Crypto Market Daily Highlights – SOL Led a Bullish Top Ten Session

Key Insights:

  • It was a bullish start to the week for the crypto top ten, with solana (SOL) leading the way.
  • UK government updates on the mini-budget and upbeat US corporate earnings delivered a bullish Monday session.
  • The crypto market cap increased by $12.9 billion to $898.4 billion, leaving the market down $7 billion for the month.

It was a bullish Monday session for the crypto top ten. Solana (SOL) led the way. However, despite the bullish session, BTC fell short of $20,000 for a tenth consecutive session while also avoiding a return to sub-$19,000.

There were no crypto events to influence, leaving the crypto market in the hands of the US markets and the UK government.

On Monday, UK Chancellor Jeremy Hunt shredded the UK Government’s mini-budget, restoring order in the gilt market to drive demand for riskier assets. US corporate earnings also delivered support. Bank of America (BAC) and Bank of New York Mellon (BK) released positive earnings results.

The upswing in interest rates led to a boost in net interest income. The NASDAQ 100 led the way, rallying by 3.43%, with the Dow and S&P 500 seeing gains of 1.86% and 2.65%, respectively. This morning, the NASDAQ Mini was up 97 points.

NASDAQ correlation.
Total Market Cap – NASDAQ – 181022 5 Minute Chart

Crypto Market Rises for a Fourth Time in Eight Sessions

A bearish start to the day saw the crypto market fall to an early low of $878.4 billion. However, finding support from UK government news and US corporate earnings, the crypto market rallied to a high of $905.6 billion before easing back to sub-$900 billion.

The bullish session saw the market cap rise by $12.9 billion to $898.4 billion, reducing the deficit for October to just $7 billion.

Crypto market cap revisits $900 billion.
Total Market Cap 181022 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It was a bullish Monday session for the crypto top ten.

SOL led the way, rallying by 3.52%, with BTC (+1.49%), DOGE (+1.80%), and ETH (+1.95%) finding support.

ADA (+0.81%), BNB (+1.14%), and XRP (+0.75%) trailed the front runners.

From the CoinMarketCap top 100, it was a mixed session.

Huobi Token (HT) led the way, surging by 15.51%, with lido DAO (LDO) and maker (MKR) seeing gains of 13.50% and 8.88%, respectively.

However, casper (CSPR) led the way down, falling by 7.58%, with Ethereum name services (ENS) and dash (DASH) seeing losses of 2.23% and 0.87%, respectively.

24-Hour Crypto Liquidations Held Steady for a Third Session

Over 24 hours, total liquidations held steady in a relatively range-bound but bullish Monday session. At the time of writing, 24-hour liquidations stood at $32.87 million, down from $39.69 million on Monday morning.

Liquidated traders over the last 24 hours also held steady. At the time of writing, liquidated traders stood at 17,420 versus 17,659 on Monday morning. Liquidations were down over 12 and four hours and over one hour.

Crypto liquidations ease back.
Total Crypto Liquidations 181022

According to Coinglass, 12-hour liquidations fell from $22.50 million to $20.16 million, with four-hour liquidations down from $17.67 million to $3.59 million. One-hour liquidations fell from $6.17 million to $0.612 million.

The chart below shows market conditions throughout the session.

Crypto market sees bullish end to the session.
Total Market Cap 181022 Hourly Chart

Crypto Market Daily Highlights – ETH Led the Top Ten in a Mixed Session

Key Insights:

  • It was a mixed Wednesday session and end to the month for the crypto top ten,
  • Ethereum (ETH) led the way, supported by investor sentiment towards the Merge, while Cardano (ADA) saw red despite progress towards the Vasil hard fork.
  • The total crypto market cap rose by a modest $2.0 billion to $956.5 billion.

It was a mixed Wednesday session for the crypto top ten. Bitcoin (BTC) revisited sub-$20,000 for a fifth consecutive session before wrapping up the day in positive territory. However, ETH led the way, supported by investor sentiment towards the Merge.

US economic indicators and hawkish Fed chatter delivered a testy session. In August, the ADP reported a 132k increase in employment, down from 268k in July and 380k in June. While the numbers have a limited influence on the Fed, the markets consider the ADP numbers as a precursor to the nonfarm payroll figures due tomorrow.

The weaker August figure was crypto-friendly. However, Fed chatter tested buyer demand.

Voting member Loretta Mester reportedly said that the Fed would need to hike rates above 4% and hold to bring inflation to target. Mester added that she did not expect the Fed to cut rates in 2023 and will base her September decision on inflation rather than the jobs report.

Mester’s comments supported Fed Chair Powell’s stance on monetary policy that sent the market into a tailspin last Friday.

Disappointing economic data from the US and hawkish FOMC member chatter left the NASDAQ 100 down 0.56% on Wednesday. It was also a bearish month, with the NASDAQ 100 sliding by 4.64%. The bearish mood tested buyer demand for the cryptos through the second half of the day.

NASDAQ pressures the crypto market.
Total Market Cap – NASDAQ – 010922 5 Min Chart

Crypto Market Cap Ends August on High Despite Hawkish Fed Chatter

On Wednesday, the total crypto market cap fell to an early low of $952.3 billion before striking a high of $960.0 billion. However, late in the session, the market cap fell back to sub-$950 billion before a late recovery.

The total market cap rose by $2.0 billion on Wednesday. For August, the market cap slid by $105.2 billion to $956.5 billion.

Crypto market cap sees red in August.
Total Market Cap 010922 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It was a mixed Wednesday session for the crypto top ten.

ETH led the way, rising by 1.91%, with BTC (+1.18%), SOL (+0.02%), and XRP (+0.36%) also finding support.

However, ADA fell by 1.55%, with BNB (-0.82%) and DOGE (-0.30%) also in the red.

From the CoinMarketCap top 100, it is a mixed session.

Chiliz (CHZ) led the way, rallying by 10.81%, with Lido DAO (LDO) and Curve DAO Token (CRV) seeing gains of 10.56% and 7.79%, respectively.

Helium (HNT) led the way down, however, falling by 5.37%, with Elrond (EGLD) and Dash (DASH) seeing losses of 3.09% and 2.47%, respectively.

Crypto Liquidations Ease Back over 24-Hours but Climb Over the Hour

Over 24 hours, total liquidations slipped back, supported by the weaker-than-expected ADP employment change figures. Fed Fear lingered, however, leading to a choppy end to the Wednesday session.

At the time of writing, 24-hour liquidations stood at $164.73 million, down from $239.14 million on Wednesday morning.

Liquidated traders also declined over the last 24 hours. At the time of writing, liquidated traders stood at 40,952 versus 60,258 on Wednesday morning. Liquidations over 12 hours and four hours fell, while one-hour liquidations increased, reflecting the bearish end to the Wednesday session.

One hour liquidations climb in testy end to the Wednesday session.
Total Crypto Liquidations 010922

According to Coinglass, 12-hour liquidations stood at $75.84 million, down from $167.66 million on Wednesday morning. 4-hour liquidations declined from $37.78 million to $12.42 million, while one-hour liquidations were up from $1.72 million to $3.60 million. The chart below shows market conditions throughout the session.

Crypto market cap under pressure late in the Wednesday session.
Total Market Cap 010922 Hourly Chart

Adoption Grows as 75% of Retailers Are Eyeing Crypto Payments

Key Insights

  • Deloitte has found that 75% of U.S. retailers plan to accept crypto payments within the next two years. 
  • More than half of large retailers are building the required infrastructure to integrate digital currencies into their services. 
  • 64% of merchants said that their customers have expressed interest in using crypto for payments. 

Despite the crypto market collapsing in May, wiping out nearly $40 billion in investors’ capital, a new survey published by Deloitte suggests that merchants are optimistic about cryptocurrency’s future.

Deloitte, a leading global provider of audit and assurance, consulting, financial advisory, risk advisory and tax services, has found that 75% of U.S. retailers plan to accept crypto or stablecoin payments within the next two years.

As it currently stands, there are over 320 million crypto users worldwide, with global crypto adoption rising by over 880% last year, according to data from Chainalysis and TripleA. As more and more people continue to invest in cryptocurrencies, it is expected that digital assets will make an even larger impact on the retail sector in the coming years.

Merchant Adoption of Digital Currencies

According to Deloitte, more than half of large retailers with revenues over $500 million are currently spending $1 million or more building the required infrastructure to integrate digital currencies into their services.

A large chunk of surveyed merchants (85%) said they anticipate that cryptocurrency payments will become more prevalent in their respective industries within five years, while 60% expect budgets of more than $500,000 to enable crypto payments this year.

In addition, small to medium-sized companies are also entering the space, with 73% of retailers with revenues between $10 million and $100 million investing between $100,000 to $1 million to create the necessary infrastructure.

The survey also found that consumer interest is fuelling merchant adoption, with 64% of retailers confirming that their customers have expressed interest in using crypto for payments. Around 83% of merchants anticipate that this interest is only set to increase in the future.

To this end, a recent study by research firm Insider Intelligence revealed that the number of adults in the U.S. relying on digital assets for everyday purchases is set to surge 70% by the end of this year. This means that 3.6 million Americans, or 10.7% of all crypto owners, will be paying for goods and services in crypto by December 2022.

Insider Intelligence expects cryptocurrencies to exceed $10 billion in global transaction value this year. In fact, the company believes that as digital asset adoption accelerates, the number of users worldwide may eclipse 37.2 million by 2023. This figure is feasible considering that investors entering the global crypto fray have nearly doubled across countries like India and Brazil within the last 12 months.

Push for Crypto Payments

While nearly half expect that cryptocurrency adoption will enhance the customer experience, 93% of retailers that are already accepting cryptocurrency have reported a positive impact on their customer metrics.

However, challenges remain and many merchants cited concerns related to the security of payment systems (43%) fluctuating regulations (37%), volatility (36%) and a lack of budget (30%).

Indeed, the complexities linked to the integration of cryptocurrencies with legacy systems poses the largest challenge, according to 45% of surveyed retailers. Deloitte expressed that wider adoption is more likely across a broader set of products and services as partnerships with regulated and established institutions in the industry help to deliver the benefits of digital currencies.

Additionally, more than 80% of surveyed merchants would be motivated to adopt digital currency payments if third-party processors avoided the traditional holding period or offered no conversion fees for digital and/or fiat currencies.

As it currently stands, 7879 global merchants accept Bitcoin (BTC) as a payment method, according to data from Cryptwerk. That figure stands at 4081 for Ethereum (ETH), 3284 for Litecoin (LTC), 2935 for Bitcoin Cash (BCH), 2058 for Dogecoin (DOGE), 1770 for Dash (DASH), 1658 for Ripple (XRP) and 1299 for Monero (XMR).

Also, leading fashion brands Balenciaga and Gucci announced recently that they are accepting cryptocurrencies across flagship U.S. stores, while PayPal expanded its offering to enable users to transfer cryptocurrency to external wallets after launching a new service last year that enables customers to buy, hold and sell cryptocurrency directly from their PayPal account.

Overall, Deloitte polled 2,000 senior executives at U.S. retail organisations between December 3 and December 16, 2021. The participants were distributed equally among the cosmetics, digital goods, electronics, fashion, food and beverages, home and garden, hospitality and leisure, personal and household goods, services and transportation sectors.

Growth

In other news, a new report by Messari and Dove Metrics has found that $30 billion was raised from 1199 funding rounds in the first half of this year, outpacing the entire year of fundraising in 2021. The centralised finance (CeFi) sector received a third of the total funds raised, while decentralised finance (DeFi) saw $1.8 billion in funding.

Meanwhile, Venture Capital (VC) investments in the space have reached $18.3 billion so far this year, which is nearly triple the amount invested in 2020 and also on pace to surpass 2021’s record of $32.4 billion, according to Steven Alexopoulos, an analyst at JP Morgan. With such developments in mind, it is clear that the cryptocurrency industry is set to expand further, with increased adoption setting the stage for future growth.

Venezuela Minimum Wage Risen 18-Fold, Pegged to Cryptocurrency Petro

Key Insights:

  • The rise in minimum wage was announced by Venezuela’s President today.
  • The minimum wage will now be increased to 126 bolivars ($28).
  • The government will achieve this by pegging the pay to half the value of the government’s cryptocurrency Petro.

President of Venezuela Nicolas Maduro increased the minimum wage in the country during a speech in front of 10,000 government workers.

This decision came after the country somehow found stability last year after years of hyperinflation.

Venezuelans Become Slightly Richer

Maduro stated that individuals working in the private sector earn much higher salaries than government workers. Thus, to sustainably increase salaries, he proposed feasibility discussions.

At the same time, he raised the minimum wage for workers 18-fold. This places the monthly income of such workers at 126 bolivars, equivalent to $28.

This would also be reflected in minimum wage workers in the private sector. Therefore, vice President Delcy Rodriguez has been instructed to dialogue with companies to execute the same.

Additionally, the raise would apply to social security pensioners as well. Iterating the same, Maduro said in his speech:

“You proposed to set the workers’ basic minimum wage to half a petro, approved! And that pushes all salary tables upwards”

In doing so, the government will now peg the minimum wage of 126 bolivars to half the value of 1 Petro. Petro is the cryptocurrency launched by the Venezuelan government four years ago.

It was established to supplement the falling value of the country’s currency hard bolivar. 

The bolivar’s value began falling ever since the Trump administration placed sanctions on Venezuela. Technically, Petro would be classified as a stablecoin since it is centrally issued.

Still, due to its pricing and volatility, the world has categorized it as a cryptocurrency.

Petro’s Criticism

Unlike other centrally issued digital currencies like the e-CNY, Petro is pegged to 1 oil barrel instead of 1 bolivar. This has resulted in the country drawing criticism from other countries and its people as well.

Built on DASH based chain, the Petro has no substantial value due to its volatile peg and undocumented origins, i.e., the absence of a whitepaper.

On top of that, the Venezuelan government forces people to use cryptocurrency. It has made it mandatory to pay for government document services and airplane fuel for planes flying international flights with Petro.

The Brooking Institution commented on the Petro, saying:

“It is relatively unsurprising that a dictatorship with little reserve currency … has resorted to a deceitful means like introducing the petro … the petro … exists to create foreign currency reserves from thin air.”

Thus whether or not this will turn out to be a good decision is yet to be found out, but the people will benefit from the pay hike.

Coinbase To Hire 2K Employees To Take Advantage of Web3 Opportunities

Coinbase Global, the world’s largest crypto exchange by trading volume, has announced plans to widen its employee base this year.

The company announced on Tuesday that it will add up to 2,000 employees this year to expand its product, engineering and design departments. Coinbase also claimed “enormous product opportunities” in Web3, a third-gen internet based on blockchain.

Coinbase Ventures, the company’s venture capital arm, exponentially increased its investments in 2021, driven by Web3 projects and services, Coinbase said in January.

The addition of new players into various teams will help drive the next generation use case of crypto, L.J. Brock, Chief People Officer at Coinbase, wrote:

“We’re also expanding to include products that host user-generated content like NFTs, and we’re excited about our ambitious plans for the future of Coinbase Wallet, enhancing security, ease of use, and accessibility.”

Coinbase reported over two million sign-ups or its highly anticipated NFT marketplace.

Coinbase showed a 4.28% rise to $203.60 in premarket trading Tuesday. It is trading at $195.25 at press time.

Employees Get ‘Recharge Time’

Coinbase announced in January that it is giving employees, 4 weeks of ‘deliberate recharge time’ in order to prevent burnout. This is the time the entire company will shut down to prevent work piling up, the company said at the time.

“We expect our employees to take 100% responsibility for achieving our mission, but we also empower them to work in the way that’s best for them,” the company noted.

With more employee perks, the company noted that it is looking for candidates that take a “mission-focused” approach to their work.

“We prioritize clear communication, efficient execution, and continuous learning, among other qualities,” it noted.

Coinbase and the Digital Asset Market

Coinbase became “asset agnostic” last year, by including a number of digital assets into its trading platform.

The exchange added a whopping 83 assets to its trading list in 2021. Apart from the traditional crypto assets available on the platform such as Bitcoin, Ethereum, Bitcoin Cash, USD Coin, Tether, Dash, and Litecoin; Coinbase also added Ethereum tokens such as IDEX, Moss Carbon Credit (MCO2) ShapeShift Fox Token (FOX), among others.

In a recent move, Coinbase began accepting inbound transfers of two Solana ecosystem tokens, FIDA and ORCA.

The company saw a sharp increase in its revenues and active traders after crypto adoptions soared in 2021. The blog noted,

“Whether the market is up or down, we see a clear opportunity, making Coinbase one of the most exciting places to work right now.”

Altcoins LTC/USD and DSH/USD Elliott Wave Cycles Approaching Support

Crypto total market cap made another intraday recovery, but looking at the whole structure, we actually see a sideways consolidation, which more and more looks to be a bearish formation, so still watch out for that sell-off, while it’s below 1.88T level.

Major coins cover within 24 hours with Bitcoin 3.22%, Ethereum 8.10%, Ripple 5.26%, Litecoin 4.12% and Dash 6.26% at GMT 11:35 AM, the time of writing.

As per Elliott Wave analysis, Litecoin, LTCUSD remains nicely bearish in the 4-hour chart after we noticed a new higher degree wave (4) correction and with recent decline down to July 2021 lows and 100 level, seems like wave (5) of C is already in progress. However, wave (5) should be completed by a five-wave cycle of the lower degree, so be aware of slightly lower levels towards 90-70 area before we will see a bullish reversal.

Litecoin Elliott Wave Analysis

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DSHUSD remains bearish in the 4-hour chart as expected, ideally for the final wave 5 of an ending diagonal pattern within wave C. In ending diagonals, each wave consists of three legs (A)-(B)-(C) and we can potentially see it final stages of a five-wave cycle within that wave (C), so ideally we will see bottom and bullish reversal from around 80-60 support zone

Dash Elliott Wave Analysis

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OneRoyal Chairman Rayan Al-Annan on Making 2022 a Royal Year

Not all success stories are loud, and OneRoyal is a prime example of that. Founded in the US in 2006, the broker saw global expansion and opening offices from Europe to Australia. In 15 years of successful operation, the company did not actively pursue PR and media exposure, opting to focus on providing its clients with premium trading experience instead. Now, the broker is stepping up its visibility. Today, we sat down with OneRoyal founder and Chairman Rayan El Annan to look at the company today, and the vision for success in 2022 and beyond.

From Florida to Australia, Cyprus, Lebanon – how did you end up with such geography?

I launched the company in 2006 in Florida. Regulated by the USA financial authorities (CFTC) and a member of the NFA at the time, it did exceptionally well. In mid-2008, we made a strategic decision to move the “ROYAL-RFXT.COM” brand to the Middle East (while maintaining the Global Support Office in the US). Driven by organic growth of the company and the ambition to expand globally, we acquired our CySec, ASIC, VFSC and FSA licenses. With our Market Research and Training arm based in Cairo, Egypt, we are exceptionally well positioned to service traders worldwide.

What have been the highlights of the year 2021 for OneRoyal?

This year, we uplifted the brand from Royal to OneRoyal, to emphasize that we are THE ONE broker that our clients need. Our ambition is to be “the last broker our clients will ever register with” – simply because the trading experience and the products we provide meet and exceed their expectations. To reflect this ambition, we have updated our logo and are now gearing up towards the launch of the new website and the client areas, with a shortened and streamlined onboarding process.

When it comes to the product offering, we introduced 15 ETFs in May. We also expanded our deposit methods by adding crypto (USDT, BTC, ETH and XRP) to meet the demand of crypto-focused traders. Later in the year, we went further on crypto by adding Dash and Bitcoin Cash to our CFD offering. And recently, we have introduced Bitcoin as an account base currency on the MT4 platform.

What are OneRoyal’s plans for 2022?

2022 feels very special as this is our anniversary year, and we start it by reflecting on our 15 Years of Excellence as we keep going forward with new projects and goals that will propel us to further growth. Our website and refreshed client areas are in the making. We are updating our onboarding flow, so clients could start trading in 60 seconds, while also stepping up our offering for institutional clients. In the coming weeks, we will be moving to the new premises in Limassol, which will be our global hub, and gaining a more prominent exposure on the scene, as well as in the media and industry events.

Does the new HQ mean more hiring in Cyprus?

Yes, we have been actively hiring lately, mostly with the purpose to upgrade our top management team and set the company up for strategic growth. We have hired key players to our C-suite and I personally have faith in our renewed vision and the team’s capabilities of executing it.

What is this renewed vision exactly?

Internally, we have formulated our vision as redefining the relationship between brokers and traders towards stability and trust, while building an environment where it becomes a norm for brokers to give back to their community through supporting education and growth, creating a better future for the next generations. Our future decisions regarding potential partnerships, sponsorships and CSR initiatives will be made to foster this vision.

It makes sense that OneRoyal puts emphasis on stability and trust between brokers and traders. In over 15 years in the market, the company did not have any regulatory controversies and accusations – which is uncommon in the industry known for its bad reputation. What is the secret of that?

I don’t believe there’s any secret. I founded OneRoyal when I was 25, and I have always been determined to build a company that lasts over 100 years. Hence, regulatory compliance has always been among our core values, and we take it very seriously. That said, I do not believe that OneRoyal is unique in that, and being compliant is not a special secret. In fact, there are a lot of honest and reliable players in the industry. It’s unfortunate that there are some “bad apples”, be it companies or individuals, who mislead clients, thus contributing to the industry’s bad reputation. On a personal note, it is vital for me that we do things right, and I will always sacrifice short-term gains, no matter how big, for the long-term stability and future of OneRoyal.

A New Scam Directs Victims To Crypto ATMs To Send Money, Warns FTC

The US Federal Trade Commission (FTC) has cautioned the public about a new scam involving transactions through a crypto ATM.

Per the warning, issued Monday, perpetrators pretend to be a representative from a government agency or law enforcement, or prize promoters. They trap the public via call, text, email, or social media messages, asking to pay money for a lottery or a prize, or even claiming a romantic interest for instance.

The impersonator then persuades victims to withdraw money from their bank or investment accounts. They stay on-call throughout to direct the victim to a nearby crypto ATM to deposit fiat money, to buy Bitcoin mostly. Once done, the fraudsters send a QR code with their crypto address embedded in it.

“Once you buy the cryptocurrency, they have you scan the code so the money gets transferred to them. But then your money is gone,” advised the FTC.

The alert comes at a time where there is an increase in scammers directing victims to use crypto ATMs and QR codes for transactions, a recent FBI alert noted.

The FTC reported in May 2021 that consumers sent over $2 million to impersonators pretending to be Tesla CEO Elon Musk. From October 2020 to May’21, nearly 7,000 people reported losses of more than $80 million on that and other fake crypto scams, with a median loss of $1,900.

“Many people have told the FTC they loaded cash into Bitcoin ATM machines to pay imposters claiming to be from the Social Security Administration. Others reported losing money to scammers posing as Coinbase, a well-known cryptocurrency exchange,” according to the report.

Repeated Warnings

The Federal Bureau of Investigation (FBI) started the trend of issuing warnings to the public on fraudulent schemes using cryptocurrency ATMs. “It is important to remain vigilant and not make payments to someone you have only spoken to online,” the FBI said in November.

HODL Bitcoin ATMs, an operator of Bitcoin ATMs in the states of Maryland, DC, and Virginia, has also warned its users over various possible scams including ATM frauds.

The Bitcoin ATM chain noted that “crypto transactions are irreversible.” It said, “Bitcoin transactions, including those from our machines, happen immediately and cannot be canceled or reversed. You should always err on the side of caution.”

According to Coin ATM Radar, many Bitcoin ATMs throughout the globe support cryptos like Ethereum, Bitcoin Cash, Dash, and Litecoin. For instance, a crypto ATM at Kenrail Towers in Nairobi supports buying BTC, ETH, LTC, and DOGE.

This makes it easy for impersonators to plan their criminal activities and widen their cryptocurrency choices.

Crypto Scam Report Portals

Both FTC and FBI have come up with a victim assistance portal, for those who have fallen into the trap of fraudsters. Victims are asked to report crypto fraudulent activities on the websites, to help fight scams.

FTC’s “Report Fraud” portal asks victims to report on any frauds or scams, including crypto payment frauds. FTC clearly mentions that “there’s almost no way to get that money back,” if paid in cryptocurrency.

The FBI has introduced a victim assistance program to support and assist victims in navigating the aftermath of crime and the criminal justice process.

Apart from the government assistance on victims, Cryptocurrency Compliance Cooperative, a collaborative association led by top Bitcoin ATM operators, helps combat crypto ATM frauds.

Ethereum and Dash coin Eye Downside: Elliott Wave Analysis

ETH is currently in the neutral zone still but it’s trying to form a breakout now, below the red trendline support on 4h chart which can make a room for a drop to 3200-3000 area. Break below massive 3k level could actually suggest that Ethereum is in wave C of a flat or a triangle in four.

Ethereum 4h Elliott Wave Analysis

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DSHUSD is making a bigger intraday recovery in the 4-hour chart, but we still see it as an (A)-(B)-(C) correction within wave 4, ideally as part of a bigger daily ending diagonal pattern that can send the price back to June lows for the final wave 5 of C before bulls show up again. Nice projected support is around 100 level that can come in play fast, once the trendline support is broken.

Dash coin 4h Elliott Wave Analysis

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What Can You Buy With Cryptocurrencies?

The cryptocurrency market has become one of the leading financial markets in the world, thanks to its recent growth. The industry is worth more than $2 trillion, and with this level of growth comes the adoption. However, despite the growing popularity of cryptocurrencies, some people still don’t know what they can purchase with their crypto.

To address those concerns, this article informs you of the various places where you can pay with cryptocurrencies.

Cryptocurrencies are accepted in many sectors

A decade ago, Bitcoin was a relatively unknown financial asset. However, nowadays, it is known in every part of the world and is slowly going mainstream. With the mainstream adoption of cryptocurrencies increasing, it became easier to pay for goods and services using Bitcoin and other cryptos.

El Salvador became the first country to make Bitcoin a legal tender, and you can pay for anything with BTC. The United States, Canada, Spain, the United Kingdom, South Korea, and Singapore are amongst the countries that are also recording an increase in cryptocurrency transactions. Here are some of the ways to use your cryptocurrencies to pay for goods and services.

Technology and Ecommerce

One of the areas where you can easily spend your cryptocurrencies is technology and eCommerce. eCommerce companies are making it easier for their customers to pay for their products using BTC and other cryptocurrencies.

Overstock is one of the leading retailers that allows users to pay for their products with crypto, thanks to its partnership with Coinbase. NewEgg is an online retailer of technology products like computer hardware and consumer electronics, where you can use your bitcoins to pay for these products. Alza, the leading online retailer in the Czech Republic, and Japan’s Rakuten are other top retailers that accept cryptocurrencies.

If you wish to pay for your domain name in bitcoin, then Namecheap is the hosting company you should patronize. The Internet Archive also allows users to access web archives and accepts bitcoin donations.

AT&T is one of the first major mobile carriers globally to enable its users to pay for services using cryptocurrencies. The company partnered with BitPay to provide the crypto payment option to its subscribers.

Tech giant Microsoft allows its users to top up their Microsoft account using cryptocurrencies. The company suspended the service for a while but reactivated it as the adoption of BTC and other cryptos grew.

Dish, one of the leading TV service providers in the United States, allows users to pay for their cable subscription using Bitcoin, thanks to its partnership with Coinbase.

Entertainment sector

One of the areas where cryptocurrencies have gained adoption is the entertainment sector. It is becoming easier to pay for services using bitcoin and other cryptos in this industry. AMC, one of the leading cinema chains globally, now allows people to pay for movie tickets and other services with a few cryptos such as BTC, ETH, SHIB, and DOGE.

Amazon-owned leading game streaming platform Twitch is another place where you can pay for services using Bitcoin. The company briefly removed the service in March 2019 but has re-enabled it in June 2020.

Food Industry

Another area where cryptocurrency adoption is growing is the food sector. Several fast-food joints are now accepting Bitcoin and other cryptocurrencies as payment options for their products.

Burger King Venezuela partnered with Cryptobuyer to accept cryptocurrencies as a mode of payment. Their customers can pay in Bitcoin, Dash, Litecoin, Ethereum, and Tether. Pizza Hut is another giant pizza franchise that allows customers to pay for their food with Bitcoin.

KFC Canada is another major fast-food company that accepts Bitcoin as payment for its products. The company partnered with BitPay to process the payments. Denver-based Quiznos partnered with Bakkt to launch a pilot that allows customers to purchase food with bitcoin via the Bakkt app.

Sports

Cryptocurrency companies have penetrated the sports industry. Over the past few months, crypto companies such as FTX and Crypto.com have partnered with numerous sporting institutions to increase the awareness of cryptocurrencies.

The adoption goes beyond sports entities partnering with cryptocurrency companies. Some sporting institutions now accept cryptocurrency payments. The Dallas Mavericks accepts Bitcoin as a payment method for both game tickets and merchandise, and BitPay processes cryptocurrency payments via the team’s website.

The Miami Dolphins is another team that allows you to pay for game tickets using Bitcoin and Litecoin.

Portuguese-based football team Benfica is one of the first soccer institutions in Europe to accept Bitcoin for game tickets and merchandise.

Travel and Hospitality

The hospitality industry is one of the biggest promoters of cryptocurrencies. Richard Branson’s Virgin Mobile and Virgin Airlines allow you to pay for space travel with BTC. Norwegian Air Shuttle (Norwegian), Scandinavia’s largest airline and Europe’s third-largest budget airline, is another travel company that allows customers to pay for tickets with cryptocurrency.

CheapAir, one of the leading online travel agencies in the United States, partnered with Coinbase to allow its customers to pay for travel and hospitality services with Bitcoin. Travala and Bitcoin.Travel are two other leading online travel agency that permits their customers to pay for services using BTC and a few other cryptocurrencies.

Real Estate and Art

An increasing number of real estate firms accept cryptocurrencies as payment for their properties. Cryptocurrencies have also penetrated the art world. British auction house Christie’s now accepting Bitcoin and Ether for some of its paintings, both physical and digital.

Gift Cards and VPNs

The other sectors where cryptocurrencies have gained adoption are VPN and gift cards. Gyft allows users to buy and sell gift cards online for top retailers like Amazon, iTunes and Starbucks, and the company accepts Bitcoin as payment for its services.

ExpressVPN, CyberGhost, NordVPN, and PrivateVPN are some of the leading VPN service providers that allow users to pay for their services and upgrade their accounts using Bitcoin and a few other selected cryptocurrencies.

Final Thoughts

The use of cryptocurrencies to pay for goods and services is becoming increasingly popular. Businesses are beginning to accept cryptocurrency payments directly or through third-party processors like BitPay, a trend that seems set to continue through 2022.

 

Litecoin and Dash coin Elliott Wave Analysis: More Downside Ahead

Litecoin, LTCUSD remains bearish after we noticed five waves of decline from the highs and now that is even accelerating lower in the 4-hour chart, seems like it’s unfolding a higher degree five-wave bearish cycle. So, be aware of more downside pressure and more weakness, ideally towards July lows and below 100 level after a pullback in wave 4 which can also turn into a bearish triangle pattern if the price stays slow and sideways.

Litecoin 4h Elliott Wave Analysis

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Dash coin, DSHUSD remains nicely bearish after completing bearish triangle in wave B on a daily chart. Well, now that is accelerating even lower, seems like a higher degree wave C is in progress, which should be completed by a five-wave bearish cycle. So, be aware of more weakness in the 4-hour chart, ideally towards June lows and 90-60 support zone before bulls show up again, but after current pullback in wave 4 that can also form a triangle pattern if stays slow and sideways. Invalidation level remains at 165.

Dash coin 4h Elliott Wave Analysis

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Dash and Bitcoin Cash Elliott Wave Cycles Point More Downside

DSHUSD remains nicely bearish as expected after we noticed a completed bearish triangle in wave B on a daily chart. Well, now that is accelerating even lower, seems like a higher degree wave C is in progress, which should be completed by a five-wave bearish cycle. So, be aware of more weakness in the 4-hour chart, ideally towards June lows and 90-60 support zone before bulls show up again, but after current pullback in wave 4 that can also form a triangle pattern. Invalidation level remains at 165.

Dash 4h Elliott Wave Analysis

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BCHUSD is coming even lower in the 4-hour chart after we mentioned and highlighted about a completed bearish triangle in wave (B). So, with current sharp and impulsive break below July lows, seems like wave (C) is already in progress with room down to 300-200 support area that can be reached within a five-wave cycle. Current recovery still looks to be wave 4 correction, which can be already completed or still in progress as a bearish triangle formation, however, in both cases be aware of a continuation lower for wave 5 of (C), while the price is below 540 invalidation level.

Bitcoin Cash 4h Elliott Wave Analysis

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What is Shiba Inu? The Meme Coin Designed to Kill Dogecoin

One of the most important trends in the cryptocurrency space over the past year is meme coins. The rise of Dogecoin has led to the creation of a wide range of other meme coins as investors flocked to them in hopes of making money.

Dogecoin rallied by more than 7,000% at some point earlier this year, attracting more people to the cryptocurrency world. As a result, investors started to focus on other meme coins and invest in them looking to make as much profit as Dogecoin did.

Dogecoin chart

One of the biggest meme coins in the market is Shiba Inu (SHIB), the coin designed to “kill Dogecoin” and overtake it in the market. However, for those who are hearing about it for the first time, here is everything you should know about Shiba Inu.

What is Shiba Inu?

Shiba Inu (SHIB) is an Ethereum-based cryptocurrency that features the Shiba Inu dog. SHIB is considered by many to be an alternative to Dogecoin. However, the Shiba Inu coin was created to be the “Dogecoin killer.”

shibainu coin fxempire

SHIB is a meme coin based on the Japanese Shiba Inu dog. The meme coins are usually launched as an inside joke rather than as digital products with real-world utility although Dogecoin has been around since 2013, Shiba Inu was launched in August 2020 by an anonymous individual or group called Ryoshi. 

According to the 28-page whitepaper or woof paper, the goal of Shiba Inu’s creator was to move away from the rigid social structures and traditional mindset. Shiba Inu is designed to be an experiment in decentralized spontaneous community building” and to give power back to the “average person.”

How Does Shiba Inu Work?

Shiba Inu is an Ethereum-based token, which means that it is compatible with the vast Ethereum ecosystem. According to the developer, the Ethereum blockchain was the perfect host for Shiba Inu because it was already secure and well-established, and it allowed the project to stay decentralized.

The Shiba Inu ecosystem is comprised of three tokens and other services that users can enjoy. The three tokens are;

  • Shiba Inu (SHIB): SHIB is the project’s main currency. It is the token that powers the entire Shiba Inu ecosystem and has a total supply of 1 quadrillion. However, the developer locked 50% of the supply in Uniswap for liquidity purposes while Ethereum co-founder Vitalik Buterin was tasked with holding the remaining 50%. Buterin sold some of the tokens in his possession and donated the money to a Covid-19 relief fund in India, an act that further pushed SHIB’s price higher. Buterin burned 40% of SHIB’s total supply, reducing the possible amount available to users. 
  • Leash (LEASH): This is the second token in the Shiba Inu ecosystem and it represents the other side of Shiba. Its total supply is 107,646 tokens, far below the trillions of Shiba Inu tokens.
  • Bone (BONE): This is the governance token of the Shiba Inu ecosystem. It allows the ShibArmy to vote on upcoming proposals and has a total supply of 250 million tokens. 

There are other sides to the Shiba Inu ecosystem and they include;

  • ShibaSwap: This is the decentralized exchange of the Shiba Inu ecosystem. This is an exchange designed to allow people to trade cryptocurrencies in a decentralized manner. 
  • Shiba Inu Incubator: The incubator is designed to discover ways to honor the creativity of artists outside of the traditional artforms. It aims to breed genuine creators of art and other content. 
  • Shiboshi: These are Shiba Inu-generated Non Fungible Tokens (NFTs) available on the Ethereum blockchain each Shiboshi has a different trait, making them unique. 

Is Shiba Inu Real Money? Why has it Rallied so Much?

It is tough to think of Shiba Inu as real money. The cryptocurrency space has evolved over the past few years to involve stablecoins. Stablecoins are digital currencies whose values are tied to fiat currencies. They are the most likely to be considered real money.

SHIB/USD chart. Source: FXEMPIRE

We also have some coins such as Bitcoin, DASH, Litecoin and some others that are designed to serve as currency and have received adoption in various parts of the world. However, Shiba Inu is a meme coin, and is hard to consider it as real money. 

SHIB has been one of the best performing cryptocurrencies so far in 2021. Over the past three months alone, SHIB has added more than 500% to its value. It briefly overtook Dogecoin in terms of market cap.

The rally was caused by a wide range of things including getting listed on the Coinbase cryptocurrency exchange a few weeks ago. The rally brought so much media attention to SHIB and more investors flooded into the cryptocurrency. 

Tesla founder Elon Musk added fuel to the fire when he tweeted a picture of his new Shiba Inu puppy Floki last month. thus, generating massive retail investor interest in the meme token. 

The launch of the Shiba Inu NFTs also added to the excitement as NFTs are gaining popularity in the cryptocurrency space and beyond. There are currency unconfirmed rumors that popular stock and crypto trading app Robinhood is set to list SHIB on its platform. All these contributed to Shiba Inu recording massive gains in recent weeks. 

Shiba Inu Wallet

As one of the top 20 cryptocurrencies in the world, SHIB is very valuable in the crypto space. It is an ERC-20 token, which means that it can be stored in numerous wallets that support Ethereum-based tokens. Some of the wallets you can use to store your SHIB tokens include; 

  • Ledger Nano X (cold storage wallet)
  • Trezor (cold storage wallet)
  • Trust Wallet 
  • Ellipal Titan (hardware wallet)
  • MetaMask 
  • Coinomi
  • Lumi wallet
  • CoolWallet
  • Guarda Wallet 

How to Use Cryptocurrencies in Everyday Life

In addition, more than 18,000 worldwide registered organizations accept cryptocurrency as a payment. According to TripleA experts, the number of crypto wallet holders will increase to 300 million by 2030 and the number of businesses supporting crypto payments will increase to 25 thousand. How the cryptocurrency sector will evolve in the future and whether the main digital currencies will be a full-fledged payment instrument will be discussed below.

Big business is ready to accept crypto payments

So far, more than 18 thousand companies around the world are ready to accept payments in digital currencies. And these are not online stores with the traffic up to 10 thousand people a month, but large corporations with their products and services across the globe. Companies such as Booking, Coca-Cola, PayPal, KFC, BMW and many others are ready to accept payments in bitcoins now. And every year the adoption of digital currencies will only increase.

According to TripleA experts, retail and e-commerce will be the main sectors accepting cryptocurrency as a payment instrument. This market accounts for almost 40% of all crypto payments in the world. The sector of premium goods (jewelry, yachts, planes, real estate), cross-border payments, also gaming and gambling circuits will take the lead as well.

“We see a gradual adoption of cryptocurrencies by retail users. And it’s a pattern! Besides, cryptocurrencies reduce costs when paying for goods in everyday life. The current goal is to create a unified technological system that will make it possible to use cryptocurrency anywhere without conversion and exchangers”, commented co-founder of MinePlex Alexander Mamasidikov.

It means that users have a real need now for services that allow converting fiat currencies into digital coins and vice versa. The demand for such solutions will only increase.

Paying with cryptocurrency is easier than it looks

Cryptocurrency payments are quite common all over the world. Some services, such as iVendPay, provide instant payments with coins from your crypto wallet. Other services use crypto-processing solutions or online banking tools that allow you to convert cryptocurrency into fiat money and only then send them to a seller account.

“We’re developing solutions to pay for goods and services in cryptocurrencies. It requires a MinePlex multicurrency wallet for not only securely store digital currencies, track purchasing capacity, but also make payment transactions in cryptocurrency directly, bypassing conversion to fiat. Our functionality will support 36 major fiat currencies, including US dollar, euro and our own liquid PLEX token”, says Alexander Mamasidikov.

The future integration of cryptocurrency

Shortly, cryptocurrency can be a full-fledged payment instrument. And in a few years we will be able to pay directly with Bitcoin or other coins in:

  • cafes, restaurants, bars. Many similar establishments accept so far crypto payments in Bitcoin, ETH or DASH tokens;
  • online stores, marketplaces;
  • travel services, such Booking and air, railway and other tickets purchase;
  • clothing, footwear, jewelry stores;
  • barber shops and beauty salons;

Most of the retail business will actively implement crypto payments over time and use them alongside traditional payment methods.

Conclusion

Cryptocurrency adoption will accelerate within the next few years, leading to widespread digital coins as a payment instrument. That brings up a growing demand for crypto processing companies and crypto online banks services, which allow converting cryptocurrencies into fiat money. E-commerce sector will develop rapidly, where cryptocurrencies will act as a full-fledged payment unit and won’t require a conversion. The most popular crypto payment areas will be retail, gambling, gaming, as well as food and beauty.

Dash and Bitcoin Cash Elliott Wave Analysis – Be Aware Of Reversal Down

For now, we are still observing a minimum three-wave a/1-b/2-c/3 decline, but we prefer wave 3, so watch out for more downside pressure this week, especially if the price drops towards wave 3 levels.

DSHUSD is coming above June highs and 200 area, but we are still looking for a potential a-b-c flat correction within wave B that can find the resistance around 280 – 330 zone, just keep in mind that upside can be limited and a reversal down for wave C may occur anytime soon.

Dash 4h Elliott Wave Analysis Chart

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BCHUSD is in a bigger intraday recovery mode, but also as part of a three waves A-B-C flat correction in wave (B), so watch out for limited rise and be aware of another reversal down for wave (C), probably and ideally here around 800 – 1000 area.

Bitcoin Cash 4h Elliott Wave Analysis Chart

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Litecoin and Dash Elliott Wave Cycles Point Resistance

  • Most crypto currencies trade at resistance
  • Litecoin unfolds bearish running triangle
  • DASH is till looking lower for wave C

As per Elliott Wave analysis, LTCUSD can be still moving within a bigger bearish running triangle formation of wave B, ideally as part of wave (C) of C, so watch out for limited gains around 150 level. However, in case of much bigger recovery, then we may also consider a flat correction within wave B which can retest 200-250 resistance area.

Litecoin 4h Elliott Wave Analysis Chart

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Despite that recent spike, DSHUSD can be still looking lower for wave C, but ideally once a bearish running triangle in wave B fully unfolds, where the final wave “e” can be now in play So, be aware of that drop back to lows for wave C before we will see a bigger recovery. However, just in case if rises back above 200 area, then we may still consider an irregular flat correction in wave B as an Alternate count that can retest 200-250 resistance zone

Dash 4h Elliott Wave Analysis Chart

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For a look at all of today’s economic events, check out our economic calendar.

Stocks Fall but Close Week Positive

Quick Update

Dear readers, before we get into today’s news and stock analysis and because I’ve been receiving many questions from you, I’d like to first clarify what I mean by BUY, SELL, or HOLD. Here, I am largely referring to outperforming the S&P 500. When the conditions favor adding risk and buying the U.S. market overall, I will be issuing an “alert.” I am not sure yet whether I will be moving to entry prices or target prices & stop losses.

In the current market environment, when fundamentals have essentially fallen to the wayside, I prefer to invest directionally rather than being married to certain levels in the market. In my view, trading with specific figures in mind can hurt long term returns if you do not let your winners run and cut your losers fast. I do update my calls daily, though, and any changes will be highlighted! Thank you again for being such great readers – I truly value your trust. Stay tuned for updates and let me know if you have any other questions!

Let’s begin Monday by reviewing what happened at the close of last week.

Volatile trading occurred on Friday (Dec. 18), with Congress struggling to close out a stimulus package, causing stocks to slip from record highs.

News Recap

  • The Dow Jones fell 124.32 points, or 0.4%, to 30,179.05. At its session low, the index fell more than 270 points. The S&P 500 also dipped 0.4% and snapped a three-day winning streak. The Nasdaq fell only 0.1%, while the small-cap Russell 2000 fell 0.41%.
  • While Congress claims to be on the brink of a $900 billion stimulus deal , it is working against time. In public, leaders are speaking optimistically that a deal will pass, however, there are last-minute partisan disputes on direct payments, small business loans, and a boost to unemployment insurance
  • There was an unusually large amount of trading volume on Friday (Dec. 18) as Tesla (TSLA) was set to officially join the S&P 500 after the closing bell. Tesla is being added to the index in one fell swoop, marking the largest rebalancing of the S&P 500 in history. After surging 700% in 2020, from day 1, Tesla will be the seventh-largest company in the S&P in terms of market cap.
  • The FDA officially approved Moderna’s vaccine for emergency use. Government officials plan to ship nearly 6 million doses of Moderna’s vaccine in addition to the 2.9 million Pfizer (PFE) doses already in distribution.
  • Despite Friday’s (Dec. 18) losses, the indices closed out the week with mild gains. The Dow closed up 0.4%, the S&P 500 advanced 1.3%, and the NASDAQ closed up 3.1%. The small-cap Russell 2000 continued its strong run as well and gained 2.5% for the week.
  • Meanwhile, the pandemic has reached its darkest days and is hitting unforeseen and unprecedented numbers . The U.S. shattered the previous record of daily deals on Wednesday (Dec. 16), recording over 3,600 deaths. As of Friday (Dec. 18), the country has also now surpassed 17 million confirmed cases, with death totals soaring past 300,000. California, Illinois, Pennsylvania, and Texas alone reported more than 1,000 deaths in the past week.

While the general focus between both investors and analysts appears to be on the long-term potential in 2021, there are certainly short-term concerns. Inevitably, there will be a short-term tug of war between good news and bad news. For now, though, the main catalyst is the stimulus package. If a stimulus package is passed before Christmas, the markets could benefit. If it doesn’t, markets will drop. Time is running short and we may be at a fork in the road.

According to Luke Tilley , chief economist at Wilmington Trust, another stimulus package was needed to keep the economic recovery from stalling before the mass distribution of a vaccine.

“With the continued rising cases and mass vaccinations still a ways out, we could see some further weakness in jobs and even a flattening where we’re not even adding jobs at all … that’s absolutely a possibility for this next jobs report,” Tilley said. “And if we were to not get another stimulus package, you’re going to have 10 to 11 million people fall off the unemployment rolls right away, and that would hit spending as well.”

However, despite near-term risks, the overwhelming majority of market strategists are bullish on equities for 2021, especially for the second half of the year. While there may be some short-term worries, the consensus between market strategists is to look past the short-term pain and focus on the longer-term gains. Although the economic recovery could stutter in the early half of the year, the general focus is on the second half of the year when we could potentially return to normal. Many analysts expect double-digit gains to continue in 2021, with strategists in a CNBC survey expecting an average 9.5% rise in 2021 for the S&P 500.

Additionally, according to Robert Dye, Comerica Bank Chief Economist :

“I am pretty bullish on the second half of next year, but the trouble is we have to get there…As we all know, we’re facing a lot of near-term risks. But I think when we get into the second half of next year, we get the vaccine behind us, we’ve got a lot of consumer optimism, business optimism coming up and a huge amount of pent-up demand to spend out with very low interest rates.”

In the short-term, there will be some optimistic and pessimistic days. On some days, the broader “pandemic” market trend will happen, with cyclical and recovery stocks lagging, and tech and “stay-at-home” stocks leading. Sometimes a broad sell-off based on fear or overheating may occur as well. On other days, there will be a broad market rally due to optimism and 2021-related euphoria. Additionally, there will be days (and in my opinion this will be most trading days), when markets will trade largely mixed, sideways, and reflect uncertainty. But if we get an early Christmas present and a stimulus package passes, all bets are off. It could mean very good things for short-term market gains.

Despite the optimistic potential, the road towards normalcy will hit inevitable speed bumps. While it is truly hard to say with conviction that a short-term rally or bear market will come, I do believe that some consolidation and a correction could be possible in the short-term on the way towards another strong rally in the second half of 2021.

Outside of economic damages and an out-of-control virus, the market itself is flashing potential signs of over-optimism and euphoria. In its most recent survey, for example, the American Association of Individual Investors (AAII) found that 48.1% of investors identified as being bullish – well above the historical average of 38%. With an overabundance of cocky, euphoric, and optimistic investors, the market becomes more vulnerable to selling pressure. Corrections are very common though. Only twice in the last 38 years have we had years WITHOUT a correction (1995 and 2017). Because there has not been one since the lows of March, we could be due for one in the early part of 2021.

Therefore, to sum it up:

While there is long-term optimism, there are short-term concerns. A short-term correction in early 2021 is very possible, but I do not believe, with certainty, that a correction above ~20% leading to a bear market will happen.

Has the Nasdaq Officially Overheated?

Don’t ever let anyone tell you “this time is different” if fears of the dot-com bubble are discussed. History repeats itself, especially in markets. I have many concerns about tech valuations and their astoundingly inflated levels. The recent IPOs of DoorDash (DASH) and AirBnB (ABNB) reflect this. I believe that more pullbacks along the lines of Wednesday, December 9th’s session could inevitably come in the short-term.

Pay close attention to the RSI. While an overbought RSI does not automatically mean a trend reversal, I called keeping a very close eye on this for the Nasdaq. The December 9th Nasdaq pullback, after it exceeded a 70 RSI, reflects that.

The RSI is now above 70. Monitor this . With unstable volume to start the week on the horizon, as Tesla officially joins the S&P 500, I am calling for some short-term volatility. I did not make a conviction call last week but I am not making that mistake again. Because the RSI is officially above 70, and because I foresee unstable volume thanks to Tesla, take profits and SELL some shares, but do not fully exit .

While tech has overheated, there is still some very real long-term optimism based on stimulus hopes and 2021’s potential.

Furthermore, on pessimistic days, having Nasdaq exposure is crucial because of the “stay-at-home” trade.

For an ETF that attempts to directly correlate with the performance of the NASDAQ, the Invesco QQQ ETF (QQQ) is a good option.

Thank you for reading today’s free analysis. I encourage you to sign up for our daily newsletter – it’s absolutely free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to the premium daily Stock Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!

For a look at all of today’s economic events, check out our economic calendar.

Thank you.

Matthew Levy, CFA
Stock Trading Strategist
Sunshine Profits: Effective Investment through Diligence & Care

* * * * *

All essays, research, and information found above represent analyses and opinions of Matthew Levy, CFA and Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Matthew Levy, CFA, and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Levy is not a Registered Securities Advisor. By reading Matthew Levy, CFA’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading, and speculation in any financial markets may involve high risk of loss. Matthew Levy, CFA, Sunshine Profits’ employees, and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

The Crypto Top 20 – Who Looks Good?

The Landscape

It’s been quite a year for the crypto markets. While some managed to forge ahead, it has been a mixed story for the top 20.

Market volatility returned through the first 8 months of the year, following a lull in 2018 that saw many of the major cryptos flat-line.

What has been evident throughout this year is the investor’s continued lack of interest in platform success and advancement.

Granted some of the new entries into the top 20 can be attributed to success stories, but these have come at a price for others that have seen increased adoption in the real world.

Looking at the lie of the land, the top 20 can really be classified into a number of sectors…

Alternative to fiat money

Joining Bitcoin as an alternative to fiat money are Bitcoin Cash ABC, Bitcoin Cash SV, Litecoin, EOS, Monero’s XRM, DASH, and Iota.

For now, the Bitcoin clan and Litecoin continue to garner the greatest amount of interest, not just from investors, but also from those looking to shun fiat money.

The alternatives, however, may need to be considered as the real world continues its metamorphosis into the digital world.

Monero’s XMR found strong support through the summer to hit a current year high $120 in June before pulling back. While up by 73% year-to-date, Monero’s XMR was down by 833% from a Dec-2017 all-time high $469.5.

For the current year, Monero’s XMR was down by 34% from its current year high $120 struck back in June.

As a Bitcoin competitor, Monero’s XMR has found strong support from the fact that remitters and receivers and amounts are concealed. One downside to this functionality would be any change in the regulatory landscape that makes disclosure mandatory. Since chatter from governments has abated, there is room for growth.

It goes without saying that Bitcoin is also an attractive option. While transaction times continue to question its survival, next year’s halving event should be enough to deliver for longer-term holders who can ride out the volatility.

For opportunity investors, Bitcoin is down by just 48.8% from its all-time high $19,891 and by 26% from its current year high $13,764. That makes Monero’s XMR an even more enticing alternative…

Smart Contracts

Another popular sector in the top 20, with the following coins involved in servicing smart contracts: Cardano’s ADA, Chainlink, Ethereum, Ethereum Classic, NEO, and Tezos.

While Ethereum continues to hold onto the number 2 spot by market cap, a drying ICO market has limited any major upside.

That leaves coins focused solely on delivering an alternative to fund ICOs on the back foot for now.

Regulatory uncertainty has continued to leave the ICO market baron relatively to late 2017 and early 2018.

While greater adoption and the need for smart contracts increases, a rebound in the ICO market is likely to be the key to Ethereum and its competitors’ futures.

While the cryptos have found support through the current year, there’s been a marked pullback from June highs.

For the current year, Chainlink (“LINK”) and Tezos (“XTZ”) have outgunned the pack, with gains of 644% and 151% respectively.

While seeing sizeable gains year-to-date, the pair is down by 56% and by 91% from their all-time highs. The pullback does suggest some significant upside should market conditions improve. Support would need to come from the news wires, however.

Looking across to Ethereum and Ethereum Classic, the pair are down by 48.7% and by 26.9% from their current year highs. Both are down by more than 80% from their all-time highs.

The ICO market and prospective ICO volumes would need to materially rise, however, for Ethereum to have a chance at returning to the dizzying heights of $1,420 struck in early 2018.

For now, the inclusion of the newer coins on more established platforms would be the play.

Payment Platform

Amongst the top 10, payment platforms form a small proportion of the total crypto market cap.

Ripple and Stellar have been the long-established pair, with the Ripple team having made solid progress in delivering a global payment platform system.

In spite of the adoption, the pair have struggled through the current year, bucking the trend amongst the broader market.

Year-to-date, Ripple’s XRP and Stellar’s Lumen were down by 25.4% and 40.2% and by 91.8% and 85.5% from their all-time highs.

Ripple’s XRP has seen its price tumble following news of a lawsuit against Ripple on whether it should be classified as a security. Adding to the volatility was news of a large release of tokens into the crypto market.

For those looking for an investment opportunity, Ripple’s XRP looks to have legs and survivor bias in the crypto world. That is assuming of course that it can settle the legal disputes that are currently pinning back prices.

Looking at functionality alone, transaction speeds and low fees make Ripple’s XRP an attraction option at current levels. Just this week, Ripple was reported to have had over 100 transactions per second, up from 10 transactions per second back in January.

The Ripple platform has the ability to handle 1,500 transactions per second. The ever increasing adoption of the Ripple platform can only be a good thing.

Relative newcomer, Tron’s TRX has also struggled year-to-date, falling by 8.3%. While down by 56.9% from its current year high, Tron’s TRX has coughed up 98.3% since its all-time high.

A continued rise in transactions suggests a possible turnaround for the team at Tron. Negative chatter about the Tron team has led to the downside.

And finally,

Crypto Exchanges

With just Binance Coin and UNUS SED LEO to choose from, Binance Coin would certainly be the head-turner.

While both are down by 40% from their current year highs, Binance Coin is up a whopping 304% year-to-date.

The upside came, not only from its status as one of the largest cryptocurrency exchanges, by volume, but also on its progress at eating into Ethereum’s ICO market share.

A continued rise in exchange volumes would certainly be a boon for Binance Coin. LEO could garner some attention though, but for different reasons.

UNUS SED LEO is an exchange token that was launched earlier this year. iFinex launched LEO to plug an $850m hole in Bitfinex. The hole resulted from a government seizure of Crypto Capital assets.

iFinex has been clear that they will use the funds, if recovered, to repurchase and burn the LEO tokens.

There is some uncertainty over whether iFinex will be able to recoup its $850m. Any hint of imminent success and expect LEO prices to go through the roof…

There are a lot of websites comparing the best crypto exchanges, some of them stand out due to being there first, like Coinmarketcap, some cover a large variety of exchanges like FXEmpire.com and some have an innovative design like Cryptimi.

Risk & Reward

As is the case with any of the cryptocurrencies, a balanced risk and reward strategy is advised. There is significant volatility in the market place. While the majors are well below their all-time highs, the threat of heightened government oversight and material shift in the regulatory landscape remains.

Some cryptos are likely to be affected more than others. For instance, the pending SEC decisions on the Bitcoin ETFs could go in favor of Bitcoin and drive demand.

For Bitcoin, there is also next year’s halving event to factor in. SEC approvals ahead of the predicted 24th May 202 halving event would be quite a boon for Bitcoin holders.

Protecting the downside is key, however, for those not in it for the long haul. Monitoring volumes and the news wires are key for any investor holding a cryptocurrency or token.

There remains an unpredictability to the crypto market that delivers the volumes and sizeable gains and losses. The news wires certainly contribute to the swings.

In Summary

Adoption and listing on global exchanges continue to be the key drivers for the broader market. There are a number of scenarios, however, that would favor some of the top 20 more than others.

Bitcoin, UNUS SED LEO, Ripple’s XRP and Binance Coin certainly stand out.

For those looking to go beyond the top 20, exchanges listings is the play.

DASH Technical Analysis – Support Levels in Play –14/08/19

Key Highlights

  • DASH fell by 3.55% on Tuesday. Following on from a 1.79% decline on Monday, DASH ended the day at $100.652.
  • An early morning intraday high $108.058 saw DASH break through the first major resistance level at $106.43.
  • A mid-afternoon intraday low $100.056 saw DASH fall through the first major support level at $102.408 and second major support level at $100.385.
  • The extended bearish trend, formed back at late April 2018’s swing hi $547.97 remained firmly intact. DASH continued to fall short of the 23.6% FIB Retracement Level of $172, following 15th December’s swing lo $56.214.

How to Buy DASH

DASH Price Support

DASH fell by 3.55% on Tuesday. Following on from a 1.79% decline on Monday, DASH ended the day at $100.652.

A choppy start to the day saw DASH rally from an early morning low $103.051 to an early morning intraday high $108.058.

Steering clear of the major support levels, DASH broke through the first major resistance level at $106.428. The second major resistance level at $108.425 came into play before a broad-based crypto sell-off kicked in.

The sell-off saw DASH slide to a mid-afternoon intraday low $100.056. DASH fell through the first major support level at $102.408 and second major support level at $100.385.

Steering clear of sub-$100 was key on the day.

The extended bearish trend formed back at late April 2018’s swing hi $547.97, remained firmly intact following the late June and July pullback. DASH continued to fall short of the 23.6% FIB of $172 after having failed to take a run at the 38.2% FIB of $244.

At the time of writing, DASH was down by 0.65% to $100.00. A bearish start to the day saw DASH fall from an early morning high $101.291 to a low $99.734 before finding support.

DASH left the major support and resistance levels untested early on.

DASH/USD 14/08/19 Daily Chart

For the day ahead

DASH would need to move through to $102.90 levels to support a run at the first major resistance level at $105.788.

Support from the broader market would be needed, however, for DASH to take a run Tuesday’s high $108.058.

Barring a broad-based crypto rally on the day, DASH would likely fall short of the second major resistance level at $110.924.

Failure to move through to $102.922 levels could see DASH fall deeper into the red. A fall back through the morning low $99.734 would bring the first major support level at $97.786 into play.

Barring a crypto meltdown, however, DASH should steer clear of sub-$97 support levels on the day.

Looking at the Technical Indicators

Major Support Level: $97.786

Major Resistance Level: $105.788

23.6% FIB Retracement Level: $172

38.2% FIB Retracement Level: $244

62% FIB Retracement Level: $360

Please let us know what you think in the comments below

Thanks, Bob

DASH Technical Analysis – Support Levels in Play – 06/08/19

Key Highlights

  • DASH rallied by 3.34% on Monday. Reversing a 0.59% loss from Sunday, DASH ended the day at $110.647.
  • A start of a day intraday low $106.909 saw DASH steer well clear of the first major support level at $103.98.
  • A late morning intraday high $113.243 saw DASH break through the first major resistance level at $107.9 and second major resistance level at $109.58.
  • The extended bearish trend, formed back at late April 2018’s swing hi $547.97 remained firmly intact. DASH continued to fall short of the 23.6% FIB Retracement Level of $172, following 15th December’s swing lo $56.214.

How to Buy DASH

DASH Price Support

DASH rallied by 3.34% on Monday. Reversing a 0.59% loss from Sunday, DASH ended the day at $110.647.

Tracking the broader market through the morning, DASH rallied from an intraday low $106.909 to an intraday high $113.243.

The morning rally saw DASH break through the first major resistance level at $107.9 and second major resistance level at $109.58. The third major resistance level at $113.5 capped the upside on the day. DASH steered well clear of the first major support level at $103.98 at the start of the day.

A choppy 2nd half of the day saw DASH pullback to $109 levels before breaking back through the second major resistance level.

The extended bearish trend formed back at late April 2018’s swing hi $547.97, remained firmly intact following the late June and July pullback. DASH continued to fall short of the 23.6% FIB of $172 after having failed to take a run at the 38.2% FIB of $244.

At the time of writing, DASH was down by 1.64% to $108.833. A bearish start to the day saw DASH fall from a morning high $110 to a low $108.833.

DASH left the major support and resistance levels untested in the early part of the day.

DASH/USD 06/08/19 Daily Chart

For the day ahead

DASH a move back through to $110.27 levels would support a run at the first major resistance level $113.62.

Support from the broader market would be needed, however, for DASH to break out from $110 levels.

Barring another broad-based crypto rally, Monday’s high $113.24 and the first major resistance level at $113.62 would likely limit any upside.

Failure to move back through to $110.27 levels could see DASH fall deeper into the red. A fall through to $107 levels would bring the first major support level at $107.29 into play.

Barring a broad-based crypto sell-off, however, DASH should steer clear of Monday’s low $106.909.

Looking at the Technical Indicators

Major Support Level: $107.29

Major Resistance Level: $113.62

23.6% FIB Retracement Level: $172

38.2% FIB Retracement Level: $244

62% FIB Retracement Level: $360

Please let us know what you think in the comments below

Thanks, Bob