Top 3 Trending Coins: EOS Surges Above Key Resistance, BTC Forms Bearish Wedge, XRP Awaits Key Court Ruling

Key Points

  • EOS is the best performing top 50 crypto after surging above resistance with positive network developments cited as boosting sentiment.
  • Bitcoin has formed a bearish wedge, argue some analysts, though another argued that “upward pressure” is “building”.
  • XRP continues to trade flat in the $0.37s ahead of a key court ruling expected later this week.

EOS Network (EOS) Surges, Tops Top 50 Crypto Performance Rankings

EOS, the native token that powers the EOS blockchain, surged on Wednesday after breaking above key resistance in the $1.40 per token area. The cryptocurrency was last changing hands just below $1.60 and up about 14% on the day, making it the best performing top 50 cryptocurrency by market capitalization, having been as high as the $1.66s earlier in the day.

EOS’s bullish momentum run out of steam ahead of its 200-Day Moving Average in the $1.75 area and bulls may now be looking out for a drop back towards the $1.40 area, which is now supported, to buy the dip.

EOS/USD
EOS/USD momentum fades as it approaches its 200DMA. Source: FX Empire

What’s Powering EOS Upside?

Analysts cited two positive developments within the EOS blockchain’s ecosystem as helping power the cryptocurrency’s recent gains. Firstly, the EOS Network Foundation (ENF) that oversees the development of the EOS blockchain recently opened registrations for its upcoming so-called Yield+ incentive program. The program is designed to attract Decentralized Finance (DeFi) applications to the EOS network, putting it in competition with the likes of Ethereum, Solana and Cardano.

Secondly, analysts said that optimism about an upcoming network upgrade in September was also fuelling EOS upside. According to a series of tweets from ENF’s CEO Yves La Rose, the EOS blockchain will undergo a hard fork upgrade on 21 September that will “sever all ties from @B1” (Block.One, the company that originally designed the network). “EOS can finally break through its glass ceiling and reach its full potential,” Yves La Rose said.

Bearish Bitcoin (BTC) Breakout on the Cards?

Bitcoin was last trading broadly unchanged on Wednesday in the upper $23,000s, as it awaits key macro events later in the day. Some technicians have expressed concerns in recent days that Bitcoin may have formed a technical pattern that can be considered bearish and indicative that a drop back under $20,000 could be on the cards. In the past few weeks, Bitcoin has formed a “bearish wedge” pattern, they say. Bearish Wedges and Bearish Flags can be described as a period of consolidation of even a slight rally, but within the confines of an ongoing bear market rally.

BTC/USD
BTC/USD eyes bearish breakout. Source: FX Empire

However, pseudo-anonymous cryptocurrency Twitter analyst dave the wave, who successfully predicted BTC’s collapse in May 2021, argued on Twitter recently that there is “plenty of upward pressure building” in the cryptocurrency. The “weekly MACD [is] about to cross from an oversold position well below the zero-line”, he added, which is “bullish”.

Ripple (XRP) Flatlines Ahead of Macro Events, Important Court Ruling in SEC vs Ripple Case

XRP, the cryptocurrency that powers Ripple’s global payments network, was last trading flat on Wednesday in the $0.37s per token, well within recent intra-day/week ranges. Like other major cryptocurrencies, it awaits key macro events including US Retail Sales data and the Fed minutes later in the day.

XRP/USD
XRP/USD could rally back above $0.40. Source: FX Empire

However, XRP traders are also cautious ahead of a key court ruling expected sometime this week. FX Empire’s head of cryptocurrency analysis Bob Mason, who has been closely following the case, explains that “in late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege”.

Analysts think that comments made by Hinman, a former SEC Chair, if available to use as evidence, could swing the case in favor of Ripple, which stands accused of being unregistered security by the SEC. A positive ruling could quickly send XRP above $0.40 per token.

Cardano Price Prediction: ADA Price Flat Ahead of Key Macro Events, But Bulls Still Target $0.60

Key Points

  • Cardano is flat on Wednesday in the $0.55s as it awaits key upcoming macro events alongside broader crypto markets.
  • Given it remains in a technical uptrend, ADA looks like it could break above $0.60 soon.
  • But a break below the mid-July uptrend and 21DMA could open the door to a drop under $0.50.

ADA Price Rally above $0.60 Still on the Cards

ADA, the native token that powers the Cardano blockchain, was last trading almost bang on flat on Wednesday in the $0.55s per token, taking its cue from a consolidative tone to broader cryptocurrency market trade. Traders are refraining from placing big market bets right now ahead of the release of key US Retail Sales data for July and the minutes of the Fed’s July meeting later in the day.

The data will provide a timely update as to the health of the US consumer at the start of Q3 and, if weak, could reignite debate about whether or not the US economy is in recession. The Fed minutes, meanwhile, will shed light on the central bank’s appetite for further monetary tightening at upcoming meetings, with markets currently split over whether the bank will lift interest rates by 50 or 75 bps at its meeting next month.

If the Retail Sales data is healthy and Fed minutes not too hawkish, this could result in an upturn in sentiment that could lift cryptocurrencies. ADA might, in this bullish scenario, rally back towards its recent highs near the $0.60 level. Technicians have noted that ADA remains in a bullish trend, suggesting a positive near-term technical bias.

Indeed, after its big break above $0.55 resistance last week, many ADA bulls are still expecting the cryptocurrency to eventually reach and test the next major resistance zone in the $0.67-69 area.

ADA/USD
ADA/USD still in a technical uptrend and threatening a move above $0.60. Source: FX Empire

Could ADA Break Lower?

If macro events on Wednesday go badly for crypto (i.e. weak data and a more hawkish tone to the Fed minutes that suggests more aggressive rate hikes at its upcoming meetings), then ADA is at risk of downside. If the cryptocurrency was to break below support in the form of the uptrend from mid-July and its 21-Day Moving Average just under $0.53, then it could quickly tumble back to test its 50DMA just under $0.50. A break below that could reopen the door to a drop back towards $0.40.

ADA/USD
ADA/USD bearish scenario. Source: FX Empire

ADA bulls will be hoping that, at some point, optimism about Cardano’s upcoming Vasil hard fork upgrade, which Cardano founder Charles Hoskinson teased remains on schedule earlier this week, can start to lift the cryptocurrency in the weeks ahead. It is expected to be implemented before the end of the month.

Top 3 Trending Coins: DOGE Steals the Spotlight After 15% Surge, SHIB also Gains as XRP Ranges

Key Points

  • Dogecoin is the best performing top 50 crypto after surging to fresh multi-month highs near $0.09.
  • SHIB is also gaining ground on Tuesday after big gains on Sunday, though bulls continue to struggle with major resistance.
  • XRP remains in wait-and-see mode near its 21DMA in the $0.37 area ahead of an important court ruling.

Dogecoin (DOGE) Bulls Take Control

Dogecoin has broken to the upside on Tuesday and just hit its highest level since early June at $0.080. DOGE was last trading with on-the-day gains of about 15%, making it the best-performing cryptocurrency in the top 50 by market capitalization over the past 24 hours, as per CoinMarketCap.

Dogecoin had experienced significant volatility in the prior two sessions but had been broadly unable to break above resistance around $0.08. Now the level has been convincingly broken, the DOGE bulls are setting their sights on the next key area of resistance in the $0.09 to $0.0960 area. If DOGE can crack above here, its in with a decent shot of returning above $0.10 per token and testing its 200-Day Moving Average at $0.1043.

DOGE/USD
DOGE/USD bulls regain control. Source: FX Empire

Shiba Inu (SHIB) Also Pushes Higher But Struggles With Resistance

Not to be outdone by its slightly larger cousin Dogecoin, fellow dog-inspired memecoin Shiba Inu is also trading with substantial gains on Tuesday. The cryptocurrency was last up close to 7% on the day in the $0.000016 per token area, though is still a fair amount below the multi-month highs it hit near $0.000018 on Sunday.

SHIB has also experienced significant volatility in recent days, after breaking above resistance in the $0.000013 area and surging 33% in one day on Sunday. SHIB is now grappling with profit-taking-related selling pressure as it struggles to get above resistance in the form its January and late April lows in the $0.000017 and $0.0000185 areas respectively, as well as a downtrend from December 2021 and the 200-Day Moving Average at $0.00001791.

A break above this area could trigger an upswing towards the next notable resistance area around $0.00003. But failure could signify that the downtrend since December 2021 has further legs to run and that a drop back to annual lows around $0.000007 is likely.

SHIB/USD
SHIB/USD doesn’t want to be left out. Source: FX Empire

Ripple (XRP) Flat Near its 21DMA as Traders Await Court Decision

XRP, the native token that powers Ripple’s blockchain/payments system, was last trading flat in the last 24 hours in the $0.37 per token area. The cryptocurrency remains in wait-and-see mode ahead of important macro events that could impact cryptocurrency markets broadly, and an important court ruling in the ongoing SEC vs Ripple lawsuit.

The cryptocurrency is for now holding above its 21DMA and an uptrend from mid-July, suggesting that its near-term technical bias remains towards further upside, providing fundamental developments this week also go well. XRP could be in with a shot of once again testing $0.40 and breaking out to fresh multi-week highs.

XRP/USD
XRP/USD remains in wait-and-see mode, but with an upside technical bias. Source: FX Empire

According to FX Empire’s head of cryptocurrency analysis who has been closely following the ongoing SEC vs Ripple lawsuit, Ripple secured another win on Monday. “Judge Netburn ruled in favor of Ripple’s motion to serve non-party subpoenas to authenticate seven videos of SEC officials’ public remarks,” Mason said.

However, “while the ruling was a win for Ripple, the XRP price impact was modest, as investors await a more material ruling,” Mason added. “In late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege,” he explains. A court decision on this objection may come this week.

Analysts think that comments made by Hinman, a former SEC Chair, if available to use as evidence, could swing the case in favor of Ripple, which stands accused of being unregistered security by the SEC.

Cardano Price Prediction: ADA Uptrend Remains Intact as Price Holds At $0.55 Support

Key Points

  • Despite pulling lower from Sunday’s highs near $0.60, Cardano remains in an uptrend.
  • ADA bulls continue to target a near-term push towards key resistance in the $0.67-0.69 area.
  • Cardano founder Hoskinson recently played down the risk of something going wrong with the upcoming Vasil hard fork upgrade.

Cardano Uptrend Remains Intact

After pulling back more than 3% on Monday and dropping as much as 9% back from Sunday’s multi-month highs near $0.60 per token, ADA, the native token of the Cardano blockchain, has stabilized at the key $0.55 support area. The cryptocurrency was last changing hands just under $0.56, with some dip buying seemingly offering support on Tuesday.

ADA still looks very much to be in an uptrend that has seen it rally nearly 40% from its July lows near $0.40 per token. To the downside, it has significant support in the $0.52/0.53 area. Technicians are likely to remain confident that an eventual move to the next bullish target in the $0.67-0.69 area is likely in the coming weeks, amid a lack of significant resistance (aside from Sunday’s high) in the interim.

ADA/USD
ADA/USD bulls target push higher towards $0.67-0.69 area. Source: FX Empire

If Cardano is to break below the uptrend from the July lows, this could open the door to a swift drop back towards the cryptocurrency’s 50-Day Moving Average in the $0.50 area.

ADA/USD
ADA/USD could quickly drop back to $0.50 if it breaks below its recent uptrend. Source: FX Empire

Cardano Founder Hoskinson Says Chances of Vasil Hard Fork Going Wrong Are Low

The chances of something going wrong with Cardano’s upcoming Vasil hard fork are small, the blockchain’s founder Charles Hoskinson said in a video stream via a US crypto conference on Monday. According to Hoskinson, there are just a few so-called “edge cases”, which are anomalies in a system when it is functioning at close to its limits. Hoskinson said that Cardano’s 700 employees were working hard to ensure the upgrade goes ahead smoothly.

Cardano’s Vasil hard fork upgrade, which is set to deliver significant improvements to the blockchain’s capacity and scalability, has been delayed twice in the last two months. It is expected to be finalized and implemented by the end of August/early September.

Cardano at Risk of Profit-taking Induced Drop?

According to crypto analytics firm Santiment, “the ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March”, a possible short-term bearish sign for Cardano. When introducing its so-called “Ratio of Daily On-Chain Transaction Volume in Profit to Loss” back in May, Santiment explained that assets seeing a higher ratio of profit-taking transactions are more likely to experience short-term retracements lower, while a higher ratio of transactions by those in loss positions signals an increased likelihood of a near-term bounce.

Still, Santiment said that “Cardano sentiment is rather positive at the moment”, noting the more than 20% rally in the past three weeks.

Top 3 Trending Coins: SHIB Bulls Eye Breakout to $0.000030, XRP Consolidates Under $0.40 Pre-Court Ruling

Key Points

  • After gaining nearly 34% on Monday after a major technical breakout, SHIB is pulling lower after hitting key resistance.
  • Ripple is consolidating under $0.40, though remains supported by its 21DMA ahead of a key SEC lawsuit court ruling.
  • CEL has been volatile this Monday, hitting new yearly highs above $4.60 before succumbing to profit-taking.

Shiba Inu (SHIB) Runs Into Short-term Resistance as Bulls Target $0.000030

The Shiba Inu bulls took control on Sunday, with SHIB posting a stunning near 34% intra-day gain, its best one-day performance since October 2021. SHIB/USD surged amid technical buying after the cryptocurrency was finally able to rally above key resistance in the $0.00001250-0.00001300 area that it had been probing for the last few weeks.

SHIB nearly reached as high as $0.000018 on Sunday, but after running into a significant area of resistance, has reversed lower on Monday, with the downbeat tone to broader cryptocurrency markets also weighing. SHIB was last trading back in the $0.000015s and down a little over 7% on the day on Monday.

The cryptocurrency was unable to break above its 200-Day Moving Average at $0.00001793, January and late-May lows at the $0.00001714 and $0.00001846 levels, and a downtrend from the December 2021 highs. A short-term dip back towards the $0.000013 resistance area now looks to be on the cards, where dip buyers might once again come in.

SHIB/USD
SHIB/USD rallies after major short-term technical breakout. Source: FX Empire

If SHIB is able to regain composure and advance above the above-mentioned key resistance area, this could open the door to a quick surge back towards the next major area of resistance around $0.000030.

SHIB/USD
SHIB/USD to break out towards $0.000030? Source: FX Empire

Ripple (XRP) Consolidation Continues Ahead of Key Ripple vs SEC Court Ruling

Ahead of what could be a pivotal court ruling this week in the ongoing SEC vs Ripple lawsuit, XRP is in consolidation mode. As has been the case now for the last few weeks, XRP continues to trade just above its 21DMA in the low-$0.37s, while any rallies towards $0.40 continue to be faded.

The cryptocurrency is currently testing an uptrend that has been in play since mid-July. So long as it doesn’t break to the downside of this uptrend, or below its 21DMA, XRP appears to have a chance at rallying back towards $0.40, depending on how things go in court this week.

XRP/USD
XRP/USD consolidates under $0.40 ahead of key court ruling. Source: FX Empire

According to FX Empire’s head of crypto analysis Bob Mason, an important court decision in the ongoing SEC vs Ripple lawsuit that “is likely to dictate the direction of the case” could come this week. As Mason explains, “in late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege”.

Analysts think that comments made by Hinman, a former SEC Chair, if available to use as evidence, could swing the case in favor of Ripple, which stands accused of being unregistered security by the SEC. “We expect investor caution ahead of the Court decision,” FX Empire’s Mason said.

Celsius Network (CEL) Succumbs to Profit-taking in Volatile Trade

CEL, the utility token of the now bankrupt cryptocurrency lending platform Celsius Network, has seen extreme volatility on Monday. In earlier trade, it swung to fresh yearly highs in the $4.60s per token, taking its gains on the month to as much as 320%. Just as quickly as it rallied, it then succumbed to profit-taking and briefly dipped as low as the $2.80s per token, an intra-day peak to trough drop of around 38%.

The cryptocurrency was last changing hands near $3.30, down about 16% in the last 24 hours, making it the worst performing cryptocurrency in the top 100 by market capitalization. Recent price action suggests the short-squeeze of the last few weeks may have already or be close to running its course. Technicians will be eyeing a retest of major downside support levels, like around $2.60 and the long-term downtrend from mid-2021 in the low-$1s.

CEL/USD
Has the CEL/USD short-squeeze run its course? Source: FX Empire

Cardano Price Prediction: ADA Flips XRP, Eyes Push Above $0.60

Key Points

  • After hitting fresh highs since early June near $0.60 over the weekend, Cardano has pulled back alongside broader crypto markets.
  • Weak data out of China is weighing on macro sentiment, though Cardano’s near-term technical bias remains bullish.
  • The cryptocurrency’s market cap has once again surpassed that of Ripple’s.

Cardano (ADA) Primed For 20% Rally?

After nearly surging as high as the $0.60 mark over the weekend, ADA, the native token that powers the Cardano blockchain has since dipped back to trade just above $0.55. Cardano’s latest rally to fresh highs since early June was powered by a technical breakout above key resistance around $0.55, with the cryptocurrency having formed an ascending triangle pattern in recent weeks.

A downbeat tone to global macro risk appetite in wake of concerning Chinese economic data has weighed on cryptocurrency sentiment on Monday, snuffing out ADA’s short-term bullish momentum. But with ADA still very much in an uptrend, traders will likely be looking to buy the dip. If the cryptocurrency pulls back towards its 21-Day Moving Average just above $0.52, this could present such an opportunity.

Over the next few sessions/weeks, technicians suspect that ADA will continue to rally towards its next chart target – the late May/early June highs in the $0.67-0.69 area, which would mark a more than 20% rally from current levels.

ADA/USD
ADA/USD still in an uptrend. Source: FX Empire

Cardano Flips Ripple

In wake of its recent push above the key $0.55 resistance area, Cardano’s market capitalization has surpassed that of Ripple’s, making it the sixth most valuable cryptocurrency in the world after Bitcoin, Ethereum, Tether, USD Coin and BNB, according to CoinMarketCap. Cardano’s market cap was last around $18.7 billion, whilst Ripple’s was around $18.2 billion.

The last time Cardano convincingly flipped Ripple was back in June. Analysts will likely cite optimism about Cardano’s upcoming Vasil hard fork upgrade as a key driver behind its recent outperformance versus Ripple, which remains suppressed amid uncertainty regarding its ongoing legal battle with the US Securities and Exchange Commission (SEC).

In terms of the latest news regarding the Vasil hard fork, the company behind the development of the Cardano blockchain Input Output Global (IOG) gave an update last Friday. According to the tweet, “the whole dev and SPO community… continue to work hard preparing for the Vasil upgrade,” which will bring “multiple enhancements” to the Cardano blockchain.

“The Vasil upgrade is the most ambitious program of work we’ve undertaken,” Input Output Global said, adding that “none of this would have been possible without the community’s support… it’s been a real team effort”. Meanwhile, the popular Cardano influencer Twitter account @cardano_whale also posted an update regarding Vasil hard fork progress.

At the end of the tweet thread, the account told its follower “it’s coming, chill out lol”. Cardano and IOG have received criticism by some of the more impatient members of the crypto community after delaying the Vasil hard fork upgrade twice in the last two months.

Top 3 Trending Coins: CEL Surpasses $4.0 as Short-Squeeze Continues, SOL & MATIC Also Looking Bullish

Key Points

  • CEL briefly surpassed $4.0 per token on Saturday and is up over 230% this month amid an ongoing short squeeze.
  • Solana hit multi-month highs on Saturday above $48 amid bullish momentum after a recent pennant breakout.
  • Polygon is eyeing a push above resistance in the $1.0 per token area.

Celsius Network Token (CEL) Surge Continues As Short-Squeeze Worsens

CEL, the native token of bankrupt cryptocurrency lending platform/exchange Celsius Network, continues to pump higher amid an ongoing, community-led short-squeeze that has seen the token rise over 230% so far this month.

CEL/USD was last changing hands in the mid-$3.0s per token, having briefly surpassed $4.0 per token earlier in the day. CEL’s bull run which is already drawing comparisons to the meme stock rallies of early 2021 really got kicking at the start of this week when the cryptocurrency broke above a long-term downtrend.

News earlier this week that Ripple is in talks to purchase distressed Celsius assets added fuel to the fire. One would suspect that CEL’s upside momentum will peter out at some point, but would be shorters should tread cautiously.

CEL/USD
CEL/USD surges after breaking long-term downtrend at the start of this week. Source: FX Empire

According to CoinMarketCap, CEL is trading with gains of close to 50% in the last 24 hours, making it the best performing cryptocurrency in the top 100 by market capitalization.

Solana (SOL) Rallies on Bullish Pennant Breakout

SOL, the native token the smart-contract enabled Solana blockchain, hit its highest levels since late May on Saturday above the $48 per token mark, though has since fallen back into the $46.00s. Despite the recent profit-taking, the cryptocurrency is still trading around 8.5% higher in the past 24 hours, making it the best performing cryptocurrency in the top 20 by market cap, according to CoinMarketCap.

Solana’s recent upside comes amid a combination of technical buying following a bullish pennant breakout and amid the spillover impact of optimism about the Ethereum blockchain’s upcoming Merge that will see it transition to become a Proof-of-Stake chain, which Solana already is.

SOL/USD
SOL/USD enjoys bullish pennant breakout. Source: FX Empire

Now that the pennant structure has been broken, SOL bulls will likely be eyeing a test of the next significant area of resistance near the $60 level, the high from mid-May.

Polygon (MATIC) Probes Key $1.0 Level

MATIC, the native token of layer-2 Ethereum scaling solution Polygon, was last trading with similar gains in the last 24 hours to Solana, making it the second best performing top 20 cryptocurrency. MATIC is once again probing resistance in the $1.0 area, a break above which could trigger a surge higher towards the next significant resistance area in the $1.30 region.

MATIC/USD
MATIC/USD probes the key $1.0 level. Source: FX Empire

Cardano Price Prediction: ADA Bulls Target $0.67-69 Now That $0.55 Resistance Has Been Broken

Key Points

  • Cardano broke above key resistance at the $0.55 level on Saturday.
  • The latest bullish break opens the door to ADA to run higher towards the $0.67-69 area.
  • Cardano developers continue to make progress towards the so-called Vasil hard fork upgrade.

Cardano Price Prediction: ADA Breaks Above $0.55 Resistance, Opening Door to Further Upside

ADA, the native token that powers the Cardano blockchain broke above a key area of short-term resistance on Saturday, opening the door for significant further upside in the next few days/weeks, so long as the bulls can remain in control. ADA/USD broke above the $0.55 level on Saturday, reaching nearly as high as the $0.57 mark in earlier trade.

At current levels just below $0.56, the cryptocurrency is trading with gains of over 3.0% on the day and more than 7.0% in the last 24 hours, according to CoinMarketCap. $0.55 had been acting as a ceiling for the last few weeks, with technicians arguing that Cardano had formed an ascending triangle.

ADA now seems to have broken to the north of this ascending triangle pattern, opening the door to significant further gains in the short-term, with bulls now likely to target a test of the next major area of resistance in the $0.67-0.69 area. With ADA having been supported by an uptrend since mid-July, as well as by its 21-Day Moving Average (currently around $0.5150), dips in the cryptocurrency are likely to be bought for the foreseeable future.

ADA/USD
ADA/USD breaks above ascending triangle, eyes push higher to $0.67-69 region. Source: FX Empire

IOG Gives Update on Vasil Hard Fork Progress

The company behind the development of the Cardano blockchain Input Output Global (IOG) gave an update on Friday as to its progress towards the implementation of the highly anticipated Vasil hard fork upgrade. According to the tweet, “the whole dev and SPO community… continue to work hard preparing for the Vasil upgrade,” which will bring “multiple enhancements” to the Cardano blockchain.

“The Vasil upgrade is the most ambitious program of work we’ve undertaken,” Input Output Global said, adding that “none of this would have been possible without the community’s support… it’s been a real team effort”.

Cardano influencer Twitter account @cardano_whale also posted a threat updating on the blockchain’s progress. At the end of it, they said “TLDR it’s coming, chill out lol”.

IOG Partners with The Giving Block to Support Ukraine Relief Efforts

The company behind the development of the Cardano blockchain Input Output Global (IOG) has partnered with a charitable organization called The Giving Block in order to allow ADA token owners to donate their tokens to support relief efforts in Ukraine.

 

Top 3 Trending Coins: BTC Bulls Target Push Above $25K as ETH Bulls Target $2K

Key Points

  • Bitcoin is consolidating around $24,000, up over 3% this week as bulls eye a push above the $25,000 resistance area.
  • Ethereum is up closer to 12% this week, near $1,900 as bulls eye a push above the $2,000 mark.
  • Energy Web Token has maintained upside momentum after a positive shoutout from BlackRock.

Bitcoin Bulls Eye Break Above $25,000 Level, Push Back Towards $30,000

At the end of a choppy week that has seen Bitcoin swing between sub-$23,000 and near-$25,000 levels, the world’s largest cryptocurrency by market capitalization is trading flat on Friday near the $24,000 level. Sentiment remains upbeat in cryptocurrency markets amid data this week hinting towards peak inflation in the US – the latest US consumer sentiment survey saw one-year inflation expectations drop to 5% from 5.2%, after data in the prior two days showed a drop in the rates of Consumer and Producer price inflation.

The idea that inflation in the US has now peaked has supported cryptocurrency markets this week as it eases concerns that the Fed will have to get aggressive with rate hikes in the next few quarters in order to get inflation back to its 2% target. At current levels, Bitcoin is on course to end the week more than 3% higher, with the cryptocurrency undoubtedly still in an uptrend, though the $25,000 area appears to be offering strong resistance for now.

The cryptocurrency appears to have formed an ascending triangle in the last few weeks, suggestive that a break higher is on the cards. If Bitcoin can push above its 100-Day Moving Average at $25,060 and the May low at $25,400, the door is open to a swift run higher towards $30,000 and perhaps even to the late May highs in the mid-$32,000s.

BTC/USD
BTC/USD bulls eye push towards $30,000. Source: FX Empire

BlackRock Launches Spot Bitcoin Private Trust

News this week that BlackRock has launched a spot Bitcoin private trust for its US-based institutions, one week after it partnered with Coinbase to offer cryptocurrency trading services to its clients, could be just the sort of catalyst (aside from macro developments) that could help BTC rally in the weeks ahead.

BlackRock said in a post on its website that “despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities”. “Bitcoin is the oldest, largest, and most liquid digital asset and is currently our clients’ primary subject of interest within the digital asset space,” the world’s largest asset manager said.

According to the CEO of Digital Currency Group (which owns Grayscale, CoinDesk and Foundry) Barry Silbert said that the move from BlackRock could be the catalyst for central banks around the world to start investing in Bitcoin.

Ethereum (ETH) Bulls Target $2,000 Level Amid Merge Optimism

Having just missed out on hitting the $2,000 mark on Thursday, ETH, the native token that powers the Ethereum network was last changing hands around $1,900, still up in the region of 12% this week. The world’s second largest cryptocurrency by market cap continues to derive support from optimism about the network’s upcoming “Merge” to Proof-of-Stake (PoS) from Proof-of-Work (PoW) after a successful trial run on one of its major public testnets this week.

In wake of Thursday’s successful Goerli testnet “Merge”, developers are tentatively putting forward dates when the Ethereum mainnet merge to Proof-of-Stake from Proof-of-Work might go ahead. Developers seem to agree that the so-called Bellatrix upgrade, the upgrade that kick-starts the merge process, should go live on 6 September.

Ethereum bulls continue to eye a test of the $2,000 level and then a push above it into the $2,000-$2,200 resistance area just above it. If ETH can push above here in the next few weeks, a test of its 200DMA around $2,260 is likely.

ETH/USD
ETH/USD bulls target $2,000 level and beyond. Source: FX Empire

Energy Web Token (EWT) Boosted After BlackRock Shoutout

Energy Web Token, the native token that powers the Energy Web Chain, saw a more than 30% surge on Thursday and has risen a further 8% on Friday after the project received praise from BlackRock for trying to reduce Bitcoin mining emissions. As mentioned above, BlackRock has launched a private spot Bitcoin fund for its clients.

“BlackRock is encouraged that organizations such as… Energy Web are developing programs to bring greater transparency to sustainable energy usage in bitcoin mining, and will follow progress around those initiatives,” it said earlier in the week. EWT was last changing hands just below $4 per token, having failed an attempt to push above its 200DMA at $4.09 for a second day running.

Indeed, $4 is an important area of resistance for the cryptocurrency. If it is able to push above here, the door could be open for a swift run higher towards resistance in the $6.0-$7.0 area.

EWT/USD
EWT/USD probes 200DMA. Source: FX Empire

Crypto Gamblers: How Are the Firms Who Bet Big in Digital Assets Doing?

Key Points

  • Firms who have made big bets on crypto got burnt in Q2, recent corporate earnings releases have revealed.
  • Coinbase, Block and MicroStrategy all declared significant impairment charges on their crypto investments in Q2.
  • But with crypto’s long-term prospects looking healthy, analysts suspect better times lay ahead.

Crypto Winter Chills Industry

While the cryptocurrency market rally over the past few weeks has lifted spirits, 2022 has so far undoubtedly been an ugly year for the crypto industry. At just under $1.15 trillion, the total market capitalization of cryptocurrency markets is still over 60% down from its November 2021 peaks above $3 trillion. At current levels in the $24,000s, Bitcoin is close to 65% down versus its 2021 highs around $69,000.

The drawdown in prices, largely as a result of a deterioration in macroeconomic factors (elevated inflation forcing central banks like the Fed to pursue aggressive monetary tightening), has had a chilling impact across an increasingly leveraged cryptocurrency space.

The collapse of Terra’s algorithmic stablecoin UST and LUNA token in June resulted in the blow-up of one of the largest crypto hedge funds Three Arrows Capital, which was subsequently followed by a chain of crypto lending services halting withdrawals due to market conditions, the most high profile of which being now bankrupt Celsius Network.

According to court filings made in Celsius’ bankruptcy proceedings, the sharp decline in crypto prices has inflicted a more than $1 billion hole on the company’s balance sheet. But should cryptocurrency prices post a sharp recovery into the year’s end, Celsius could easily see its balance sheet return to the green.

Big Crypto Bets: Are They Paying Off?

A series of publicly traded US crypto firms have been reporting earnings as of late and the picture has, unsurprisingly, been ugly. According to earnings released earlier this week, the largest US-based cryptocurrency exchange Coinbase saw its revenues plunge 61% in Q2 given a sharp decline in trading volumes as well as the decline in prices. Coinbase reported an after-tax loss of $1.1 billion in Q2.

A large portion of this loss was a result of a $446 million impairment charge on its crypto and venture investments. Coinbase is not the only crypto firm to have revealed significant losses on its crypto investments in Q2.

Jack Dorsey’s digital-payments-focused company Block saw profits surge 29% YoY to $1.47 billion in the second quarter. However, the Bitcoin payments side of the business performed poorly. Cash App which supports BTC saw revenues fall 34% YoY to $1.79 billion, with profits coming in at just $41 million.

The company’s quarterly accounts revealed a $36 million impairment charge on its Bitcoin holdings in Q2 and said that it ended the quarter holding Bitcoin worth $160 million (as of 30 June).

Coinbase’s share price is down 65% this year, while Block’s is down 45%.

But Coinbase and Block’s crypto impairment charges pale in comparison with the losses reported by business software development and Bitcoin hodling firm MicroStrategy. The company lost $1.062 billion in Q2, with $917 million of this coming as a result of its paper losses on its Bitcoin holdings.

At the end of Q2, MicroStrategy was holding $1.988 billion worth of Bitcoin (129,699 BTC). Former MicroStrategy CEO Michael Saylor essentially turned the company into a Bitcoin holding vehicle when he announced the company’s first $250 million Bitcoin purchase back in 2020.

He has since stepped down from his role as head of the company in order to take on the role of executive chairman and focus on the firm’s Bitcoin acquisition strategy. MicroStrategy’s share price is down around 37% this year.

Long story short, crypto firms’ big digital asset bets haven’t gone well so far this year. But for most involved, the current cryptocurrency bear market isn’t their first rodeo. Global crypto adoption trends continue to move in a positive direction and regulations that will help crypto become “legit” in key markets like the US, EU and UK seem only a few years away at most.

Business strategists at the likes of Coinbase, Block and MicroStrategy, as well as their investors, will likely remain confident that better times are coming as macroeconomic conditions improve in 2023 and beyond.

Three Signs That May Point to a New Crypto Bull Run

Key Insights:

  • Unlike many bear markets, the crypto bear market came unannounced.
  • In recent weeks, however, signs are emerging of a possible trend reversal and the beginnings of a crypto bull run.
  • Three headwinds plaguing the crypto market since late 2021 appear to be dissipating.

Unlike most bear markets, the crypto bear market came largely unannounced. On November 10, 2021, bitcoin (BTC) struck an all-time high of $68,979, coinciding with the total market cap all-time high of $3,009 billion.

BTCUSD bear run out of gas.
BTCUSD 110822 Daily Chart

Sentiment across the crypto market was bullish, as was the case across the global equity markets. The NASDAQ 100 struck highs of $16,764.85 on November 22, 2021, shortly after the beginnings of the crypto winter.

From the November 10 ATH high of $68,979, BTC tumbled 74.5% to a June 18 and 2022 low of $17,601. The total crypto market cap fell to a June 18 and 2022 low of $762.83 billion.

Crypto Winter
Total Crypto Market Cap 110822 Daily Chart

However, since June 18, bitcoin and the broader market found a comfort zone, despite the crypto market facing numerous headwinds. Headwinds included the fears of a US economic recession, Fed monetary policy, and a likely shift in the crypto regulatory landscape.

In recent weeks, several signs are pointing to a possible bottoming out and the beginnings of a crypto bull run.

Signs of a New Crypto Bull Run Are Flashing Green

The several signs pointing to a possible bottoming out and the beginnings of a crypto bull run include macroeconomic data, monetary policy, and technical indicators.

Macroeconomics

When considering the macroeconomic component, the crypto market has closely tracked the NASDAQ 100 throughout 2022.

NASDAQ Correlation 2022
NASDAQ-Crypto 110822 Daily Chart

Fears of a US economic recession contributed to the bearish trends seen across the crypto market and the NASDAQ 100. In July, the Fed appeared mindful of the economic headwinds, delivering a ‘dovish’ 75-basis point rate hike. While the US economy contracted in the second quarter, recent economic indicators suggest a possible return to growth.

Two key indicators that have delivered hope included US non-farm payrolls and ISM Non-Manufacturing PMI numbers. However, the better-than-expected numbers raised the prospects of a more aggressive Fed interest rate path to bring inflation back to target.

The Federal Reserve Holds the Cards for Crypto Investors

For riskier assets, the missing piece of the jigsaw, from a macroeconomic perspective, was clear evidence of inflation topping out. On Wednesday, US inflationary pressures softened from 9.1% to 8.5%. While still well above the Fed target, the softer numbers mean that the Fed is under less pressure to deliver another 75-basis point hike that could cripple the economy and sink riskier assets.

With the recent downward trend in crude oil prices, the markets are betting on inflation to soften further in the near term. A sense of calm over the US economic outlook and easing market jitters over another 75-basis point rate hike have been behind the shift in investor sentiment.

The SEC, Cryptos, and the SEC v Ripple Case

There is even hope for investors grappling with the possibility of the digital asset space falling under the authority of the SEC. The third and final piece of the jigsaw is chatter on Capitol Hill that favors the Commodity, Futures, and Trading Commission (CFTC) to oversee the digital asset space.

Taking all three components, which contributed to the broader crypto market collapse, the storm clouds appear to be parting. Wednesday was pivotal and may be the catalyst to a crypto bull run. However, investors need to be mindful of what lies ahead.

The Bull Run Curve Balls

From a monetary policy perspective, the Fed has another round of economic indicators to digest before the September FOMC meeting. Weak data and a spike in inflation could unravel the bullish sentiment. Worse yet, upbeat data and a spike in inflation could force the Fed to deliver a percentage point hike.

From a regulatory perspective, the SEC is in a prolonged battle with Ripple. An SEC victory, however unlikely, could give the SEC the authoritative powers to regulate the crypto space. Investors will hope that lawmakers tackle the SEC’s approach to the digital asset space that strangles innovation.

Technical Indicators Are Turning Bullish, Hinting at the Start of a Bull Run

For the technically minded, the BTC 4-hourly chart and EMAs are sending bullish signals.

In response to the US CPI numbers, BTC broke through the 200-day, 100-day, and 50-day EMAs within a single session and currently holds well above the 50-day EMA ($23,442).

Chart, histogram Description automatically generated

While we have previously seen failed breakouts, the US economic indicators support an extended run.

If the storm clouds are parting and the crypto winter is thawing, BTC will need to break out from $25,000 and target $30,000 to convince investors still wary after the crypto crash of 2022 that took numerous exchanges down and others to the brink of bankruptcy.

Chart, line chart Description automatically generated

 

Cardano Price Prediction: ADA Retests Key $0.55 Resistance, Bullish Breakout Becoming Ever More Likely

Key Points 

  • Cardano has seen an impressive rebound from Wednesday’s lows around $0.50, boosted amid soft US inflation data.  
  • The cryptocurrency continues to eye a bullish ascending triangle breakout towards $0.67-69.  
  • One widely followed Cardano influencer argued that daily transactions are set to surge as Cardano’s DeFi ecosystem grows.  

Cardano Rebounds Powerfully from $0.50, Eyes Ascending Triangle Breakout 

ADA, the native token that powers the Cardano blockchain, has seen an impressive bounce in the last 24 hours. The cryptocurrency found strong support when it fell back to test the $0.50 level and its 21-Day Moving Average on Wednesday and has since rallied back to test the key $0.55 resistance area once again on Thursday.  

The cryptocurrency was last changing hands at just under $0.54, having received a boost alongside the broader cryptocurrency market on Wednesday in wake of softer-than-expected US inflation figures for July. This data eased concerns about overly aggressive Fed tightening at upcoming meetings and was a welcome validation of the hypothesis that US inflationary pressures have now peaked.  

ADA/USD
ADA/USD posts an impressive rebound from $0.50, probes $0.55 resistance once again. Source: FX Empire

Cardano continues to threaten a major bullish breakout. The cryptocurrency has formed an ascending triangle since mid-July, consistently posting higher lows, but with $0.55 acting as a ceiling. Such technical patterns often precede a bullish breakout given a “build-up” of buying pressure. If Cardano is able to break above $0.55 in the coming sessions, the door is open for a swift surge towards the next key area of resistance in the $0.67-69 area. Above that, bulls may also target a retest of the significant $0.75 resistance zone, where the 200-Day Moving Average also resides.  

ADA/USD
ADA/USD bulls eye breakout towards $0.67-69 and $0.75 resistance areas. Source: FX Empire

Cardano Transaction Likely to Rise, Argues Cardano Influencer 

The Cardano network is currently processing between 60,000-90,000 transactions per day, according to Messari data. That is substantially lower than some of its competitor blockchains, such as Solana, which processes over 30 million transactions per day. As a result, Cardano has been criticized by its competitors as being a “ghost” blockchain.  

However, as Cardano influencer @cardano_whale argued on Twitter on Thursday, this is likely to substantially rise in the future. According to @cardano_whale, “those who measure adoption purely by network activity… will be shocked as synthetics, stables (stablecoins), lending hit soon,” referring to upcoming Decentralized Finance (DeFi) projects set for release on the Cardano network soon.  

Cardano’s current transaction numbers don’t include activity on these projects and it’s “not hard to see what happens when liquidity of lending is added and trading possibilities (platforms + assets) multiply”. @cardano_whale noted that this growth in daily transactions would be facilitated by growth in the Cardano network’s capacity. The upcoming Vasil hard fork upgrade, expected later this month, is expected to deliver just that.  

In a pushback against criticism of Cardano’s comparatively low daily transaction count, the Twitter influencer pointed out that “coins that claim ridiculously high transactions per day lie and count network overhead, while Cardano’s figures are understated as one UTxO can transfer dozens of tokens”.  

Top 3 Trending Coins: ETH Breaches $1.9K, SOL Eyes Bullish Pennant Breakout, NEAR Probes $6.0

Key Points 

  • Ethereum briefly jumped above $1.9K on Thursday, having surged in the past 24 hours on soft US inflation/merge optimism.  
  • Solana is the best top 20 crypto performer, with bulls eyeing a bullish pennant breakout.  
  • NEAR Protocol has also been in focus after the Coinbase listing announcement.  

Ethereum (ETH) Surges Amid Merge Optimism 

Ethereum continues to be a leader in the broad cryptocurrency market rally, with analysts citing optimism about the Ethereum blockchain’s upcoming “Merge” to Proof-of-Stake this September being behind its outperformance versus other major cryptocurrencies like Bitcoin.  

Indeed, in the early hours of Thursday morning, Ethereum successfully implemented their third and final trail run of the so-called “Merge” on the Goerli public testnet. The successful merge opens the door to a merge of the currently PoW Ethereum Mainnet with the PoS Beacon Chain on 19 September.  

ETH was last changing hands just under $1,900, having briefly surpassed the level earlier in the day to hit its highest point since 1 June near $1,920. ETH/USD is trading over 11% higher in the past 24 hours according to CoinMarketCap, making it one of the best-performing major cryptocurrencies.  

If ETH can clear resistance at $1,920, the door is open for a run higher towards the $2,000 level. There is then a hodge podge of resistance between here and $2,200, which marks the January 2022 lows. ETH dips back towards its 21-Day Moving Average are likely to continue to present a good buying opportunity.    

With macro conditions seemingly having taken a turn for the better this week with US inflation easing more than expected and amid continued optimism about the upcoming Merge, an ETH push above $2,000 seems highly likely. 

ETH/USD
ETH/USD Chart. Source: FX Empire

Solana (SOL) Rebounds, Eyes Bullish Pennant Breakout 

SOL, the native token of Solana, an Ethereum competitor and already functioning PoS blockchain, is the best performing cryptocurrency in the top 20 by market capitalization of the last 24 hours, according to CoinMarketCap. Over this time period, the cryptocurrency was last up around 12%, having found strong support on Wednesday when it tested its 50DMA near $39 and was last changing hands in the $44s.  

SOL/USD has formed a pennant structure in recent weeks and if the broad cryptocurrency market rally continues, an upside break is looking increasingly likely. If SOL can clear resistance around $48, the door would be open for a swift rally back to mid-May highs close to $60 per token.  

SOL/USD
SOL/USD Chart. Source: FX Empire

NEAR Protocol (NEAR) Boosted by Coinbase Listing Announcement 

NEAR, the native token that powers the NEAR Protocol, has rallied alongside the broader cryptocurrency market in the past 24 hours, though also received an added boost from the news that Coinbase Global plans to list the token soon. NEAR/USD jumped 10% on Wednesday to briefly surpass $6 per token for the first time since late May but has since succumbed to profit-taking and fallen back to the $5.80 area.  

Bulls will nonetheless still be eyeing a test of the next major area of resistance around $6.50, as NEAR maintains bullish momentum after breaking above the key $4.70 resistance area last week. A break above $6.50 would then open the door to a test of support turned resistance in the $7.50 area.

NEAR/USD
NEAR/USD Chart. Source: FX Empire

Ethereum Goerli Merge: Everything You Need to Know

Key Points 

  • Ethereum developers run the “Merge” to PoS from PoW on the Goerli testnet on Thursday.  
  • This is the final trial run ahead of the mainnet merge scheduled for 19 September.  
  • Success will give the Mainnet merge the green light and could support an ETH rally.  

What is the Goerli Merge? 

In less than 24 hours, the Ethereum network is set to move one step closer to its most important upgrade ever. The second-largest cryptocurrency by market capitalization has for years been preparing to shift its blockchain consensus mechanism from Proof-of-Work (PoW) to the much less energy intensive and, according to some, more decentralized Proof-of-Stake (PoS).  

The so-called “Merge” to “Ethereum 2.0” is slated to take place on 19 September, senior Ethereum developers hinted last month. But before implementing the “Merge” on Ethereum’s mainnet, developers have one more hurdle to get past.  

Having successfully implemented the transition from PoW to PoS on two of Ethereum’s main testnets in June and July (Ropsten and Sepolia), developers want to implement the merge on one final testnet.  

On Thursday 11 August, Ethereum developers will run the merge on Ethereum’s Goerli testnet. All going well, the mainnet merge will get the go-ahead for 19 September. If there are problems with the Goerli merge, this would likely delay the mainnet merge.  

Ethereum After the Merge 

Ethereum’s merge to PoS is expected to reduce the network’s energy consumption by 99.95%. Whilst Ethereum mining will eventually become a thing of the past as the development team set of the so-called “difficulty bomb” that will eventually make profitable Ethereum mining impossible, Ethereum owners will be able to stake their ETH tokens for a steady return, as happens on other PoS networks.  

Cryptocurrency mining energy consumption is a source of concern for climate-aware investors and regulators across the globe. For example, Bitcoin mining often finds itself in the firing line from US lawmakers who are worried about the network’s large carbon footprint.  

Ethereum’s transition to PoS ought to shield it from this line of attack. Indeed, as crypto attracts further institutional investment in the coming years, Ethereum’s low carbon footprint could be a key differentiator to Bitcoin as the popularity of ESG investing continues to grow. 

Meanwhile, some investors have argued that once Ethereum has transitioned to PoS, it will experience a supply shock as owners lock up their tokens in staking for extended periods of time. For all of the above reasons, Ethereum’s merge has been generally viewed as a bullish development for ETH.  

A successful “Merge” also sets the stage for the next series of major network upgrades, called “Surge”, “Verge”, “Purge” and “Splurge”. At the recent Ethereum Community Conference (EthCC) in Paris, Ethereum co-founder Vitalik Buterin spoke about the upgrade roadmap, which will make Ethereum “a much more scalable system”.  

“By the end, Ethereum will be able to process 100,000 transactions per second,” he said. Ethereum has been criticized in the past for its scalability problems that have resulted in high network (gas) fees and congestion.  

How Might ETH React to the Goerli Merge? 

Ethereum has rallied more than 80% from its mid-July lows near the $1,000 and was last changing hands in the mid-$1,800s. Whilst much of this has been in tandem with a broader cryptocurrency market rally amid an improvement in macro sentiment (Bitcoin is up over 25% since its mid-July lows), analysts have said that anticipation ahead of the merge has been an important tailwind driving ETH higher.  

ETH/USD
ETH/USD rallies 80% from mid-July lows. Source: FX Empire

On 8 June, when Ethereum developers successfully implemented the Ropsten merge, Ethereum barely budged and ended up closing the day around 1% lower. Prices proceeded to decline by nearly 45% that month. Meanwhile, the successful merge of the Sepolia testnet on 7 July only saw ETH prices rally about 4% intra-day, though prices did then end that month over 55% higher.  

ETH/USD
Ethereum Ropsten and Sepolia merges didnt have much impact. Source: FX Empire

So what lessons can be drawn from ETH’s reaction to the last two testnet merges? Probably not that much. At the time of both of the last two testnet merges, macro developments were the main driver of price action in the cryptocurrency space, not Ethereum development fundamentals.  

ETH only really seemed to take notice of the upcoming Merge when senior developer Tim Beiko tentatively put forth an official date for the Mainnet merge to take place this September. Anything that pushes that date back may weigh on ETH in the short-term, such as any hiccups during the Goerli merge on Thursday.

A successful Goerli merge would likely be bullish for ETH. Combined with softer than expected US inflation figures for July that were just released, ETH prices could be in with a shot of hitting $2,000 before the week is out. 

ETH/USD
ETH/USD bulls eye move to $2,000. Source: FX Empire

Ethereum PoW Hard Fork a Threat to Ethereum 2.0? 

Tron founder and owner of crypto exchange Poloniex Exchange Justin Sun has thrown his backing behind a potential hard fork of Ethereum’s Mainnet that would create a new Ethereum blockchain that continues to run on PoW. A hard fork to preserve an Ethereum PoW blockchain is getting a lot of sympathy from the Ethereum mining industry, which generated $620 million in July alone.  

Sun pledged to donate some of the 1 million ETH tokens to the community and developers of any future Ethereum Proof-of-Work hard fork blockchain.  

Poloniex Exchange has already listed two potential forked ETH tokens, ETHS and ETHW. Several other exchanges have also listed the tokens. ETHW was last trading around $80. 

Ethereum co-founder Buterin has played down the impact of any potential PoW hard forks, saying at this week’s Korea Blockchain Week that he doesn’t “expect Ethereum to really be significantly harmed by another fork”. Moreover, Buterin said that he thinks “Ethereum Classic already has a superior community and a superior product for people kind of with those pro-proof-of-work values and preferences”.  

Ethereum Classic is actually the original Ethereum blockchain that never rectified a major hack back in 2016. Ethereum Classic will not be transitioning to PoS in September. ETC Cooperative, the non-profit that supports the development of the Ethereum Classic ecosystem, sent an open letter to well-known Chinese Bitcoin proponent Chandler Guo urging him not to press ahead with plans to create a new PoW fork of the Ethereum blockchain, which he has been campaigning for.  

In a big blow to any future new Ethereum PoW blockchain, the likes of Tether and Circle have thrown their backing behind the Ethereum merge to PoS.  

Any USDT and USDC tokens on a future PoW Ethereum blockchain would be irredeemable for dollars.  

Top 3 Trending Coins: AVAX Bulls Eye Move Above $30 NEXO Targets $1 Level as SOL Flounders

Key Points 

  • Avalanche is the best performing top 20 coin as daily transactions hit a new all-time high.  
  • Nexo is the best performing top 100 coin as customer liabilities on the platform return to growth.  
  • Solana is the top 20 underperformer, with bears eyeing a test of a key uptrend.  

AVAX Bulls Eye Push Back Above $30 as Daily Transactions Hit New ATH 

According to CoinMarketCap, Avalanche is the best performing cryptocurrency in the top 20 by market capitalization on Wednesday and was last trading with gains of around 2.5% in the last 24 hours. News that Avalanche’s daily transaction count just hit a new all-time high (ATH) over 1.5 million could be supporting the cryptocurrency.  

AVAX, the token that powers the Avalanche blockchain, was last changing hands slightly to the north of the $28 level, having reversed an earlier dip below $27. Bulls appeared to buy the dip ahead of a test of support in the form of mid-July highs in the $26.30s.  

AVAX still looks very much to be in an uptrend and, as such, traders will likely be on the lookout for a retest of recent highs above the $30 level, so long as the upcoming release of US Consumer Price Index data doesn’t deliver too substantial a blow to cryptocurrency market sentiment.  

AVAX/USD
AVAX/USD Chart. Source: FX Empire

NEXO Bulls Eye Push Above $1 as Nexo Customer Liabilities Rise 

Elsewhere, crypto lending platform Nexo is the best performing cryptocurrency in the top 100 by market cap over the last 24 hours, according to CoinMarketCap. Over this time period, its NEXO token has risen over 11%. The cryptocurrency was battered in May and June as many of Nexo’s competitors like Celsius Network announced user withdrawal freezes, with Celsius now going through bankruptcy proceedings.  

But Nexo has remained afloat and a recent rise in its customer liabilities is being hailed by some social media users as a bullish sign for the NEXO token. Nexo’s customer liabilities were 186.285K BTC as of 10 August, with its collateral ratio above 100%. According to @EidenHodl, this had been as low as 169K a few weeks ago.  

NEXO was last changing hands just below $0.85, having been in an uptrend since mid-July and having consistently found support at its 21DMA as of late. But NEXO faces a significant hurdle in getting past the $1 level once again. If it is able to manage this, a swift rally into a $1.15-$1.40ish trading range is likely.  

NEXO/USD
NEXO/USD Chart. Source: FX Empire

SOL Lags as Bears Eye Test of Key Uptrend 

Solana is the worst performing cryptocurrency in the top 20 by market capitalization in the last 24 hours on Wednesday, according to CoinMarketCap. Over this time period, SOL, the blockchain’s native token, has shed 6% of its value. At current levels just under $40 per token, SOL is nestled between its 21 and 50DMAs at $38.60 and $40.50.  

The cryptocurrency appears to be eyeing a test of an uptrend from mid-June. A breakdown below the 50DMA and push under this uptrend could see SOL swiftly drop back towards support in the $35 and $32 areas.  

SOL/USD
SOL/USD Chart: FX Empire

Cardano Price Prediction: ADA Tests Key $0.51 Support Zone as Bears Growl Ahead of US CPI Data

Key Points 

  • Cardano has been pulling lower in the last few days and is probing key support ahead of US CPI data. 
  • ADA was last changing hands near $0.51 and still eyeing a bullish ascending triangle breakout towards the $0.67-69 area.  
  • But if the uptrend from mid-July is broken, ADA could quickly fall back to sub-$0.50 levels.  

ADA, the native token that powers the Cardano blockchain, dipped 4.5% on Tuesday amid a broadly downbeat tone to cryptocurrency markets at the time and is down a further 0.5% on Wednesday as traders await the upcoming release of US CPI data for July that could trigger significant near-term volatility in cryptocurrency markets.  

ADA’s latest drop has seen it pull back from recent highs in the $0.55 area and it is now testing a key support area in the $0.51 region. For now, the 21-Day Moving Average at $0.5080 is offering support. Meanwhile, ADA is also seemingly benefitting from some buying interest ahead of an uptrend that has been supporting the price action since mid-July.  

As noted in prior articles, ADA’s technical outlook has been looking bullish as of late, with the cryptocurrency having formed an ascending triangle, with a bullish breakout above $0.55 likely to open the door to a swift rally towards the next major area of resistance in the $0.67-69 area.  

ADA/USD
ADA/USD bulls still hoping for an upside break. Source: FX Empire

However, a downside break of the aforementioned uptrend from mid-July, perhaps triggered if US inflation data comes in hotter than expected, could see ADA/USD slide quickly back under $0.50, below the 50DMA just above $0.48 and onwards towards recent lows in the $0.40 area.  

ADA/USD
ADA/USD also at risk of a downside move. Source: FX Empire

Institutional Investors Add to ADA Bets 

According to CoinShare’s weekly Digital Asset Fund Flows report, digital assets saw a further inflow of $3 million in the week just gone, taking inflows in the last six weeks to $529 million. Whilst Bitcoin saw outflows of around $7.5 million, Ethereum saw inflows of around $16 million, with analysts suggesting heightened investor demand for the cryptocurrency ahead of next month’s Merge.  

Cardano also saw another week of positive inflows of around $200,000, with its blockchain also expected to see a major near-term upgrade. The so-called Vasil hard fork, which is set to drastically improve Cardano’s scalability, is likely to go ahead later this month, with Input Output Global (Cardano’s developer) CEO Charles Hoskinson recently saying he didn’t expect any further delays.  

Cardano Priced Aggressively Ahead of its Vasil Hard Fork  

Cardano is being priced “aggressively” ahead of its Vasil hard fork, cryptocurrency market intelligence firm Messari said in a tweet on Tuesday, noting that the upgrade will “bring significant improvements to Cardano, specifically higher throughput and smart contract enhancements”.  

Messari ranked Cardano alongside a few of its closest competitors including Solana, Algorand and Tezos according to usage and financial metric ratios. While Cardano generates the highest annual revenue out of the aforementioned blockchains of close to $3.7 million and has the highest market capitalization (currently close to $17.3 billion), its active user, transaction and DeFi Trade Value Locked (TVL) multiples suggest the cryptocurrency may be somewhat overpriced.

Cardano’s daily active addresses are just 61,000 to Solana’s 243,000, giving it an active user multiple of 247 versus Solana’s 51, according to Messari. Cardano’s daily transactions clock in at around 62,000 versus Solana’s over 38 million, giving it a transaction multiple of 240 to Solana’s 0.3. Meanwhile, Cardano less than $120 million in TVL gives it a TVL multiple of 127, compared with Solana’s nearly $2.0 billion in TVL and multiple of 6.4.  

Ethereum Goerli Testnet Merge Set To Go Live in 48 Hours

Key Insights:

  • The Ethereum Goerli merge will take place on August 11.
  • Ethereum will transition to proof-of-stake sometime in September.
  • Support for p-hard fork ETH tokens is already appearing.

The second biggest cryptocurrency network in the world is about to witness one of the most significant events of its existence as Ethereum shifts from proof-of-work to proof-of-stake over the next few weeks.

The final testnet merge will occur on August 11 with the Goerli merge.

Ethereum Goerli Testnet Merge

After years of planning and preparation, Ethereum is now just weeks away from the highly anticipated Merge event happening sometime in September.

Before that happens, Goerli, the last of three testnets, will be going through the transition from proof-of-work (PoW) to proof-of-stake (PoS) on August 11.

Goerli Testnet Merge Schedule

If all goes well, a slot height will be chosen for the Bellatrix upgrade on the Beacon Chain mainnet, and eventually, a difficulty value will be set for the Mainnet transition from proof of work to proof of stake.

September 19 is the soft deadline for The Merge. However, the most recent update from the team’s official blog made it clear that this depends upon the success of the Goerli merge.

As long as the testnet transition goes well, the developers will continue with the deployment process bringing Proof of Stake (PoS) to the network.

For the unversed, the arrival of PoS will shift the block generation process from mining to validation, making the network around 99.95% more energy efficient.

Instead of requiring energy-intensive miners to validate transactions on the network, proof-of-stake will enable users to verify transactions by simply staking, or locking-in their ETH on the blockchain.

With miners set to lose out on revenue following the Merge, some prominent crypto members have hinted at a potential hard fork of the Ethereum blockchain.

This would give rise to a PoW Ethereum token which some exchanges have already said they may support.

For example, the founder of Tron and Poloniex Exchange owner, Justin Sun tweeted:

“We currently have more than 1 million ETH. If Ethereum hard fork succeeds, we will donate some forked ETHW to ETHW community and developers to build ethereum ecosystem. (sic)”

However, Ethereum PoW will eventually be completely eradicated from the network as the development team is expected to deploy the difficulty bomb sometime this year.

This bomb will elevate the difficulty of mining a block to inoperable levels incentivising the network to shift to PoS.

This will make Ethereum a Proof of Stake only chain, which will immediately make it less harmful to the environment and more resistant to 51% attacks.

Ethereum on the Charts

As The Merge approaches, investors are considering the impact this event would have on the price action of ETH.

ETH has bounced significantly from its low its June, but still has a long way to go to reach its all-time high back in November 2021.

ETH is currently trading at $1690 at the time of writing, following a trendline towards $2,000.

The price indicators are suggesting the rally will continue, with the Parabolic SAR maintaining an uptrend for almost two weeks now.

The white dots of the indicator have not moved above the candlesticks in a long time, and as long as that continues, ETH will likely continue rising.

This notion is supported also by the Relative Strength Index (RSI) which indicates the rally still has some room to go.

Some selling pressure may come in directly after the Goerli merge as some traders “buy the rumours and sell the news” but overall, ETH looks to be in a good position to continue its current rally.

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.

Top 3 Trending Coins: CEL Breaks Key Long-term Resistance, ZEC Probes 100DMA as LDO Lags

Key Points

  • Bankrupt crypto lending service Celsius Network’s CEL token is the best performing crypto in the top 100 on Monday.
  • Lido DAO’s LDO token is the worst performer in the last 24 hours on Monday.
  • Zcash is eyeing a break higher towards $100 if it can get above near-term resistance.

CEL Hits Key Resistance Around $2 After Breaking Above Key Long-term Downtrend

CEL, the native token issued by now bankrupt cryptocurrency lending platform Celius Network, has surged in the last few days. CEL/USD was last changing hands close to the $2 per token mark, and though it has fallen back from earlier session highs in the $2.14 area, it is still up about 10% on the day and around 68% in the past five sessions.

According to CoinMarketCap, CEL is up around 24% in the last 24 hours, making it the best performing cryptocurrency by market capitalization. CEL’s latest push higher has seen it break above a key area of resistance at $2 and its 200-Day Moving Average around $1.89. The recent bullish momentum appears to have been triggered by a break above a downtrend that had been in play going all the way back to June 2021.

CL/USD
CEL/USD Chart.

This marks a significant technical break. But it remains difficult to see how CEL can make a lasting comeback given Celsius’ bankruptcy. Perhaps if cryptocurrencies/digital assets stage a solid recovery and close the massive hole in Celsius’ balance sheet, putting the company back in the green, then lasting CEL upside is a possibility.

Lido (LDO) Lags

LDO, the native token that powers the Decentralized Finance (DeFi) protocol Lido DAO, was last down around 13% in the last 24 hours, making it the worst performing cryptocurrency in the top 100 by market cap. LDO’s bullish momentum that saw it reach as high as the $2.80s last week, up from under $0.50 as recently as early July, has waned in recent days.

LDO/USD was last changing hands in the $2.20s and eyeing a retest of its 21-Day Moving Average just below $2.10. Below that, the bears are eyeing a retest of resistance-turned-support in the $1.80 area.

LDO/USD
LDO/USD Chart.

Zcash (ZEC) Probes 100DMA

According to CoinMarketCap, Zcash is the best performing top 50 cryptocurrency by market cap in the past 24 hours, up just shy of 6% over this time period. ZEC/USD was last changing hands close to $75 per token, having briefly rallied above $80 earlier in the session, with ZEC currently probing its 100-Day Moving Average at $77.6. If ZEC can surpass resistance in the $82 area, this could open the door for a run higher towards $100 and then onto the 200DMA just under $110.

ZEC/USD
ZEC/USD Chart.

Tornado Cash’s Pain, Zcash’s Gain?

Zcash, a privacy-focused cryptocurrency, could be performing well given the recent news that US regulators have blacklisted crypto transaction anonymity-focused service Tornado Cash, which traders may view as a competitor to Zcash. According to a recent blog post from Electronic Coin Co., the creator of Zcash, the RAND Corporation conducted research into Zcash usage for illicit purposes.

Their research found no evidence of any substantive use of Zcash for money laundering, terrorism financing or trade in illicit goods and services, unlike the claims being leveled against Tornado Cash, which stands accused of helping North Korean hacker group Lazarus. RAND’s report also said that “the governance of Zcash and its branding (are) compliant with the relevant AML/CFT regulations which may make it less susceptible to exploitation for illicit or criminal purposes”.

Cardano Price Prediction: ADA Price Slips After Testing $0.55 Resistance Area

Key Points

  • Cardano on Monday probed key resistance in the $0.55 area, but has since dipped to the $0.53 area.
  • ADA bulls remain confident as the cryptocurrency eyes a bullish ascending triangle breakout.
  • Famous Shark Tank investor Mark Cuban was critical of Cardano in an interview earlier this week.

Cardano Probing Key $0.55 Resistance Area

Cardano has pulled back on Tuesday after coming within a whisker of the $0.55 level on Monday, a level that technicians have marked out as a key area of resistance. The pair was last changing hands in the $0.5330 area, around 1.0% lower in the last 24 hours, according to CoinMarketCap.

ADA/USD
ADA/USD pulls back from $0.55 resistance. Source: FX Empire

Despite Monday’s failure of breaking above $0.55, technicians remain bullish. ADA has spent the last few weeks forming an ascending triangle, with $0.55 acting as the ceiling whilst the cryptocurrency has been consistently posting higher lows since mid-July. Ascending triangle patterns tend to be a precursor for a bullish breakout.

The fact that ADA has this week been able to push and hold above its 100-Day Moving Average is another good sign. If ADA is able to break above the $0.55 level, this could open the door for a swift surge higher to the next area of resistance in the $0.67-69 zone.

ADA/USD
ADA/USD still eyeing ascending triangle breakout. Source: FX Empire

Cardano Flips Binance USD, Now Seventh Largest Cryptocurrency

Cardano’s rise on Monday saw it flip Binance’s USD-pegged stablecoin BUSD to become the seventh largest cryptocurrency in the world by market capitalization. Cardano’s market cap was last around $18.1 billion according to CoinMarketCap, versus Binance USD’s $17.8 billion on Tuesday.

Dogecoin Has More Utility Than Cardano, according to Shark Tank Investor Mark Cuban

Famous Shark Tank investor Mark Cuban was critical of Cardano in an interview earlier this week.

He lambasted the blockchain for failing to see a substantial volume of transactions and fees, which he said is a good bell-weather of success. “I don’t see where Cardano has had much of an impact at all,” he said.

“If the next great application that everyone wants to use is on Cardano and you have to buy ADA… that’s great… But it hasn’t happened yet,” he said. Cuban noted that Cardano’s large market cap isn’t necessarily a sign of the projects success, pointing out that Dogecoin and Shiba Inu also both have large market caps. “I still think Dogecoin has more applications potentially available to it than Cardano”

“The fact that Mark Cuban said DOGE has more application than Cardano should excite ADA holders” as “it illustrates how early (they) are,” Cardano enthusiast Dan Gambardello said on Twitter.

Elsewhere, pseudo-anonymous twitter account @cardano_whale said in a post; “can’t really get mad about Cuban… He doesn’t have a great crypto track record”.

Charles Hoskinson, the CEO of Input Output Global (IOG), the company that develops Cardano, demonstrated his incredulity with the below meme.