Cryptos dropped despite the rise in stocks in Monday trading. Markets are still spooked by the rising inflation and looming recession.
Majority of the crypto tokens were trading lower on Tuesday. BNB and Tron were the only two players rising, whereas Bitcoin and Ethereum were among the top losers. Avalanche and Solana dropped 5 per cent each.
The global cryptocurrency market cap was trading higher at the $1.26 trillion mark, dropping as much as 2 per cent in the last 24 hours. However, the total cryptocurrency trading volume surged about 35 per cent to $83.81 billion.
What’s cooking India
Rohit Jain, the head of the recently launched CoinDCX Ventures, is swamped with pitch decks from aspiring crypto entrepreneurs even as the chorus of a long and harsh crypto winter grows stronger by the day.
Unfazed by a severe crypto market crash, the imposition of a high income tax rate by the Indian government, a massive dip in trading volumes, the collapse of a popular token and continuing global uncertainty around digital asset regulation, Indian entrepreneurs have continued launching scores of new crypto ventures supported by strong angel funding.
Bitcoin is seeing bearish consolidation since early April, and it has been trading in a tight range for the past few weeks. It is currently trading at $29,200 which is the lowest since January 2021, Edul Patel, CEO and Co-founder, Mudrex.
“Bitcoin is likely to break below the current level testing its support once again. It seems like investors and institutions have paused after Terras crash and are a little hesitant to return to the market,” he added.
Markets continue to range bound, thanks to rising inflationary worries, geopolitical uncertainty, and global economic slowdown expectations, said Kunal Jagdale, founder, BitsAir Exchange.
“There is no optimism for the crypto space in near term, he added. “Cryptos have majorly been tracking equities for the movement and investors might see some relief rallies on for a brief period on periodic intervals.”
South Korean police are moving to freeze Luna Foundation Guards money in the wake of this months TerraUSD (UST) stablecoin collapse, according to a Monday report from KBS news.
Japanese bank Sumitomo Mitsui Trust will form a new company to offer digital asset custody services to institutional investors, according to a report by Nikkei Asia.
About a dozen per cent of adults held cryptocurrency in 2021, according to a Federal Reserve study measuring the economic health of US consumers.
Tech View by Giottus Crypto Exchange
Solana (SOL) is a promising layer-1 solution and one of the top contenders of Ethereum. It has been designed to support decentralized applications (dApps).
The open-source protocol uses a Proof-of-History consensus in conjunction with the underlying Proof-of-Stake consensus mechanism to improve the scalability and speed of its network. It currently trades at $49, down from an all-time high of $260.
SOL, like all major altcoins, has been impacted by the current turmoil in the crypto market. Solana lost long-term support at $92 in April and hit a low of $37 this month before bouncing back to the $43 long-term support line. SOL is now moving sideways in a narrow range of $45-$55.
While the current phase appears to be one of consolidation, Solana will have to move above the psychological resistance of $65 to ensure a rally. Technically, a breakout above the $59 and eventually $75 is required for a clear market structure shift. Given its rejection from resistance at the .236 Fibonacci retracement level of $55, an eventual test of the lows of $37 is likely.
Support: $48, $37
Resistance: $54, $65, $82
(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.)