cryptocurrency prices today: Top cryptocurrency prices today: Terra, Bitcoin, Dogecoin, Shiba Inu gain up to 6%

New Delhi: Crypto markets made a quick recovery on Tuesday as peace talks between Russia and Ukraine supported the sentiment. Traders awaited the US Fed’s upcoming monetary policy meeting, which kicks off today. Many are wary of a deeper selloff if Fed gives a clear path for interest rate hikes.

Barring the dollar-pegged stable coins, all of the top digital tokens were trading higher. Terra gained more than 6 per cent, followed by a 3 per cent rise in Bitcoin. Avalanche and Dogecoin added 2 per cent each.

The global cryptocurrency market cap today dropped lower to $1.73 trillion, jumping about 2 per cent in the last 24 hours. Total cryptocurrency trading volume zoomed as much as 20 per cent to $74.69 billion.

Global investors are scooping up stakes in cryptocurrency funds and companies as they seek exposure to a sector many believe could withstand the fallout from the Russia-Ukraine conflict.

What’s cooking in India

• High-value crypto transactions of about 700 investors have come under the scanner of the income tax department, which is now proposing to issue notices to them. These individuals or entities could face 30 per cent tax, penalty and interest.

• The crypto industry has reached out to the finance ministry, seeking to either reduce or eliminate the 1 per cent tax deducted at source (TDS) proposed on the proceeds of all crypto transactions. The Finance Bill will be approved in the Parliament session that commenced Monday. Top crypto players are taking up the demand with the ministry through the Blockchain and Crypto Assets Council (BACC).

• Cryptocurrency startups have begun offering investors an option to earn interest on virtual assets to battle volatility even as the industry awaits regulatory and legal clarity on the issue. Crypto startups are offering fixed returns on one’s holdings.

Expert take
Bitcoin and Ethereum picked up a little trading momentum, said Edul Patel, Co-founder and CEO, Mudrex. “If buyers could hold above the support level, there can be a long-term uptrend. Since BTC is trading sideways, this could create high volatility in the coming few days.”

Following European Union’s rejection of the proposed Bitcoin ban aimed at limiting energy-intensive proof-of-work cryptos, the crypto market was seen having a bullish upward recovery, trading back in the greens, said CoinDCX Research Team.

“Instead of an outright ban, the members of the European Parliament agreed on a draft set of rules that champions supervision, consumer protection and environmental sustainability—setting more regulations, policies and provisions that will strengthen trust and credibility for the digital asset sector,” it added.

Global updates

• Japan’s government and financial regulator have laid out the penalties crypto exchanges could face if they fail to comply with sanctions imposed on Russia following its invasion of Ukraine.

• Dogecoin (DOGE) briefly jumped as much as 10 per cent after Tesla CEO Elon Musk said in a tweet that he is not selling his crypto holdings, which includes DOGE.

• Non-fungible token (NFT) marketplace Magic Eden has raised $27 million in a Series A funding round to expand its range of products and services.

• The latest draft of the European Union’s (EU) proposed legislative framework for governing virtual currencies, Markets in Crypto Assets (MiCA), still contains a provision that could limit the use of proof-of-work cryptocurrencies.

Tech view by Giottus Crypto Exchange
Aave is one of the popular Defi protocols. It is an open-source and non-custodial tool, built on Ethereum to enable users to lend and borrow their cryptocurrencies and generate interest. Its token – AAVE – has taken quite a beating lately, but remains a favorite, given its rally from near $100 to over $600 in 2021.

AAVE remains under pressure due to macro market trends and its reliance on Polygon, the layer 2 network that has been facing technical issues lately. While it continues to underperform within a resistance trendline at the moment, it is looking to overcome resistance at around the $120 mark.

If this level is held, the bulls will be looking to take this past $124 and $127 in the short term. Breaching the $130 level is necessary to signal a new rally that may bring $200 back in sight.

Downside remains limited on AAVE given the steep fall, and the coin is already in a compelling buy-and-hold territory for many people.

Major levels
Support: $124, $127, $130

Resistance: $120, $118