How to Minimize Your Risks Investing in Stablecoins

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

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

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

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

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

Things to factor in when investing in stablecoin

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

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

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

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

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

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

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

This example shows how risky algorithmic stablecoins can be.

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

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

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

So, which stablecoins to go for?

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

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

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

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

SEC Fires Back at Ripple with Its Reply on the Hinman Speech Documents

Key Insights:

  • On Wednesday, the SEC filed a reply to support its claim that attorney-client privilege protects internal documents relating to the Hinman speech.
  • Last week, Ripple responded to an SEC brief claiming attorney-client privilege in what has become the focal point of the case.
  • XRP and the markets will now await a court ruling, which could decide the outcome of the SEC case against Ripple.

The SEC v Ripple case has had some pivotal moments in recent months. Yet, the SEC continues to go full circle and revisit court rulings relating to William Hinman’s 2018 speech.

From an SEC perspective, the focus is undeniable. In early May, Ripple defense lawyer Matthew Solomon opposed at least the sixth SEC motion, “filing in opposition to Defendants’ August 10, 2021, motion to compel.”

Solomon stated,

“Since the Defendants filed this motion to compel nearly nine months ago, the Court has twice overruled the SEC’s improper deliberative process privilege objections. Notwithstanding that, and close of fact and expert discovery, the SEC continues to withhold all documents related to a former SEC official’s June 14, 2018 speech.”

The Solomon opposition was in response to a court decision granting the SEC’s request to file a reply brief in connection with the SEC’s attorney-client privilege claims about the Hinman speech documents.

Hinman, former SEC Director of the Division of Corporation Finance, remains a central figure in the SEC v Ripple case.

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

In response to last week’s Ripple reply to the SEC brief, the SEC responded to the Ripple reply overnight.

SEC in an Everlasting Battle to Shield William Hinman’s Speech Documents

On Wednesday, the SEC filed its anticipated reply to support its claim that attorney-client privilege protects Hinman’s speech-related documents.

Defense Attorney James Filan shared the filing on Twitter, saying,

“The SEC has filed its reply in support of its April 29, 2022 letter claiming that the attorney-client privilege protects internal SEC documents relating to Hinman’s speech.”

Salient points from the filing introduction included,

  • Dozens of attorneys across the SEC’s offices and divisions used their legal expertise and knowledge of confidential SEC matters to draft and edit the Speech – something these attorneys could not do in response to a personal, non-work-related request.
  • Therefore, regardless of whether the final Speech contained “personal views,” as opposed to official agency policy, the attorney-client privilege protects the legal advice Director Hinman obtained from SEC counsel during the development of the Speech.

The filing then went on to argue its case, with a focus on four key areas, these being,

  • Director Hinman communicated with SEC staff to obtain their legal advice.
  • Director Hinman and SEC staff were necessarily acting in their official capacities when they drafted and commented on the speech.
  • Disclosure would reveal SEC confidences.
  • The SEC has standing to assert the attorney-client privilege.

In conclusion, the SEC stated,

“The SEC stands ready to submit its proposed redactions for in camera review at the Court’s discretion.”

Both parties and XRP investors will need to await a ruling that could test XRP support near-term.

SEC v Ripple to Dictate XRP Price Action

At the time of writing, XRP was down 0.77% to $0.4018. A mixed start to the day saw XRP rise to an early morning high of $0.4124 before sliding to a low of $0.3916.

This morning’s pullback follows on from a 7.39% slide on Wednesday.

XRP on the back foot after SEC filing.
XRPUSD 190522 Daily Chart

Technical Indicators

XRP will need to move through the $0.4166 pivot to target the First Major Resistance Level at $0.4301. XRP would need broader crypto market support to break out from the morning high of $0.4124.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.4550. The Third Major Resistance Level sits at $0.4935.

Failure to move through the pivot at $0.4166 would bring the First Major Support Level at $0.3915 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.3850. The Second Major Support Level sits at $0.3782.

Failure to move through the pivot would leave XRP under pressure.
XRPUSD 190522 Hourly Chart.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.4427. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, XRP negative.

A move through the 50-day EMA would support a return to $0.50. While sentiment from the broader crypto market will influence, a court ruling on the SEC’s claim of attorney-client privilege will be the key.

near-term XRP price action hinged on court ruling in SEC v Ripple case.
XRPUSD 190522 4-Hourly Chart

PSG Fan Token Surges by 65% as Socios Fan Tokens Buck the Market Trend

Key Insights:

  • French footballing giants Paris Saint-Germain (PSG) saw its fan token surge by 65% on Wednesday.
  • Support for Socios Fan Tokens kicked in on Chili network news updates and listings on Bitpanda.
  • The Socios fan token platform offers forty fan tokens of international football clubs.

PSG Fan Token grabbed the limelight on Wednesday, supported by BitPanda and Chiliz (CHZ) news. In recent weeks, movement across the forty Socios fan tokens has more closely reflected fan sentiment towards team performance and the club.

The European football season is drawing to a nail-biting end, with the English Premier League and Italy’s Serie A yet to have a clear winner.

For the French top flight Ligue 1, star-studded Paris Saint-Germain (PSG) sits an impressive 15 points ahead with one game remaining.

According to CoinGecko, the Paris Saint-Germain leapfrogged Manchester City Fan Token (CITY) to the top of the Fan Token table on Wednesday.

In 7-days, Paris Saint-Germain has surged 132.5% to a market cap of $33.08m, 82% of that came in the last 24-hours.

By contrast, Manchester City Fan Token is up a modest 56.3% to sit at #2, with a market cap of $25.21m.

PSG Jumps to top of table on Bitpanda listing news.
MarketCap Table 19/05

Socios Fan Tokens Get an End of Season Boost

This week, the stars were aligned for football Fan Token holders, with Fan Tokens on a breakout amidst a broader crypto market sell-off.

On Tuesday, Chiliz announced the launch of Scoville Testnet Phase 2. Key feature enhancements include the launch of PepperSwap, a decentralized exchange (DEX), and Fan Token Test Surveys.

For football clubs and fans, the Fan Token Test Survey delivers a mouth-watering prospect. The ultimate goal is for Fan Token holders to vote on club decisions.

 

Last week, Chiliz announced a Head2Head Burn. Head2Head Burn reduces the supply of fan tokens depending on goals scored and the outcome of games.

The introduction of the Head2Head Burn competition means that better-performing teams will see more fan tokens burned. This would push fan token prices upwards, rewarding fan token holders.

The announcement had a muted impact on Fan Token price action, however, as the broader market grappled with the collapse of TerraUSD (UST) and Terra LUNA.

It wasn’t just network news that provided a boost, however.

Bitpanda Announces the Listing of Seven Socios Fan Tokens

For Ligue 1 winners, PSG, fans received the bonus of BitPanda announcing the token listing on Wednesday.

BitPanda also listed Juventus Fan Token (JUV), Atletico De Madrid Fan Token (ATM), Santos FC Fan Token (SANTOS), FC Porto Fan Token (PORTO), FC Barcelona Fan Token (BAR), and Manchester City Fan Token.

Behind PSG, Juve and Santos fans were most responsive, with the fan tokens up 57% and 47% over 24-hours.

Increased fan engagement through the Chiliz network enhancements and BitPanda’s announcement put Fan Tokens in the limelight amidst the crypto market doom and gloom.

Socios Fan Tokens Drive Fan Engagement in the World of Soccer

There are currently forty fan tokens of international clubs under Socios. The fan tokens give holders a say in a club’s decision-making, rewards, and access to exclusive fan token holder promotions, games, chats, and a chance to become a superfan.

Socios fan tokens are on the Chiliz Chain, a Proof-of-Authority Ethereum-based sidechain.

Other teams under Socios include the English Premier League’s Arsenal and Everton and even the Argentinian National Football team.

PSG Price Action

At the time of writing, PSG was down 1.44% to $9.6050. A bullish start to the day saw PSG jump to an early high of $11.55 before hitting reverse.

A move back through to $10.00 levels would signal another breakout day ahead. Near-term, the bulls will be eyeing a run at April’s high of $15.8575.

A PSG return to $10 would signal another breakout on the Chiliz and Bitpanda news.
PSG 190522 Daily Chart

XRP Struggles as the Market Focus Returns to the SEC v Ripple Case

Key Insights:

  • On Tuesday, XRP found support from the broader market to end the day up by 3.6%.
  • The upside came despite bearish sentiment across the crypto market and a pivotal week in the SEC v Ripple case.
  • Later today, the SEC will reply to Ripple’s response to the SEC brief on the William Hinman speech-related documents.

On Tuesday, XRP rose by 3.58%. Partially reversing a 5.68% loss from Monday, XRP ended the day at $0.4372. The upside came in spite of the SEC v Ripple case moving into a pivotal week for both sides.

In recent weeks, court motions and rulings in the SEC v Ripple case have provided XRP with little price support. XRP last tested resistance at $0.45 on May 15, with a day high of $0.449 before the latest pullback to sub-$0.42 levels.

While several motions have gone Ripple’s way, the SEC remains well placed and continues in its attempts to shield William Hinman’s 2018 speech-related documents and emails.

In a 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

William Hinman, former SEC Director of the Division of Corporation Finance, remains a central figure in the SEC v Ripple case.

SEC Due to Respond to Ripple Reply to SEC Brief on Hinman Documents

Last week, Ripple filed a reply to the SEC brief relating to William Hinman’s 2018 speech documents and Attorney-Client Privilege.

A well-worded reply provided XRP price support last week but not by enough to suggest a Ripple victory in sight.

One concern for XRP investors is that the Ripple defense team has opposed at least six SEC motions filed in opposition to Ripple’s August 10, 2021, motion to compel.

Following the August 2021 motion, the court ruled in favor of Ripple on two occasions, and yet, the SEC continues to battle for Attorney-Client Privilege.

The current sequence of responses comes following a court ruling in favor of the SEC, allowing the SEC to file a brief in connection with the SEC’s attorney-client privilege claims regarding the Hinman speech documents.

Today, the SEC is due to respond to Ripple’s reply, after which the court will deliver a ruling. The ruling could prove to be pivotal to the case and XRP price action near-term.

XRP Price Action

At the time of writing, XRP was down 2.24% to $0.4274. A mixed start to the day saw XRP rise to an early morning high of $0.4418 before sliding to a low of $0.4246.

Ripple v SEC updates to influence XRP.
XRPUSD 190522 Daily Chart.

Technical Indicators

XRP will need to move through the $0.4312 pivot to target the First Major Resistance Level at $0.4454. XRP would need broader crypto market support to break out from the morning high of $0.4418.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.4538. The Third Major Resistance Level sits at $0.4763.

Failure to move through the pivot at $0.4312 would bring the First Major Support Level at $0.4229 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.40. The Second Major Support Level at $0.4086 should limit the downside.

XRP struggles this morning.
XRPUSD 180522 Hourly Chart.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.4515. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, XRP negative.

A move through the 50-day EMA would support a return to $0.50. While sentiment from the broader crypto market will influence, this week’s SEC submission and any court ruling will be the key drivers.

A favorable Ripple motion would support an XRP breakout.
XRPUSD 180522 4-Hourly Chart

Getty Images Goes NFT in Partnership with Candy Digital

Key Insights:

  • On Tuesday, Getty Images announced a new partnership with Candy Digital to create a diverse portfolio of NFTs.
  • The Getty Images library consists of more than 465 million images spanning a 170-year history, covering the world of arts, culture, music, world events, and more.
  • Getty Images joins a growing list of big mainstream names to target NFT to drive growth and widen the client base.

NFTs are back in the news following last week’s TerraUSD (UST) meltdown. Founded in March 1995, Getty Images, Inc. is a visual media company and a supplier of stock images, editorial photography, video and music for businesses and consumers.

Since its launch, Getty Images has grown its library of assets to more than 465 million images. These include 135 million analog images. By acquiring older photo agencies, the library covers the last 170 years of history.

With a strong brand and impressive library, Getty Images takes aim at the NFT market.

Getty Images Enters the NFT Space in Partnership with Candy Digital

On Tuesday, Getty Images announced an exclusive partnership with Candy Digital to introduce its very first NFTs.

According to the announcement,

“Getty Images, a preeminent global visual content creator and marketplace, and Candy Digital, the next generation digital collectible company, today announced a new multi-year partnership agreement that makes Candy Digital the exclusive developer and marketplace for Getty Images NFTs.”

The announcement went on to say,

“Through this partnership, Getty Images and Candy Digital will collaborate and develop a diverse portfolio of NFT products and collections derived from Getty Images’ extensive library of more than 465 million images.”

The extensive library consists of more than 135 million analog archival photographs. The general public has never seen many of these images. Getty Images and Candy Digital will release these works in NFTs for people to view and collect.

Getty Images CEO Craig Peters said,

“With the very best content at our core, innovation is woven into the fabric of Getty Images and this partnership speaks to our mission to connect people with our high quality, exclusive visual content.”

Peters added,

“We are proud to work with Candy Digital to expand our offering to the fast-growing global audience of NFT collectors, representing significant opportunities for the company and our global photographer community.”

Getty Images plans to roll out “more than 30 million new digital assets to its platform each year.”

Getty Images joins a growing list of mainstream players to target NFTs. Candy Digital sees an expanding partner list as interest grows.

The NFTs will be minted on the Palm blockchain, an Ethereum (ETH) side-chain.

Earlier this year, the Associated Press entered the NFT space to monetize its journalism.

The Palm NFT Ecosystem Sees Sharp Growth in New Partnerships

For the environmentally conscious, the Palm Network claims to be 99% more efficient than proof-of-work-based blockchain networks.

Palm partners include Warner Brothers, METAMASK, Chainlink (LINK), DC, and Candy Digital.

In 2021, DC partnered with Palm NFT Studio to deliver fans with its first NFT collection. One of the reasons for DC choosing Palm as a partner was its environmentally conscious approach to NFTs.

According to the Warner Brothers announcement,

“Palm shares our environmentally conscious approach to NFTs. Palm’s blockchain provides a 99.99% reduction in energy usage compared with Proof-of-Work systems while enabling DC’s platform to mint millions of NFTs for fans with near zero cost.”

Getty Images could change the landscape by brining a mass audience into the space.

UK Treasury to Selectively Legalize Stablecoins as a Means of Payment

Key Insights:

  • UK Treasury set to legalize stablecoins as a means of payment despite the TerraUSD (UST) collapse.
  • In the wake of the UST collapse, the Treasury plans to legalize fully-backed stablecoins such as Tether (USDT) and USD Coin (USDC).
  • The UK government is looking to drive innovation while other jurisdictions continue to hinder growth in the space.

In April, UK Economic Secretary John Glen announced plans to include stablecoins as a means of payment.

Taking to Twitter, Glen said,

“This places the UK financial services sector at the forefront of technology, creating conditions for stablecoin issuers and service providers to operate and invest.”

Since the April announcement, the Queen gave stablecoins her blessing during the Queen’s Speech at the House of Lords.

Speaking on behalf of the Queen, Prince Charles delivered support for plans to legalize stablecoins as a means of payment.

UK Treasury To Legalize Stablecoins as a Means of Payment

According to a report from the weekend, the UK Treasury plans to legalize stablecoins as a form of payment.

Chancellor Rishi Sunak said it will,

“Ensure the UK financial services industry is always at the forefront of technology and innovation.”

A UK Treasury spokesperson said,

“Legislation to regulate stablecoins, where used as a means of payment, will be part of the Financial Services and Markets Bill, which was announced in the Queen’s speech.”

The news followed a tumultuous week for stablecoins and the crypto market. Stablecoin TerraUSD (UST) saw its dollar peg shatter, with UST falling to a week low of $0.0437 before steadying.

UST to be excluded from Treasury legislation.
USTUSD 160522 Daily Chart

The meltdown left Terra LUNA at close to zero, with $500 billion wiped off the total crypto market cap before support kicked in.

One key difference, however, is government plans to legalize stablecoins fully backed by currency and other liquid asset reserves.  These include Tether (USDT) and USD Coin (USDC).

Stablecoin TerraUSD links to Terra LUNA via an algorithm that failed, leading to a collapse in both.

While TerraUSD and Terra LUNA grabbed the headlines last week, Tether also added to the market stress.

On Thursday, Tether fell to a day low of $0.9511 before returning to close to dollar parity. The fall from parity drove fears of another stablecoin collapse before returning to $0.99 levels. Tether saw a similar move on Sunday, falling to a week low of $0.9408 before steadying.

The markets were less concerned with Sunday’s fall, however,  which was modest compared with a February 28 current-year low of $0.8679.

Treasury to approval USDT as means of payment
USDTUSD 160522 Daily Chart

While the UK looks to legalize stablecoins as a means of payment, US lawmakers appear divided.

US Treasury Secretary Yellen Calls for More Regulatory Oversight

Amidst the crypto market turmoil of last week, US lawmakers delivered a different message on the crypto front.

US Treasury Secretary Janet Yellen called for crypto regulations while noting that dollar-pegged stablecoins have yet to reach a scale “where they’re financial stability concerns.”

SEC Chair Gary Gensler took the opportunity to lay claim on the crypto market rather than support innovation.

As governments and regulators grapple with the need for regulatory oversight and to support innovation, some are more ahead of the curve than others.

Dubai is one jurisdiction that has taken the lead in supporting innovation in the digital space. Earlier this month, Dubai’s virtual assets regulator became the first to enter the Metaverse with a virtual HQ.

Bitcoin (BTC) Falls Back to $30,000 as Regulators Call for Action

Key Insights:

  • On Sunday, Bitcoin (BTC) rose for a third consecutive day to end the week down 8%. It was a seventh consecutive week in the red.
  • While the markets moved on from the TerraUSD and Terra LUNA collapse, there was no major breakout, with regulatory uncertainty returning to the market.
  • Bitcoin (BTC) technical indicators flash red, with bitcoin sitting below the 50-day EMA.

Bitcoin (BTC) rose by 4.15% on Sunday. Following a 2.75% gain on Saturday, bitcoin ended the week down 8% to $31,296.

Investor angst over the TerraUSD (UST) and Terra LUNA eased going into the weekend. Bitcoin tested resistance at the 50-day EMA before a pullback this morning.

While market angst over the Terra collapse eased, increased regulatory chatter is testing investor sentiment.

Regulators React to the UST De-pegging and LUNA Collapse

This week, lawmakers in South Korea talked of the need to expedite the enactment of crypto laws, while looking to consider how other major jurisdictions rollout virtual crypto regulations.

South Korea’s Digital Asset Basic Act is reportedly aimed at protecting investors and is due for enactment next year, with implementation in 2024.

Last week, US Treasury Secretary Janet Yellen and SEC Chair Gary Gensler were vocal on the need for crypto regulations. While Yellen called for crypto regulations, Gensler took the opportunity to, once more, lay claim on the crypto market.

With all eyes on the SEC v Ripple (XRP) case, the issue of whether or not cryptos are securities remains hotly debated.

This Wednesday, the SEC is due to reply to Ripple’s response to the SEC brief attempting to shield William Hinman documents related to a famous 2018 speech.

Hinman said that bitcoin (BTC) and ether (ETH) are not securities in a 2018 speech.

The threat of increased regulatory oversight is just another thing that crypto investors will need to consider.

Other risks include Fed monetary policy and the market fear of a recession that has led to a greater correlation between bitcoin and the NASDAQ.

Bitcoin (BTC) Price Action

At the time of writing, BTC was down 3.25% to $30,279.

A bullish start to the day saw bitcoin rise to a morning high of $31,298 before falling to a low of $30,177. Resistance at the 50-day EMA pegged bitcoin back this morning.

Bitcoin struggles this morning.
BTCUSD 160522 Daily Chart

Technical Indicators

BTC will need to move through the $30,721 pivot to target the First Major Resistance Level at $31,985 and resistance at $32,000.

BTC would need the broader crypto market to support a return to $31,000.

An extended rally would test the Second Major Resistance Level at $32,665 and resistance at $33,000. The Third Major Resistance Level sits at $34,608.

Failure to move through the pivot would test the First Major Support Level at $30,040 and support at $30,000. Barring another extended sell-off, BTC should steer clear of sub-$29,000 levels. The Second Major Support Level sits at $28,777.

Bitcoin struggles as the threat of new regs rises.
BTCUSD 160522 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. BTC sits below the 50-day EMA, currently at $31,339. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; BTC negative.

A move through the 50-day EMA would support a run at $35,000.

Bitcoin fails to break out from the 50-day EMA.
BTCUSD 160522 4 Hourly ChartBitc

Bitcoin (BTC) at Sub-$30,000 Remains a Warning for Crypto Dip Buyers

Key Insights:

  • Bitcoin (BTC) eyes the prospect of two consecutive daily gains after a tumble to sub-$26,000 levels.
  • The TerraUSD (UST) de-pegging and Terra LUNA meltdown have left the crypto market exposed to the threat of a major regulatory overhaul.
  • Bitcoin (BTC) technical indicators flash red, with bitcoin sitting well below the 50-day EMA.

Bitcoin (BTC) rose by 1.14% on Friday, as investors moved on from the TerraUSD (UST) meltdown. Reversing a 0.35% decline from Thursday, bitcoin ended the day at $29,245.

Investor sentiment improved throughout the day as crypto investors responded to Tether’s (USDT) recovery from $0.95 levels.

Market angst over the TerraUSD (UST) dollar peg unraveling left the markets in disarray on Thursday.

USDT moved back to $0.99 levels, however, calming investor sentiment and fears of another stablecoin calamity.

Bitcoin Under Pressure as Fear & Greed Index Falls to Sub-10

This morning, the Fear & Greed Index slipped from 10/100 to 9/100, the lowest level since 8/100 on March 14, 2020.

Fear & Greed 140522

For bitcoin investors, the decline to sub-10/100 is a warning, with several key drivers in play.

These key drivers include investor sentiment towards the US economic outlook and Fed monetary policy.

Barring the impact of the TerraUSD (UST) de-pegging and Terra LUNA implosion on the crypto market, bitcoin correlation with the NASDAQ 100 had undeniably strengthened.

Bitcoin v NASDAQ
BTCNASDAQ 1405 Daily Chart

Bitcoin (BTC) Price Action

At the time of writing, BTC was up 0.84% to $29,489.

A range-bound morning saw BTC rise to an early high of $29,755 before falling to a low of $29,173.

Bitcoin remains at risk of another reversal.
BTCUSD 140522 Daily Chart

Technical Indicators

BTC will need to move through the $29,634 pivot to target the First Major Resistance Level at $30,578 and resistance at $31,500.

BTC would need the broader crypto market to support a return to $30,000.

An extended rally would test the Second Major Resistance Level at $31,904 and resistance at $32,000. The Third Major Resistance Level sits at $34,164.

Failure to move through the pivot would test the First Major Support Level at $28,308. Barring another extended sell-off, BTC should steer clear of sub-$28,000 levels. The Second Major Support Level sits at $27,374.

Bitcoin needs to return to $30,000 to support a move to $32,000.
BTCUSD 140522 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. BTC sits below the 50-day EMA, currently at $31,908. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; BTC negative.

A move through the 50-day EMA would support a run at $35,000.

Bitcoin looks to steady the crypto market.
BTCUSD 140522 4 Hourly Chart.

The Weekly Wrap – Fed Chair Powell Delivered Friday Comfort

The Stats

It was a quiet week on the economic calendar for the week ending May 13, 2022.

A total of 45 stats were monitored, following 62 stats in the week prior.

Of the 45 stats, 20 beat forecasts, with 22 economic indicators falling short of forecast. Three stats were in line with forecasts.

Looking at the numbers, 13 of the stats reflected an upward trend. Of the remaining 32 stats, 30 stats were weaker.

Out of the US

Inflation was back in focus, which caused market turbulence mid-week.

In April, the annual rate of inflation softened from 8.5% to 8.3% versus a forecasted 8.1%. The core annual rate of inflation softened from 6.5% to 6.2%. While softer, inflation was stronger than anticipated, supporting the more hawkish sentiment towards Fed monetary policy.

On Thursday, wholesale inflation also drew attention. In the month of April, the core producer price index increased by 0.4% after a 1.2% rise in March.

Initial jobless claims had a muted impact despite a rise from 202k to 203k in the week ending May-06.

On the monetary policy front, Fed Chair Powell calmed the markets on Friday, assuring that larger rate hikes remained off the table.

In the week ending May 13, 2022, the Dollar Spot Index rose by 0.87% to end the week at 104.563. In the week prior, the Index rose by 0.68% to 103.660.

Out of the UK

GDP and production figures were the main areas of focus in the week.

The stats were Pound negative, with the UK economy contracting in March and production hitting reverse.

In the first quarter, the UK economy grew by 0.8% quarter-on-quarter versus a forecasted 1.00%. The economy expanded by 1.3% in the previous quarter.

Year-on-year, the economy grew by 8.7% versus a forecasted 9.0%. The economy expanded by 6.6% in the fourth quarter of last year. More significantly, the economy contracted by 0.1% in March, after no growth in February.

Production figures also provided little comfort.

 

Production fell by 0.2%, partially offset by construction (+1.7%), with manufacturing production declining by 0.2%.

In the week, the Pound fell by 0.70% to end the week at $1.2262. The Pound tumbled by 1.79% to $1.2348 in the week prior.

The FTSE100 ended the week up 0.41%, partially reversing a 2.08% loss from the previous week.

Out of the Eurozone

ZEW Economic Sentiment figures for Germany and the Eurozone and Eurozone industrial production figures were the key stats.

In May, economic sentiment improved, with Germany’s ZEW Economic Sentiment Index up from -41.0 to -34.3. The Eurozone’s ZEW Economic Sentiment Index climbed from -43.0 to -29.5.

At the end of the week, industrial production disappointed, however.

In March, industrial production fell by 1.8% to test EUR support. Production rose by a modest 0.5% in February.

For the week, the EUR slid by 1.32% to $1.0412. In the previous week, the EUR rose by 0.06% to $1.0551.

The DAX rallied by 2.59%, with the EuroStoxx600 and the CAC40 seeing gains of 0.83% and 1.67%, respectively.

 

For the Loonie

It was a quiet week on the economic data front, leaving the Loonie in the hands of market risk sentiment.

In the week ending May 13, the Loonie fell by 0.42 to C$1.2929 against the greenback. The Loonie slipped by 0.21% to C$1.2875 in the week prior.

Elsewhere

It was a bearish week for the Aussie Dollar and the Kiwi Dollar.

The Aussie Dollar slid by 1.92% to $0.6940, with the Kiwi Dollar tumbling by 2.09% to end the week at $0.6276.

For the Aussie Dollar

Business and consumer confidence numbers disappointed.

In April, the NAB Business Confidence Index fell from 16 to 10. The Westpac Consumer Sentiment Index fell by 5.6% in May, following a 0.90% decline in April.

For the Kiwi Dollar

Electronic card retail sales reversed a 1.3% decline with a 7.0% jump in April. The Business PMI disappointed, however, falling from 53.8 to 51.2.

For the Japanese Yen

Service sector PMI and household spending drew market interest in a quiet week on the data front.

In April, Japan’s services PMI rose from 49.4 to 50.7, up from a prelim 50.5. Service sector activity picked up in response to the government removing remaining COVID-19 restrictions.

Household spending figures disappointed, however. In March, spending slid by 4.1%, following a 2.8% decline in February.

The Japanese Yen rose by 1.03% to end the week at ¥129.22 against the dollar. In the week prior, the Yen ended the week down by 0.66% to ¥130.56.

Out of China

Trade and inflation tested investor appetite for riskier assets.

In April, exports increased by 3.9%, year-on-year, versus a forecasted 3.2% rise. Exports were up 14.7% in March.

The US dollar trade surplus widened from $47.38bn to $51.12bn as imports stalled.

Inflationary pressures picked up in April, with the annual rate of inflation accelerating from 1.5% to 2.1%.

In the week ending May 13, the Chinese Yuan slid by 1.84% to CNY6.7893. The Yuan declined by 0.88% to CNY6.6667 in the week prior.

The Hang Seng Index ended the week down 0.52%, while the CSI300 rose by 2.04%.

Binance Comes Good on Threat and Delists Terra LUNA

Key Insights:

  • On Friday, May 13, Binance delisted Terra (LUNA) and canceled all pending orders.
  • Mid-week, Binance halted LUNA and TerraUSD (UST) withdrawals before warning of a LUNA delisting at sub-0.005USDT.
  • Technical indicators are bearish for BNB, with BNB sitting well below the 50-day.

It has been a tumultuous week for the crypto market. The de-pegging of TerraUSD (UST) from the dollar and a slump to an all-time low of $0.0997 sent Terra (LUNA) into oblivion and forced Binance into action.

The de-pegging and a failed algorithm dragged LUNA to an all-time low of $0.001. Just last month, LUNA had struck an all-time high of $118.03 before this week’s collapse.

Exchanges quickly responded to this week’s sequence of events. On Tuesday, Binance suspended LUNA and UST withdrawals citing network congestion.

The suspension of withdrawals was said to be temporary.

Binance Delists Terra (LUNA) after Fall to sub-0.005USDT

Overnight, Binance announced the delisting of LUNA from the exchange.

According to the announcement,

“Binance will remove and cease trading, close users’ positions, conduct an automatic settlement and cancel all pending orders on the following margin trading pairs at 2022-05-13 00:40 (UTC).

Cross Margin Pairs: LUNA/BUSD, LUNA/USDT, LUNA/BTC

Isolated Margin Pairs: LUNA/BUSD, LUNA/USDT, LUNA/BTC, LUNA/ETH, LUNA/UST.”

The announcement went on to say,

“Binance will remove and cease trading on the following trading pairs at 2022-05-13 00:40 (UTC):

Spot Pairs: LUNA/BTC, LUNA/BIDR, LUNA/AUD, LUNA/BNB, LUNA/ETH, LUNA/USDT, LUNA/GBP, LUNA/BRL, LUNA/TRY, and LUNA/EUR

Binance will remove and cease trading on the following trading pairs at 2022-05-13 00:50 (UTC):

Spot Pairs: BTC/UST, LUNA/UST, ETH/UST, BNB/UST, UST/USDT.”

In addition, Binance also removed and ceased trading on BUSD-Margined Perpetual Contract: LUNA/BUSD.

On Thursday, Binance announced that it would delist LUNA in the event of a fall below 0.005USDT.

For LUNA and UST, the delistings reduce the chance of a meaningful recovery. Early losses this morning, however, support the decision to delist.

At the time of writing, LUNA was down 15.82% to $0.007462.

LUNA troubles continue after Binance delisting.
LUNAUSD 130522 Daily Chart

Things were no better for UST, down 67.91% to $0.1213. UST fell to a new all-time low of $0.0997 before finding modest support.

Hopes of UST repegging to the dollar look limited.
USTUSD 130522 Daily Chart

Despite LUNA and UST’s struggles, the broader crypto market found much-needed support this morning. A bullish session would deliver Binance Coin (BNB) just a third day in positive territory from nine sessions.

BNB Price Action

At the time of writing, BNB was up 10.36% to $295.70. A bullish start to the day saw BNB strike an early morning high of $300.17 before easing back.

The First Major Resistance Level at $299 pegged BNB back.

Binance makes an early move despite LUNA and UST woes
BNBUSD 130522 Daily Chart

Technical Indicators

BNB will need to avoid the day’s $253 pivot to breakout from the First Major Resistance Level at $299. BNB would need broader crypto market support for a return to $320.

An extended rally would test the Second Major Resistance Level at $330. The Third Major Resistance Level sits at $407.

A fall through the pivot would bring the First Major Support Level at $222 into play. Barring another extended sell-off, BNB should avoid sub-$220. The Third Major Support Level sits at $178.

A return to $300 would support a BNB run at $330.
BNBUSD 130522 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. BNB sits below the 50-day EMA, currently at $326. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA; BNB price negative.

A move through the 50-day EMA would support a run at $330.

BNB eyes a move through the 50-day EMA.
BNBUSD 130522 4-Hourly Chart

XRP Returns to sub-$0.40 ahead of Ripple’s Friday Court Date

Key Insights:

  • Risk aversion continued to plague the crypto market, with XRP down 13% this morning.
  • The market angst comes ahead of the next court day in the SEC case against Ripple Lab.
  • Key technical indicators bearish. XRP sits well below the 50-day EMA.

On Wednesday, XRP tumbled by 19.1%. The sell-off came as investors prepare for another Sec v Ripple court date. Reversing a 5.23% gain from Tuesday, XRP ended the day at $0.4152.

A bearish session saw XRP slide to a day low of $0.3655 before a partial recovery to $0.41.

XRP last sat at sub-$0.40 in February 2021, coinciding with the time of the SEC lawsuit against Ripple Lab. XRP fell to a low of $0.1710 on news of the SEC lawsuit.

Crypto market conditions have yet to improve, while XRP investors need to turn attention to the next SEC v Ripple court date.

Ripple Defendants to Reply to the SEC Brief on William Hinman’s Documents

On Friday, Ripple defendants will respond to the SEC’s brief claiming the Hinman documents are protected by the attorney-client privilege.

The Securities and Exchange Commission is then due to respond to Ripple Defendants’ comments on May 18.

For Ripple Lab, a motion against the SEC could wrap up a case that has continued to draw interest since 2020.

Hinman, former SEC Director of the Division of Corporation Finance, is a central figure in the SEC v Ripple case.

By way of background, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities in a 2018 speech. The SEC is looking to shield documents and emails relating to internal discussions and Hinman’s famous speech.

However, William Hinman’s influence on the case goes beyond the famous 2018 speech.

Former SEC Director William Hinman Is a Central Figure for Ripple

Last year, FX Empire reported on Empower Oversight filing a lawsuit against the SEC. The lawsuit claims that former SEC officials were biased against Ripple Lab and XRP in favor of Ethereum.

In January, non-US XRP investors petitioned for an investigation into the SEC’s moves against Ripple Lab. The petition claimed,

The SEC enforcement actions on cryptocurrencies have involved the appearance of improper ties and conflicts of interest among officials, and should be investigated.”

The petition also pointed out that petition attorney John Deaton,

Has compiled evidence that SEC officials may have colluded with outside parties to regulate cryptocurrencies in line with their personal financial interests.”

While the SEC focuses on the Hinman speech documents and emails, the conflict of interest remains another Achilles heel in the SEC’s case.

In April. Empower Oversight shared emails from the SEC ethics office warning hinman of his direct financial interest in Simpson Thacher. Hinman continued to meet with the firm despite the ethics office warnings.

Simpson Thacher forms part of a group that promotes Enterprise Ethereum. Hinman’s 2018 speech caused an ETH spike ahead of the SEC’s lawsuit against Ripple lab that caused a sharp XRP sell-off.

The continued lack of attention on the ethics office emails and alleged conflict of interest has given Empower Oversight cause for more action.

Empower Oversight Calls for Investigation into SEC Ethics Office Failings

On Tuesday, Empower Oversight issued a press release relating to Hinman’s conflict of interest.

According to the announcement,

“Empower Oversight sent a letter to the Office of the Inspector General of the Securities and Exchange Commission (SEC-OIG) requesting a comprehensive review of the SEC’s ethics officials to properly manage SEC official William Hinman’s potential conflict of interest regarding cryptocurrency issues.”

The press release also highlights that Hinman received more than $1.5 million in retirement benefits from Simpson Thacher while under the employment of the SEC. Hinman re-joined Simpson Thacher in 2021.

With the Securities and Exchange Commission under pressure from Empower Oversight, the next 6-days could prove pivotal in the SEC v Ripple case.

XRP Price Action

At the time of writing, XRP was down 13.34% to $0.3598. A mixed start to the day saw XRP rise to an early morning high of $0.4277 before sliding to a low of $0.3545.

Ripple court date to influence XRP.
XRPUSD 120522 Daily Chart

Technical Indicators

XRP will need to move through the $0.4344 pivot to target the First Major Resistance Level at $0.5032. XRP would need broader crypto market support to breakout from $0.45.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.5910 and resistance at $0.60. The Third Major Resistance Level sits at $0.7479.

Failure to move through the pivot would bring the First Major Support Level at $0.3467 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.30. The Second Major Support Level sits at $0.2778.

XRP remains under pressure ahead of Friday's court date.
XRPUSD 120522 Hourly Chart.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.5351. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, XRP negative.

A move through the 50-day EMA would support a return to $0.60.

EMAs send bearish signal for XRP.
XRPUSD 120522 4-Hourly Chart.

Aussie ETFs Go Live Amidst Another Crypto Meltdown

Key Insights:

  • Three Australian crypto exchange-traded funds (ETF) started trading on  Thursday.
  • The launch comes amidst a crypto market meltdown that saw $290 billion wiped out.
  • The Products were due to begin trading on April 27.

Crypto exchange-traded funds (ETF) hit the news this week, as interest in crypto-related products grows. This week, bitcoin and ether investment products hit the Australian market.

The rise in crypto-related products comes despite increased regulatory scrutiny and uncertainty stemming from the ongoing SEC v Ripple case, which could materially impact the crypto market.

This week, regulatory scrutiny intensified due to a crypto market meltdown stemming from the de-pegging of TerraUSD (UST) from the dollar.

On Wednesday, the total crypto market cap fell by $149 billion. The slide left the total market cap down $249 billion for the current week.

Despite the crypto market angst, products continue to go live.

Australian Exchange-Traded Funds Begin Trading after Brief Delay

This morning, three crypto exchange-traded funds went live.

Cosmos Asset Management launched Cosmos-Purpose Bitcoin Access ETF, with ETF Securities behind the launch of 21Shares Bitcoin and ETFS 21Shares Ethereum ETFs.

The three will track the performances of bitcoin (BTC) and ether (ETH).

Cosmos-Purpose Bitcoin Access ETF (CBTC): Provides an investment return (before fees, costs, and tax) that approximately tracks the performance of the USD denominated ETF non-currency hedged units in the Purpose Bitcoin ETF.

The Purpose Bitcoin ETF is quoted on the Toronto Stock Exchange (TSX) and offers investors the opportunity for long-term capital appreciation through the long-term holdings of Bitcoin.

Cosmos Asset Management collaborated with Cboe to launch CBTC.

ETFS 21Shares Bitcoin ETF (EBTC): EBTC tracks the performance of the price of Bitcoin in Australian dollars before fees and expenses. The EBTC benchmark is the ‘CryptoCompare’s Crypto Coin Comparison Aggregated Index (Bitcoin).’

ETFS 21Shares Ethereum ETF (EETH): EETH tracks the performance of the price of ether, which is the native currency of the Ethereum blockchain, in Australian dollars before fees and expenses. The EETH benchmark is the ‘CryptoCompare’s Crypto Coin Comparison Aggregated Index (Ethereum).’

ETF Securities collaborated with 21Shares to deliver the two products to market.

The launch follows the rollout of several crypto-related products in 2022. In April, Fidelity Investments launched a digital asset and a Web3 ETF, with ProShares launching its metaverse-focused ProShares Vers ETF in March.

For investors targeting the new Aussie crypto-linked products, it has been a tough week for the crypto market.

Crypto Market Faces Another Day of Losses on Launch Day

On Wednesday, bitcoin fell by 6.44%. Reversing a 3.11% gain from Tuesday, bitcoin ended the day at $29,017.

At the time of writing, bitcoin was down by 1.17% to $28,677.

Bearish Sentiment hits bitcoin.
BTCUSD 120522 Daily Chart

Ether slid by 11.27% to end the day at $2,078 on Wednesday. On Tuesday, ether found a brief respite, rising by 4.98% before resuming the pullback.

This morning, Ether fell by 3.05% to $2,014, with resistance at $2,000 proving pivotal.

Ether tracks bitcoin into the red.
ETHUSD 120522 Daily Chart.

Both face a possible third daily loss from four sessions after seeing current year lows this week.

Interest in the Aussie launch will likely be high. However, investors may sit on the sidelines until bitcoin and ether show signs of bottoming out.

AC Milan Goes Top of Serie A to Give Fan Token ACM a Boost

Key Insights:

  • AC Milan fan token ACM finds support following a move back to the top of Serie A with two games remaining.
  • By contrast, Inter Milan fan token INTER saw red despite a broad-based crypto rally.
  • ACM and INTER are part of the Socios fan token platform that offers forty fan tokens of international football clubs.

AC Milan fan token ACM could be set for breakout. Interest in European soccer is at its peak, as the seasons for the major leagues near their end. Several leagues draw greater fan interest than others, these include the English Premier League, Italy’s Serie A, and Spain’s La Liga.

Club tokens have proven to be particularly popular in Europe, with some of the world’s most popular football clubs also going Web3 to drive fan engagement.

Interest in European soccer is so significant that clubs have launched NFT collections and even entered the metaverse.

While crypto market volatility has hit fan base tokens, correlations between football club tokens and team performances remain intact.

AC Milan Fan Token ACM Reacts to AC Milan Serie A Victory

On Monday, AC Milan beat Verona 3-1 to go top of the Serie A table with just two games remaining.

AC Milan needed a win to keep rival Inter Milan at bay. Inter beat Empoli 4-2 the previous Friday. With AC Milan holding a 2-point lead with two games remaining, it is AC Milan’s title to lose.

Football fans responded to AC Milan’s victory in a delayed fashion. Monday’s broad-based crypto meltdown left fans on the sidelines before support kicked in on Tuesday.

On Tuesday, AC Millan fan token ACM rose by 3.75%. Partially reversing a 20.8% slump from Monday, ACM ended the day at $4.15.

By contrast, Inter Milan fan token INTER fell by 2.79%. Following a 16.0% slide on Monday, INTER ended the day at $3.83.

While the moves were modest, Tuesday’s divergence reflected fan sentiment towards the likely winner of Serie A.

In April, movements across the respective fan tokens were more pronounced.

Inter Milan Loss Gave AC Milan the Upper Hand in Serie A Title Race

On April 27, Inter Milan lost to Bologna. The loss saw Inter give up its #1 position to AC Milan. The loss also gave AC Milan the upper hand in the Serie A title race.

Inter Milan’s fan token INTER slid by 10.12% to end the day at $6.253.

Inter fan token slides on 270422
Fans react to Inter loss to Bologna.

By contrast, the AC Milan fan token ACM surged as fans responded to AC Milan going to the top of the Serie A with four games remaining.

Following a move to the top of the Serie A table, ACM jumped by 43% to end the day at $6.77.

ACMFC Fan token Spike
On April 27, AC Milan fans react to Inter’s loss.

Socios Fan Tokens Drive Fan Engagement in the World of Soccer

ACM forms one of forty fan tokens of international clubs under Socios. The fan tokens give holders a say in a club’s decision-making, rewards, and access to exclusive fan token holder promotions, games, chats, and a chance to become a superfan.

Socios fan tokens are on the Chiliz Chain (CHZ), a Proof-of-Authority Ethereum-based sidechain.

Other teams under Socios include the English Premier League’s Manchester City, Arsenal and Everton, Paris Saint Germain, FC Barcelona, and even the Argentinian National Football team. According to Socios, an Italian national football team fan token will soon be available.

According to CoinGecko, the fan token market cap stood a $183 million at the time of writing, down 3.9% over the last 24-hours.

Manchester City Football Club ranked first with a market cap of $26.42m despite falling by 40.6% over the last 7-days. Inter ranked sixth, with AC Milan at eight. An AC Milan title could see ACM leapfrog INTER.

ACM Price Action

At the time of writing, ACM was up by 2.31% to $4.24. A bullish start to the day saw ACM rise to an early morning high of $4.37 before easing back.

ACM 110522 Daily

Technical Indicators

ACM will need to avoid the $4.17 pivot to target the First Major Resistance Level at $4.34.

ACM would need the broader crypto market to support a return to $4.30.

An extended rally would test the Second Major Resistance Level at $4.54 and resistance at $4.75 The Third Major Resistance Level sits at $4.91.

A fall through the pivot would test the First Major Support Level at $3.97. Barring another extended sell-off, ACM should steer clear of sub-$3.90 levels. The Second Major Support Level sits at $3.80.

ACM 110522 hourly
Avoiding the pivot would support a breakout session.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. ACM sits below the 50-day EMA, currently at $5.02. This morning, the 50-day pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; ACM negative.

A move through the 50-day EMA would support a run at $5.50.

ACM 110522 4 hourly
EMAs send bearish signal.

Stablecoins Come Under Increased Scrutiny as Lawmakers Highlight Risks

Key Insights:

  • Stablecoins come under increased scrutiny, with U.S. Treasury Secretary Janet Yellen and the Fed highlighting risks to financial stability.
  • The de-pegging of TerraUSD (UST) from the dollar and failure to restore the peg over two days raises concerns on Capitol Hill.
  • Lawmakers may look beyond stablecoins, following this week’s events, to formulate a more robust regulatory framework.

In late 2021, stablecoins came under scrutiny on Capitol Hill. The U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing on stablecoins. An area of focus was their possible impact on financial stability.

This year, stablecoins took more heat. The U.S. House Committee on Financial Services followed up with its own hearing . During the hearing, the U.S. Treasury called for stablecoins to fall under the remit of ‘federally insured depository institutions.’

This week, crypto market activity has reignited the debate over stablecoins and financial stability.

The Federal Reserve Targets Stablecoins in Financial Stability Report

On Monday, the Federal Reserve released its Financial Stability Report, which listed stablecoins under ‘funding risks.’

According to the report,

“Structural vulnerabilities persist at monetary market funds and some other mutual funds, and the rapidly growing stablecoin sector is vulnerable to runs.”

The report added,

“The stablecoin sector continued to grow rapidly and remains exposed to liquidity risks.”

Other key points included,

  • The aggregate value of stablecoins grew rapidly over the past year to more than $180 billion in March 2022.
  • The stablecoin sector remained highly concentrated, with the three largest stablecoin issuers – Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) – constituting more than 80% of the total market value.
  • They typically aim to be convertible, at par, to dollars, but they are backed by assets that may lose value or become illiquid during stress; hence they face redemption risks similar to those of prime and tax-exempt MMFs.
  • These vulnerabilities may be exacerbated by a lack of transparency regarding the risks and liquidity of assets backing such coins.
  • Additionally, the increasing use of stablecoins to meet market requirements for levered trading in other cryptocurrencies may amplify volatility in demand for stablecoins and heighten redemption risks.

The Federal Reserve noted that the President’s Working Group on Financial Markets in conjunction with other groups have made recommendations to address prudential risks posed by stablecoins.

In the Fall of 2021, cryptocurrencies/stablecoins ranked fifth as the most cited potential risks over the next 12 to 18 months.

They ranked behind,

  • Persistent inflation; monetary tightening.
  • COVID-19.
  • China regulatory/property risks.
  • U.S. – China tensions.

In Spring 2022, cryptocurrencies/stablecoins ranked at a lowly twelfth.

FED Stability Report Risks - Stablecoins

The report coincided with the de-pegging of TerraUSD (UST) from the dollar and the resulting impact on Terra (LUNA) and Anchor Protocol (ANC).

UST impact on LUNA
LUNA remains under pressure as a result of UST de-peg.

TerraUSD (UST) De-Pegging from the Dollar Results in More Scrutiny

This week, the TerraUSD (UST) peg shattered, with UST tumbling to a current-year low of $0.6134 on Tuesday. After UST had fallen to $0.7494 on Monday, attempts to restore the peg failed, leading to the late UST slump to $0.61 levels on Tuesday.

News reports of UST’s demise caught the attention of U.S. Treasury Secretary and former Fed Chair Janet Yellen.

Speaking to lawmakers on Capitol Hill, Treasury Secretary Yellen said,

“I would note that there was a report just this morning in the Wall Street Journal that Stablecoin known as TerraUSD experienced a run and had declined in value.”

She added,

“I think that simply illustrates that this is a rapidly growing product and that there are risks to financial stability, and we need a framework that’s appropriate.”

Following the sub-committee hearings in late 2021 and February, more scrutiny is likely.

Whether lawmakers will differentiate between the different types of dollar pegs remains to be seen.

Crypto.com Drives Fan Engagement at Miami Grand Prix Through NFTs

Key Insights:

  • Crypto.com delivers fans an F1 experience at the Miami circuit.
  • Sports continues to be a key focus area for Crypto.com, which is looking to become a top-20 brand name.
  • Mercedes-AMG Petronas and Crypto Exchange FTX also partnered with an NFT drop at the Miami Grand Prix.

This year, crypto exchanges have ramped up activity across a number of sporting disciplines, with Crypto.com among the most active. Other exchanges targeting sport to build brand awareness and gain access to a wider customer base include Binance, Coinbase, and FTX.

With the 2022 Formula 1 season in full swing, the glitz and glamour of F1 reached the shores of Miami over the weekend. Amidst the glitz and glamour, there was also no shortage of crypto presence.

Crypto.com drives fan engagement at the Miami Grand Prix circuit

On Sunday, the inaugural Crypto.com Miami Grand Prix took place, with Red Bull’s Max Verstappen taking the chequered flag.

As the official title partner, Crypto.com delivered on fan engagement. The crypto platform provided a number of opportunities for fans to walk away with non-fungible tokens (NFTs) and more.

Crypto.com offered F1 fans a commemorative Miami race-day NFT via Crypto.com/Miami by signing up to Crypto.com NFT. For those who signed up, there was also “a chance to win a limited-edition NFT of one of the 52 laps from the race.”

Crypto.com announced the chance to win a limited-edition NFT on Twitter.

For fans unable to attend the inaugural Miami Grand Prix, Crypto.com also offered a pair of Paddock Club tickets to F1 Aramco United States Grand Prix 2022 in Austin, Texas.

Crypto.com didn’t stop there, however. There was a Crypto.com #MiamiGP AR filter on Instagram and for fans attending the race, Kinetica.

Crypto.com described Kinetica on Twitter as:

“Kinetica, the world’s first NFT gallery powered by the energy unleashed during the race.”

In February, Miami Grand Prix announced Crypto.com as the official title partner in a nine-year deal.

While Crypto.com enjoyed the first year of its nine-year relationship with the Miami Grand Prix, other crypto platforms were also present on race day.

Crypto exchange FTX partnered with Mercedes-AMG Petronas to deliver Web3 to the Miami Grand Prix.

Despite the success of the Miami Grand Prix, Crypto.com’s native token, Cronos (CRO), faces the prospect of a fifth consecutive day in the red.

CRO price action

At the time of writing, CRO was down 1.76% to $0.2517. A mixed start to the day saw CRO rise to an early morning high of $0.2582, before sliding to a low of $0.2494.

CRO tested the First Major Support Level at $0.2499 early on.

Crypto.com Daily 090522
Daily Chart shows a bearish trend embedded.

Technical indicators

CRO will need to move through the $0.2608 pivot to target the First Major Resistance Level at $0.2670.

Broader market sentiment would need to improve to support a return to $0.26.

In the event of an extended rally, CRO should test the Second Major Resistance Level at $0.2779 and resistance at $0.28. The Third Major Resistance Level sits at $0.2950.

Failure to move through the pivot would bring the First Major Support Level at $0.2499 back into play. Barring another extended sell-off throughout the day, CRO should avoid sub-$0.24. The Second Major Support Level at $0.2437 should limit the downside.

CRO 090522 Hourly
Failure to move through the pivot will leave CRO under pressure.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. CRO sits below the 50-day EMA, currently at $0.2517. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell from the 200-day EMA, CRO negative.

A move through the 50-day EMA would shift market sentiment and support a near-term return to $0.35 levels.

CRO 090522 4-Hourly
EMAs send bearish signals, with CRO sitting well below the 50-day EMA.

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

Key Insights:

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

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

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

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

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

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

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

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

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

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

ALGO Price Action

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

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

Technical Indicators

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

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

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

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

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

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

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

Terra (LUNA) Feels the Force of a Bitcoin Slide to sub-$35,000

Key Insights:

  • Terra (LUNA) tumbled by 12.0% on Saturday, following a Friday 6.1% slide.
  • This week, the Luna Foundation Guard (LFG) purchased an additional $1.5bn in bitcoin, which has stumbled to sub-$35,000.
  • Technical indicators are bearish for LUNA, with LUNA sitting below the 50-day.

On Saturday, Terra (LUNA) slumped by 12.0%. Following a 6.1% slide from Friday and a 4.4% decline on Thursday, LUNA ended the day at $68.07.

Market sentiment towards inflation and Fed monetary policy hit riskier assets on Thursday and Friday. Bearish sentiment spilled over the crypto market, with bitcoin (BTC) sliding to sub-$35,000.

Luna Foundation Guard Bitcoin Holdings Leaves LUNA on the Ropes

This week, the Luna Foundation Guard (LFG) purchased an additional $1.5 billion in BTC.

Do Kwon, co-founder, and CEO of Terra Labs, also announced the $1.5 billion BTC purchase on Twitter, saying,

“LFG acquired 1.5B worth of bitcoin over the last few days.”

Do Kwon went on to tweet,

“Worry not about #Bitcoin – it is a fungible freedom to counter fungible state violence in fiat.”

Adding,

“And its rise will be inevitable as long as humanity yearns to be free.”

 

In February, the LFG created a BTC denominated reserve for TerraUSD (UST), which supported the LUNA rally to an all-time high of $118.03 on March 4.

Bitcoin’s reversal has adversely impacted LUNA in recent days, with LUNA underperforming the broader crypto market. At the time of writing, LUNA is ranked #9 on CoinMarketCap, with Cardano (ADA) now holding the #8 spot.

According to Defi Llama, Terra’s total value locked currently sits at $23.78bn, down 15.8% over 24-hours. Terra’s (LUNA) total market cap at $22.55 billion, however, is down 10.5%, suggesting more LUNA downside.

Defi Llama - Terra TVL

While bitcoin’s fall to sub-$35,000 and TVL divergence has impacted, there is also influence from the UST pegging mechanism to the US dollar.

At the time of writing, UST was up 0.19% to $0.9954. UST fell by 0.57% on Saturday, with UST sliding to a day low of $0.9831 before ending the day at $0.9935.

USTUSD 080522

A UST fall below $1.00 forces the sale of LUNA, adding further downward price pressure on LUNA.

Unlike Tether (USDT), UST’s peg to the US dollar is maintained through algorithms rather than cash and debt reserves.

To support the UST peg at $1, traders sell LUNA for UST when the price of UST sits below $1. This reduces the supply of UST and increases the supply of LUNA. The reduced supply of UST supports a move back towards $1.

LUNA Price Action

At the time of writing, LUNA was down 3.54% to $65.66. A bearish start to the day saw LUNA slide to an early morning low of $61.71. The First Major Support Level at $61.68 delivered early support.

LUNA 080522 Daily
LUNA faces the prospect of sub-$60.

Technical Indicators

LUNA will need to move through the day’s $69.58 pivot to target the First Major Resistance Level at $75.95. LUNA would need broader crypto market support for a return to $70.

An extended rally would test resistance at $80 and the Second Major Resistance Level at $83.85. The Third Major Resistance Level sits at $98.12.

Failure to move through the pivot would bring the First Major Support Level at $61.68 back into play. Barring an extended sell-off, LUNA should steer clear of the Second Major Support Level at $55.30.

LUNA 080522 Hourly
Failure to move through the pivot will leave LUNA under pressure.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. LUNA sits below the 50-day EMA, currently at $80.85. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA; LUNA price negative.

A move through the 50-day EMA would shift near-term sentiment.

080522 4 Hourly
Indicators flash red, with LUNA sitting well below the 50-day EMA.

Bitcoin and ETH Turn Bearish, ADA Near Crucial Juncture

Key Insights:

  • Bitcoin declined 10% and traded below the $37,550 support.
  • Ether (ETH) moved into a bearish zone below $2,755.
  • ADA is testing a crucial support zone near $0.75.

Bitcoin

Recently, bitcoin price saw a sharp bearish reaction below the $39,200 level. The price tumbled below the $38,000 level and the 21 simple moving average (H1).

There was a close below the $37,550 support level and BTC even moved below $36,660. It is now consolidating near the $35,800 level. On the upside, the bulls are facing resistance near the $39,200 level and the 21 simple moving average (H1).

Bitcoin BTC Hourly Chart
BTC Chart by FXEmpire

The first major resistance is near the $36,660 level. A clear move above the $36,660 level could send the price to the main hurdle at $37,550. On the downside, the price might find bids near $35,200. The next major support sits near the $34,500 level, below which there is a risk of a drop to $33,800.

Ethereum (ETH)

ETH also followed a similar pattern after there was a move below $2,850. The price spiked below the $3,755 level and settled below the 21 simple moving average (H1).

It is now consolidating losses near the $2,680 level. On the upside, it is facing resistance near the $2,700 level. The next key barrier is $2,740, a connecting bearish trend line on the hourly chart, and the 21 simple moving average (H1).

Ether ETH Hourly Chart
ETH Chart by FXEmpire

A close above $2,740 might call for a move towards $2,850. If not, ether price might slide below the $2,650 support level. The next key support is near $2,600, below which the bears might aim a test of $2,540.

Cardano (ADA)

Cardano (ADA) started a major decline after it failed to clear the $1.244 and $1.245 resistance levels. There was a steady decline below the $1.10 support level.

The price even settled below the $1.00 level and the 21-day simple moving average. It even dived below $0.855 and tested the main support at $0.750 on the daily chart. Recently, there was a sharp bullish wave from $0.755, but the bears appeared near $0.900.

ADA Daily Chart
ADA Chart by FXEmpire

It is now consolidating near the $0.780 level. If the bears remain in action, the price might slide below the $0.78 and $0.75 support levels. On the upside, the previous support at $0.90 could act as a resistance. A clear move above $0.90 might start a steady increase.

BNB and DOT price

Binance Coin (BNB) dived below the $385 level and even moved below $375. It is now struggling to recover and might test the $362 support zone in the near term.

Polkadot (DOT) declined over 12% and traded below the $15.00 level. It seems like the bears are aiming a move below the $14.00 support zone.

A few trending coins are TRX, ANC, and CRV. Out of these, ANC gained over 5% and surpassed the $2.10 level.

Luna Foundation Guard Announces Purchase of $1.5bn in Bitcoin

Key Insights:

  • Overnight, Terra’s (LUNA) Luna Foundation Guard (LFG) announced a series of Bitcoin (BTC) purchases totaling $1.5bn.
  • The BTC purchases, reportedly over the last few days, came during a choppy time for BTC and the broader crypto market.
  • Technical indicators are bearish for LUNA, with LUNA sitting below the 50-day.

The Luna Foundation Guard (LFG) has been in bitcoin (BTC) purchase mode since it announced plans to hold $10 billion in BTC reserves for TerraUSD (UST). In February, the LFG created a BTC denominated reserve for UST.

UST is pegged to the USD. The pegging mechanism involves the issuance and burning of LUNA tokens. At times when the price of UST sits above $1, users can mint UST by burning LUNA. Burning LUNA then reduces the supply of LUNA, which increases the value of LUNA.

To reach its $10 billion BTC reserve target, the LFG has actively been purchasing BTC. This week, the LFG announced another sizeable purchase.

The Luna Guard Foundation Buys Bitcoin Reserves Totaling $1.5bn in BTC

Overnight, the Luna Foundation Guard (LFG) announced the purchase of another $1.5bn in BTC.

The LFG retweeted several tweets from the media on the latest series of BTC purchases.

According to CNBC,

“The Luna Guard Foundation has acquired $1.5 billion in bitcoin to bolster the reserves of its most popular stablecoin, known as U.S. Terra.”

CNBC went on to say,

“The reserve now holds about $3.5 billion in bitcoin, which puts the UST Forex Reserve in the top 10 bitcoin holders in the world. It also holds north of $100 million in Avalanche, another cryptocurrency.”

According to the report, the LFG purchased $500 million from Three Arrows Capital, a crypto hedge fund. The other $1 billion came from an OTC swap.

 

Do Kwon, co-founder, and CEO of Terra Labs, also announced the $1.5 billion BTC purchase on Twitter, saying,

“LFG acquired 1.5B worth of bitcoin over the last few days.”

 

Do Kwon went on to tweet,

“Worry not about #Bitcoin – it is a fungible freedom to counter fungible state violence in fiat.”

Adding,

“And its rise will be inevitable as long as humanity yearns to be free.”

News of the purchase had a muted impact on LUNA, which succumbed to broader crypto market forces.

LUNA Price Action

At the time of writing, LUNA was down 0.10% to $82.28.

LUNA remains under pressure following Thursday’s 4.43% decline that reversed a 4.46% gain from Wednesday.

On Thursday, market jitters over inflation and Fed monetary policy left LUNA and the broader crypto market in negative territory.

LFG purchase has muted impact on LUNA

Technical Indicators

LUNA will need to move through the day’s $82.92 pivot to target the First Major Resistance Level at $87.27. LUNA would need the broader crypto market to support a breakout from $85.

An extended rally would test resistance at $90 and the Second Major Resistance Level at $92.15. The Third Major Resistance Level sits at $101.38.

Failure to move through the pivot would bring the First Major Support Level at $78.03 into play. Barring an extended sell-off, LUNA should steer clear of sub-$75. The Second Major Support Level sits at $73.69.

LUNA 060522 Hourly
Failure to move through the pivot will leave LUNA under pressure.

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bearish signal. LUNA sits below the 50-day EMA, currently at $84.89. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA; LUNA price negative.

A move through the 50-day EMA would shift near-term sentiment.

LUNA 060522 4 Hourly
Indicators are bearish with LUNA sitting below the 50-day EMA.

Bitcoin and ETH at Make-or-Break Levels, UNI Aims Fresh Surge

Key Insights:

  • Bitcoin gained pace and tested the key $40,000 resistance.
  • Ether (ETH) faced resistance near $2,965 and corrected lower.
  • UNI climbed over 10% and eye a strong reversal above $8.00.

Bitcoin

After a clear move above the $38,800 resistance, bitcoin price started a steady increase. There was a break above the $39,400 resistance zone.

The price even tested the key $40,000 resistance, where the bears appeared. As a result, BTC started a downside correction and declined below $39,400. There was a move below the $39,100 support and the 21 simple moving average (H1).

Bitcoin BTC Hourly Chart
BTC Chart by FXEmpire

Besides, there is a key bearish trend line forming with resistance near $39,450 on the hourly chart. On the downside, there is a major support at $38,750. If the bulls fail to protect $38,750, the price could start a fresh decline.

Ethereum (ETH)

ETH also started a fresh increase above the $2,850 resistance level. The bulls pushed the price above the $2,915 resistance level and the 21 simple moving average (H1).

However, it struggled near $2,965 and there was no test of $3,000. Ether is now correcting gains and trading below $2,900. On the downside, there is a key support near the $2,850 level, below which the price could restart downtrend.

Ether ETH Hourly Chart
ETH Chart by FXEmpire

Conversely, the price might start a fresh increase above the $2,915 resistance. The main barrier is still near $3,000.

Uniswap (UNI)

UNI started a strong decline after it topped near the $12.00 level. The bears pushed the price below the $10.50 and $10.00 support levels.

It even moved below the $8.00 level and the 21-day simple moving average. Finally, there was a spike below the $7.00 level and the price tested the $6.30 zone. Recently, the price started a recovery wave above the $7.00 resistance.

Uniswap (UNI) Daily Chart
UNI Chart by FXEmpire

It gained over 10% and was able to spike above the $7.80 resistance. On the upside, the $8.00 level and a major bearish trend line on the daily chart hold the key for the bulls.

A close above the trend line might start a fresh increase towards the $10.00 resistance. The next major resistance is near the $11.20 level. If there is no upside break, the price could restart decline and test the $7.00 level. The next key support sits at $6.30.

ADA, BNB, and DOT price

Cardano (ADA) surged over 15% and tested the $0.900 resistance. It is now correcting gains and might even test the $0.82 support.

BNB tested the $410 resistance zone, where the bears appeared. The price is correcting lower and could revisit the $388 support zone.

Polkadot (DOT) is holding gains above the $15.00 resistance. A clear move above the $16.20 level may perhaps open the doors for more upsides.

A few trending coins are TRX, ETC, and AXS. Out of these, ETC is gaining pace above the $30.00 resistance zone and might rise further.