Algorand recently received a big boost for its blockchain ecosystem courtesy of Hivemind Capital’s $25 million investment to the decentralized finance (DeFi) Layer 1 chain.
Algorand DeFi ecosystem recently attained new all-time high in total locked value
ALGO registered a 3.23% price surge before experiencing minor price correction once again
The altcoin is predicted to be extremely volatile over the next few days
The crypto-focused investment firm announced three days ago that it has deployed 80 million ALGO tokens across various governance and DeFi programs under the umbrella of the Algorand ecosystem.
During that time, ALGO was trading at $0.31, putting the total value of the deployed tokens to $25 million.
Hivemind Capital’s input catapulted the total locked value (TLV) into Algorand to a new all-time high of$270 million. On a week-to-date basis, at that time, the blockchain’s TLV increased by as much as 53.95%.
The massive cash inflow, it turned out, didn’t just help the network with its total locked value, as Algorand’s social dominance and ALGO price also increased.
Algorand Social Engagement Up More Than 1,000%
According to data shared by LunarCrush, Algorand’s social engagement surged by 1,220% over the last seven days as it peaked at 12.78 million at the time of this writing.
The cryptocurrency social intelligence firm inferred this meant ALGO captured the interest of a large part of the crypto community.
Moreover, the upcoming FIFA world cup might have spurred interest for both the blockchain network and the crypto as five months ago Algorand announced it will be one of the sponsors of the much-anticipated sporting event.
Alpha: When you see spikes in social activity, it typically means there’s something to pay attention to…$ALGO social engagements measured hourly hit 12.87M, 1.22K% above the 7-day average.
— LunarCrush (@LunarCrush) October 16, 2022
The huge boost in social status proved to be a good trigger for Algorand as it also translated into a price pump for the altcoin.
ALGO increased by 3.23% over a 24-hour period as it traded for $0.32. At press time, however, the digital asset experienced price correction as data from Coingecko showed it was changing hands at $0.319.
Time To Double Down On ALGO
Different indicators from Algorand’s trading chart signals it may be time to take further risks in ALGO holdings as bigger rewards could be expected.
Bollinger Bands indicate ALGO will be extremely volatile over the next few days which might help trigger price increase for the altcoin.
Meanwhile, the Moving Average Convergence Divergence (MACD) showed Algorand buyers (represented by the blue line) are still dominating the sellers (orange line).
As buyers continue to prevail over sellers, a short term bullish streak could happen soon for the digital asset.
Perhaps crypto investors have already predicted this trend for Algorand, as there’s been a significant increase in ALGO addresses.
By the end of September, active addresses were at 15 million. Recent data, however, show the number increased by 200,000.
ALGO market cap at $2.9 billion on the weekend chart | Featured image from Forkast News, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.
Where Is The Ethereum Price Headed Next After Clearing This Resistance
The Ethereum price has finally been able to break above the $1,233 resistance mark. Over the last 24 hours, the coin has registered substantial gains. With the price moving above the $1,233 resistance level, Ethereum price has pictured a positive short-term bullish thesis on its one-day chart.
Technical outlook also agreed with the same and depicted a rise in demand for the king altcoin. Buyers will need to stick around for longer than the next couple of trading sessions for ETH to reach above the $1,300 price mark.
The price of ETH must remain above $1,200 and $1,230, or else the bears will return. This would mean Ethereum could drop to a psychological floor of $1,000. The altcoin has logged considerable gains over the past week’s duration, surging more than 11%. ETH’s chart depicts accumulation, which is good for short-term bullish momentum.
Ethereum Price Analysis: One-Day Chart
Ethereum was priced at $1,260 on the one-day chart | Source: ETHUSD on TradingView
ETH was exchanging hands at $1,260 at press time. The next area of resistance for the altcoin stood at $1,280. It is, however, too early to determine if the altcoin has stabilized over the $1,230 price mark. It needs to trade above the $1,260 zone for the next trading sessions for the bulls to strengthen further.
In case of this, the other price ceiling crucial for ETH’s upward movement was $1,350. On the other hand, a fall from the current price zone will take the price to $1,200 and then straight to $1,000. The amount of Ethereum traded in the last session increased, which showed bullishness.
Ethereum registered positive buying strength on the one-day chart | Source: ETHUSD on TradingView
ETH had nosedived into the selling zone at the beginning of this month; however, the altcoin has finally moved closer to the positive buying zone. The Relative Strength Index shot up to the neutral zone after remaining in the selling zone most of the month.
This indicated that demand for the altcoin had returned to the market. A continued push from buyers will drag the indicator past the 50-mark, depicting more buyers than sellers. In relation to that, the Ethereum price moved above the 20-Simple Moving Average line, which meant that buyers were driving the price momentum in the market.
Ethereum displayed a buy signal on the one-day chart | Source: ETHUSD on TradingView
In correspondence to other indicators, the altcoin depicted a buy signal on the one-day chart. The Moving Average Convergence Divergence (MACD) indicates price momentum and trend reversal.
MACD formed green signal bars above the half-line, indicating that if buyers acted on them, ETH would give returns. Bollinger bands depict price volatility and fluctuation; the bands were narrow, indicating price stability for Ethereum.
Featured image from Unsplash, Chart: TradingView.com
Coinbase Drops XRP & Other Tokens, Cites Low Activity
As the FTX saga continues, all eyes are on crypto exchanges: Coinbase, Crypto.com, Binance and the like all have hefty sets of eyes on their next moves.
There is plenty to be said for the state of crypto exchanges today, but Coinbase’s announcement of the delisting of several tokens: BCH, ETC, XLM, and XRP. Let’s dive into the state of crypto exchanges currently, and more on Coinbase’s latest announcement.
Exchange: Status Check
While Binance CEO Changpeng ‘CZ’ Zhao has seized the spotlight as crypto’s ‘main character’ lately, Crypto.com’s leadership team – spearheaded by CEO Kris Marszalek – has largely been on the defensive, while Coinbase has been treading their steady positioning. Plenty of other major headlining exchanges have followed suit with Coinbase. Many have sought to maintain posture and look to keep ‘business as usual’ to weather the storm.
Nonetheless, the spotlight is on. As more threads unravel around the FTX saga, consumer trust is impacted in immeasurable ways; one consistent thread is that all exchanges, the aforementioned 3 and beyond, have faced pressures to increase transparency around reserves.
That could lead to exchanges at large preparing for increased regulatory oversight, particularly with the U.S. Senate hearing regarding FTX less than 48 hours away.
XRP is frequently a top 10 token in biggest market cap in crypto; however, Coinbase has elected to no longer support trading of the token, citing “low activity.” | Source: XRP-USD on TradingView.com
We haven’t seen a delisting from Coinbase in recent memory. In a tweet announcement earlier on Tuesday, Coinbase announced the token delisting:
1/3: After careful evaluation, we will be removing support for several networks with low activity on Coinbase Wallet starting in January 2023—including BCH, ETC, XLM & XRP. These routine evaluations allow us to continue investing in new features that make web3 more accessible.
— Coinbase Wallet (@CoinbaseWallet) November 29, 2022
Coinbase, once notorious for being too lenient on their coin adoption policy, is tightening the belt and cutting the fat. The move may surprise those that pay attentive to tokens not named Bitcoin and Ethereum. XRP is generally seen as a low-cost token that is easy for cross-exchange swaps with it’s low fees. Similar sentiment is often shared with fellow delisted token Stellar (XLM), and both tokens typically sit in the top 25-50 in terms of biggest tokens by market cap – making them surprising cuts considering some of the more fringe, lesser-known tokens that Coinbase has listed previously.
The final two tokens, Bitcoin Cash (BCH) and Ethereum Classic (ETC) are both the result of forks and will be recognizable to more legacy crypto users who can recall when these tokens came into existence as early ‘forked coins’. Their stagnant performance and slow retraction of relevance has led to an unsurprising result with this announcement.
Users impacted should refer to Coinbase’s blog post on the matter for more details.
Featured image from Coinbase.com/press, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
This op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.
Elon Musk Implores Fed to Cut Interest Rates or Risk Economy Tumbling into ‘Severe’ Recession
Elon Musk believes that the Federal Reserve must cut interest rates immediately or risk incurring a severe recession. The outspoken Tesla CEO made his opinion known in an early tweet Wednesday, which read:
“Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.”
According to Musk, the Fed’s attempt to rein in runaway inflation could worsen the economic situation. As it stands, the prices have skyrocketed, and several households across the US are feeling the crunch. Energy prices are hovering at record-high levels, and the tech space and crypto industry are wallowing in significant devaluation.
Musk has warned of an impending recession before. On October 24th, the brash billionaire estimated a global recession could last until the spring of 2024. Although Musk admitted he was “just guessing,” his prediction came amid other gloomy economic forecasts from several business leaders. Some of these leaders were Amazon CEO Jeff Bezos, JP Morgan CEO Jamie Dimon, and Goldman Sachs CEO David Solomon.
Latest Elon Musk Recession Warning Sparks Twitter Debate
The latest remarks by Elon Musk on a likely recession comes in an exchange with Tesmanian co-founder Vincent Yu. Like Musk, the Tesmanian co-founder had earlier expressed concern about the economy’s health and forewarned a recession next year. The Twitter exchange between Musk and Yu sparked participation from several other users who also chimed in. While a few seemed to side with the Fed’s position on interest rates, others frowned on hiking rates to stem inflation. Furthermore, a small number of Twitter users expressed ambivalence at the Fed’s stance. For example, a user with the handle @CricketSurfing stated:
“I don’t know where the sweet spot is in terms of interest rates, but the goal should be to allow the M2 money supply to grow at about the rate of GDP. Right now, the Fed is *shrinking* M2. They have slammed on the brakes, when they should have eased off the accelerator.”
Sven Henrich Also Chimes In
Also notable in the thread on interest rates is input from NorthmanTrader founder Sven Henrich. According to Henrich, the Fed’s actions on perceived inflationary pressure were overdue. As a result, the US apex bank has tried to make up for its decisive delay amid the aggressive tightening of a record-high debt construct. However, Henrich lamented that the Fed is implementing its strategy without “accounting for the lag effects of these rate hikes”. The NorthmanTrader concluded by predicting that the Fed would realize the extent of the damage of its decision too late.
Like Yu, Henrich’s assessment of the Fed decision drew an affirmative response from Musk.
Henrich also slammed the Fed further by stating that the central bank continues to project positive GDP growth for 2023. He reasoned that such misplaced optimism comes amid the obvious signs but does not appear surprised by this. According to Henrich, the Fed displayed the same misplaced GDP optimism in 2008 en route to the economic meltdown of ’09. Henrich concludes his criticism of the Fed by saying:
“As always, they will panic cut rates once the recession impact is here & then blame unforeseen factors.”
Read more business news on Coinspeaker.
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