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Breaking Free: Analyst Eyes $1.68 Breakout For XRP After Years In The Shadows

The price of XRP, the native token of Ripple, has been on a rollercoaster ride in recent years. After reaching a peak of nearly $2 in April 2021, it has been in a downward motion, leaving investors wondering if a comeback is on the horizon.

However, a recent analysis by market analyst Jonathan Carter suggests that XRP might be on the verge of a significant breakout.

XRP Stuck In Symmetrical Triangle

Carter’s prediction hinges on a technical chart pattern known as a symmetrical triangle. This pattern typically forms during periods of consolidation, with prices bouncing between converging upper and lower trendlines.

XRP has been trading within this triangle for several years, indicating a potential struggle between buyers and sellers.

Support Retest Fuels Breakout Hopes

The recent price drop in April, which mirrored a broader market correction, saw XRP retest the lower trendline of the symmetrical triangle.

In technical analysis, such a retest is often seen as a precursor to a breakout, where the price decisively breaks through one of the trendlines. Carter believes this retest signifies an imminent upswing for XRP.

Undervalued XRP? MVRV Ratio Hints At Opportunity

Adding fuel to the fire is the MVRV Ratio, a metric used to gauge whether an asset is overvalued or undervalued. XRP’s current MVRV sits at a low -0.5733, suggesting that the token is trading significantly below its historical average price.

This could be interpreted as a sign of undervaluation, potentially attracting investors seeking undervalued opportunities.

Analyst Projects Mid-Term Target Of $1.68

Carter forecasts an initial spike towards $0.93, a level that XRP briefly touched in July 2023 after a favorable verdict in the current SEC dispute, should a breakout from the symmetrical triangle occur.

Carter, however, thinks that XRP will overcome this resistance level this time around in order to reach its more ambitious mid-term goal of $1.68. It would take an incredible 213% increase from the current price of $0.53 to reach this goal.

Experts Urge Caution Despite Bullish Outlook

While Carter’s analysis paints a bullish picture for XRP, financial experts advise caution. The cryptocurrency market remains highly volatile, and unforeseen events can drastically alter price movements.

Additionally, the ongoing lawsuit between Ripple and the SEC regarding XRP’s classification as a security continues to cast a shadow over the token’s future. A negative outcome in the lawsuit could dampen investor sentiment and hinder any potential price surge.

Featured image from iStock, chart from TradingView

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AI Tokens ‘Preparing For Round 2’: Industry Shows 8% Growth With RNDR And FET

Excluding Bitcoin, memecoins were the biggest narrative of this cycle. However, Artificial Intelligence (AI) tokens also performed remarkably during the first quarter of 2024.

The crypto market recovered over the weekend from the May 1st retrace, with AI tokens showing significant gains. As a result, many industry experts think that the sector is poised for a ‘Round 2’ this cycle.

AI Sector Recovers By 8%

Crypto analysts highlighted AI tokens alongside memecoins as the hottest topic of 2024, responsible for most of the massive gains during this cycle.

According to CoinGecko’s report, AI was one of the three sectors that delivered three-digit returns in Q1. Moreover, the largest AI token by market capitalization, Fetch.ai (FET), saw gains of 378.3% during this period.

As a result, some analysts deem the AI sector to be the next main narrative of the cycle. Trader John Walsh, known as CryptoGodJohn, considers “The future of AI coins preparing round 2.”

Walsh added that the AI season is “extremely obvious” and will go “so much higher” based on the developments in the sectors, including Nvidia earnings, Apple AI, and Microsoft’s $100 billion AI fund.

To this, crypto analyst MacroCRG replied that a massive AI growth “will be obvious in hindsight,” considering that the sector’s market capitalization is “just” $27.3 billion.

According to a MacroCRG post, the AI market cap had increased 8% by Monday morning, and its daily trading volume was around $1.9 billion. On Tuesday, the market cap surged to $27.8 billion, a 2.3% increase from 24 hours ago.

In comparison, memecoins $54.4 billion market cap doubles AI’s. However, its market cap decreased by 2.8% in the last day, with the top ten memecoins showing red numbers in the past 24 hours.

Is Artificial Intelligence About To Bloom Or Ruin the World?

Despite the remarkable performance, some figures think the sector has a more pessimistic future. According to memecoin trader Murad, the developments in the industry will “be replacing more & more jobs every year.” As a result, there will be an increase in “Anxieties and desperate attempts to ‘make it.’”

To the trader, the industry will serve as a push for the memecoins sector, as “Growing AI capabilities will be one of the big forces accelerating the Memecoin Bubble.”

Financial giant Warren Buffett shared a more skeptical view on Saturday. The Co-founder and CEO of Berkshire Hathaway revealed he is not sold yet by artificial intelligence. To the CEO:

We let a genie out of the bottle when we developed nuclear weapons. AI is somewhat similar — it’s part way out of the bottle.

Despite this, Buffet recognized the potential for AI technology to change the world positively.

On The Brink Of A Millionaire Boom

“The AI industry is on the brink of a multi-trillion-dollar boom,” stated Alex Wacy. The analyst believes the reasons behind this are the vast and diverse potential of applications.

Moreover, the expert highlights that interest in the sector has steadily increased over the last year. A crypto and AI combination could potentially “create a market valued in the trillions.”

According to the post, the market is projected to reach nearly $2 trillion by 2030, which suggests that the crypto industry should not overlook it.

Tokens like RNDR showed a remarkable performance over the past week, with the price soaring by 45%. RNDR regained the $10 support zone this week after struggling to retest it over the last month.

In the past 24 hours, the token’s price surged 6.4%, and its daily trading volume increased by 16.8%, with over $455 million being traded.

FET is “a top performing AI coin headed into the Nvidia earnings,” as stated by John Walsh. The trader forecast that the token is “looking for a next leg higher up” after successfully retesting the $2.35 resistance level.

FET broke above this level over the weekend, rising to $2.5 on Monday and remaining above the $2.40 support zone since.

At writing time, the token is trading at $2.42, representing a 2.4% increase in the last 24 hours and a $22.9% surge in the past week.

AI, FET, FETUSDT

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Cardano (ADA) Trading Activity Goes Quiet: Will This Drag Down The Price?

Cardano (ADA), the third-generation blockchain platform, has been mirroring a mountain climber clinging to a precarious ledge. After a brief ascent earlier this month, the price has dipped back down, leaving investors questioning the strength of the current uptick.

While a recent surge in active addresses hints at renewed interest, technical indicators and declining trading volume paint a picture of an uncertain future.

Cardano At A Crossroads

Cardano’s current price action presents a complex picture. The recent uptick offers a glimmer of hope, but the technical indicators and declining volume suggest a possible continuation of the downtrend.

Though its impact is still unknown, the increase in active addresses is a promising indication of possible rekindled interest. It will take time to see if ADA can emerge from the gloomy clouds and start its ascent with greater assurance.

Cardano’s Uphill Battle: Price Struggles For Traction

For holders of ADA, May started off with a ray of hope. After a rally of three days, the price increased to $0.46 from $0.45. Nevertheless, a series of losses soon erased these gains, returning the price to the $0.45 region, which is where it was previously. This pattern of stops and starts emphasizes how ADA suffers from a lack of consistent propulsion.

As of today, a small uptick has brought ADA back to the $0.45 zone, offering a temporary respite. But lurking beneath the surface is the persistent bear trend, a fact confirmed by the Relative Strength Index (RSI) hovering just above 40. This metric suggests weak buying pressure and the potential for further price slides.

Making matters worse, a technical indicator known as a “death cross” looms on the horizon. This ominous pattern occurs when the short-term moving average crosses above the long-term average, often signaling a bearish price trend.

With ADA currently trading below both these averages, the threat of a death cross adds another layer of uncertainty to the price trajectory.

Cardano’s Quiet Streets: Trading Volume Dampens Enthusiasm

Trading activity on the Cardano network hasn’t exactly been bustling. The volume, which surged to over $400 million at the beginning of May, has since dwindled to around $275 million. This significant drop suggests a decline in investor interest, which can act as a drag on price increases.

Typically, a healthy increase in volume accompanies sustained price hikes, indicating strong buying and selling activity. In Cardano’s case, the muted volume paints a concerning picture of a market lacking conviction.

Active Addresses Show Tentative Rise

A lone bright spot emerges in the form of Cardano’s active addresses. This metric tracks the number of unique addresses participating in transactions on the network. There’s been a recent uptick in seven-day active addresses, with the number rising from around 155,000 to over 160,000.

While this increase is encouraging, some analysts believe it might not be substantial enough to significantly impact trading activity and trigger a sustained price reversal.

Featured image from InspiredPencil, chart from TradingView

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This Week’s Crypto Watchlist: Top Coins Poised For Gains

In a post on X, crypto analyst Miles Deutscher laid out his strategic predictions for high-performing cryptocurrencies in the upcoming week to his 501,700 followers. His analysis delved deep into Bitcoin’s trading patterns, the surging AI-driven altcoin sector, and specific tokens that are displaying considerable potential due to recent developments and broader market dynamics.

Bitcoin And AI Crypto Tokens Are Set To Dominate This Week

At the forefront of Deutscher’s analysis, Bitcoin has recently returned to its previous trading range between $60,000 and $69,400 after experiencing a sharp drop. This movement was characterized as a significant deviation, suggesting manipulation or a shakeout of weak hands before a potential rally.

“Bitcoin is at the top of my watchlist for this week. Had a big fakeout/deviation to the downside, and now back within the range,” Deutscher stated. He pointed out that the key factor to watch is whether the current range’s lower boundary will hold, which could serve as a strong foundation for an upward trajectory.

Bitcoin price

Moreover, the AI sector has been particularly resilient and robust recently, bouncing back significantly amidst broader market recoveries. Deutscher highlighted the sector’s potential for outperformance, driven by several upcoming major events.

These include Apple’s Worldwide Developers Conference (WWDC), NVIDIA’s earnings announcement, and the anticipated release of ChatGPT 5. “AI is one of those unique narratives that retains constant mindshare due to its endless real-life news flow/hype,” Deutscher explained.

One specific AI token which Deutscher watches closely due to its alleged partnership with Apple is Render (RNDR), making it a prime candidate for speculation around the upcoming Apple event. Historically, RNDR has also led the AI token sector during market rotations.

Furthermore, Deutsches focuses on Near Protocol (NEAR), Fetch.ai (FET), AIOZ Network (AIOZ). He grouped these tokens together due to their correlation but noted their recent technical performance, where they bounced cleanly off daily support levels and established higher lows.

More Altcoins To Watch

TON: Recently the center of attention, TON experienced a drop after the Token2049 event in what Deutscher described as a “sell-the-news” scenario. However, recent investments by firms like Pantera signal continued interest and potential undercurrents of growth.

Ethena (ENA): With the market sentiment turning bullish again, Deutscher anticipates a return to positive funding rates, which typically benefit tokens like Ethena. Recent activity from the Ethena team, including increased reward boosts and optimistic social media posts from its founders, further bolster the bullish case. “Also hearing rumors of a T1 exchange listing,” Deutscher added, suggesting an impending increase in liquidity and exposure.

Jito (JTO): Jito is reportedly developing what Deutscher referred to as the “Eigen Layer of Solana,” aiming to replicate the success and hype surrounding the Eigen project’s layer solutions. Despite the challenges of a recent airdrop, Deutscher sees potential if the team executes well, particularly as the restaking narrative has not yet fully penetrated the market.

PopCat (POPCAT): Despite facing some fear, uncertainty, and doubt (FUD) related to copyright issues over the weekend, POPCAT continues to exhibit strong price action, pushing toward new highs. “POPCAT seems the best contender, for now, not a single cat meme coin has yet to hit a $1B market cap,” noted Deutscher, highlighting its standout performance.

Ethereum Finance (ETHFI): In the realm of liquidity reward tokens (LRT), ETHFI remains a notable mention despite a broader sector sell-off post-Eigen. Deutscher believes the selling may have been overreactive, and with total value locked (TVL) still on the rise, a reversion to mean on prices could be imminent.

SEI Network (SEI): As anticipation builds for the launch of the new layer one blockchain, Monad, later this year, SEI is seen as a strategic play. Categorized within the parallelized Ethereum Virtual Machine (EVM) narrative, SEI experienced a substantial sell-off but is poised for recovery as the market focus shifts towards upcoming launches.

Friend (FRIEND): After recommending FRIEND at $1.30, Deutscher continues to see upside potential, particularly as it approaches more significant centralized exchange listings. He advises keeping an eye out for major pullbacks as opportunities to buy.

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Analysts Foresee Altcoins ‘Explosive Rally’ Incoming, Is The Correction Phase Over?

Over the weekend, the crypto market started recovering from the largest retrace of this bull cycle. The strong correction caused Bitcoin and the altcoins market to drop to levels not seen since February.

While some sectors of the crypto community felt like the bull run was over or needed to “cool-off”, others seemed optimistic about the cycle’s future. Now that the market is back from the correction, analysts foresee that the altcoin season might come soon.

Is The Correction Phase Over?

Over the weekend, crypto analyst and trader MilkybullCrypto shared with his X followers that the Altcoins market capitalization was at “an RSI level that initiates an explosive rally.”

Per his chart, this level is a “reset for a healthy rally,” as seen in 2016 and 2020. During these two cycles, when the altcoins reached this level, a “huge rally” followed.

The analyst shared his latest forecast on Monday after seeing the market strengthen its recovery. To Milkybull, the altcoins market cap finished a “Heatly retest.”

The market displayed a similar correction during the 2020-2021 rally before skyrocketing to all-time high (ATH) levels. The chart seems to display the same performance, which could mean that altcoins are “in preparation for an explosive rally,” if history repeats itself.

altcoins, crypto

Similarly, crypto trader and analyst Captain Fabik considers the “Healthy Correction is done.” In his X post, the analyst identified a bullish falling wedge pattern, which signals a “bullish rally incoming.”

Altcoins “Cool-Off” Or “Euphoria” Incoming?

According to analyst and trader Rekt Capital, the Altcoin market cap, excluding the top 10 cryptocurrencies, has “successfully retested the $250 billion level as a support level” over the last several weeks.

Per the trader, the altcoins are following the proposed path of his “Ultimate Altcoin Market Cap Game Plan For The Coming Months.” On this plan, Rekt Capital forecasted altcoins market cap would surge to the $315 billion level before retracing back to the $250 billion mark. This retrace would be followed by an explosive surge above the $440 billion market capitalization.

Altcoins have stayed above the $250 billion support zone despite the strong corrections, as seen in the chart below. To the analyst, this suggests the market is “now showing initial signs of trying to curl up from here.”

Renowned figures have expressed their “disappointment” in altcoins’ performance this cycle. Altcoin Sherpa considers that “many alts didn’t even run that hard over the last few months,” which could suggest that it’s time for a “cool-off.” At the time, the analyst deemed altcoins’ rally was “done” for the next 1-4 months.

However, others believe the “euphoria phase” for altcoins is coming. According to Crypto Yhodda, “The alts will rise again, and by the end of 2024, they will go crazy.” Moreover, the analyst believes that “Altcoins Cycle III” will give us some crazy pumps.

According to his chart, the altcoins’ cycle I and II displayed a symmetrical triangle pattern before the breakout. The surge was followed by a slowdown before the upward trajectory continued, called “Round 1” by the analyst.

Subsequently, the rally would repeat the pattern on a second round before reaching the cycle’s top. “Cycle III” appears to be in the middle of Round 1, which suggests to the analyst there is a long road ahead before it “hits the euphoria phase.”

Altcoins, crypto

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Study Uncovers Surprising Data: 90% Of Stablecoin Transactions Not Driven By Human Users

In a recent report by Bloomberg, it has been revealed that more than 90% of stablecoin transaction volumes do not originate from genuine users, according to a new metric co-developed by Visa.

Stablecoin Market Faces Data Reality

Visa and Allium Labs have created a dashboard designed to filter out transactions initiated by bots and large-scale traders to isolate those made by real individuals. Out of approximately $2.2 trillion in total transactions recorded in April, a mere $149 billion was identified as “organic payments activity” by Visa.

The data challenges the optimistic outlook of stablecoin proponents who believe these tokens can transform the $150 trillion payments industry. 

Fintech giants such as PayPal Inc. and Stripe Inc. have been exploring stablecoins, with Stripe co-founder John Collison expressing bullishness on the tokens due to “technical improvements.” 

Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, commented on the findings: “It says that stablecoins are still in a very nascent moment in their evolution as a payment instrument.” 

Sood emphasized the need to focus on increasing existing payment infrastructure in the short and mid-term while acknowledging the long-term potential of stablecoins.

Accurately tracking crypto activity’s “real” value using blockchain data has always been challenging. Glassnode, a data provider, estimates that the record $3 trillion assigned to digital tokens at the bull market’s peak in 2021 was closer to $875 billion.

Analysts Predict Massive Surge Ahead

According to Bloomberg, the nature of stablecoin transactions often leads to double-counting, depending on the platform users employ for fund transfers. For example, converting $100 of Circle’s USDC stablecoin to PayPal’s PYUSD on the decentralized exchange (DEX) Uniswap would result in $200 of total stablecoin volume being recorded on-chain.

Visa, which processed over $12 trillion the previous year, could suffer if stablecoins gain widespread acceptance as payment. 

Interestingly, despite this troubling data, analysts at Bernstein predicted that the total value of all stablecoins in circulation could reach $2.8 trillion by 2028, nearly 18 times their current combined circulation.

While PayPal and Stripe have made strides in adopting stablecoins, Airwallex has observed limited demand for stablecoin-based payment solutions among its customers, primarily due to concerns about “user-friendliness.” 

Sood emphasized the significant barrier of overcoming entrenched payment methods, citing the continued use of checks for 40% to 60% of business payments in the United States.

The Bloomberg report sheds light on the dominance of non-genuine user activity in stablecoin transactions. The study underscores the importance of improving existing payment infrastructure and addressing user-friendly concerns to unlock the long-term potential of stablecoins.

Stablecoin

Featured image from Shutterstock, chart from TradingView.com

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Crypto Analyst Reveals 6 Must-Buy Altcoins With The Most Potential

As the crypto market exhibits signs of a burgeoning altseason, crypto analyst Alex Wacy has shared a strategic forecast with his 175,000 followers on X. Wacy predicts a selective yet explosive growth phase for altcoins, emphasizing the critical nature of asset selection and market timing.

Crypto Market Outlook And Asset Selection Strategy

Wacy’s recent thread underscores the anticipation of a massive altseason: “Only ~15% of altcoins will bring 10-100x in this hyper growth. Asset selection matters more than ever. One slip-up, and you’re out.” His analysis highlights the potentially selective nature of the upcoming market phase, suggesting significant disparities in performance among altcoins.

Wacy believes the market is currently undervalued and primed for a significant uptick. He suggests that the consolidation of the total altcoin market cap above $700 billion would confirm the bull trend, signaling the onset of altseason. This perspective is rooted in current market behaviors where sentiment remains largely bearish, presenting a contrarian opportunity for growth.

TOTAL 3 crypto market cap

He categorizes the current sentiment into three types of capitulation—price, time, and growth—indicating varied investor behaviors that often precede market recoveries. The prevailing fear of further drops, according to Wacy, will likely clear out weak hands, setting the stage for a supercycle driven by Fear of Missing Out (FOMO) and subsequent strong buying activities.

Top 6 Altcoins With The Most Potential

#1 And #2: WIF as well as PEPE are the memecoins highlighted by Wacy as potential early movers in the anticipated altseason. “Look at WIF and PEPE, structurally similar to DOGE during its meteoric rise. These coins have cultivated a community and meme appeal that could very well parallel SHIB’s market cap in the previous cycle,” Wacy asserts. He notes that PEPE appears particularly poised for a breakout, whereas WIF, though currently weaker, has the potential for quick shifts in market sentiment.

PEPE WIF Dogecoin comparison

#3 Ondo Finance (ONDO): This Real World Asset (RWA) focused coin is characterized by its robust buy support during price dips. Wacy sees ONDO as an undervalued asset with a significant upside. “ONDO has a resilient buy floor; even slight retractions to around $0.64 could offer lucrative entry points ahead of substantial upward trajectories,” he advises. His first target is the $1.62 price zone.

#4 Arweave (AR): Known for its decentralized data storage solutions, Arweave is praised by Wacy for its strong market structure and resilience during downturns. Moreover, Arweave is building AO, a decentralized computer network which can be run from anywhere. “Arweave isn’t just storage; it’s a foundational technology in a decentralized future. A consolidation above $49 would likely be the catalyst for an explosive growth phase,” he predicts.

#5 Echelon (PRIME): Wacy discusses PRIME’s multifaceted ecosystem, which encompasses a trading card game and an AI-powered game, both of which are gaining traction. “Echelon stands at the confluence of gaming and blockchain technology, attracting a broad audience with its innovative gameplay and decentralized features,” he remarks. From a technical analysis perspective, the PRIME price is near a favorable buying zone from $14.97 to $17.5. “Hoping that altcoins are already entering the altseason, would like to see a V-shaped reversal,” Wacy states.

#6 Ethena (ENA): This synthetic dollar protocol offers an alternative to traditional banking and is poised for growth. “Ethena’s pattern on the weekly charts typically precedes major price movements. With the next major unlock event slated for April 2025, the buildup could be substantial,” Wacy explains. He likens ENA’s current price trajectory with the one of SEI.

ENA vs SEI comparison
Strategic Profit-Taking

Wacy also provides strategic advice on profit-taking, anticipating that the altcoin market index, TOTAL3, could ascend to between $2 trillion and $2.3 trillion during the altseason. He suggests considering partial profit-taking once the market reaches approximately $1.6 trillion. His rationale is based on historical patterns where many investors fall prey to greed, resulting in substantial losses.

The analyst further advises preparing a profit-taking strategy in advance, advocating for the reservation of 10-15% of positions for potential further growth beyond initial targets. He warns that the last surge in a growth phase often triggers excessive greed, suggesting that recognizing such signals could be crucial for timely exits before the onset of bear market conditions.

At press time, WIF traded at $3.58.

WIF price

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900 Million Telegram Users Send TON Token Soaring 15% – Details

Telegram, the messaging giant, has reached a staggering 900 million users. This surge directly impacts Telegram Open Network (TON), the blockchain designed to work seamlessly within Telegram. TON has seen a remarkable 15% growth in the last week, highlighting its potential to become a mainstream crypto player.


TON price action. Source: Coingecko

TON: Cheap Transactions Draw In Users

The key to TON’s recent success lies in its tight integration with Telegram. Users can ditch the hassle of separate crypto wallets and make transactions directly through Telegram’s native wallet.

This frictionless experience, coupled with TON’s cheap transactions and fee-free USDT transfers, is a major draw for everyday users who might be hesitant to dive into the complexities of traditional crypto exchanges.

Farming In Your Chats

While TON facilitates everyday transactions, its goals extend further. The Telegram ecosystem thrives on a network of apps and bots that introduce inventive ways to interact with your wallet. A prime example is “farming,” which allows users to participate in decentralized finance (DeFi) activities using TON or other tokens, all within the familiar Telegram interface.

This functionality to “farm” directly within chat windows showcases how TON fosters a deeper integration with cryptocurrencies. It breaks down the barriers between messaging and finance, potentially leading to a more seamless adoption of crypto in our daily digital interactions.

Security Concerns

However, TON’s path to mainstream adoption isn’t paved with roses. The biggest thorn in its side is security. While the integrated wallet offers undeniable convenience for small transactions, security experts raise concerns about its suitability for storing large amounts of cryptocurrency.

Unlike traditional hardware wallets, which are considered the gold standard for secure crypto storage, Telegram’s software wallet might be more susceptible to hacks or breaches. This could be a significant deterrent for users wary of entrusting their hard-earned crypto to a messaging app.

Regulatory Tightrope

Another looming challenge for TON is the ever-evolving regulatory landscape surrounding cryptocurrencies. Governments worldwide are still grappling with how to handle these digital assets, and regulations can significantly impact how TON operates within different markets.

Navigating this regulatory tightrope will be crucial for TON’s long-term success. The network needs to ensure it complies with evolving regulations while still offering users the functionality and freedom they expect from a decentralized blockchain.

Featured image from Pexels, chart from TradingView

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XRP Holders Stack Coins Despite Price Dip: Bullish Signal Or HODL Of Desperation?

The cryptocurrency market has been battered by recent storms, with many altcoins experiencing significant price drops. XRP, however, seems to be weathering the tempest with a hint of defiance. While its price has dipped, on-chain data reveals intriguing trends that suggest a potential silver lining for XRP investors.

XRP Accumulation On The Rise: Diamond Hands Or Whale Whispers?

Despite the price decline, a surprising trend has emerged. The number of investors holding between a thousand and 1 million XRP tokens has actually grown by 0.20% over the past month, according to data from Santiment. This could signify a growing population of “diamond hands” – investors who hold onto their XRP despite market volatility, believing in its long-term potential.

However, another possibility exists. The decrease in the number of whales holding between 1,000 and 1 million XRP tokens could indicate these larger investors are consolidating their holdings, potentially accumulating even greater amounts of XRP. This consolidation could be a precursor to future market moves by these whales.

Technical Indicators Whisper Of A Price Reversal: Bullish Undercurrents?

Technical analysis paints a cautiously optimistic picture for XRP. The Chaikin Money Flow (CMF), an indicator that tracks the flow of money into and out of an asset, has been trending upwards despite the price decline.

This “bullish divergence” suggests that even as the price falls, there might be a hidden buying force accumulating XRP. Investors might be interpreting the price drop as a buying opportunity, anticipating a future upswing.

A Sea Of Uncertainty: Legal Battles And Market Headwinds

While the on-chain data and technical indicators offer some positive signs, it’s crucial to acknowledge the storm clouds still lingering over XRP. The ongoing legal battle between Ripple Labs, the company behind XRP, and the US Securities and Exchange Commission (SEC) continues to cast a shadow. The outcome of this case could significantly impact XRP’s price and overall market perception.

Furthermore, the general health of the cryptocurrency market remains a significant factor. If the broader market continues its downward trend, it could drag XRP down with it, regardless of any positive on-chain developments.

A Coin To Watch?

XRP’s current situation is a curious mix of resilience and vulnerability. The uptick in smaller investors and potential whale consolidation suggest some underlying belief in XRP’s future. The technical indicators hint at a possible price reversal, but the legal battle and broader market uncertainties create a complex landscape.

Featured image from VitalMTB, chart from TradingView

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Friend.tech Token Launch Turns Into A Nightmare As Price Dives 98%

The decentralized social network Friend.tech, launched in August 2023, is facing a significant setback as its native token, FRIEND, experiences a staggering 98.5% drop in value. 

Investors who participated in the recent airdrop of FRIEND tokens have expressed serious concerns about the development, highlighting issues with token claiming and app functionality.

Investors Hit Hard As FRIEND Token Crashes

Upon its debut, the FRIEND token entered the market with a trading price of $169 per token, attracting 18,000 holders, and boasting a circulating supply of 14 million tokens. 

However, the current trading price has plummeted to approximately $1.26, resulting in a market cap of $27.7 million and liquidity of $5.4 million, according to DexScreener data, leaving many investors frustrated. 

Friend.tech

The airdrop process, which aimed to distribute tokens to the community, has faced its fair share of challenges. Users on social media site X (formerly Twitter) expressed frustration over the declining value of their airdropped tokens. 

Some claimants experienced difficulties claiming their tokens, while others reported watching the value of their holdings diminish significantly in hours. 

One user even accused a prominent figure of orchestrating a rug pull, further fueling the community’s discontent. 

DeFi Researcher Slams Friend.tech V2 Launch

Despite the current downturn, some crypto analysts predict a potential recovery for the FRIEND token. Notably, crypto analyst Daan Crypto Trades suggests that the token’s value may rise in the future, emphasizing that market sentiment may change once users start to see returns on their investments.

However, concerns remain regarding the functionality of the Friend.tech app, which experienced significant issues during its initial weeks.

DeFi researcher DeFi Ignas expressed disappointment in Friend.tech’s V2 launch, describing it as a “massive flop.” Ignas criticized the app’s usability issues and questioned whether the team’s focus was misplaced during development. Speculation arose regarding whether the team deliberately orchestrated a price decline to prompt a subsequent surge in value.

Despite this, the self-proclaimed number one creator on Friend.tech’s platform, using the pseudonym “Captain Levi,” stated the following in support of the token:

The dump is brutal but actually healthy as jeeters sell at heavily discounted prices while real users have not even waken up to the full potential of V2 and money clubs given the app barely works. think we already saw bottom and price should slowly recover as users buy clubs

As Friend.tech grapples with the challenges surrounding the FRIEND token, the crypto community eagerly awaits improvements in app functionality and a potential revival of the token’s value. 

Friend.tech

Featured image from Shutterstock, chart from TradingView.com

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Why This Crypto Bull Run Might Not Live Up To The Past: Analyst

In a detailed analysis shared with his 788,000 followers on X (formerly Twitter), renowned analyst Pentoshi has forecasted a more restrained outlook for the current crypto bull run, suggesting that it may not mirror the explosive growth seen in previous cycles. His insights provide a deep dive into the underlying factors that could temper the market’s performance.

Why Crypto Investors Have To Expect Diminishing Returns

Pentoshi began his analysis by stating, “This cycle should have the largest diminishing returns of any cycle,” attributing this prediction to several key market conditions. Primarily, he noted that the base market capitalization for cryptocurrencies has increased significantly in each successive cycle, setting a higher starting point that makes further exponential growth increasingly challenging.

“Each cycle has set a floor about 10x the previous lows in terms of market cap,” Pentoshi explained. He provided a historical context, recounting that when he entered the crypto market in 2017, the market cap for altcoins was only around $12-15 billion, a figure that ballooned to over $1 trillion during peak periods. He argued, “That growth isn’t repeatable,” pointing out that the decentralized finance (DeFi) sector, which was then nascent, played a significant role in driving previous cycles’ exceptional returns.

Another significant factor Pentoshi highlighted is the dramatic increase in the number of altcoins and the corresponding market dilution. “Today, however, there are a lot more alts, and a lot more dilution,” he remarked, indicating that the proliferation of new tokens spreads investment thinner across the market, reducing the potential for individual tokens to achieve substantial price increases.

Pentoshi also touched upon the demographic shifts in crypto ownership. He contrasted the early days of crypto adoption, when approximately 2% of Americans were involved in the market, to the present, where over 25% of Americans have some form of crypto investment. “It just requires more capital to move the markets, and there will continue to be a lot more alts, spreading it out further,” he noted, emphasizing the logistical and financial challenges of replicating past growth rates in a much more saturated market.

An often-overlooked aspect of market dynamics, according to Pentoshi, is the role of token liquidity and its impact on price stability. He detailed that recently, tokens amounting to about $250 million were unlocked daily, though not necessarily sold. “Assuming they all got sold, that is the inflows you’d need just to keep prices stable for 24 hours,” he explained, highlighting the delicate balance required to maintain current market levels, let alone drive prices upward.

Looking forward, Pentoshi was conservative in his expectations for the Total3 index, which tracks the top 125 altcoins (excludes Bitcoin and Ethereum). He estimated, “My best guess is that this cycle we don’t see Total 3 go 2x past the 21′ cycle ATH. So 2.2T max for Total3.” This projection underscores his broader thesis that while the market continues to offer daily opportunities, the era of “easy, outsized gains” might be behind us.

Pentoshi concluded his analysis with advice for investors, suggesting a more cautious approach to market participation. “If you believe the cycle is 50% over, you should be taking out more than you are putting in and building up some cash and buying other assets with lower risk in the meantime,” he advised, stressing the importance of securing gains and diversifying holdings to mitigate risk.

Reflecting on the psychological aspects of investing, he added, “Most people never really learn. Because if you can’t control your greed, and defeat it, you are destined to give back your gains repeatedly.” His parting words were a reminder of the cyclical and often predatory nature of financial markets, urging investors to secure profits and protect themselves from foreseeable downturns.

At press time, TOTAL3 stood at $635.565 billion, which is still more than -43 % below the last cycle high.

crypto TOTAL3

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Bitcoin Update: $120 Million Futures Liquidated As Price Takes A Beating

The recent dip in the price of Bitcoin below the $59,000 support level has sent jitters through the cryptocurrency market. While the price drop triggered liquidations in futures markets, analysts warn that a more significant decline could be on the horizon in the absence of a full-blown market capitulation.

Measured Retreat, Not Mass Exodus

Following the price drop, CryptoQuant, a cryptocurrency analysis platform, reported roughly $120 million in liquidated long positions (bets that the price would go up). This liquidation is noteworthy, but unlike previous selloffs at the same support level, it doesn’t signal a panicked exodus from investors. Investors seem to be taking a more measured approach, suggesting a possible short-term correction rather than a long-term bear market.

A Glimmer Of Hope For Long-Term Investors

While the short-term outlook appears cautious, there are reasons for long-term investors to remain optimistic. On-chain metrics, which analyze data directly on the Bitcoin blockchain, offer hints of a potential future upswing.

Metrics like MVRV (Market Value to Realized Value) suggest there’s a chance for an upward move in the larger market cycle. This information empowers strategic investors to view the current situation as a potential buying opportunity, particularly if a significant capitulation event unfolds in the futures market.

Navigating The Bitcoin Maze: Data-Driven Decisions Are Key

The current market volatility presents a complex challenge for investors. Understanding market sentiment is crucial for making informed decisions. The funding rate, an indicator of sentiment in futures contracts, has dipped into negative territory at times.

Traditionally, this suggests a stronger presence of bears (investors betting on a price decline) than bulls. However, the negativity hasn’t reached the extremes witnessed during past significant downturns, leaving the overall sentiment somewhat unclear.

Bitcoin’s Long-Term Narrative Remains Unwritten

Closely monitoring futures markets for signs of capitulation, along with analyzing other market indicators like the funding rate, is essential for success in this dynamic environment. Sharp investors armed with a strategic understanding of market dynamics are likely to profit from any future moves.

Bitcoin’s recent price drop has caused short-term volatility, but the long-term story remains unwritten. While the coming weeks might test investor resolve, those who can analyze market data and make strategic decisions could be well-positioned to capitalize on future opportunities.

Featured image from Pixabay, chart from TradingView

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Is MATIC Poised For Takeoff? Key Area Breaks Records, Fueling Bullish Outlook

Polygon (MATIC), the Ethereum scaling solution, has been a hot topic for weeks. Its daily active addresses recently hit an all-time high, exceeding 1.4 million, a testament to the network’s growing user base. This surge in activity, however, presents a tale of two sides for MATIC.

Polygon’s Busy Streets: A Sign Of Growth Or Gridlock?

The high traffic on Polygon’s virtual streets is undeniable. The consistent daily active addresses above 1 million suggest a thriving ecosystem. However, a closer look reveals a potential bottleneck. While the number of users has skyrocketed, transaction fees have taken a nosedive. This decline in fees translates to a drop in revenue for the network, raising concerns about Polygon’s long-term sustainability.

The story doesn’t end there. Despite the network’s bustling activity, the Total Value Locked (TVL) in Polygon’s Decentralized Finance (DeFi) protocols has dipped. This could indicate a cautious approach from DeFi whales, hesitant to fully commit their assets in the current market climate.

MATIC Bulls Charge In, Waving Green Flags

Despite the underlying concerns, MATIC bulls are charging forward. The token’s price experienced a surge exceeding 8% in the past 24 hours, currently hovering around $0.71. This bullish momentum could be attributed to a rise in buying pressure.

Data suggests a decrease in MATIC supply on exchanges, coupled with an increase in holdings by large investors (whales). This shift indicates investor confidence in Polygon’s future potential.

Technical Indicators Flash Bullish, But Caution Remains

Technical indicators also paint a bullish picture for MATIC. The Chaikin Money Flow (CMF), Money Flow Index (MFI), and the Moving Average Convergence Divergence (MACD) all point towards a potential upward trend.

These indicators suggest strong buying pressure and a bullish upper hand in the market. However, the Bollinger Bands, which measure price volatility, indicate that MATIC might be entering a period of lower price swings.

While this could be a sign of consolidation after the recent surge, it also introduces an element of uncertainty. The cryptocurrency market is notoriously unpredictable, and technical indicators can be misleading.

The Road Ahead: Can Polygon Navigate The Challenges?

Polygon finds itself at a crossroads. The network’s high activity is a positive sign, but the decline in fees and DeFi TVL raises concerns. The recent price surge and bullish technical indicators offer a glimmer of hope for MATIC investors. However, navigating the volatile cryptocurrency market requires a cautious approach.

For Polygon to maintain its current momentum, it needs to address the issue of declining fees. Exploring alternative revenue models or implementing fee structures that incentivize network usage are crucial steps. Additionally, fostering a robust DeFi ecosystem by attracting innovative protocols and users could reignite investor confidence and drive TVL growth.

Featured image from Pixabay, chart from TradingView

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Buy Crypto In May, Go Away: Arthur Hayes Shares His Top Altcoin Picks

In his most recent publication dated May 2, 2024, Arthur Hayes, the founder of exchange BitMEX, shared his insights into the crypto market’s recent tumultuous behavior and the broader macroeconomic signals shaping potential future trends. Titled “Mayday,” his essay directly addresses the crypto market, which has experienced significant volatility since mid-April.

Stealth Money Printing Is Commencing

Hayes begins by noting the observable distress in the crypto markets, which he attributes to a confluence of factors including the end of the US tax season, anticipatory fears about Federal Reserve policy decisions, the Bitcoin halving event, and stagnating growth in the assets under management (AUM) for US Bitcoin exchange-traded funds (ETFs).

He interprets these factors as a necessary purge of speculative excess, stating, “The tourists will sit out the next phase on the beach… if they can afford it. Us hard motherfuckers will hodl, and if possible, accumulate more of our favorite crypto reserve assets such as Bitcoin and Ether, and/or high-beta shitcoins like Solana, Dog Wif Hat, and dare I say Dogecoin (the OG doggie coin).”

A significant portion of Hayes’ analysis focuses on the Federal Reserve’s recent adjustment to its quantitative tightening (QT) program. Previously set at a reduction of $95 billion per month, the Fed has dialed this back to $60 billion.

Hayes interprets this as a covert form of quantitative easing, injecting an additional $35 billion per month into the dollar liquidity pool. He explains, “When you combine the Interest on Reserve Balances, RRP payments, and interest payments on US Treasury debt, the reduction in QT increases the amount of stimulus provided to the global asset markets each month.”

Hayes also scrutinizes actions by the US Treasury, particularly under Secretary Janet Yellen. He discusses the Treasury’s Quarterly Refunding Announcement (QRA), which outlines the expected borrowing and cash balances for upcoming quarters. For Q2 2024, the Treasury anticipates borrowing $243 billion, a figure Hayes points out is $41 billion higher than the previous forecast, due to lower-than-expected tax receipts.

He predicts this increased supply of Treasuries could lead to higher long-end rates, a situation Yellen may counter with yield curve control measures—a scenario that could catalyze a significant rally in Bitcoin and crypto prices.

Hayes touches on the failure of Republic First Bank, emphasizing the response by monetary authorities as a key indicator of systemic fragility. He criticizes the federal safety net that ensures all depositors are made whole, arguing that it masks deeper vulnerabilities within the US banking system and leads to a stealth form of money printing, as uninsured deposits are effectively guaranteed by the government. This, Hayes argues, is a fundamental misalignment that could lead to significant inflationary pressures.

Buy Crypto In May, Go Away

Hayes is candid about his investment strategies in the current environment. He advocates buying now. “I’m buying Solana and doggie coins for momentum trading positions. For longer-term shitcoin positions, I’m upping my allocations in Pendle and will identify other tokens that are ‘on sale.’ I will use the rest of May to increase my exposure. And then it’s time to set it, forget it, and wait for the market to appreciate the inflationary nature of the recent US monetary policy announcements.”

He concludes with a broad prediction that, despite the market’s recent volatility, the underlying liquidity conditions created by US monetary and fiscal policies will provide a floor for crypto prices, leading to a gradual upward trend. “While I don’t expect crypto to fully realize the recent US monetary announcements’ inflationary nature immediately, I expect prices to bottom, chop, and begin a slow grind higher,” he states, signaling his bullish outlook.

For Bitcoin, Hayes predicts that the premier cryptocurrency will recapture the key $60,000 level and then move in a range between $60,000 and $70,000 until August because of the annual summer lull.

At press time, BTC traded at $59,393.

Bitcoin price

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Buy Crypto In May, Go Away: Arthur Hayes Shares His Top Altcoin Picks

In his most recent publication dated May 2, 2024, Arthur Hayes, the founder of exchange BitMEX, shared his insights into the crypto market’s recent tumultuous behavior and the broader macroeconomic signals shaping potential future trends. Titled “Mayday,” his essay directly addresses the crypto market, which has experienced significant volatility since mid-April.

Stealth Money Printing Is Commencing

Hayes begins by noting the observable distress in the crypto markets, which he attributes to a confluence of factors including the end of the US tax season, anticipatory fears about Federal Reserve policy decisions, the Bitcoin halving event, and stagnating growth in the assets under management (AUM) for US Bitcoin exchange-traded funds (ETFs).

He interprets these factors as a necessary purge of speculative excess, stating, “The tourists will sit out the next phase on the beach… if they can afford it. Us hard motherfuckers will hodl, and if possible, accumulate more of our favorite crypto reserve assets such as Bitcoin and Ether, and/or high-beta shitcoins like Solana, Dog Wif Hat, and dare I say Dogecoin (the OG doggie coin).”

A significant portion of Hayes’ analysis focuses on the Federal Reserve’s recent adjustment to its quantitative tightening (QT) program. Previously set at a reduction of $95 billion per month, the Fed has dialed this back to $60 billion.

Hayes interprets this as a covert form of quantitative easing, injecting an additional $35 billion per month into the dollar liquidity pool. He explains, “When you combine the Interest on Reserve Balances, RRP payments, and interest payments on US Treasury debt, the reduction in QT increases the amount of stimulus provided to the global asset markets each month.”

Hayes also scrutinizes actions by the US Treasury, particularly under Secretary Janet Yellen. He discusses the Treasury’s Quarterly Refunding Announcement (QRA), which outlines the expected borrowing and cash balances for upcoming quarters. For Q2 2024, the Treasury anticipates borrowing $243 billion, a figure Hayes points out is $41 billion higher than the previous forecast, due to lower-than-expected tax receipts.

He predicts this increased supply of Treasuries could lead to higher long-end rates, a situation Yellen may counter with yield curve control measures—a scenario that could catalyze a significant rally in Bitcoin and crypto prices.

Hayes touches on the failure of Republic First Bank, emphasizing the response by monetary authorities as a key indicator of systemic fragility. He criticizes the federal safety net that ensures all depositors are made whole, arguing that it masks deeper vulnerabilities within the US banking system and leads to a stealth form of money printing, as uninsured deposits are effectively guaranteed by the government. This, Hayes argues, is a fundamental misalignment that could lead to significant inflationary pressures.

Buy Crypto In May, Go Away

Hayes is candid about his investment strategies in the current environment. He advocates buying now. “I’m buying Solana and doggie coins for momentum trading positions. For longer-term shitcoin positions, I’m upping my allocations in Pendle and will identify other tokens that are ‘on sale.’ I will use the rest of May to increase my exposure. And then it’s time to set it, forget it, and wait for the market to appreciate the inflationary nature of the recent US monetary policy announcements.”

He concludes with a broad prediction that, despite the market’s recent volatility, the underlying liquidity conditions created by US monetary and fiscal policies will provide a floor for crypto prices, leading to a gradual upward trend. “While I don’t expect crypto to fully realize the recent US monetary announcements’ inflationary nature immediately, I expect prices to bottom, chop, and begin a slow grind higher,” he states, signaling his bullish outlook.

For Bitcoin, Hayes predicts that the premier cryptocurrency will recapture the key $60,000 level and then move in a range between $60,000 and $70,000 until August because of the annual summer lull.

At press time, BTC traded at $59,393.

Bitcoin price

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Is Ethereum Back? Record 267,000 New Users Spark Speculation

The winds of change are swirling around Ethereum, the world’s second-largest cryptocurrency. Despite a recent price dip, the network has witnessed a surge in new user activity, sparking a wave of optimism. However, the outsized influence of large holders, known as whales, continues to cast a long shadow.

New Wallets Open For Business

Data from blockchain analytics firm Santiment reveals a surge in new Ethereum wallets, with a record-breaking 267,000 created on April 28th and 29th. This influx marks the highest two-day increase since October 2022 and suggests a potential resurgence of interest in the Ethereum network.

This trend defies the current market downturn, with many cryptocurrencies experiencing significant price drops. Analysts speculate that the rise in new wallets could be fueled by several factors, including:

  • Anticipation of future growth: Investors may be looking towards upcoming Ethereum upgrades that promise improved scalability and security, betting on the network’s long-term potential.
  • Bargain hunters: The recent price dip might be seen as an attractive entry point for new investors seeking a discount on Ethereum.

On Minnows And Whales

While the number of new users is encouraging, a closer look at Ethereum’s address distribution reveals a stark disparity in holdings. According to CoinMarketCap, a staggering 97% of Ethereum addresses hold between $0 and $1,000 worth of the cryptocurrency. This signifies a large pool of small-scale investors, often referred to as “minnows.”

However, the real power lies with a select few. Whale tracking platform Clank estimates that whales, representing only 0.10% of all Ethereum addresses, control a whopping 41% of the total circulating supply. This translates to an average holding of nearly 10 million ETH per whale, valued at a staggering $3.7 million.

Holding Steady: A Vote Of Confidence?

Despite the recent price decline, Ethereum appears to be weathering the storm better than the broader crypto market. In fact, Ether is up more than 30% year-to-date (YTD) from an opening price of about $2,282.

As of today, Ethereum sits at $3,014, with a total market capitalization of $362 billion. Notably, the market experienced an average decline of 8.75% over the last week, highlighting Ethereum’s relative resilience.

Furthermore, data suggests that a majority of Ethereum investors (74%) are long-term holders, demonstrating a strong belief in the project’s future. This “hodling” mentality indicates a commitment to maintaining their Ethereum positions for the long haul, even in the face of short-term market fluctuations.

Featured image from Pixabay, chart from TradingView

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Eclipse And Neon EVM Drive Solana-Ethereum Integration For Blockchain Interoperability

Layer 2 (L2) blockchain Eclipse and developer-oriented bridge Neon EVM have formed a new collaboration to implement changes in the blockchain landscape, increasing interoperability and scalability with the integration of Ethereum (ETH) and Solana (SOL). 

Aiming to combine the capabilities of both blockchains, Eclipse has consolidated the compatibility between the Ethereum Virtual Machine (EVM) and the Solana Virtual Machine (SVM) by deploying Neon Stack.

Solana And Ethereum Integration 

The primary objective of this collaboration is to integrate Solana’s transaction handling capabilities, which can process thousands of transactions per second, into Ethereum. 

This integration will be facilitated by Neon Stack, a standardized development stack that enables smart contract developers to achieve Ethereum Virtual Machine compatibility on Solana Virtual Machine-based blockchain networks. Eclipse plans to leverage Neon Stack on its SVM L2 to facilitate this integration.

The Neon Stack consists of Neon EVM smart contracts and Neon Proxy. It has been live on the Solana mainnet since July 2023. It has deployed numerous Ethereum-native Solidity decentralized applications (dApps), including decentralized finance (DeFi), gaming, and decentralized exchanges (DEXs), on Solana from its existing codebase. 

Neon EVM-Eclipse Partnership For Cross-Chain Development

Davide Menegaldo, Chief Commercial Officer (COO) of Neon EVM, expressed enthusiasm for Neon Stack and the collaboration, stating: 

With Neon Stack, we are paving the way for high-performance, scalable dApps infrastructure that transcends the limitations of traditional blockchain architectures and redefines computational efficiency. We are pleased to see Eclipse as the first industry partner to utilize the Neon Stack.

On the other hand, Neel Somani, founder of Eclipse Labs, the company behind the development of the Layer 2 blockchain, also emphasized the importance of the partnership, saying:

Our collaboration with Neon Stack enables developers to seamlessly deploy their dApps from EVM chains to Eclipse, further strengthening the harmonization between Solana and Ethereum. Solidity developers who wish to build on a high-performance L2 that leverages the strengths of the SVM can finally do so.”

Interestingly, the Ethereum ecosystem hosts over 13,000 dApps, with only a small fraction, 0.4%, cross-chained with Solana. This collaboration between Neon EVM and Eclipse could also provide further opportunities for developers to build new dApps with the new integration. 

In sum, it is believed that developers will be able to build advanced dApps that leverage the features of Ethereum and Solana, along with their respective native ecosystems and virtual machines, by leveraging the design of the NEON Stack and Eclipse.

Neon EVM

As of the current update, the native token of NEON EVM, NEON, is trading at $1.0135. It has shown a 2.6% recovery over the past 24 hours, aligning with the overall positive movement in the cryptocurrency market. However, during the past 7 days, the token has witnessed a price decline, experiencing a nearly 8% drop.

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum “Has Been A Major Disappointment”: Trader Weights In On This Crypto Cycle

This crypto cycle achieved some remarkable feats during Q1 2024, including the highest monthly and quarterly close in Bitcoin (BTC) history. However, BTC suffered a retrace that dragged Ethereum (ETH) and the rest of the crypto market down as the year’s second quarter started.

Now that we are one month into Q2, the market faces another correction. The most recent retrace became the deepest of the cycle, with Bitcoin nosediving into the $57,000 support zone and Ethereum falling below $3,000. Despite the market’s stumble, analysts remain optimistic for what’s to come.

What Makes This Cycle Different?

Traders and analysts have urged investors not to panic about the retraces yet. A broader look shows that the market is above levels not seen since the last bull run. As many have discussed, there’s a significant resemblance between this cycle’s performance and previous ones.

However, analysts have also pointed out the singularities of this bull run. Compared to the 2020 cycle, altcoins “didn’t even run that hard over the last few months,” as renowned analyst Altcoin Sherpa highlighted.

After Wednesday’s correction, trader and economist Alex Krüger weighed in on this cycle’s performance. Krüger concurs with some of Sherpa’s points, considering that the market’s “too many” options have made the playfield more convoluted.

Similarly, he also has noticed the desire “to focus on making a quick buck” and investing in “short-term hype rather than on longevity.”

The trader highlighted that the Bitcoin exchange-traded funds (ETFs) have “almost entirely” driven this cycle. Besides BTC, memecoins have been the dominating narrative of the bull run, ranking among the top gainers of Q1 2024.

Moreover, Krüger asserted that most market participants who missed the Bitcoin ETF run “went all in on altcoins to compensate.” As a result:

They deployed late and poorly, going in larger at higher levels, and are now seething and at a loss, as too many altcoins have given up their entire 2024 gains in the last month.

Ethereum “Disappointing” Run

One of the crucial points of Krüger’s analysis is Ethereum’s overall unsatisfactory performance. To the crypto veteran, the second-largest cryptocurrency by market capitalization “has been a major disappointment” even though it has performed well for stakers and farmers.

Despite seeing massive gains alongside Bitcoin’s run, Ethereum has not been able to challenge its all-time high (ATH) price set over two years ago. Furthermore, Solana overtook Ethereum after “establishing itself as the chain of choice for retail traders.”

It’s worth noting that the turmoil surrounding Ether and the Ethereum Network has seemingly affected the token’s recent performance. The “king of altcoins” is currently facing severe regulatory scrutiny.

The suspicion of a spot Ether ETF rejection from the US Securities and Exchange Commission (SEC), alongside the news of the agency’s investigation on the asset’s classification as an “unregistered security,” seems to have created uncertainty around ETH.

Ethereum’s current landscape has reignited deeming conversations against its founders and the asset, possibly fueling the doubtful sentiment surrounding a sector of the crypto community.

Despite the challenging landscape, many analysts consider that investors should not be bearish on Ethereum. After falling 4.5% and 14.39% in the weekly and monthly timeframes, ETH has recovered 3.3% of its price in the past 24 hours.

Ultimately, Krüger’s consideration concludes that “the cycle is not over.” However, he points out that investors “need to move out of the panic area and reignite the majors” before finding a new narrative for this run.

Ethereum, Ether, ETH, crypto

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Fresh Money From Retail Traders Flows Into Copy Trading As Crypto Derivative Expands: Margex

Coinbase won approval to offer cryptocurrency derivative trading to U.S. retail customers, fueling much hope and momentum to the $2.1 trillion cryptocurrency derivative market. 

Coinbase’s approval arrived following a significant decline in derivative trading volume due to economic uncertainties, regulatory struggles, and a reduction in risk from high wealth accounts and retail traders. 

Derivative trading, such as futures, options, and others, has dominated the cryptocurrency market since 2014 as investors snap at the opportunity to place bets with little investment for a higher percentage return. A large percentage of the derivative market is influenced by retail traders, fueled by manic meme-stock trading and social media trends on platforms such as X, YouTube and Reddit.

Although heavily favoured by institutional investors, who have maintained a fair, open position in the derivative market, Bitcoin exchange-traded funds (ETFs) make up a large share of traded assets. 

Futures and options trading have had a fair share in the derivative market, but the recent dominance of copy trading is often cited as a key reason for the high volume of the derivative market over the past few months. Copy trading is slowly evolving into a big tool for retail traders looking to explore the derivative market, as many of these traders favour automated trading over spot or manual trading.  

The data from Margex highlights much attention shifting to copy trading as a new strategy for retail traders looking to increase their profitability while leveraging an experienced trader to produce great profit returns with a profit share automated for both the user and pro trader. 

Copy Trading And Gen Z Influence On The Derivative Market

Copy trading involves users replicating the trading strategies of expert traders. This method allows users to diversify their portfolios, minimize risk, and increase their profitability in the financial market while trades are executed automatically and instantly. 

The idea of copy trading is to enable users to benefit from the knowledge and skills of well-experienced traders. The users work to enhance their trading outcomes or build better trading or investment skills. 

Research has shown that 44% of traders are copy traders, signifying an extreme surge of copy trading solutions in the last few years and is greatly influenced by the social age experiencing exponential growth as web3 technologies evolve. 

Social media and Generation Z users (GEN Z) have amplified the popularity of trading strategies like copy trading through investment threads on X, Reddit, and even YouTube channels, with over 500,000 community individuals actively participating in such financial market discussions. 

Through social media and online communities, young users have seen a high demand for copy trading as their interest grows through the consumption of financial information. This shows the social aspect significantly influences the adoption of copy trading. 

By leveraging on the power of online communities and social aspects of trading, copy trading eliminates the rigorous learning phase of analyzing trades for retailers, simplifies trading processes and improves strategies to remain profitable. 

Copy Trading A Community Building Tool 

Investors and retail traders have a long history of following the leader or forecaster of the financial market, be it for short-term, medium-term, or long-term portfolio moves. Copy trading has long existed, with many sharing trade ideas or mimicking the trades of experienced traders such as Warren Buffet. 

These patterns in the past among retailers are seen in the present generation as many retailers or users follow well-experienced traders to replicate their open positions. 

With more retail traders adopting copy trading, it remains a dominant strategy in the derivative market compared to the spot market. Over 91% of futures trading participants are actively involved in copy trading while recording over 92% of profit returns. 

According to CCData, the growth of the cryptocurrency derivative market has been influenced by retail traders’ demand for more innovative trading strategies, such as automation tools (copy trading) and AI algorithms, to enhance their trading approach. Many centralized exchanges recorded a new peak of $2.3 trillion in the derivative market. 

CCData has shown much adoption in the derivative market as compared with spot trading. A large community of retail traders is approaching copy trading to earn a great profit on their investment. Over the past few years, the copy trading community have earned a profit margin of over 74 million USDT, reflecting increased engagement and the copy-trading method by retailers in the derivative market. 

Many crypto trading platforms have adopted copy trading to fill the needs of retail traders looking for improved and robust trading methods to boost profitability. Margex, a copy trading platform, remains at the top of the list of copy trading platforms for these users. 

Margex A Next-Gen Copy Trading Platform

Margex is a next-gen copy trading platform built to help its users recreate success by mirroring the trades of experienced traders in the crypto industry on its intuitive platform. 

Margex’s adaptation to better copy trading strategies that many exchanges lack has been a big boost for many retailers. This will address the high demand of users looking for automated approaches to enhance trading results while diversifying their portfolios to maximize profitability.

To demonstrate its seriousness about providing the best services to users, Margex has spent over $3 million to build its copy trading platform with keen attention to usability. It also has a zero-fee converter that enables users to swap tokens easily, and a more ultra-modern wallet will soon be introduced for users to manage assets within a secure platform. 

Follow this three simple step guide on participating in the Margex copy trading platform and replicating the trades of more experienced crypto traders. 

1 Create An Account With Margex 

Creating an account with Margex guarantees you the best copy trading experience as it is out to protect the interest of its copy trading users and provides a diverse range of skillful traders you wish to copy their trades. 

2 Select Your Traders 

Once logged in, navigate to the copy trading page to explore the copy trading leaderboard to select top-performing traders over time. Evaluate its performance metrics, such as followers, traders’ equity, return on equity (ROE), and strategies that align with your risk appetite and investment plans.  

3 Allocate Funds 

After choosing a trader to follow and confirming your strategy, allocate some funds to replicate their trades. Margex platform mirrors all trades automatically and in real-time. 

As low as $10 is the minimum amount Margex requires to participate in copy trading strategies. 

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Whales Dive In, But Dogecoin Price Sinks 20%: What’s Going On?

Dogecoin (DOGE), the Shiba Inu-faced darling of the 2021 memecoin frenzy, has found itself shivering in the current crypto winter. Once a symbol of retail investor exuberance, DOGE has plummeted over 70% from its sky-high peak, leaving its future shrouded in uncertainty.

DOGE Feels The Crypto Frost

While Bitcoin, the heavyweight champion of the crypto world, grabs headlines with its recent wobble, the impact on memecoins like DOGE has been brutal. Unlike Bitcoin’s divided analyst opinions, the sentiment surrounding DOGE is decidedly bearish.

At the time of writing, the memecoin was trading at $0.132, down 5.4% up the last 24 hours but sustained a 20% loss in the last seven days, data from Coingecko shows.

Is DOGE A Canary In The Crypto Coal Mine?

Some analysts believe DOGE’s struggles are a canary in the coal mine for the entire crypto market. They said if even a historically high-flying memecoin like Dogecoin can’t hold onto gains, it raises serious concerns about risk appetite in the crypto space in general.

Whales Accumulating DOGE: A Glimmer Of Hope?

However, a glimmer of hope flickers for the dethroned meme king. On-chain data suggests an increase in large wallet purchases of DOGE, hinting at potential accumulation by wealthy investors. This “contrarian” behavior could be a sign that some whales are using Coinglass or similar platforms to track Dogecoin derivatives and believe the coin is undervalued and ripe for a comeback.

Coinglass, a popular cryptocurrency data provider, offers insights into factors that might be influencing the whales’ decisions. By analyzing metrics like open interest, funding rates, and liquidations on Coinglass, these investors might see an opportunity to buy DOGE at a discount.

Related Reading: Solana Crawls: Network Update Fails To Fix Traffic Jam, Price Feels The Pinch

In a similar development, Whale Alert, a well-known blockchain tracker, has reported that a DOGE whale arranged two large transactions in a single day. Some 150,000,000 Dogecoins were transferred in the first transaction, and an additional 76,316,694 DOGE were transferred in the second, for a total of almost 226 million DOGE. At the time, the meme cryptocurrency was worth around $40 million in fiat money.

Can Dogecoin Thaw The Crypto Winter?

The coming weeks will be critical for DOGE. The return of positive social media sentiment, coupled with continued accumulation by whales who might be strategically using Coinglass for market analysis, could be the spark that reignites the DOGE rally. However, if the broader market weakness persists, DOGE’s summer might be spent shivering in the doghouse.

Featured image from Pixabay, chart from TradingView