Cryptos have been down in the doldrums since the Terra (LUNA) fiasco, which wiped out $40 billion from the investors’ kitty. Rising inflationary worries and concerns over slowing growth are major concerns for riskier assets.
Barring the US dollar-pegged USD Coins, all the tokens were trading sharply lower. Avalanche plunged another 11 per cent, followed by a 9 per cent fall in Solana. Polkadot and Cardano dropped 8 per cent each.
The global cryptocurrency market cap was trading lower at the $1.24 trillion mark, dropping about 4 per cent in the last 24 hours. However, the total cryptocurrency trading volume rose more than 6 per cent to $82.36 billion.
Expert take
Despite retail investor sentiment erring on the cautious side, institutional confidence remained strong, said CoinDCX Research Team.
“Funding continues to plough into the digital asset sector as seen from Swiss-based investment firm 21Shares launching two crypto funds amidst the digital asset market uncertainties,” it added.
Global updates
- US President Joe Biden’s administration will press Congress to demand cryptocurrency exchanges keep their customers’ money separate from their own corporate funds, according to a person familiar with the plan that could constrain the way the industry does business.
- Swiss-based investment product firm 21Shares is launching two crypto exchange-traded-products (ETP) in the U.S. as the firm seeks to capitalize on global crypto investor demand.
- Bitcoin has the potential to disrupt existing traditional payment networks, especially with the growing adoption of the Lightning Network, executives from payments company Block (SQ) said during its virtual investor day.
- Argo Blockchain, the mining company that diversified into Web 3 through its Argo Lab subsidiary earlier this year, said it had a stake in UST that wasn’t material and was able to “nearly break even” on its position during the UST meltdown.
Tech view by Giottus Crypto Exchange
Most altcoins have taken quite a beating during the current bear market. Chainlink is no different, having corrected from a local high of nearly $40 in November, to $6 this month. However, LINK arguably possesses solid potential to bounce quickly and trim its losses faster, given the fundamental value it is generally known to have.
LINK is a token of Chainlink – a decentralized oracle that allows smart contracts to communicate with each other on blockchain ecosystems, enabling the transfer of real-time, actual data to blockchains. Today, LINK trades around the $15 level.
ET CONTRIBUTORSSo far, there has been no break in the market structure for LINK on higher time frames. While it has stopped forming lower lows, it is yet to register a higher high and signal a change in sentiment.
In fact, a rejection from the .236 retracement of its drop only adds to the overall bearish outlook and suggests that investors will likely get the opportunity to buy LINK at inexpensive prices again. Strong local support can be found in the $6.5 range. However, if it is lost, even $5 and $4 may be on the cards.
Key levels
Supports: $6.5, $6.0, $5.0
Resistances: $7.4, $8.0, $9.5
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
