Cardano (ADA) traded within striking distance of its three-week high at the start of this week, leading some investors to suggest that a trend reversal was in order. In reality, the bullish momentum is primarily connected to an anticipation of the upcoming decentralized exchange (DEX) called SundaeSwap.ADA price rose by nearly 12% on Jan.17 to reach an intraday high of $1.60, a day after SundaeSwap announced the launch of its “fully-functional beta decentralized exchange (DEX).” Nonetheless, the upside swing also came as a part of a wider rebound trend wherein ADA jumped by almost 50% in just seven days.ADA/USD daily price chart. Source: TradingViewIn detail, ADA’s rebound began almost in sync with similar retracement moves across the cryptocurrency market. That included Bitcoin (BTC), which sharply reversed its trend on Jan. 10 after its price dipped to as low as $39,650. At press time, BTC price trades at $41,500.ADA initially tailed the crypto market’s reversal, but later continued its upside momentum on its own after taking cues from the euphoria surrounding the SundaeSwap DEX launch on Jan. 20. As a result, ADA emerged as one of the best performers among the top-ten cryptocurrencies based on a 24-hour adjusted timeframe.Top 10 cryptocurrencies in the past 48 hours. Source: MessariWhat makes SundaeSwap bullish for ADA?SundaeSwap’s official DEX launch announcement included evidence of greater demand for ADA tokens in the future and this is typically a bullish signal for investors.The moment we’ve all been waiting for has finally come!We’re excited and proud to share that SundaeSwap and the ISO will be launching on the evening of Thursday, January 20th (EST)! Check out the article below! https://t.co/8oDYU6i3k9 pic.twitter.com/upgNZx2xH2— SundaeSwap Labs (@SundaeSwap) January 15, 2022The DEX platform also introduced its native SUNDAE token and discussed three ways to distribute it among users: via an initial stake offering (ISO) round, yield farming and direct exchange-based conversion. Discussing the ISO round, SundaeSwap explained that it would distribute 5% of the total SUNDAE supply via five epochs. Each epoch represents a five-day reward cycle wherein users delegate their ADA tokens into a stake pool.”If you want to make sure you qualify for all five ISO reward rounds, you must have ADA staked with eligible SPOs [Stake Pool Operators] before 21:45 UTC on January 25,” the DEX’s announcement read, adding:”Your reward will be calculated based on the snapshot taken at that time, and at the same time at each subsequent epoch boundary.”Meanwhile, the yield farming program saw SundaeSwap adding four ADA-based liquidity pools: SUNDAE/ADA, LQ/ADA, WMT/ADA and CARDS/ADA. The DEX also allocated 500,000 SUNDAE per day from January through June.ADA to $2?The SundaeSwap-led bounce pushed ADA toward its 100-day exponential moving average (100-day EMA; the blue wave) near $1.57.ADA/USD daily price chart featuring 100-day EMA resistance. Source: TradingViewAdditional bullish cues have also been coming from the anticipated launch of Pavio, Cardano’s first metaverse undertaking.Pavio is a Decentraland-like virtual land startup with some 100,000 land parcels, each being minted as a unique nonfungible token (NFT) with coordinates. The advent of the Metaverse in the crypto sector in the past months and Cardano’s involvement in it may boost demand for ADA further.Related: Meta poaches staff from Microsoft and Apple for metaverse plansThis raises the possibility for Cardano to close above its 100-day EMA resistance wave, thus shifting the next upside target toward the 200-day EMA near $2.Conversely, risks of an overall crypto market crash led by the U.S. Federal Reserve’s tapering programs this year could spoil ADA’s bullish setup to an extent. “While ADA is far from its peak, the prospect of obtaining more scalability as part of its 2022 roadmap explains why investors appear to be betting big on Cardano. This point was also noted by Liam Bussel, the chief marketing officer of Cardano-native DEX WingRiders in a statement to Cointelegraph.Bussel said,”In a world characterized by high performance and novel use cases, Cardano will be able to keep up and lead the pack. As a result, a weekly closing above $1.80 is likely, barring any last-minute profiteering by sellers.”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.Čítaj viac
Bitcoin (BTC) hodlers face a crucial week in more ways than one as $42,000 rekindles a familiar battle.As noted by on-chain analytics firm Glassnode on Monday, 30% of the BTC supply is now at a loss — historically, this has been a key number to defend for bulls.Mixed opinions on rebound chancesBitcoin’s descent from $69,000 to current levels — at one point over 40% — is nothing unusual, but for long-term investors, there is a specific reason to hope that current support holds.Looking back at historical price performance, Glassnode reveals that once 30% of the supply goes “underwater,” price rebounds often occur.”As the bears apply pressure to the in-profit cohort of holders, Bitcoin bulls are defending a historically significant level of the Percent of Supply in Profit metric,” staff explained in the latest edition of its weekly newsletter, The Week Onchain, describing bulls as “under siege.””This magnitude of ‘top heavy supply’ was defended in two instances in the last few years.”These were the post-Covid market crash in March 2020 and summer 2021, in the aftermath of the China mining crackdown. The 30% in-loss level resulted in an upside impulse move for spot price in both instances.Bitcoin percent of supply in profit annotated chart (screenshot). Source: GlassnodeContinuing, Glassnode acknowledged that the same result is nonetheless far from guaranteed this time around.”The reaction from this level will likely provide insight into the medium-term direction of the Bitcoin market,” the newsletter continued. “Further weakness may motivate these underwater sellers to finally capitulate, whereas a strong bullish impulse may offer much needed psychological relief, and put more coins back into an unrealized profit.”Others were more optimistic, with fellow on-chain platform CryptoQuant expecting a bullish outcome.”The bull run in July had just begun when it had previously risen to these levels. The bulls are aggressively preparing for the new run,” a blog post argued about the profit-to-loss ratio.”A hodler-dominated market”Earlier, Cointelegraph reported on the continued steely resolve by both long-term holders (LTHs) and miners when it comes to preserving their assets.Related: What bear market? Current BTC price dip still matches previous Bitcoin cycles, says analystWith short-term holders (STHs) — defined by Glassnode as coins moving in the past 155 days — staying low as a proportion of the overall supply, hope remains that the worst of the capitulation following all-time highs has been and gone.”The supply held by this cohort sits at ~3 million BTC, a relative historical low, and a level that signifies a transition into a HODLer dominated market,” the newsletter continued. “This has been in effect since the May 2021 deleveraging event. Low STH supply levels are typical of bearish trends, as old coins remain dormant, and younger coins are slowly accumulated by high conviction buyers.”Bitcoin supply held by STHs vs. LTHs annotated chart (screenshot). Source: GlassnodeČítaj viac
The wider cryptocurrency market continued to see choppy, sideways price action on Jan. 17 with Bitcoin (BTC) experiencing a midday dip to $41,650. Across the market, trading volumes remain subdued and U.S. financial markets were closed in observation of the Martin Luther King Jr. holiday. BTC/USDT 1-day chart. Source: TradingViewHere’s what analysts are saying about Bitcoin’s price action and the impact today’s correction might have on BTC’s market structure.Major resistance at $43,120Analysis of the weekly Bitcoin price action was provided by crypto trader and pseudonymous Twitter user ‘Rekt Capital’ who posted the following chart showing that BTC is trading near a well-established support and resistance zone. BTC/USD 1-week chart. Source: TwitterRekt Capital said, “The new BTC Weekly Close shows that the black ~$43,120 level is figuring as new resistance. Technically, BTC continues to reside at the upper region of its current $38000-$43,100 range.”Bitcoin’s 4-year cycle is starting to lengthenA look at the long-term trend for Bitcoin was discussed by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following charts looking at the Bitcoin’s 4-waves pattern and Realized Cap HODL Waves. According to the analyst, there is a possibility that the typical 4-year cycle for BTC may be lengthening. Bitcoin 4-wave pattern and realized cap HODL waves. Source: Twittervan de Poppe said, “Honestly, it would make a lot of sense. This cycle is longer than the previous one. The 4-year cycles aren’t happening anymore due to macroeconomic impacts. Therefore, this cycle will be higher & longer than everyone expects.”Related: Bitcoin stays in tight range as analyst eyes potential ‘interesting week’ in BTC”At least one more upward impulse”The sentiment of a lengthening Bitcoin price cycle were echoed in a tweet from crypto analyst and pseudonymous Twitter user ‘Techdev’, who posted the following chart providing analysis of the “impulses and corrections over the cycles’ bull markets based on new address trends on-chain.”Number of new Bitcoin addresses and impulse waves. Source: TwitterCompared to the previous impulse waves outlined by Techdev, Bitcoin is still due for a green shaded price breakout in the current cycle before it resets and begins the next one. Techdev said, “At least one more upward impulse to come in my opinion before an impulsive downtrend (bear market) begins.”The overall cryptocurrency market cap now stands at $2.02 trillion and Bitcoin’s dominance rate is 39.6%.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.Čítaj viac
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