Football Legend Cristiano Ronaldo Set To Launch Binance Exclusive NFTs

Key Insights:

  • Cristiano Ronaldo NFTs are to be launched later this year.
  • This is the first of a multi-year NFT partnership with Binance.
  • Sports and Crypto have found a lot of partnerships in the form of NFTs and Metaverse.

With more and more sports-affiliated celebrities and companies recognizing the potential of the crypto space, the market is observing tremendous growth in this aspect.

Now with one of the biggest sportspeople on the planet set to enter this field, such partnerships will reach a new height.

Binance X Ronaldo NFTs

In an announcement today, the biggest cryptocurrency exchange Binance revealed its multi-year NFT partnership with the biggest football star Cristiano Ronaldo.

As stated in the statement, through this partnership, Binance will launch a global promotion aiming to give Ronaldo’s fans an introduction to Web3 with a compelling entry point into the world of NFTs.

Since the deal is set for more than a year, Binance and Ronaldo will be creating a series of NFT collections extending over the course of the agreement.

These NFTs collections will be available for sale exclusively on the Binance NFT platform. 

The first of these collections will be released later this and will feature multiple designs that are set to be created in collaboration with Ronaldo himself.

Crypto and Sports

As is known well and wide, sports partnerships with crypto blockchains and crypto-associated platforms have been the talk of the town for the better half of the first two quarters.

The growth has been such that even the FIFA World Cup 2022, which is going to be held in Qatar, announced partnerships with crypto platforms.

As reported by FXEmpire back in March this year, cryptocurrency exchange Crypto.com was added as the exclusive cryptocurrency trading platform of Qatar 2022.

Along with this, blockchain Algorand also became FIFA’s official partner earlier last month.

Besides this, Premier League Football Club Manchester United also closed a multi-year deal with blockchain company Tezos back in February, valued at $27 million per year (£20 million).

This is proof that going forward, such partnerships are only going to grow further.

Qatar Central Bank’s Development of CBDC in “Foundation Stage”

Key Insights:

  • Qatar Central Bank is currently evaluating the pros and cons of a CBDC.
  • The country has been at the center of the media’s focus ahead of the FIFA World Cup 2022.
  • On the other hand, the Crypto market is still recovering from the recent loss.

As Central Bank Digital Currencies (CBDC) have become the next major step in the financial and technological innovation, every country is finding a way to bring these digital currencies into play. Qatar, too is now looking to participate in the same.

Qatar Preparing for CBDC

Speaking at the Qatar Economic Forum, Qatar Central Bank (QCB) Governor H E Sheikh Bandar bin Mohammed bin Saoud Al Thani stated that the bank is currently in the process of evaluating the possibility of a CBDC.

In order to facilitate the same, the right technology and platform are being found. 

The motivation to do so came from the announcement of the development of CBDCs in other countries. Apart from this discussing cryptocurrency and the prospect of its use in Qatar, the QCB governor was noted saying,

“Currently, crypto are a technology innovation. It might take us to new era of fast, cheap, and more accessible financial services. However, those crypto assets which are not underlined by monetary authority might be less credible.”

Qatar is currently the focus of international media as the country will be hosting the FIFA World Cup this year, which too has been linked with crypto for months now. 

Back in March, cryptocurrency exchange Crypto.com was announced as an Official Sponsor of the FIFA World Cup. The platform was set to be the exclusive cryptocurrency trading platform of the event. 

Additionally, last month, blockchain Algorand was also announced as an official partner of the World Cup.

Crypto Market Takes a Minute

While partnerships may make it sound like the crypto space is thriving, it is only doing so in terms of development, as from an investor’s point of view, things are a bit bleak.

After weeks of bearishness, the overall market seems to be taking a break as the valuation of all cryptocurrencies combined fell to $882 billion at the time of writing.

Although the slump is expected to reduce by the beginning of the third quarter next month, clearer indications concerning the same are yet to be visible.

Part One: It Is Time for CBDCs To Consider the Environment

Key Insights:

  • CBDCs should primarily focus on environment-friendly factors while choosing platforms, software, and hardware designs.
  • The IMF notes that the annual energy consumption of the global payment system is 47.3 TWh.
  • Energy consumption of POW-based cryptos like Bitcoin remains high, while POS consumes less energy.

The environment has constantly been questioned when the topic of cryptocurrencies such as bitcoin (BTC) and ether (ETH) pops up. Some crypto networks use significant amounts of electricity to maintain the blockchain, generating substantial greenhouse gas emissions. This applies to central bank digital currencies (CBDC) too.

These have raised concerns among regulators and global banks that have stepped in, proposing best practices to address the issue. 

For instance, the International Monetary Fund (IMF) released a report at the start of June, recommending countries looking to develop CBDC consider energy consumption while laying their design work.

The international organization, which has been studying digital assets and their impact on global financial stability, has now turned its focus to sustainable digital assets. The report read,

“Major cloud service providers are shifting toward renewable sources of energy such as geothermal and hydropower, as well as toward locations with colder climates, to reduce the carbon footprint in generating power. Adding the environmental footprint as a selection criterion of a cloud partner can benefit not only the CBDC project but also any future digitization project of a central bank.”

Most central banks across the globe have already agreed to work toward fighting climate change while designing their payment system.

How alarming are significant energy costs?

The IMF estimates that the annual energy consumption of the global payment system is around 47.3 TWh [terawatt-hours]. This comes close to the overall yearly energy consumption of countries like Portugal and Bangladesh.

In particular, the evaluations noted that bitcoin consumes about 144 TWh per year.

Per the Crypto Carbon Ratings Institute (CCRI), which tracks the carbon emissions of various crypto networks, BTC and ETH’s energy consumption is enormously higher than other networks.

Source: CCRI

These estimates seem more alarming as several nations are making strides toward launching their own digital version of national currency.

How can CBDCs adhere to sustainability?

IMF study suggested national banks and crypto firms to move away from energy-intensive proof-of-work (POW) protocols. Per the report, blockchain networks that use the POW mechanism consume large amounts of energy.

By definition, POW is a common consensus algorithm that is used by popular crypto networks like bitcoin and litecoin (LTC). Critics of bitcoin miners have argued that the POW mechanism is “overly energy-intensive” and takes longer processing time.

Alternatively, IMF said that energy-conscious crypto networks could rely on non-POW models such as proof-of-stake (POS) protocols. These mechanisms likely consume relatively little energy.

“The potential of non-PoW permissioned crypto assets to reduce energy consumption relative to the existing payment system comes about from energy savings on both core processing architectures and user payment means.”

IMF noted that depending upon the specific configuration details, CBDCs, and certain digital assets could be more energy-efficient. The report compared energy consumption of the current payment landscapes, including credit and debit cards.

According to a blog post on Thursday, IMF noted that replacing POW with other consensus mechanisms is the “first green leap for crypto,” and using permissioned systems is the second. It further said,

“Together, these advances put crypto’s energy consumption well below that of credit cards.”

Energy Consumption of POS Blockchain networks

According to new research by the CCRI, Avalanche (AVAX) blockchain is one of the most energy-efficient among other extensive blockchain networks.

The report said that Avalanche used just 0.0005 percent of the energy used by the Bitcoin blockchain and 0.0028 percent of the energy used by the Ethereum blockchain.

On the other hand, DeFiLlama data showed that the “total value locked (TVL)” for Avalanche was the highest per unit of electricity. TVL is the value of all financial applications on the blockchain.

The TVL of Avalanche per kWh is recorded as $18,454, more than four times compared $4,395 per kWh on Solana (SOL) blockchain. Tezos (XTZ) recorded $943 per kWh, while the TVL is $161 on Algorand (ALGO), $120 per kWh on Cardano (ADA), and $19.18 per kWh for Polkadot (DOT).

These six POS networks selected do not employ identical algorithms. They have different prerequisites in terms of hardware, network size, transaction throughput, and other properties, according to the CCRI.

Another user noted that SafeCoin (SAFE), which offers a new algorithm, Proof of Resource, consumes only ~0.0000027kW per transaction.

When it comes to the design of CBDCs, Richard Dennis, founder of the Dragon IT Security, emphasized that,

“The key criteria for central banks are speed, scalability, the need for it to be very efficient and for the cost to be low.”

Bitcoin and ETH Trend Overwhelmingly Bearish, BNB Near Key Juncture

Key Insights:

  • Bitcoin dived to $20,000 before it found support.
  • Ether traded close to $1,000 and is currently recovering losses.
  • BNB is struggling to start a recovery wave from the $200 support zone.

Bitcoin

After a minor recovery wave, bitcoin price saw a fresh round of selling from $22,000. There was a bearish reaction below the $21,500 support zone.

The price declined nearly 10% and broke the $20,500 support. It traded close to the $20,000 level and settled below the 21 simple moving average (H1). The bulls are now attempting a fresh recovery wave above the $21,000 level.

Bitcoin BTC Hourly Chart
BTC Hourly Chart by FXEmpire

On the upside, the price is facing a major hurdle near the $21,650 level and the 21 simple moving average (H1). The next major resistance sits at $22,800. If there is no upside break, bitcoin could start a fresh decline and may possibly trade below $20,000.

Ethereum (ETH)

ETH also followed a bearish path below the $1,200 support zone. The price gained pace below the $1,100 level and the 21 simple moving average (H1).

The bears even pushed the price below $1,050. It traded close to the $1,000 support zone and is currently attempting a recovery wave. It is facing a key bearish trend line with resistance near $1,130 on the hourly chart.

Ether ETH Hourly Chart
ETH Hourly Chart by FXEmpire

A proper upside break above the $1,130 level and $1,150 could push the price towards the $1,200 resistance zone. If not, it could start another decline and may possibly trade below $1,020.

BNB

BNB started a major decline from well above the $300 level. There was a clear move below the $280 and $250 support levels to move into a bearish zone.

The price even settled below the $240 level and the 21-day simple moving average. The bulls are now taking a stand near a major support at $200. An immediate resistance is near the $230 level. The next key resistance might be $250, above which the bulls could aim a move towards the $280 level.

BNB Daily Chart
BNB Daily Chart by FXEmpire

A clear upside break above the $280 resistance might stage a strong rally. If there is no upside break, the price could start a fresh decline below the $200 level.

The next major support is near $180 in the near term. Any more losses may possibly push BNB price towards the $150 support zone.

ADA and DOT price

Cardano (ADA) is showing a few bearish signs below the $0.50 level. The next major support is near $0.45, below which there is a risk of a move towards the $0.42 level.

Polkadot (DOT) is struggling below the $8.00 resistance. If there is a downside break below the $7.00 support, the price could even test the $6.20 level.

A few trending coins are LINK, ALGO, and ATOM. Out of these, LINK is still trying to start a strong increase above the $7.00 and $7.50 resistance levels.

Crypto Price Analysis June 10: ALGO, APE, ADA, AAVE, AVAX

Key Insights:

  • The Crypto market plunged by 4%, led by multiple altcoins.
  • Bitcoin and Ethereum followed the lead and slipped by almost 4%.
  • Less than 10 of the top 100 cryptocurrencies posted green candles.

After the leaked Cryptocurrency regulation bill came to light, suggesting stringent measures to regulate cryptocurrencies, the market reacted pessimistically as expected.

Altcoins, including Chainlink, Cardano, Algorand, and more, lost more than 8% at the time of writing.

Algorand (ALGO)

The altcoin had a rather unfortunate day as it traded 11.27% below the trading price it was at 24 hours ago. ALGO has been in a continued downtrend for the entire month, and as a result, the price has dropped from $0.74 to $0.36 at the time of writing.

Despite the inflows observed over the last week, ALGO also noted the highest amount of outflow ever recorded on the Chaikin Money Flow (CMF). Thus, ALGO might continue slipping on the charts unless the broader market recovers.

ApeCoin (APE)

The native token of the biggest NFT collection Bored Ape Yacht Club (BAYC), has been falling on the charts since it hit its all-time high back in April. Over this week alone, ApeCoin has plunged by almost 19%, with 10% added in the last 24 hours.

However, it seems like a trend reversal is in the books for the altcoin as bearishness on the Awesome Oscillator has been reducing since the month began. Once bullishness arrives, APE could also rise above its current trading price of $5.2.

Cardano (ADA)

The third-gen cryptocurrency was performing well enough for the last couple of days, rising by 40.47% as anticipation ahead of the Vasil hard fork built up. However, impacted by the broader market bearishness, ADA slipped by 9.3% in the last 24 hours.

The Relative Strength Index (RSI), which managed to recover into the bullish-neutral zone, returned to the neutral point as Cardano fell.

AAVE (AAVE)

The DeFi token, which was on the road to recovery after the crash of May, lost its path in the last ten days when the altcoin declined by 25.93%, pushed further by today’s 9.78% dip. AAVE is now once again looking to regain $100 as a support level which might be difficult.

According to the MACD indicator, the bullish crossover that gained strength around mid-May is about to be invalidated with a bearish crossover which might result in the coin slipping below $87, its current trading price.

Avalanche (AVAX)

Unlike other altcoins, AVAX has stayed true to its current nature, continuing the downtrend that began two months ago back in April. Since then, the asset has lost 78.26% of its value, in addition to the 7.68% decline witnessed in the last 24 hours.

The Parabolic SAR’s white dots, which have been evincing the downtrend, remain stationary at the time of writing, which means AVAX is set to decline further.

Loss of Correlation With Stocks Will Pave the Way for Crypto to Portfolios

Bitcoin, Ethereum Price Action and Indicators

Bitcoin was down 0.3% on Thursday, continuing to hover around $30K. This mild decline was a bonus of last month’s loss of correlation between the cryptocurrency and stock markets.

Ethereum lost 0.4%, settling near $1800. Other top-10 altcoins showed mixed dynamics, ranging from a 2.5% decline (Cardano) to a 3.6% rise (Solana).

Financial market veteran Peter Brandt believes Ethereum is in a downward triangle and could fall to $1268 within a month.

The total capitalisation of the crypto market, according to CoinMarketCap, fell 0.2% overnight to $1.24 trillion. The cryptocurrency fear and greed index were up 2 points to 13 by Friday and remains in “extreme fear” mode.

No significant preponderance of buyers or sellers to form a clear trend

Generally, the correlation gap between cryptocurrencies and stock markets is long-term good news as it attracts the attention of professional investors. Weakness in equity and bond markets, sagging gold and the murky outlook for the real estate market are turning their eyes to cryptocurrencies as another tool in a diversified portfolio.

Graphical user interface, chart Description automatically generated

CNBC’s Mad Money host Jim Cramer has changed his mind about investing in cryptocurrencies, calling BTC and ETH the best long-term investments. However, they should not account for more than 5% of a portfolio.

PwC, an audit firm, reported that most hedge funds invest less than 1% of their assets in cryptocurrencies because of regulatory uncertainty in the industry.

According to a Deloitte survey, 75% of US retailers will implement support for cryptocurrency payments within two years.

USDT, the world’s most prominent staple by market capitalisation, will be available on the Tezos blockchain powered by the Proof-of-Stake consensus mechanism. The USDT ecosystem is now open on 12 networks, including Ethereum, Solana, Polygon, Tron and Algorand.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

Investors Cling to Gold-Backed Cryptos, Following Massive Market Crash

Key Insights:

  • The recent crypto sell-offs have diverted investors to commodity-backed cryptos like gold.
  • Some gold-pegged cryptos to watch for investments include PAXG, XAUt, and DGX.
  • Gold price estimates by experts are bullish in 2022.

On May 7, TerraUSD (UST) stablecoin, which is supposed to maintain a $1 peg, started to wobble, and the price of the then-$18-billion algorithmic crypto crashed to as low as 35 cents on May 9. The Terra (LUNA) network witnessed a catastrophic failure within days.

For Sam, it was a $5000 worth of loss of his savings, and he is still struggling to recover from the nightmare. For now, nobody can predict how deep this plunge could be and whether it might bounce back to its 1:1 dollar peg.

Alternatively, Investors are eyeing alternative “safe-haven” assets such as gold-backed cryptos as a possible ray of hope after the terrible loss.

Its glittering gold, as bitcoin disappoints

With the recent geopolitical tensions and crypto sell-offs, bitcoin (BTC) became extremely fragile, crashing below the $28,000 level and bringing down stock prices. The world’s largest crypto by market cap is struggling to catch up above $30,000.

As a result, investors are fearful about re-entering the crypto market despite its higher returns in the past. Investors rather do not want to take any risks and look into newer variants of stablecoins backed by real-world commodities such as gold.

According to Everett Millman, a chief market analyst at Gainesville Coins,

“One of the main concerns that a lot of people who are new to crypto have is that it’s not backed by anything. It just gets on a screen. So attaching them or linking them to a real-world commodity, it does make some sense.”

Some of the gold-baked projects have promised stability to investors on the crypto front and have kept up to their word. 

For instance, Paxos Gold (PAXG), a digital token backed by physical gold, offers its investors, not just the tokens but also the underlying physical gold, which the parent company stores in vaults.

Tether Gold (XAUt) token also gives investors direct exposure to the physical gold price. It provides accessibility to ETFs and other traditional financial assets too.

Other gold-backed cryptos such as DigixGlobal (DGX), Meld Gold by Algorand (ALGO), and GoldCoin (GLC) have also evolved widely over the years.

Are these tokens a way forward?

It has been proved that gold is a protective hedge against inflation and a better alternative for crypto lovers who wish to invest in a stable and safer option when compared to fiat-pegged stablecoins.

Experts like Timothy Ord, President, and Editor of The Ord Oracle, predicted that gold stocks could see 10X gains in the next three years. Additionally, Wall Street gold estimates are also bullish for 2022.

Analysts at Goldman Sachs have recently hiked their forecasts for gold prices, predicting that the metal would hit around $2,300-$2,400 an ounce, up from $1950 previously.

Daniel Briesemann, an analyst at Commerzbank, told a publication,

“Gold is still in considerable demand as a safe haven, as evidenced by persistently high ETF inflows.”

Gold is a fully fungible asset and a globally recognized store of value, making the precious metal an ideal choice for tokenization.

On the downside

The fact that they are commodity-derived products doesn’t mean they are exempted from risks. For instance, their redemption process isn’t always smooth. Additionally, investors don’t necessarily have direct ownership over the gold that their tokens are pegged to. But this could differ in certain tokens which allow physical redemptions.

Another risk with gold-pegged digital currencies is that these tokens introduce the concern of storing a large supply of physical gold. As a result, investors should be careful to examine where the gold is housed before investing. Because if the value of gold disappears for any reason, the token value loses its value.

It is essential that there is transparency between crypto developers, investors, and third-party holders of gold, to build investor trust and maintain the stability of the digital token.

However, although gold-backed coins are still a small component of the pegged cryptocurrency market, USD-backed stablecoins remain a much larger part of the ecosystem. With the current crypto turmoil and the ongoing geopolitical tensions, gold-backed cryptos might change the order.

Flowcarbon Raises $70m with VC Shop a16z the Lead Investor

Key Insights:

  • Crypto carbon credit platform Flowcarbon raised $70 million, with crypto venture shop a16z taking the lead.
  • Flowcarbon raised the remaining funds in a token sale of Goddess Nature Token (GNT).
  • Flowcarbon plans to put carbon trading on the crypto map and carbon credits on the blockchain.

Thanks to Proof-of-Work and bitcoin (BTC) mining, in particular, the crypto market has long been associated with environmental degradation.

In July 2021, China imposed a ban on bitcoin mining to support China’s goal of becoming carbon neutral by 2060. Before the ban, China was the largest bitcoin mining nation, with a hashrate hitting more than 75% at its peak, according to figures from Cambridge University. (75.53% in Sept-19). By contrast, the US had a hashrate of just 4.06% in Sept-19.

Since the ban, however, China has seen its hashrate climb from a Jul-21 0% to 21.1% in Jan-22. The US hashrate stood at 37.84% in Jan-22, making it the largest bitcoin mining nation.

US lawmakers have been unenamoured by its position as the world’s largest bitcoin mining nation. President Joe Biden and the US have a goal of reaching carbon zero emissions by 2050.

The continued use of fossil fuels to provide mining power has led to calls to ban bitcoin and Proof-of-Work mining altogether.

From a global perspective, the increased focus on crypto mining reflects a sense of urgency at the government level and below for more action to save the planet. This increases the need for a transparent carbon credit market.

Flowcarbon Draws Investor Interest with New Carbon Credit Platform

Flowcarbon is an open-source protocol, initially launched on Celo, aiming to bring carbon credits on-chain.

By tokenizing carbon credits, Flowcarbon provides a platform for project developers and carbon buyers to interact directly, resulting in a liquid carbon market with efficient pricing.

The goals to help achieve the Flowcarbon mission include,

  • Creating a more transparent, accessible carbon market.
  • Promoting sustainable practices.
  • Help organizations become net zero or net negative.

Key climate goals include:

  • Incentivize DAOs and other organizations to use on-chain carbon assets to become net zero or net negative.
  • Lead by example to show DAOs how to become net negative carbon contributors by burning a portion of all fee revenue as carbon tokens.

Investor interest has been impressive, with Flowcarbon raising $70 million in its first round of funding.

Among first-round investors was a16z. Announcing its investment in Flowcarbon on Tuesday, a16z said,

“The carbon neutral market could potentially grow to $50B by 2030, and on-chain carbon credits can help facilitate this reality. Bringing carbon credits on-chain adds major efficiencies to the market, enabling individuals and corporations to internalize the cost of emissions, reducing negative externalities that are currently socialized, and ultimately incentivizing more sustainable practices.”

The announcement went on to say.

“Unlike current voluntary carbon credit marketplaces, which are fractured, opaque, and gated, tokenized carbon credits allow anyone the ability to purchase credits and control when they are retired as offsets, with built in liquidity and price discovery.”

With crypto mining receiving government scorn, the launch of Flowcarbon hits home the benefits of blockchain technology and the need for governments to drive innovation.

Crypto Movement Goes Green with Carbon Credit Tokens

In April, FX Empire reported that Algorand (ALGO) is to launch its first carbon emission offsetting smart contract.

As a leader in the sustainability space, the new smart contract allocates a portion of every transaction fee to offset carbon emissions. ALGO is the first pure proof-of-stake blockchain and aims to minimally impact the environment.

Also environmentally friendly is Solana (SOL). In December, Solana achieved ‘carbon neutral’ for the calendar year 2021.

OCBC Bank is also targeting the carbon credit space. In April, the Singapore bank announced plans to launch tokenized carbon credit tokens before 2023.

Metaverse Green Exchange (MVGX) and OCBC will join forces to provide green financing solutions for companies in hard-to-abate industries, including steel, cement, and chemical production.

With other firms also targeting the tokenized carbon credit space, Flowcarbon could set the pace with names like a16z behind them.

Algorand (ALGO) Sees Red Despite a Recent Flurry of Bullish Activity

Key Insights:

  • It was a bearish morning session, with ALGO joining the broader crypto market in the red.
  • While bullish news updates have limited the losses, ALGO has been at the mercy of the broader market and sentiment toward Fed monetary policy.
  • ALGO’s technical indicators are bearish, with ALGO sitting below the 50-day EMA.

On Tuesday, Algorand (ALGO) rallied by 7.48%, supported by news of a LimeWire-Universal Music Group Partnership. Reversing a 6.20% loss from Monday, ALGO ended the day at $0.4945.

Bullish sentiment from across the broader market supported the Tuesday breakout session, with resistance at $0.50 limiting the upside on the day.

Sentiment towards inflation, the threat of a recession, and Fed monetary policy are market negatives, however.

Overnight, Fed Chair Powell delivered a hawkish stance on monetary policy that has pressured the crypto market this morning. Powell’s comments have also overshadowed bullish Algorand-related news updates.

Universal Music Group Goes NFT on Algorand Marketplace

On Tuesday, LimeWire signed a deal with Universal Music Group (UMG) to open the LimeWire collectibles marketplace to Universal Music Group Artists.

According to the announcement,

“UMG artists can now offer audio recordings, audiovisual content, backstage footage, and any artwork and images as NFTs on the LimeWire marketplace and sell them directly to fans and collectors.”

LimeWire will collaborate with UMG on making “digital music collectibles accessible to a wider audience.”

The announcement went on to say,

“As part of this partnership, UMG will provide licenses that will allow LimeWire to partner with UMG artists to launch innovative music-based NFT projects utilizing the LimeWire marketplace.”

LimeWire will launch the NFT marketplace on Algorand.

Last week, Hivemind Capital and Algorand announced the acquisition of the music platform, Napster.

The latest music industry news follows FIFA announcing Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.

ALGO struck a May high of $0.7842 in response to the FIFA news before tumbling to a May 12 and current year low of $0.3412.

Last week, the collapse of TerraUSD (UST) and Terra LUNA sank the crypto market to 2022 lows.

ALGO Price Action

At the time of writing, ALGO was down by 3.88% to $0.4753. A mixed start to the day saw ALGO rise to a morning high of $0.5038 before falling to a low of $0.4717.

ALGO sees early losses.
ALGOUSD 180522 Daily Chart

Technical Indicators

ALGO will need to move through the day’s $0.4870 pivot to target the First Major Resistance Level at $0.5154. ALGO would need broader market support to breakout from this morning’s high of $0.5038.

In the event of an extended rally, ALGO could test the Second Major Resistance Level at $0.5362 and resistance at $0.54. The Third Major Resistance Level sits at $0.5854.

Failure to move through the pivot would bring the First Major Support Level at $0.4662 into play. Barring an extended sell-off, ALGO should avoid sub-$0.46. The Second Major Support Level sits at $0.4379.

A return to $0.50 would support an ALGO breakout.
ALGOUSD 180522 Hourly Chart.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal is bearish. ALGO sits below the 50-day EMA, currently at $0.4986. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA; ALGO price negative.

A move through the 50-day EMA to $0.51 would support a run at $0.54.

UMG - LimeWire deal supports a run at $0.54.
ALGOUSD 180522 4 Hourly Chart.

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.

FXempire, BTC, Crypto
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.

FXempire, ETH, Crypto
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. 

FXempire, BTC, Crypto, Bitcoin
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. 

5 Coins to Watch Closely This Week: BTC, ETH, ALGO, TRX, XMR

 Key Insights:

– BTC’s price has made lower lows for over five days.
– The global cryptocurrency market cap had fallen to the $1.58 trillion mark.
– Altcoins like Algorand, Tron, and Monero could be some tokens to watch out for this week.

The last week brought bearish waves for the broader crypto market, with bitcoin (BTC) sliding by almost 15% to visit the near $34,000 zone for the first time since late January. The BTC-induced losses pulled the global crypto market cap down by nearly 14%, bringing it to $1.58 trillion at the time of writing.

While the crypto market’s outlook was grim, the traditional markets didn’t glimmer either. Notably, the S&P 500 and the Nasdaq have also continued declining for five straight weeks.

A significant correlation in bitcoin’s price with United States equity markets has resulted in BTC price continuing the downtrend. That said, a larger market downtrend for indices, stocks, and cryptocurrencies indicated that market participants were being cautious of their exposure to risky assets.

So, as another bear market takes off, let us look at some of the top coins to watch closely over the coming week.

Bitcoin (BTC)

On May 9, the king coin of the crypto market, BTC, slid to as low as $33,710 on some exchanges. BTC’s price last reached $33,000 at the end of January this year.

During the past couple months, bitcoin mainly had traded between $35,000 and $46,000. As BTC breaks the lower trendline with the price falling further downwards the same could indicate a new bearish trend taking over the market.

At the time of writing, a majority of indicators were leaning towards the bearish side with bitcoin’s price breaking below the three-month rising trend line. Notably, the top coin was unable to hold the $34,500 support. In the near future, if the price falls below $32,900, the same would mark a new low for BTC.

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

That said, if bears overpower at the $34,300 level, the same could lead to further price decline pulling BTC down to $32,900. As highlighted by analyst Ali Martinez, BTC can face trouble reclaiming $35,570 as support, and $38,550 remains the most significant resistance level for $BTC.

Ethereum (ETH)

Ethereum’s price has been largely correlated to BTC over the last few days as the top two coins’ price trajectory moves more or less in tandem. Data from IntoTheBlock presented that the ETH-BTC correlation remained high.

FXempire, ETH, Crypto
Source: Into The Block

In terms of price, ETH traded at $2,563.39 at press time, noting 4.61% daily and 7.24% weekly gains. A fall below the $2510 mark which has acted as a strong support throughout this year, could result in further losses for the top altcoins.

FXempire, eth, Crypto
ETH Price Action | Source: FXEmpire

Notably, the relative strength index (RSI) for ETH had been in a larger downtrend since April 6 as ETH prices made lower lows since then. At press time, RSI had entered the oversold zone, and recovery from the same in the near term could be a reversal signal. However, it looks like in the short-term, ETH could follow BTC.

Algorand (ALGO)

As highlighted in a recent article, Algorand’s total value locked (TVL) increased by 19.4% to $187.36 million in the last week. Notably, increased demand for ALGO as a staking crypto provided the price uptick over the last week.

Early last week, Algorand was in the news as FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar. The coin’s price saw a decent price push as the announcement floated on media.

At press time, ALGO traded at $0.7292, noting a 4.69% loss on the daily chart, however, the coin was still up by 23.66% on the weekly window.

FXempire, Algorand, Crypto
ALGO Price Action | Source: FXEmpire

If bulls can hold ALGO price above the 20-day EMA at $0.69 then ALGO’s price could see some decent gains in the coming days. indicating that the selling pressure could be reducing.

Furthermore, the coin’s rise above $1.10 in the near term could see the token rally to $1.25 ensuring gains for ALGO holders.

Tron (TRX)

AS highlighted in a recent FXEmpire article, Tron’s ecosystem-centric updates have 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.

On Saturday, after Tron 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, the same led to TRX’s price rise.

Notably, TRX’s price has rallied 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.

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

At the time of writing, TRX traded at $0.09067, noting 7.77% daily and 32.64% weekly gains. TRX’s RSI was in the overbought zone as buying pressure dominated TRX’s market.

Monero (XMR)

With the larger market falling, privacy tokens seem to be back on track for some gains. Monero, at press time, traded at $216.56, noting 3.86% daily gains and 2.57% weekly gains despite the larger market bearish momentum.

XMR has held the psychological support at $200, which aided the coin’s rise over the last couple of days. While RSI for XMR presented that seller dominated buyers, RSI’s uptrend reinforced positive market momentum.

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

In the short term, if bulls can keep price above the $220 mark, which is also the 20-day EMA, then the same could ensure further upside for the coin. The next resistance for XMR was at $240; once bulls can push price above that, the next level to look out for would be $290.

In a bearish case, if the price breaks below $200, the next level to watch for XMR would be $190.

Crypto Weekly Review May 8 – Bitcoin (BTC) Sinks to Sub-$35,000

Key Insights:

  • It is a bearish week for the broader crypto market, with Bitcoin (BTC) sliding by 10% to visit sub-$35,000 for the first time since February.
  • Investor angst over inflation and Fed monetary policy hit appetite for riskier assets, which spilled over to the crypto market.
  • Several cryptos bucked the trend in the week, including Algorand (ALGO), which ended the week up by 25%.

Bitcoin sinks to sub-$35,000 as bearish sentiment hit the crypto market in the week ending May 8, 2022. Risk aversion stemming from inflation and investor sentiment towards Fed monetary policy hit riskier assets.

The correlation between bitcoin (BTC) and the NASDAQ 100 strengthened in the week. As result, the NASDAQ sell-off sent the broader crypto market into a tailspin.

BTCNASDAQ 0605
BTC – NASDAQ correlation.

The broad-based crypto sell-off saw $146 billion wiped out to leave the total crypto market cap at $1,571 billion on Sunday afternoon.

Bitcoin (BTC) Sends the Crypto Market into a Tail Spin

In the week ending May 8, BTC is currently down 10%. Following a 2.49% loss from the previous week, BTC looks set to end the week at sub-$35,000. At the time of writing, BTC stood at $34,603. It will be a fifth consecutive week in the red for BTC.

BTCUSD 0805 Weekly

After recovering from a January sell-off, BTC bounced back to $48,000 levels in late March before the current reversal.

Reports of bitcoin whales selling bitcoin added to the market angst over the weekend, with the Bitcoin Fear & Greed Index sliding into the “Extreme Fear” zone.

Bitcoin Fear & Greed 080522

The Index was in the “Greed” zone, with a value of 60/100 on March 28 before sliding to 18/100 on May 8.

Bitcoin Fear & Greed Chart 080522

BTC wallet data suggests that the current downward trend across the global equity markets is causing BTC holders to reduce exposure to riskier assets and meet possible margin calls.

On Friday, CryptoQuant reported that the number of wallets holding between 10 and 10,000 BTC sent more crypto to exchanges than wallets holding between 0.01 and 10 BTC.

Things were no better for the rest of the crypto top ten.

The Broader Crypto Market Tracks Bitcoin into the Red

In the week ending May 8, Terra (LUNA) is down by 25.5% to lead the way down, with SOL sliding by 13.4%

LUNA 0805 Weekly

BNB (-8.9%), AVAX (-11.4%), and ETH (-10.0%) are also in the deep red, while ADA (-6.6%) and XRP (-6.3%) are seeing relatively modest losses.

For LUNA, several factors beyond bitcoin’s influence contribute to the heavy loss. These included LUNA sales to support the TerraUSD (UST) peg, a marked decline in total value locked, and investor sentiment towards the Luna Foundation Guard’s (LFG) latest $1.5bn in BTC purchases.

A number of cryptos managed to buck the trend, however, with Algorand (ALGO) rallying by 25.1% to grab the headlines.

ALGO 0805 Weekly

Algorand (ALGO) Sees Strong Staking Demand to Support a Breakout Week

According to Defi Llama, Algorand’s total value locked (TVL) increased by 19.4% to $187.36 million in the week.

Algo TVL 080522

Increased demand for ALGO as a staking crypto provided the upside in the week, with Algofi, a DeFi platform on the Algorand blockchain, seeing its dominance hit 61.22%. Users can lend ALGO on the Algofi protocol to earn ALGO.

ALGO is a popular staking crypto, as ALGO holders can stake as little as one ALGO to earn interest.

Early in the week, Algorand hit the news for an altogether different reason. On Monday, FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.

Algorand (ALGO) Defies Gravity as Demand for ALGO Staking Rises

Key Insights:

  • It was a bullish morning session, with ALGO bucking a bearish broader crypto market trend.
  • Algorand (ALGO) rallied by 7.39% on Saturday, following a 9.93% Friday breakout.
  • ALGO’s technical indicators are bullish, with ALGO sitting above the 50-day EMA.

On Saturday, Algorand (ALGO) rose by 7.39%. Following a 9.93% rally on Friday, ALGO ended the day at $0.7488.

The upside came despite the broader crypto market seeing deep red, with the total crypto market cap falling by $53 billion over the two days.

Negative market sentiment towards inflation and Fed monetary policy sank riskier assets on Thursday.

On Thursday, ALGO slid by 11.32% before finding support.

Algorand (ALGO) Sees Strong Staking Demand to Deliver Price Support

According to Defi Llama, Algorand’s total value locked (TVL) is up 7.22% to $187.36 million, with Algofi’s dominance at 61.22%.

Algofi is a DeFi platform on the Algorand blockchain. Users can lend ALGO on the Algofi protocol to earn ALGO. At the time of writing, the Supply APR on Algofi stood at 1.62%, up 1.88% on the day, ranking second to USD Coin (USDC), which had a Supply APR of 4.56%.

Early in the week, Algorand hit the news for an altogether different reason. On Monday, FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.

In response, ALGO rallied for three consecutive days to strike a high of $0.7408 before Thursday’s sell-off.

ALGO Price Action

At the time of writing, ALGO was up by 1.82% to $0.7624. A mixed start to the day saw ALGO slide to a morning low of $0.7075 before striking a high of $0.7842.

ALGOUSD 080522 Daily
A move through to $0.85 would bring $1.00 into play.

Technical Indicators

ALGO will need to avoid the day’s $0.7319 pivot to target the First Major Resistance Level at $0.7916. ALGO would need broader market support to breakout from this morning’s high of  $0.7842.

In the event of an extended rally, ALGO could test the Second Major Resistance Level at $0.8347 and resistance at $0.85. The Third Major Resistance Level sits at $0.9371.

A fall through the pivot would bring the First Major Support Level at $0.6891 into play. Barring an extended sell-off, ALGO should avoid sub-$0.65. The Second Major Support Level sits at $0.6292.

ALGOUSD 080522 Hourly
Avoiding the pivot would support another breakout session.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal is bullish. ALGO sits above the 200-day EMA, currently at $0.7190. This morning, we saw the 50-day EMA converge on the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA; ALGO price positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $1.00.

ALGOUSD 080522 4 Hourly
A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $1.00.

Crypto Market Daily Highlights – May 6

Key Insights:

  • Tron (TRX) is on a breakout session while the broader crypto market struggles amidst investor angst over Fed monetary policy.
  • Illicit activity in the NFT space shows no relenting, with OpenSea marketplace the latest victim.
  • SEC finds hope of shielding William Hinman’s 2018 speech-related documents and emails in the latest twist to the SEC v Ripple case.
  • Argentina joins a growing list of jurisdictions to curtail customer access to digital assets through banks.

It is a bearish end of the week for the global financial markets, with the European and US equity markets facing the prospect of a second consecutive day in the red. Tron (TRX) bucked the morning trend, despite the bearish crypto market sentiment.

Market jitters over inflation and the need for a more aggressive Fed rate path to curb inflation sent shockwaves through the global financial markets.

The correlation between bitcoin (BTC) and the NASDAQ 100 strengthened in the week, removing any thought of BTC acting as an inflation hedge.

Tron (TRX) Leads a Choppy Friday Crypto Session

At the time of writing, Tron (TRX) was up 13.11% to $0.08428. A bullish morning session saw TRX rally to a current-day high of $0.0865 before easing back.

The breakout session came despite the broader crypto market seeing red. News of Tron launching TerraUSD (UST) Competitor USDD, with promises of 30% APY, delivered strong support.

Similar to the Luna Foundation Guard (LFG), Tron plans to raise $10 billion for its decentralized reserve called TronDAO.

TRXUSD 060522 Daily

CoinMarketCap top 100, Algorand (ALGO) also made ground through the morning. News of Algorand becoming a FIFA World Cup 2022 partner continued to provide support despite Thursday’s sell-off.

The SEC Scores a Minor Win in the SEC v Ripple Case

Following a number of motions on Tuesday, the SEC scored a minor victory on Wednesday. On Wednesday, Judge Sarah Netburn granted the SEC’s request to file a reply brief in its bid to shield Hinman’s speech documents and emails.

Former SEC Director of the Division of Corporation Finance, William Hinman, has become a central figure in the SEC case against Ripple.

In 2018, William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The SEC is looking to shield documents and emails relating to internal discussions and Hinman’s famous speech.

Bitcoin (BTC) Faces Another Testy Day

At the time of writing, BTC was down 1.48% to $36,033. A bearish morning saw BTC fall to an early morning low of $35,319 before a partial recovery to $36,000 levels.

BTCUSD 060522 Daily

Correlation with the NASDAQ 100 strengthened through the week, with market sentiment towards Fed monetary policy weighing on riskier assets.

At the time of writing, the NASDAQ 100 was down 0.95%, following a 4.99% tumble on Thursday.

This week, movement across the crypto markets demonstrated the impact of central bank policy on cryptos, questioning the ethos of decentralization.

BTCNASDAQ 0605

Other news this morning included the Central Bank of Argentina banning banks from offering cryptos to clients in the interest of financial stability.

NFT marketplace OpenSea also grabbed the crypto headlines with news of cybercriminals hacking OpenSea’s Discord server.

FIFA World Cup Partner Algorand (ALGO) Finds Morning Support

Key Insights:

  • It was a bullish morning session, with ALGO finding support in the wake of Thursday’s crypto meltdown.
  • On Thursday, Algorand (ALGO) tumbled by 11.3%, as inflation fears and Fed policy bets hit the crypto markets.
  • ALGO’s technical indicators are bearish, with ALGO sitting below the 100-day EMA.

On Thursday, market sentiment towards inflation and Fed monetary policy sent the Algorand (ALGO) and the broader crypto market into a tailspin.

Concerns over the need for a more aggressive Fed rate path to curb inflation sank riskier assets. The sell-off came despite Fed Chair Powell’s attempts to calm the global financial markets late on Wednesday.

On Thursday, ALGO slid by 11.32%. Reversing a 6.87% gain from Wednesday, ALGO ended the day at $0.6343.

Earlier in the week, ALGO found support on news of ALGO becoming an official partner of the FIFA World Cup 2022.

Algorand Finds Strong Price Support on FIFA Partnership News

On Monday, FIFA announced Algorand as an official partner ahead of this year’s FIFA World Cup in Qatar.

In response, ALGO rallied for three consecutive days to strike a current-week high of $0.7408 before Thursday’s sell-off.

ALGO had fallen to an April 30 and a current year low of $0.5388 before Monday’s news.

Links with this year’s FIFA World Cup remain ALGO price positive. ALGO follows in the footsteps of Crypto.com, which became an official FIFA World Cup 2022 sponsor in March.

ALGO Price Action

At the time of writing, ALGO was up by 0.50% to $0.6375. A bullish start to the day saw ALGO hit a morning high of $0.6877 before falling to a morning low of $0.6286.

ALGO finds morning support
A move through to $0.67 would bring $0.70 into play.

Technical Indicators

ALGO will need to move back through the day’s $0.6598 pivot to target the First Major Resistance Level at $0.7047. ALGO would need broader market support to return to $0.70.

In the event of an extended rally, ALGO could test the Second Major Resistance Level at $0.7750 and resistance at $0.80. The Third Major Resistance Level sits at $0.8907.

Failure to move through the pivot would bring the First Major Support Level at $0.5893 into play. Barring another extended sell-off, ALGO should avoid sub-$0.58. The Second Major Support Level sits at $0.5442.

ALGO 060522 hourly
Failure to move back through the pivot would leave support levels in play.

Looking at the EMAs and the 4-hourly candlestick chart (below), the signal is bearish. ALGO sits below the 50-day EMA, currently at $0.6604. This morning, we saw the 50-day EMA pull back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; ALGO price negative.

A move through the 50-day EMA would shift sentiment and support a run at $0.70.

ALGO 060522 4-hourly
A move through the 50-day EMA would support a breakout.

BTC and ETH Bears in Control, ALGO Aims Major Reversal

Key Insights:

  • Bitcoin (BTC) is facing a major hurdle near $39,150.
  • Ether (ETH) is struggling to rise above $2,875 and $2,900.
  • ALGO surged over 15%, but it must settle above $0.70 for upside continuation.

Bitcoin

Recently, the bitcoin price started an upside correction above the $38,000 level. The price climbed above the $38,500 resistance level and the 21 simple moving average (H1).

However, the bears were active near the $39,150 level. A swing high was formed near $39,150 and the price slowly moved lower. There was a break below the $38,800 level and the 21 simple moving average (H1).

Bitcoin BTC Hourly Chart
BTC Chart by FXEmpire

Bitcoin is now struggling to stay above the $38,150 support zone. A close below $38,150 might start a sharp decline towards the $37,500 and $37,200 levels.

Ethereum (ETH)

ETH also started an upside correction above the $2,800 level and the 21 simple moving average (H1). There was a move above the $2,850 level.

The bears appeared near the $2,875 level. The bulls made two attempts to clear $2,875 resistance but failed. The price started another decline and traded below $2,850. The price is now showing bearish signs below $2,820 and the 21 simple moving average (H1).

Ether ETH Hourly Chart
ETH Chart by FXempire

Immediate support sits near the $2,800 level and a connecting trend line on the hourly chart. The next major support sits near the $2,775 level, below which the price might take a hit.

Algorand (ALGO)

ALGO started a major decline from the $1.00 resistance zone. There was a nasty drop below the $0.80 and $0.70 support levels.

Finally, the price found support near the $0.55 zone. A support base was formed and the price started a recovery wave. It surpassed the $0.60 resistance. Today, it gained over 15% and spiked above the $0.70 resistance.

ALGO Daily Chart
ALGO Chart by FXEmpire

It even tested the 38.2% Fib retracement level of the downward move from the $1.00 swing zone to $0.55 low. ALGO is now attempting a close above a major bearish trend line with resistance near $0.70 on the daily chart. A close above the $0.70 level might start a strong reversal.

The next key resistance on the upside may perhaps be near $0.770 or $0.800. If there is no upside break, the price could revisit the $0.550 support zone.

ADA, BNB, and DOT price

Cardano (ADA) is still consolidating below the $0.800 resistance zone. If the bears remain in action, the price could decline towards the $0.750 level.

Binance Coin (BNB) is sliding and might revisit the $382 support. The next major support sits near the $375 level, followed by $365.

Polkadot (DOT) settled below the $15.00 level, which is now acting as a resistance. On the downside, the $14.00 level is a major support zone.

A few trending coins are AVAX, TRX, and NEAR. Out of these, TRX is gaining pace above the $0.070 level.

Algorand Awards Flare 7-Figure Grant To Develop a Bitcoin Bridge

Key Insights:

  • Flare received the grant from the Algorand Foundation SupaGrant.
  • The bridge will offer greater security through consensus and risk mitigation.
  • Flare will also add Bitcoin as a FAsset, which can be leveraged to build dapps on Flare.

As the fear of DeFi hacks and exploits continues to grow, investors and developers alike are finding ways of being wary of protecting their assets and projects.

And building on the same DeFi chain Algorand has tapped just the right network to make that happen.

Algorand Gets a Touch of Flare

In a press release, the interoperability-focused Flare network announced that it had been awarded a 7-figure Algorand Foundation SupaGrant to develop a Bitcoin bridge into the Algorand ecosystem.

The reason behind this bridge is the constant threat that looms over the DeFi chains of being hacked. As it is just this year, two major crypto hacks left the investors with billions of dollars of their money stolen.

Earlier last month, Axie Infinifty’s Ronin bridge lost over $625 million, which became the biggest hack in the history of cryptocurrencies.

Thus, to avoid that, Flare is focusing on making sure that the new bridge is much more secure and that it will enable secure, trustless interoperability between ALGO and BTC, plus other non-smart contract tokens such as DOGE, LTC, XRP, and XLM.

Flare will achieve this by using the network’s Flare Time Series Oracle and the State Connector.

Commenting on this bridge, the Head of DeFi, Algorand Foundation, Daniel Oon, said,

“Our grant partnership with Flare will develop key DeFi infrastructure with a bridge to Bitcoin, opening up opportunities for further collaboration and innovation. We look forward to our partnership bringing value to our respective communities.”

Not only this, but the Flare network also announced that they would be bringing Bitcoin as a FAsset onto Flare. This way, developers could use this token as a means of developing Dapps by leveraging their FBTC.

Algorand on the Chart

While the bridge might open up new roads for the chain, its primary function as an investment vehicle isn’t doing that well at the moment. After falling consistently throughout the months, ALGO is now trading at $0.66 at a 14-month low.

Algorand’s price is currently at a 14 month low

ALGO might need more than this to recover the losses it has endured throughout 2022

Singapore Bank Set To Launch Tokenized Carbon Credits Before 2023

Key Insights:

  • OCBC and MVGX announced their new partnership today.
  • The companies will be incentivized with tokenized carbon credits to invest in climate action projects.
  • The CeFi and DeFi partnership continues to expand in 2022.

In an announcement today, the OCBC (Oversea-Chinese Banking Corp.) Bank and the Metaverse Green Exchange (MVGX), earlier known as Cyberdyne Tech Exchange, joined hands to take action for the climate.

Crypto for the Climate

In a press release, the companies declared that they would be pushing out green financing solutions for companies in the hard-to-abate industries which are involved with steel, cement, and chemical production.

Since a lot of corporations are trying to find an easier way to achieve carbon neutrality for the year 2023, the partnership will open the doors to tokenized carbon credits.

These tokens will be supported by MVGX’s DLT (distributed ledger technology), which will enable said corporations to keep track of the carbon performance of the climate action projects they would invest in, in real-time.

Carbon credits have become an increasingly lucrative and effective method for companies to achieve carbon neutrality. Combining the efforts of CeFi and DeFi to produce the tokenized carbon credits will make it easier for companies to achieve this goal.

Commenting on the same, the Executive Chairman and Co-Founder of MVGX, Bo Bai, said,

“Despite the best intentions, governments and businesses around the world have come to realize the limitations of the current systems for tracking and neutralizing carbon emissions. Thankfully, there is now a greater urgency to embrace new solutions that leverage technology to promote carbon reduction and finance green initiatives.”

Crypto Space Makes an Effort As Well

Within the crypto space, the environment has been a priority, and to protect the same, more and more options have been appearing to mitigate climate change.

Recently, as reported by FXEmpire, Algorand launched the first smart contract, which would automatically allocate a portion of every transaction fee in order to offset its carbon emissions.

The chain, which prides itself on being the first carbon-negative blockchain, is setting an example of the ingenious ways through which others in the crypto space can contribute to the environment.

Algorand To Launch First Carbon Emission Offsetting Smart Contract

Key Insights:

  • Algorand being a leader in the sustainability space, is continuing its efforts.
  • The new smart contract will allocate a portion of every transaction fee to offset carbon emissions.
  • On the charts, ALGO hasn’t been performing the best, though.

Being the first pure proof of stake blockchain, Algorand has dedicated itself to minimally impact the environment, which is a big issue when it comes to crypto.

Thus, to further that commitment, the blockchain has implemented a new smart contract that will tackle the problem of carbon emissions.

Algorand for the Environment

Algorand has been one of the leaders in the sustainable development space by making sure that the chain does not rely on the energy-intensive proof of work consensus system.

Using proof of stake, Algorand achieved the status of being carbon negative and is now continuing down that path with the new smart contract.

This protocol will automatically allocate a portion of every transaction fee in order to offset its carbon emissions.

This comes after the chain partnered with ClimateTrade last year, a leader in CO2 emissions transparency and traceability that uses blockchain technology to improve the efficiency of sustainability efforts for corporations.

Commenting on the smart contract, the Vice President of Engineering Research at Algorand, Naveed Ihsanullah, said,

“Climate change is among the most pressing issues the world faces today. Efficiency and a minimal energy consumption footprint simply must be table stakes for all enduring future technology. Algorand, a blockchain leader in this space, is seeing tremendous adoption from eco-conscious brands, creators, and developers, and we’re proud to take another step forward in our commitment to sustainability with the introduction of smart contracts permanently enforcing our carbon offsetting pledge.”

Algorand, although isn’t the only chain to be environmentally harmless, last year in December, Solana too achieved Carbon neutrality for 2021 thanks to carbon offsets. As Solana claimed, a single transaction used lesser energy than 2 Google searches by then.

Thus, as crypto becomes more mainstream, investors and developers are going to be looking for more environmentally sustainable options and might even move to them over higher energy-consuming options.

Algorand on the Charts

Even though it is doing well on the environmental front, the altcoin is failing to shatter ceilings when it comes to price action. Far away from a new all-time high, the cryptocurrency isn’t even close to marking a new local top at the moment, trading at $0.71.

Algorand is not even close to a new high anytime soon

It is much closer to losing its 14-month long-standing support of $0.684 than it is to recover investors’ losses. Guess the chain might need to save its investors more than it needs to save the environment if it intends to remain relevant in this quickly expanding world of crypto.