullish level for the coin. 

A push above the $48,200 mark in the near term can put BTC bulls back on track, and BTC could then expect another run to $52,000. 

Solana (SOL)

Solana’s recovery from the under $100 mark fueled a rally for the sixth-ranked asset by market cap. SOL’s uptrend began on March 15, and the asset has gained over 55% price since then. 

At the time of writing, Solana traded at $134.64, noting a 3.48% fall in price on the daily and a 22.39% rise in price on the weekly. Solana’s rally was confirmed after the coin rose above the crucial $120 resistance mark. 

FXempire, Solana, Crypto
Solana Price Action | Source: FXEmpire

Over the last three days, SOL’s trajectory has slowed down with the $141 mark acting as a strong resistance. Bears are cautiously defending the $141 mark and a move above the same if bulls push harder could see the altcoin rise to the $173 mark. 

However, if the bullish anticipations are invalidated, SOL could turn to the lower $120 level, where it would find support. For now, though, buying pressure was still high as RSI oscillated in the overbought zone. 

In the near term, profit-taking from traders at the current level could see selling pressure increase thus negatively affecting prices. 

Near Protocol (NEAR)

At the time of writing, NEAR traded at $15.84, noting a 5.10% fall in price on the daily and a 19.74% price rise over the week. The token ranked 19 on Coin Market Cap, and its trade volumes presented decent buying around the $15 mark. 

FXempire, NEAR, Crypto
NEAR Price Action | Source: FXEmpire

NEAR made an all-time high of $20.39 on January 17 this year, and its recent run instilled hopes of a new ATH for the coin. However, for the last two days, the coin’s price has been consolidating just under the $17.26 resistance. 

Nonetheless, NEAR has made higher highs since March 22 which reinstigates hopes of a new ATH for the token. However, with the coin’s RSI in the overbought zone, if bears take over ease in buying pressure could further pull the token’s price down to the $14.24 level. 

Theta Network (THETA)

THETA’s price has been range-bound between $2.50 and $4.25 for the most part of this year. At press time THETA traded at $3.86 noting 5.10% fall over the last 24-hours. 

Since the price has maintained above the crucial $3.50 mark, the same signifies traders holding their position. However a break below the $3.80 mark could see THETA fall down to the near $2.7 level. 

FXempire, theta, Crypto
THETA Price Action | Source: FXEmpire

The 20-day EMA at $3.54 could play a key support for the token in the near term. That said, RSI for THETA saw a return to from the overbought zone indicating selling pressure taking over in the market. 

If the price slides below the 20-day EMA, the next level to watch would be the 50-day SMA at $3.17. 

Aave (AAVE)

After breaking its downward price trend on March 29, AAVE saw a 60% price rally. The AAVE gains indicated a potential change in trend as trade volumes for AAVE saw a healthy uptick. 

Establishing the 200-day EMA at $226 as support was crucial for the coin’s trajectory. While bulls have tried to push price below the $226 support AAVE trades at $236.60 at press time noting 37.88% gains over the last week. 

FXempire, AAVE, Crypto
AAVE Price Action | Source: FXEmpire

As the $226 level acts as support, AAVE’s price at press time saw a 24-hour dip of 4%. However, a push from bulls could send the coin above the $250 mark in the short term. 

With the larger market moving in a rangebound trajectory short-term gains for AAVE might not be in store. That said, AAVE’s RSI on a daily chart saw a decline indicative of weakening buying pressure.

Bitcoin and ETH Consolidate, AAVE Could Surge To $300

Key Insights:

  • Bitcoin is trading above the $46,700 support zone.
  • Ether (ETH) is facing resistance near $3,425.
  • AAVE rallied above $200 and $220 resistance levels.

Bitcoin

After a strong increase, bitcoin price spiked above the $48,000 level. However, the price faced sellers near the $48,150 zone.

There was a downside correction below the $47,500 support zone and the 21 simple moving average (H1). The price is now following a declining channel with resistance near $47,600 on the hourly chart.

Bitcoin

A clear move above the channel resistance might start another increase and bitcoin could rise towards the $48,850 level. On the downside, the $46,700 level is a major support. Any more losses might increase selling pressure and the price could decline to $46,000.

Ethereum (ETH)

ETH gained pace above the $3,400 resistance level and the 21 simple moving average (H1). It even spiked above the $3,450 level, but faced sellers near $3,485.

The price is now consolidating gains above the $3,350 support level. There is also a connecting bullish trend line with support near $3,340 on the hourly chart. A downside break and close below the trend line could spark a sharp decline to $3,250.

Ether

On the upside, the price could face resistance near $3,425. A clear move above the $3,425 resistance zone could open the doors for another increase. In the stated case, the price could even rally above $3,485.

AAVE

AAVE started a strong rally after it formed a base above the $110.00 level. There was a clear move above the $120.00 and $150.00 resistance levels.

During the increase, the price climbed a major bearish trend line with resistance near $122 on the daily chart. The bulls were able to push the price above the 50% Fib retracement level of the key decline from the $294 swing high to $112 low.

AAVE

It is now trading well above the $200 level and the 21-day simple moving average. The bulls are now facing resistance near the $230 level. The next key resistance might be $250 or the 76.4% Fib retracement level of the key decline from the $294 swing high to $112 low.

A clear move above the $250 resistance could set the pace for a move towards the next barrier at $300 in the coming sessions.

ADA, BNB, and DOT price

Cardano (ADA) slowly moved below the $1.20 level. It is now consolidating near the $1.18 level and might decline to $1.165.

BNB is consolidating near the $435 level. The main barrier is still near the $450 level, above which the price could start a strong rally.

Polkadot (DOT) is moving lower towards the $22.00 support level. If there is a downside break, the price could decline to $21.20.

A few trending coins are WAVES, ZIL, and COMP. Out of these, ZIL is gaining pace above the $0.15 resistance level.

Bitcoin and ETH Extend Rally, WAVES Surges 50% To New ATH

Key Insights:

  • Bitcoin remained in a positive zone above $46,000.
  • Ether (ETH) climbed above the $3,320 and $3,400 resistance levels.
  • WAVES surged over 50% after the company launched its leadership in the US.

Bitcoin

After a close above $45,800, bitcoin price started a steady increase. BTC cleared the $46,500 resistance zone and the 21 simple moving average (H1).

The bulls pushed the price above the $48,000 level. It is now consolidating gains and trading above the $47,500 support. There is also a key bullish trend line with support near $47,500 and the 21 simple moving average on the hourly chart.

Bitcoin

If there is a downside break below the trend line, the price might decline towards the $47,000 support. On the upside, the next stop for the bulls might be $48,500.

Ethereum (ETH)

ETH also gained bullish momentum and cleared the $3,350 resistance level. It even surpassed the $3,400 resistance level and the 21 simple moving average (H1).

It is now consolidating near the $3,465 resistance zone. A clear move above the $3,465 resistance zone could open the doors for another increase. In the stated case, the price may perhaps rise towards the $3,550 level or $3,600.

Ethereum (ETH)

If there is a downside correction, the price might test the $3,420 support and a connecting bullish trend line on the hourly chart. The main support is now near $3,315, below which the bears might gain strength.

WAVES

WAVES started a strong rally after it broke the $20.00 resistance zone. There was a clear move above the $25.00 and $30.00 resistance levels.

During the increase, the price climbed above a couple of bullish continuation patterns on the daily chart. It is now trading well above the $45.00 level and the 21-day simple moving average.

WAVES

The recent rally gathered pace after the Corbital LLC announced the launch of Waves Labs in the US. The price even spiked above the $50.00 level and traded to a new all-time high at $54.00. The current price action suggests the price might correct lower towards the $45.00 level.

Any more losses might call for a test of $42.00. On the upside, the $55.00 level is the next key breakout zone for the bulls.

ADA, BNB, and DOT price

Cardano (ADA) settled above the $1.20 level. It is now facing resistance near $1.232, above which it may perhaps rise to $1.250.

BNB is rising and trading above the $435 level. The main barrier is now near the $450 level. A clear upside break above $450 could set the pace for a test of $465.

Polkadot (DOT) surged and settled above the $22.50 level. An immediate resistance is near the $23.00 level. Any more gains could send the price towards the $25.00 level.

A few trending coins are LUNA, RUNE, and AAVE. Out of these, AAVE is gaining pace above the $200 resistance level.

DeFi Tokens PancakeSwap, AAVE, and Avalanche Lead Today’s Rally

Key Insights:

  • The Bored Ape Yacht Club released their token ApeCoin as well today.
  • In the last 24 hours, the total value locked across DeFi chains has risen by $7 billion.
  • PancakeSwap recently introduced Perpetual Trading on the protocol.

Today, the crypto market witnessed a balanced movement, with many coins rallying and many others falling significantly.

Interestingly of the top 10 rallying altcoins, most of them belonged to Decentralized Finance protocols and chains. These included the likes of PancakeSwap, AAVE, and Avalanche.

Here Comes the DeFi Avalanche!

Trading at $80.2 at the time of writing, AVAX certainly was one of the top gainers in the last 24 hours. The token of the fourth biggest DeFi chain, AVAX, was up by over 15%, recovering the losses experienced by the investors since the beginning of this month.

Although, AVAX’s rally wasn’t recent as it has been rising for the last four days straight and has shot up from the local bottom of $65 in that duration.

Avalanche rallied by 15.1%

Similarly following in the footsteps of AVAX was PancakeSwap’s CAKE, which at one point was up by 35.32%. This insane rally, however, could not be sustained as the altcoin came back down to trade at $6.45 at the time of writing.

Thus, having risen by 17.02%, CAKE investors seemed euphoric as the protocol recently introduced Perpetual Trading for its users.

As one of the biggest DeFi protocols with $4.51 billion in total value locked (TVL), PancakeSwap is currently the third biggest DEX in the market.

The rise came in at the right time as the altcoin has been witnessing consistent falls over the last 15 days, which has been invalidated by almost 90% with today’s rise.

PancakeSwap almost rose by 35.32%

Additionally, AAVE didn’t fall behind either, as the altcoin made a big stretch yesterday with its green candle and crossed $140, a support level that had been flipped into resistance at the beginning of this month.

Trading at $144.91, AAVE increased by almost 19% in the last 24 hours.

AAVE witnessed an 18.91% rally

At one point last year, AAVE was the biggest DeFi protocol in the world. However, it has since come down to the sixth position, being replaced by Curve. Regardless, the Dapp is still the biggest protocol on Polygon and Avalanche.

The Bored Ape Just Got Interesting

As one of the biggest NFT collections globally released its token, it was bound to be the highlight of the day, and so it was. Bored Ape Yacht Club’s ApeCoin was the most trending token today.

As a matter of fact, having risen by over 600% at one point, the token already made it to the list of the top 50 cryptocurrencies in the world.

Thus, with many more such drops anticipated to break the market this year, it will be interesting to see if ApeCoin can sustain its rise or if it was simply a one-and-done instance.

Defi Protocols Agave and Hundred Finance Suffer Hack of $11M

Key Insights:

  • Over $11 million from Agave and Hundred Finance was wiped off in the latest Defi exploit.
  • The attacker introduced a reentrancy bug and used a flash loan exploit to siphon funds.
  • After the protocols announced the hack, their native tokens saw a dip.

Defi protocols getting hacked have been synonymous with crypto markets as crypto crimes have risen over the years. On Tuesday, another Defi exploit came to light when an attacker siphoned over $11 million from Agave and Hundred Finance.

Flash Loan Reentrancy Attacks

Over $11 million has been wiped off in what appears to be a flash loan reentrancy attack on both Defi protocols on the Gnosis chain. The hacker took the stolen funds in Wrapped ETH, Wrapped BTC, Chainlink, USDC, Gnosis, and Wrapped XDAI.

Both the Defi platforms confirmed the hacks through Twitter posts on Tuesday, stating that their contracts have been paused to avoid further damage. Agave also mentioned that their team is currently investigating the exploit on the Agave finance protocol.

The attacker exploited a reentrancy vulnerability in the two Defi protocols.

Reentrancy is a Solidity programming language vulnerability that lets an attacker trick a protocol’s contract into making an external call to an untrusted contract.

After the call happens, the hacker can use this suspicious contract to make repeated calls to the protocol to wash away its funds.

For Agave and Hundred Finance, the hacker introduced a reentrancy bug on both protocols allowing for a flash loan exploit. The same allowed hackers to continue borrowing from the protocols.

Seemingly, the attacker was making repetitive calls to withdraw funds without putting up additional collateral. Notably, the address associated with the attacker has sent over 2,100 ETH, worth over $5.5 million, to a crypto mixer to launder the stolen tokens.

Blockchain security researcher Mudit Gupta thinks that the hack was possible because the official bridged tokens on Gnosis are non-standard and have a hook that calls the token receiver on every transfer. The same enables reentrancy attacks.

Defi Attacks Rising

The recent attack marks the second flash loan exploit on the same day after Deus Finance DAO lost $3 million in a similar attack. Agave is a fork of the lending protocol Aave.

Gupta, however, believes that the difference between Aave and Agave is that ‘Aave actively checks for reentrancy before listing tokens on the main net to avoid similar attacks.’

After the attack, both the protocols’ tokens saw a price decline. AGVE, the token of non-custodial money market and lending protocol Agave, lost over 25% value on Tuesday. Likewise, after announcing the exploit, Hundred Finances’ token HND was down 5.8%.

Notably, Cream Finance, another Defi lending protocol with a similar codebase to Compound, suffered a flash loan reentrancy attack last summer. The exploit led to a $19 million loss in crypto from the protocol.

Crypto Firm Gauntlet Valued at $1B Following Latest Funding Round

Key Insights:

  • Gauntlet has just raised $23.8 million in a Series B round.
  • The firm offers data and risk analysis for DeFi platforms.
  • It aims to scale the platform to operate on multiple networks.

On March 14, the company said that it had raised $23.8 million in a Series B round led by Ribbit Capital. Other investors included previous contributors Polychain Capital and Paradigm.

Gauntlet plans to use the capital injection to fund hiring and expansion into new areas such as gaming.

Gauntlet received its first seed investment of $2.9 million from Coinbase Ventures and several other participants in 2018. The crypto quant company raised a further $4.4 million two years later.

According to Bloomberg, Gauntlet has 32 employees, mainly in New York City. It is deeply involved in the decentralized finance (DeFi) space with leading platforms, including Aave (AAVE) and Compound (COMP), which pay the firm $5 million per year. Gauntlet is also heavily involved in Uniswap (UNI) governance.

Billion Dollar Valuation

Bloomberg reported that the firm has now been valued at $1 billion, adding to the lengthening list of crypto unicorns.

According to co-founder Tarun Chitra, Gauntlet products offer a “stress test” type environment to ensure financial institutions are avoiding excessive risks. It does this continuously for DeFi platforms, he said.

The platform runs algorithms using data from cryptocurrency exchanges to help DeFi platforms select optimal lending and collateral levels. Chitra acknowledged that data processing was becoming more complex, adding that they are investing in the platform to scale to “as many chains as possible.”

In recent years, the demand for reliable data has surged, with some DeFi protocols touting insane yields, often in triple figures. Blockchain analytics firms Dune Analytics and Nansen have raised millions from crypto venture firms in recent months.

Referring to these high DeFi yields, Chitra added:

“They don’t tell you where the yield is coming from, and you can only figure it out by analyzing the users and the mechanism involved. When we work with a protocol, we do as much diligence on them as they do on us.”

DeFi Ecosystem Outlook

The total value locked in the DeFi ecosystem, which is often viewed as a measure of market health, is currently $198.5 billion, according to DeFi Llama.

It has declined 22% from its early December all-time high of $255 billion, but a lot of that can be attributed to declines in the underlying crypto asset prices as markets have also been down-trending this year.