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Ethereum Classic Displayed Double-Digit Gains; What’s Next!

Ethereum Classic had experienced a sharp fall in prices on the 17th January, however, at press time ETC was seen recovering. Over the last 24 hours, ETC had gained close to 7% and was seen trading at $28. In the past week, ETC logged gains of about 17% and had broken past the $25 price mark.

ETC struggled near the aforementioned price level for the past few weeks. However, with close to 17% gains in the past seven days ETC has now managed to break the downtrend. Bitcoin was bordering $39k at the time of writing. As Bitcoin had climbed up on its chart, major altcoins followed the same price movement.

Price Analysis: ETC/USD Four Hour Chart
Source: TradingView ETC/USD

At the time of writing, ETC was priced at $28. In the past trading sessions, the coin was seen oscillating between $25 and $27 price levels respectively. Immediate resistance for ETC was at $30.31 and additional resistance marks for the coin stood at $34.22 and then at $38.68.

On the flipside, ETC was resting in the support line of $25.84. For Ethereum Classic to move past the immediate resistance level of $30.31. The coin has to continue to trade above the $28 mark and form higher highs and lows.

ETC hadn’t traded beneath the $28 mark since January 18, the coin’s value dropped as the coin met with an intense sell-off. Over the past week, ETC buying pressure rose slowly and at press time, the asset stood near the overbought zone.

Related Reading | Bitcoin Steadies At $37,000, But What Are Options Traders Doing?

The Relative Strength Index was parked above the 80-mark, which meant that the asset was overvalued at the time of writing. RSI was last seen hovering around the same level last in the month of November. A push from the buyers can also correct ETC’s prices over the upcoming trading sessions.

On Balance Volume also recovered considerably as OBV had met with an uptick which signalled and volume inflow had increased, which signified bullishness in the market. Awesome Oscillator depicted green signal bars which were seen amplifying at press time.

The technical outlook for Ethereum Classic remained quite optimistic. With continued demand, ETC could soon trade above the immediate resistance mark.

What’s Next For Ethereum Classic
Image Source: TradingView ETC/USD

Ethereum Classic was moving close to the $28 mark, however, in the last few days, ETC witnessed price action around the same area. Fibonacci Retracement was strong at 50% level. A fall from the current price level would push ETC back to $25 and then finally to $22.

A move above the current price level might cause ETC to experience another pullback at $31.80 at the 78.6% Fibonacci level. A major resistance point for ETC lay at $34.55 level, Ethereum Classic last traded at this price mark just a few weeks back in early January.

Strength from the broader crypto market would be required for Ethereum Classic to continue trading in an upward direction. If Bitcoin trades above the $40k mark, then major altcoins could also remain optimistic on their charts.

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Solana’s Outlook Bullish Post Phantom’s Fundraising Round

Solana was on rebound as the coin was seen trading above the $100 mark. At the time of writing, Solana was exchanging hands at $107.82. This token’s recovery came right after Phantom, Solana’s native wallet concluded a successful fundraising round. In recent times, as the cryptocurrency market experienced a major-sell off, Solana too hovered in the oversold zone.

The bulls have resurfaced and technical outlook reflected a positive change at the time of writing. Over the last 24 hours, SOL gained close to 17%. Over the last week, SOL was trading between $84.43 and $102.27 levels respectively. The recent bullish force propelled prices to finally trade over the resistance mark of $102.27.

Price Analysis: SOL/USD Four Hour
Source: TradingView SOL/USD

Solana’s prices moved above the 20-SMA line, which meant that buyers drove the price momentum in the market. According to the technicals on the four-hour chart, indicators flashed buy signal for the coin. Trading volume of SOL also noted a major appreciation which was indicative of increased buying pressure in the market.

The Relative Strength Index was parked near the 80-mark, which meant that the coin was bordering overbought conditions. A slight push from the buyers could force RSI into the overbought and overvalued zone. The coin last hovered around the 80-mark, early in the month of December.

MACD displayed a bullish crossover at press time and displayed amplified green histograms. This reading pointed towards a buy signal for Solana. Continued buying pressure would push prices beyond the $107.82 mark to the next resistance mark at $131.58. Additional price ceiling for the coin stood at $156.43.

It is too early to say if the bulls would continue to hold their ground in the next trading sessions as the chart also had flashed a death cross in the past recent trading sessions. A death cross occurs when short term moving average is crossed over by the long term moving average.

In the above the chart 20-SMA (red) was below the 50-SMA line. A death cross is indicative of a potential sell-off. Incase of a sell-off SOL would be seen trading near the $84 price level.

Related Reading | Bitcoin Stolen From Bitfinex Hack Moved For The First Time In Five Years

How Has Phantom’s Fundraising Helped Solana

Phantom’s announced via a blogpost about raising $109M Series B funding round along with launching an iOS Phantom App. The Series B funding round was led by Paradigm. Previously, six months ago Phantom brought home $9M from Andreessen Horowitz after concluding its Series A. This Series B funding round has so far secured $1.2M already.

Solana also has plans of expanding by supporting Web3 on its blockchain and additionally introduce multi-chain features in the upcoming time. Phantom success has positively affected Solana’s investors.

Solana has had multiple network issues including outages and congestion faced in recent sessions. Solana had undergone a DDos attack four times in the last couple of months. With Phantom’s intervention, Solana’s investors might just gain some more confidence helping Solana grow.

Related Reading | Ethereum Price Surges 30% Over Last Week Lows, Addresses Holding Over 0.1 ETH Reach New ATH

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Terra Recovers As It Posts 10% Gain In The Last 24 Hours

The price of Terra has been choppy in the past few days despite the broader market regaining back it’s strength slowly. In the last week, the coin plunged by almost 30%.

Related Reading | Bitcoin Funding Rates Remain Negative For More Than A Week

At press time, LUNA was priced at $50.72. Earlier yesterday, LUNA attempted to trade above the $52 price mark. The global cryptocurrency market cap was at $1.83 Trillion after an increase of 1.6% in the last 24 hours.

Trading volume of Terra also depicted an appreciation by 75% at press time. This rise in trading volume could be tied to resurgence of buying strength in the market.

Resistance mark for the coin was at $60.10. Terra’s sharp price sentiment could have been influenced by Wonderland Project’s Fiasco. LUNA’s prices started their southbound journey after it was discovered that Michael Partyn was responsible for looking after Wonderland’s treasury. 

LUNA’s prices stood at 69% lower than its All Time High. Terra’s local support level for the coin awaited at $43.60. LUNA has last traded around this level in the month of November. LUNA’s prices hadn’t fallen below the $50 price mark as the coin considered the aforementioned level as a robust support level.

Buying strength in the market had also been in the bearish territory for almost a week or so. Looking at the technical indicators, it is difficult to say if LUNA will maintain a similar price action over the next trading sessions. 

Terra Price Analysis: Four Hour Chart

Terra was in the opposite price direction of its own market trend of the past week. After trading in a descending channel, Terra managed to break on the upside.

The chart also started to display recovery as soon as that happened. Support level as mentioned above was at $43.60, a mark the coin last traded near in the month of November. Two resistance levels for Terra were at $60.10 and at $68.15. 

The Relative Strength Index is responsible for depicting buying strength and pressure in the market. For the past week, RSI remained below the zero-line indicating a period of continued sell-off. 

The indicator also dipped below the 25-mark displaying oversold tendencies of the market. At the rime of writing however, as Terra zoomed up it’s chart RSI moved up in anticipation of recovery in buying strength, however, a minor downtick was also seen on the indicator at the press time. 

On Balance Volume depicted a rise, signifying that inflow volume has also started to pick up. In return, this reading hinted at a positive price action. Awesome Oscillator depicted the market strength. 

Although the indicator was giving off green signal bars as prices showed recovery, the green signal bars were seen under the half-life.

Related Reading | LUNA Drops 20% As Investors Panic, What Is The Link With Anchor And UST?

In case green signal bars remain underneath the half-line it is too quick to say if prices would tun bullish. Relative Strength Index already indicated towards a possibility of buying pressure falling as demonstrated by the tiny downtick. 

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$200 Billion Exits The Market As Bitcoin Plummets To A Multi-Month Low

Bitcoin, the top asset in the industry has noted a sharp fall in prices over the last 24 hours. At press time, the king-coin depreciated by almost over 9.7%. Bitcoin dropped its value by almost $7,000 and was exchanging hands at $38,233.95. This marked an almost six-month low for the coin. This price level is the lowest ever since the first week of August last year. Following Bitcoin’s price action, altcoins followed suit as a majority of them were seen trading in the red at the time of writing.

The global cryptocurrency market cap was at $1.95 trillion after a considerable fall of about 7.7% over the past day. The global crypto cap hadn’t dipped below the $2.11 Trillion mark in over 3 months now. This major plunge in value across the broader cryptocurrency market had caused roughly $200 Billion to leave the market. Ethereum, which is the second-largest cryptocurrency in regards to market capitalisation also registered a tumble of about 8% in the last 24 hours.

Related Reading |TA: Bitcoin Dives Below $40K, Why Bulls Could Struggle In Near Term

What Could Have Potentially Caused This Big Dump

The bears had taken over the market, however, it isn’t safe to assume that the market would continue with a bearish outlook just yet. This could also be a price correction from which Bitcoin and major altcoins might recover over the upcoming trading sessions.

This retracement in Bitcoin’s prices from $43,000 could have happened for a number of reasons. Needless to say, crypto markets are volatile, however, current price movements of the major cryptocurrencies can be tied to a couple of recent developments in the crypto space.

This sudden substantial sell-off in prices could have been caused due to stock market weakness after the US Federal Reserve introduced high-interest rates and tapered the stimulus. The Fed hiking the interest rates in the form of tightening the overall monetary policy has, in turn, affected the unregulated market of cryptocurrencies.

The cryptocurrency industry has also suffered the pangs of other recent regulatory measures. The most recent one is Russia’s blanket ban which has rocked the global cryptocurrency market. Other regulatory measures which have been set in motion to curb the rapid growth of digital asset has also had negative effects on the prices.

Securities and Exchange Commission has signaled at scrutinising cryptocurrency exchanges. Environmental factors have also raised eyebrows of regulatory bodies, European Securities and Markets Authority (ESMA) wishes for the EU to ban the proof-of-work model.

All of the above-cited reasons have sent shock waves across the crypto industry causing the fear index to point at 19, a number that corresponds to “Extreme Fear” in the market.

Related Reading | TA: Ethereum Nosedives, Indicators Show Signs of Larger Downtrend

Bitcoin Price Analysis: Crucial Trading Levels to Watch Out For

Bitcoin was priced at $38,233.95 after the coin nosedived close to 9% at press time. The asset flashed a death cross, which is considered to be extremely bearish in nature. The prices were beneath the 20-SMA line, indicating that sellers were responsible for driving the price momentum in the market.

Source: BTCUSD on TradingView.com

The Relative Strength Index hurtled as it reflected the excessive selling pressure in the market. Currently, Bitcoin’s RSI was hovering beneath the 25-mark which meant that the asset was oversold and undervalued.

The support level for the coin stood at $37,982.40 and a push from the bears could make BTC trade at that aforementioned level. The Average Directional Index was near the 50-mark, implying a strengthening of the current price trend in the market. The resistance price level for the coin was $39,829.16.

Featured image from The Motley Fool, chart from TradingView.com

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Russia Just Suggested A Blanket Ban On Bitcoin And Cryptocurrency

Russia has proposed a full ban on crypto, this includes both mining and use of cryptocurrencies. The country’s Central Bank suggested that the trading of cryptocurrencies must come to a stop immediately. In the report put forth in an online press conference, the Russian government along with the Bank of Russia suggested this regulatory measure. This blanket ban on cryptocurrency was tied to risks of financial instability and rising illegal activities. The digital asset apparently posed a serious threat to the sovereignty of Russia’s monetary policy. Russia holds the third rank in bitcoin mining after US and Kazakhstan.

This recent ban on cryptocurrency comes right after the Central Bank of Russia displayed interest in securing information from commercial banks in respect to private money transfers. It also specified that the information collected will comprise of details of individuals who have previously traded in cryptocurrency, not only within the country but also outside of it. Despite Russia legalising cryptocurrencies in the year 2020, it always remained sceptical in regards to accepting the same as a medium of exchange. The report stated that this measure of banning crypto might after all be in favour of Russial as this decision happens to be the “best” and “optimal” one that safeguards Russia.

“Cryptocurrencies: Trends, Risks, Measures”

In the report, “Cryptocurrencies: trends, risks, measures” an excerpt read that cryptocurrenices “offer an outlet for people to take their money out of the national economy, thereby undermining it and making the regulators job of maintaining optimal monetary policies harder.” The other major concern that led to this ban was the ever increasing dynamic and volatile nature of cryptocurrency along with illegal activities being funded by the digital asset. The culmination of which has urged the Central Bank to form new laws and regulation which could help ban the digital asset in Russia.

Related Reading | NGOs Use Crypto To Aid Afghans Facing Taliban Takeover

Russia previously also expressed its concerns around cryptocurrency as they believed that the asset could be used for money laundering and even financing terrorism. Reportedly, Russia has showed interest in creating thier own digital currency (CBDC) which is believed to enable, equip and finally empower the functioning of future banking in the country.

This could help people of Russia to opt for a quicker, easier and more seamless payment option. The report also stated that there will be a prohibition of mutual funds investments in cryptocurrency. Besides that, institutional investors have also been discouraged from investing in crypto. This move might be quite a blow to the country’s financial organisations as any cryptocurrency in the form of a financial asset will not be accounted for. Failing to abide by the above mandated resolution will result in firm punishment as mentioned in report.

The crypto industry’s growth has attracted a lot of negative attention | Source: TOTAL-CRYPTOCAP on TradingView.com

Russia Crypto Ban Extends To Mining Also

Cryptocurrency mining in Russia has a major footing as the country is the third largest when it comes to mining of cryptocurrencies. Volume of cryptocurrency mining still remains the highest in the US, followed by Kazakhstan, however, the latter has been in talks about cutting off electricity provisions. This news about Russia’s ban might potentially drive crypto enthusiasts across the globe up the wall. Minimising of crypto issuance along with over-the-counter trading desks, crypto exchanges and peer-to-peer exchanges could send a ripple across the whole crypto space.

Related Reading | Digging Into The Data Of Bitcoin Mining Decentralization

The aforementioned report also added that this prohibition was also because of environmental factors as it creates “”creates a non-productive electricity expenditure, which undermines the energy supply of residential buildings, social infrastructure and industrial objects, as well as the environmental agenda of the Russian Federation.

Featured image from iStockPhoto, Charts from TradingView.com

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World’s Largest Islamic Country, Indonesia Forbids Crypto Trading

It doesn’t come as a surprise to many as Islamic societies are known to label cryptocurrency trading as a form of “Haram”. Many Islamic organisations in the past have condemned the trading of digital assets such as cryptocurrency and even non-fungible tokens. Recently, the Tarjih and Tardid Council of Muhammadiyah also issued a similar memorandum stating that “Tarjih’s fatwa stipulates that cryptocurrencies are illegal both as an investment tool and as a medium of exchange,”. A fatwa implies that the currency is tagged as unlawful for the community.

The particular Islamic organisation, the Tarjih Council and the Central Executive Tajdid of Muhammadiyah have precisely provided a few arguments which validated this particular decision. The Islamic council stated that the use of cryptocurrencies is unlawful or illegal as it accounts for “gharar” and “dharar”. The two aforementioned terms basically point towards cryptocurrencies carrying elements of ‘speculation’. The fatwa quoted “This speculative nature and gharar is forbidden by the Shari’a as the word of God and the hadith of the Prophet SAW and does not meet the values ​​and benchmarks of Business Ethics according to Muhammadiyah.”

The Expository Argument Presented In The Fatwa

The Fatwa primarily provided two crucial points of contention, the most important being the speculative and volatile nature of the asset. The other issue with cryptocurrencies is that the asset doesn’t tick the standards of Islamic barter, i.e medium of exchange. The unreliability of crypto has therefore been condemned by the Islamic Council.

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The Council also expressed concerns regarding the legitimacy of the currency as Bitcoin and other cryptocurrencies still haven’t been recognised as currency or a medium of exchange backed by an underlying asset such as gold. The Islamic fatwa underlines these ideas that since crypto is a dynamic asset, it cannot be considered as a viable investment.

Any asset that is prone to speculation and fluctuation will be considered ‘Haram’. The other principles also points towards illegal activities which are conducted with the help of cryptocurrencies. The digital asset also has a tendency to be used for gambling purposes, additionally crypto isn’t a tangible asset making it another reason why the Islamic community forbids the same.

The crypto industry’s growth has attracted a lot of negative attention | Source: TOTAL-CRYPTOCAP on TradingView.com
How Does Fatwa Affect Cryptocurrency Trading In Indonesia

The Indonesian Ulema Counci (MUI) earlier had insisted on a similar ban last year November. The MUI however, remained open to accepting crypto if the same abode by Sharia tenets. The other Islamic organisation that declared cryptocurrency ‘Haram’ was Nahdlatul Ulama making Muhammadiyah the third most prominent Islamic organisation to label the asset same. The Sharia law encompasses the idea that the digital asset has to be a trading commodity and not just a form of investment and transaction. The Commodity Futures Trading Regulatory Agency decided to look into the same, therefore, suggesting that cyptocurrecy trading would continue to operate in Indonesia.

Related Reading | European Markets Regulator Urges The EU To Ban Proof-of-Work Bitcoin Mining

Indonesia of late dealt with a couple of bans owing to religious concerns, despite the same Indonesian market was optimistic about crypto adoption. Crypto transactions zoomed up in the country and recorded close to $9.8 billion in asset’s transaction. This development signalled that in 2021, there has been a 1,222% appreciation in numbers as compared to 2020.

In accordance to the same, reportedly there were 11.2 million crypto investors as seen at the end of last year which is again a massive 180% jump compared to 2021. Therefore, it is safe to conclude that another fatwa won’t dull the asset’s popularity among Indonesians.

Featured image from iStockPhoto, Charts from TradingView.com

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Bitcoin ATMs Shut Down In Singapore After MAS Curbs Crypto Advertising

Financial service regulator – Monetary Authority of Singapore has issued fresh guidelines to limit crypto trading by the public. It has also taken a firm stance and asked cryptocurrency companies to eschew advertising or showcasing their products to the general public. MAS substantiated their decision by stating reasons which were purely risk-oriented.

The guideline stated and clarified that Digital Payment Token service providers “should not portray the trading of DPTs cryptocurrencies in a manner that trivializes the high risks of trading in DPTs, and should not promote their DPT services in public areas in Singapore or through any other media directed at the general public in Singapore”. 

“Highly Risky And Not Suitable For The General Public”

The Central Bank affirmed that such services are “highly risky and not suitable for the general public”. It implied that the broadcasting of cryptocurrency through traditional media such as newspapers and magazines must also cease to exist. 

On Tuesday, MAS declared that it would be outlawing crypto-to-cash terminals, thus, sealing all crypto ATMs in Singapore. Daenerys & Co,  which is one of the biggest crypto ATM operators with five crypto ATMs spread across the city had acted in accordance with the guidelines. Another rival ATM operator, Deodi also complied with the Central Bank’s order and ceased its only ATM. 

Related Reading | Intel To Present Low Voltage, Energy Efficient Bitcoin Mining Chip At Conference

This recent regulatory clamp from the MAS cropped up amidst the growing popularity of the blockchain industry with new investors joining the ecosystem each day. Although MAS quoted that “MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases.”; the cryptocurrency market in Singapore continues to reel under a significant number of regulatory milestones.

Recently, Coincub, a fintech start-up in one of their rankings, called Singapore the world’s most friendly cryptocurrency economy. Singapore in the past had been quite liberal in terms of cryptocurrency adoption with an undemanding and positive legislative environment. Currently, the reality looks quite different, so to say.

Bitcoin’s growth is concerning regulators | Source: BTCUSD on TradingView.com
MAS Believes Bitcoin ATMs Let People Trade “On Impulse”

MAS believes that ATMs facilitated a seamless and convenient transaction of cryptocurrencies such as Bitcoin and Ethereum. This could cause people to trade “on impulse”. This notion caused regulators to mandate the clampdown of ATMs all across the city.

In regards to crypto regulations, Singapore isn’t the only name on the list. In December 2021, Britain outlawed advertisements from seven such crypto firms as they were  “irresponsibly taking advantage of consumers’ inexperience and for failing to illustrate the risk of the investment”.

Spain had also led a crackdown on cryptocurrency promotions recently. Singapore’s regulatory escalation comes after Bitcoin’s prices nosedived almost 40% after BTC soared to new heights in November 2021. 

Related Reading | Green Energy: In NY, Bitcoin Mining Saved The Oldest Working Hydroelectric Plant

Cryptocurrency is not only a volatile asset but has also enabled a wide spectrum of fraud associated with digital assets. In recent times, cryptocurrency has facilitated money laundering and terrorism funding among other illegal activities.

“Digital payment token service providers in Singapore have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions,” stated MAS spokesperson.

Featured image from iStockPhoto, Charts from TradingView.com