Autor Cointelegraph By Yashu Gola

REN price at risk of 50% drop after a bearish trading pattern shows up

REN price at risk of 50% drop after a bearish trading pattern shows up

Uverejnil používateľ | jan 5, 2022 |

The prospects of Ren (REN) continuing its ongoing rebound to fresh highs appear slim as a classic bearish reversal pattern begins to emerge.Dubbed head and shoulders, the setup appears when the price forms three peaks, with the middle peak (called the head) longer than the other two peaks described as the left and right shoulders. The bottoms of these peaks are supported by a neckline.An illustration of the head and shoulders pattern. Source: Corporate Finance InstituteThe pattern comes into play primarily when the price breaks below the neckline in a correction that follows the formation of the right shoulder. That prompts traders to open short entries below the neckline, with their ideal target at a length equal to the distance between the head’s high point and the neckline.What’s behind REN’s current setup?REN has been forming what appears to be an upward sloping head and shoulder pattern, supported by a rising neckline.In detail, REN price rose and declined into a trough around mid-December 2021, forming the left shoulder. Later, it rebounded sharply to create a higher peak — above the highest level of the first shoulder — and then fell all over again. REN has since rebounded again and is now in the process of forming its right shoulder, as shown in the chart below.REN/USD daily price chart featuring H&S setup. Source: TradingViewAs a result, the price of REN may continue its rebound until it completes its right shoulder formation, which could be near the 50-day exponential moving average; the velvet wave, near $0.67. That is because of the wave’s recent history of limiting REN’s price rebounds.Additional sell pressure could also come from the 0.618 Fib line near $0.633 due to its historical relevance as both support and resistance. Overall, a pullback looks likely to happen that would have REN make the right shoulder. Meanwhile, a correction towards the neckline, followed by a break below it, would confirm the head and shoulder setup.In doing so, the move may shift REN’s downside target to $0.30, measured after adding the distance between the head’s high and the neckline to the breakout point. That is around 50% below the current trading price at $0.59.The long-term outlook is still bullishREN’s head and shoulder setup comes as a part of a wider price correction that has seen the token shed nearly 70% of its value from a record high near $1.92 in Feb. 2021.On a longer-timeframe chart, REN appears to have been only consolidating inside a giant symmetrical triangle, suggesting that its correction toward $0.30 may end up causing a rebound toward $1.20.REN/USD weekly price chart featuring a symmetrical triangle. Source: TradingViewBullish cues for REN may also come from the growth of its backer of the same name. Ren’s core product, RenVM, brings interoperability to the decentralized finance ecosystem (DeFi). It holds users’ digital assets as they move between blockchains using zero-knowledge proofs over an sMPC based protocol.Related: 3 reasons why REN price is up 340% from its July swing lowREN acts as a bond to run the so-called Darknodes that power RenVM’s sMPC network. Those who deposit 100,000 REN are able to run these Darknodes and as a result, are able to earn rewards in Bitcoin (BTC), Ether (ETH), Zcash (ZEC), and other tokens.The total value locked (TVL) of the digital assets minted on all chains — which includes Ethereum, Binance Smart Chain, Solana, Polygon, Fantom, Avalanche, and Arbitrum — by RenVM came out to be $1.05 billion at press time compared to $6.6 million in June 2021. Multi-year history of volume and total value locked in RenVM. Source: Highcharts.comMeanwhile, the total amount of volume transacting through RenVM on all chains reached an all-time high of $8.89 billion on January 4th, 2022. That shows a steady increase in the Ren network’s adoption, thus boosting the upside prospects of REN token.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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3 reasons why Ethereum can reach $5,000 in Q1

3 reasons why Ethereum can reach $5,000 in Q1

Uverejnil používateľ | jan 4, 2022 |

Ethereum’s native token Ether (ETH) has plunged by more than 20% after establishing its record high at around $4,867 on Nov. 10, 2021. Nonetheless, the sharp price pullback does not mean ETH can’t pursue a new record high in the next few months, as several widely-tracked technical, macroeconomic and on-chain indicators suggest. One of these indicators envisions Ether’s price reaching $5,000 in the first quarter of 2022 while others look are poised to support the bullish bias.ETH price painting falling wedgeEther’s recent price correction is painting a potential classic bullish reversal pattern known as “falling wedge.”In detail, falling wedges begin wide at the top but contract as the price moves lower. As a result, the price action forms a conical shape that trends lower as the reaction highs and reaction lows converge. Traders realize a bullish bias only after the price decisively breaks above the wedge’s resistance.As a result, expectations remain high that the ETH price would break above its falling wedge resistance in the coming sessions. In doing so, it would rise by as much as the maximum distance between the wedge’s upper and lower trendline when measured from the breakout point. Literally unchanged…$ETH is going to $5k pic.twitter.com/11mAQiJxJS— Kong Trading (@KongBTC) January 4, 2022That roughly puts the price target for Ether at $5,000.ETH deposits to exchanges dropTraders typically move their tokens to exchanges when they intend to sell/trade them for either fiat, stablecoins or other cryptocurrencies. Generally, a higher number of transactions made to crypto trading platforms reflects a high selling sentiment in the market. Conversely, if the token transactions plunge, they show a strong holding sentiment in the market.Data collected by blockchain analytics service Glassnode show that the number of on-chain Ether deposits to exchanges dropped to its 23-month low on Jan. 3.ETH number of exchange deposits. Source: GlassnodeAdditionally, another Glassnode metric that tracks the number of Ether addresses sending ETH to exchanges also reported declines over the last 30 days, the same period that saw the ETH/USD rate dropping nearly 11%.Ethereum number of addresses sending to exchanges. Source: GlassnodeMeanwhile, the total Ether balance across all the exchanges has been in a downtrend since Aug. 2020, suggesting that ETH investors are in it for the long haul as its price rose from nearly $400 to a little over $3,800 in the same period.Ethereum balance on exchanges. Source: GlassnodeCheap money here to stay? Ether’s $1,000-plus plunge from Nov. 2021 to date came majorly in the wake of the Federal Reserve’s hawkish turn.The U.S. central bank decided to accelerate the unwinding of its $120 billion a month asset purchase program, followed by three rate hikes in 2022 from its near-zero levels, to stem rising inflation. Its loose monetary policy was one of the primary catalysts behind similar price rallies across Ethereum, Bitcoin (BTC) and other crypto markets.ETH/USD and BTC/USD weekly price chart. Source: TradingViewBut the Fed’s efforts to tame inflation from its current 6.8% level with three rate hikes may not impact Bitcoin and Ethereum prices in the long run. For example, Antoni Trenchev, managing partner of crypto lender Nexo believes that cheap money is here to stay. “The No. 1 influencing factor for Bitcoin and cryptocurrencies in 2022 is central bank policy,” he told Bloomberg. He added:“Cheap money is here to stay, which has huge implications for crypto. The Fed doesn’t have the stomach or backbone to withstand a 10%–20% collapse in the stock market, along with an adverse reaction in the bond market.”Hungarian-born billionaire Thomas Peterffy also said that investors should allocate at least 2%–3% of their net portfolio to cryptocurrencies like BTC and ETH in case the fiat money “goes to hell.” Related: More billionaires turning to crypto on fiat inflation fearsAdditionally, Bridgewater Associates founder Ray Dalio revealed that he has been holding BTC and ETH in his portfolio against the risks of cash devaluation led by higher inflation.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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This key trading pattern hints at the continuation of Fantom’s (FTM) 125% rebound

This key trading pattern hints at the continuation of Fantom’s (FTM) 125% rebound

Uverejnil používateľ | jan 4, 2022 |

Fantom (FTM) looks poised to hit a new record high in the coming sessions after its 125% price rebound from $1.23 on Dec. 14, 2021, to $2.84 on Jan. 3, 2022 triggered a classic bullish reversal setup. Dubbed inverse head and shoulders (IH&S), the setup appears when an asset forms three troughs below a so-called neckline resistance, with the middle trough (the head) deeper than the left and right shoulder. The price of FTM has recently undergone a similar price trajectory, as shown in the chart below. As a result, FTM has a common resistance in the range defined by $2.55 to $2.74, which encompasses the length of the inverse head and shoulders pattern.FTM/USD daily price chart featuring inverse head and shoulders pattern. Source: TradingViewCould Fantom rally by another 50%?In a perfect world, an IH&S pattern would normally result in a bullish breakout once the price closes decisively above the neckline level. Ideally, the upside target be equal to the maximum distance between the head and the neckline, when measured from the breakout point.On Monday, FTM almost completed its IH&S formation by reaching its neckline. As a result, the Fantom token’s next move could be a bullish breakout above the $2.55 to $2.74 resistance range. In doing so, it would pursue a run-up toward $4.33, based on the setup presented in the chart below.FTM/USD daily price chart featuring the IH&S’s breakout setup. Source: TradingViewA sharp price pullback from the neckline range, accompanied by a spike in volume, would risk invalidating the IH&S setup. In that case, the next ideal support line may come near $2.08. This would be based on FTM’s volume profile visible range (VPVR), a metric that displays trading activity over a specified period at specified price levels.FTM/USD daily price chart featuring volume profile target. Source: TradingViewAre there risks of overvaluation?Downside risks in the Fantom market also appeared in the form of its relative strength index (RSI), a metric that measures the magnitude of the asset’s recent price changes to evaluate its overbought or oversold conditions.Relative Strength Index in a nutshell. Source: InvestopediaIn detail, FTM’s daily RSI entered an overbought territory on Jan. 3 as its reading marginally jumped above 70. The technical indicator suggests FTM is overbought and that it should undergo a certain degree of correction to neutralize its market sentiment. In layman’s terms, an RSI reading above 70 is usually seen as a signal to sell. However, the sell-offs typically do not necessarily come right after RSI jumps into the overbought zone.Related: 5 cryptocurrency projects that made waves in 2021Based on multiple RSI corrections spotted between August and September 2021, the FTM price appears to extend its upside momentum even after the indicator crosses above 70. At its best, the daily RSI had reached almost 89 on Sep. 9, coinciding with the FTM price hitting the then-record high of $1.99.FTM/USD daily price chart featuring RSI-led corrections. Source: TradingViewThat somewhat leaves FTM with the possibility of pursuing its IH&S profit target of $4.33 despite its overvaluation risks. What could follow is a correction towards its 20-day exponential moving average (20-day EMA; the green wave in the chart above) around $2.09.This would bring the price near to the VPVR support at $2.08, as discussed above.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Yearn.finance risks pullback after YFI price gains 100% in less than 3 weeks

Yearn.finance risks pullback after YFI price gains 100% in less than 3 weeks

Uverejnil používateľ | jan 3, 2022 |

Yearn.finance (YFI) looks poised for a price correction after rising five days in a row to approach $42,000. Notably, an absence of enough buying volume coupled with overbought risks is behind the bearish outlook.The YFI price rally so farYFI’s price surged by a little over 47% in five days to $41,970 as traders rotated capital out of “top-cap” cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) and looked for short-term opportunities in the altcoin market. #DeFi assets are showing some nice signs of growth to kick off 2022. $YFI, $UNI, and $AAVE are all ticking up nicely thus far with the first Monday of the year looking #bullish for several #altcoins. https://t.co/8ujolCvt5z pic.twitter.com/ASpf1dUbtn— Santiment (@santimentfeed) January 3, 2022Yearn.finance was among the beneficiary of the so-called capital migration, given its value against BTC and ETH rose almost 47% and 41.50%, respectively, in just five days. Meanwhile, at the core of traders’ sudden buying interest in the YFI markets was a token buyback program.YFI/ETH and YFI/BTC daily price performances after token buyback program announcement. Source: TradingViewOn Dec. 16, the Yearn.finance team announced that it had purchased more than $7.5 million worth of YFI tokens from the open market at an average price of $26,651 per unit. It also revealed $45 million extra cash in its treasury that it would use to continue its YFI buyback spree.Additionally, the Yearn.finance community also proposed that the YFI treasury direct a portion of the token buyback to reward YFI holders who actively participate in Yearn Governance. The proposal (full details here) is currently in its voting phase.1/8Since the cat is out of the bag here:-Yearn has started massively buying back YFI.-They are revisiting their tokenomics to do a fee distribution to holders, currently looking at veCRV model and xSushi models.-The ratios are insane. https://t.co/CzuHhbNuhx— Adam Cochran (@adamscochran) December 16, 2021

YFI’s price surged by more than 100% against the United States dollar after the token buyback announcement.YFI’s price correction risksHowever, YFI’s trading volume fell despite the rally, suggesting the low conviction among traders in its upward movement. YFI/USD daily price chart featuring price-volume divergence. Source: TradingViewTypically, a bearish divergence between price and volume leads to either correction or consolidation until conviction increases. As a result, the likelihood of YFI at least pausing its ongoing price rally is high, with its daily relative strength index also entering its overbought zone above 70, a sell signal.Related: YFI price gains 46% in just four days after Yearn.finance’s $7.5M buybackAdditionally, the Yearn.finance token’s latest price rally has brought it closer to a known inflection zone near $40,000, as shown via the Fibonacci retracement graph in the chart below.YFI/USD three-day price chart featuring Fib entry and exit levels. Source: TradingViewIn detail, the 0.618 Fib line near $40,113 has been limiting YFI’s upside intraday attempts. The same level was instrumental in stopping the token’s price rally between October and November, which later led YFI’s price to its 12-month low near $17,000.Nonetheless, if bulls manage to push YFI’s price above the 0.618 line decisively, they may also take the token out of its multi-month range defined by about $25,500 as support and $40,000 as resistance. In that scenario, YFI’s next upside target may move toward the 0.5 Fib line around $51,000.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Little forkers: BCH and BSV get crushed by Bitcoin price in 2021

Little forkers: BCH and BSV get crushed by Bitcoin price in 2021

Uverejnil používateľ | dec 30, 2021 |

Bitcoin (BTC) looks set to beat its forked versions Bitcoin Cash (BCH) and Bitcoin SV (BSV) in terms of price-performance in 2021, market data shows.Notably, BTC’s year-to-date (YTD) returns sat near 60% at press time as its price wobbled near $47,500. In comparison, BCH rallied a little over 26% to $435.50, while the BSV price plunged over 25% to $122.30 in the same period.But the biggest takeaway remained the performance of Bitcoin Cash and Bitcoin SV against Bitcoin. In detail, the BCH/BTC rate declined over 22.50% YTD to 0.00916. Meanwhile, BSV/BTC dipped by nearly 55% YTD to 0.00258 BTC, signaling capital rotations out of Bitcoin forks.BCH/BTC and BSV/BTC daily candle price chart. Source: TradingViewMarket dominanceAdditionally, forked Bitcoin tokens — once counted among the top-ten cryptos by market capitalization — lost their positions to the emerging layer-one blockchain projects. Notably, the arrival of Solana (SOL), Cardano (ADA), Terra (LUNA), Avalanche (AVAX), and other protocols opened more avenues for crypto traders to park their money. On the other hand, Bitcoin Cash’s and Bitcoin SV’s main selling point remained claims of greater scalability, which didn’t gain traction with investors as Bitcoin’s transaction fees fell by over 50% this year. Performance of top 25 crypto assets as of Dec. 30, 1330 UTC. Source: MessariThat resulted in a decline in the market dominance of both Bitcoin Cash and Bitcoin SV. While the BCH’s share in the entire crypto market slipped to 0.37% from 0.84% at the beginning of this year, the BSV’s market portion also declined to 0.10% from 0.40% in the same period.Bitcoin, whose market dominance also slipped from 70% to under 40%, performed better than Bitcoin Cash and Bitcoin SV, nonetheless. That is primarily because of its rising adoption among retail and institutional investors as they searched for safe-havens against the central banks’ inflation-friendly loose monetary policies.Inflation keeps rising, debt keeps rising, interest rates near zero, and in some countries negative…Yeah, feels good to be a #bitcoin holder!— Lark Davis (@TheCryptoLark) December 19, 2021Abysmal development dataBitcoin also excelled over BCH and BSV based on developers’ activity.Data fetched by CryptoMiso.com showed that Bitcoin approved 2,937 changes suggested by over 100 contributors to its source code this year, the seventh-largest number of commits recorded on GitHub. In comparison, Bitcoin Cash and Bitcoin SV processed 1,099 and 496 commits in the same period.Bitcoin Cash and Bitcoin SV commits in 2021. Source: CryptoMisoA higher number of commits shows that more developers want to improve the open-source project in concern. Conversely, a lower count alerts about a slower rate of improvements on the protocol. In the end, Bitcoin SV turned out to be the worst-performer than Bitcoin Cash in terms of price-performance, as well as market dominance and developers activity. Investors also kept their distance as the Bitcoin SV network suffered three 51% attacks and its co-founder Craig Wright remained embroiled in a lawsuit, as Cointelegraph covered earlier.Now, BSV price may face more losses ahead should it break below a long-withstanding support level near $121.50, as shown in the chart below.BSV/USD weekly price chart. Source: TradingViewConversely, a pullback from the $121.50-support could have the BSV price test its 50-week exponential moving average (currently near $167) as the next upside target.Related: Top crypto winners and losers of 2021Likewise, the BCH price’s latest decline has brought it near its multi-year ascending trendline support. Therefore, a pullback from the said level could have the Bitcoin Cash token eye approximately $600 as its next upside target, as shown via Fibonacci levels below.BCH/USD weekly price chart. Source: TradingViewOtherwise, breaking below the long-term support level risks puts the BCH price en route to near $195, a level with a history of sending prices higher.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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