Chainlink and Cardano Slump as Bears Take Over – Which Coin Will Help You Survive the Carnage? Cryptonews
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Despite optimism about Bitcoin’s future trajectory heading into the Bitcoin Halving, analysts at JPMorgan have raised concerns that things may not go according to everyone’s expectations. They believe that a storm still lies ahead for the flagship crypto token before any massive move to the upside.
Further Bitcoin Pullbacks Are To Be Expected
According to a Bloomberg report, JPMorgan strategists have warned that Bitcoin could still experience further pullbacks following its recent decline. They alluded to the recent net outflows recorded by the Spot Bitcoin ETFs, which underscored the current bearish sentiment in the Bitcoin ecosystem.
These strategists, led by Nikolaos Nikolaos Panigirtzoglou, also highlighted the sustained open interest in CME Bitcoin futures as another bearish signal for Bitcoin’s price. They further argue that Bitcoin “still looks overbought” and expect further price dips leading up to the Halving event in mid-April.
Meanwhile, these JPMorgan analysts emphasized the decline in net inflows into Spot ETFs, noting that this proves that a sustained one-way net inflow is not possible. Therefore, they expect investors in these funds to keep taking profits heading into the Bitcoin Halving. This wave of profit-taking is also more likely, considering that Bitcoin “still looks overbought despite the past week’s correction.” they claimed.
This recent research note by JPMorgan further reaffirms their bearish sentiment towards Bitcoin’s price despite the flagship crypto exceeding expectations. Last month, the bank predicted that Bitcoin could drop to as low as $42,000 after April as “Bitcoin-halving-induced euphoria subsides.”
Naeem Aslam, chief investment officer at Zaye Capital Markets, also echoed JPMoragn’s sentiments when he suggested that Bitcoin’s recent rally didn’t show enough strength. Aslam believes Bitcoin could fall below $50,000 if the Halving event “fails to really keep the momentum going.”
What Could Happen After The Halving Event
Crypto trader and analyst Rekt Capital recently provided insights into what could happen after the Havling event while elaborating on the four phases of Bitcoin Halving. According to him, there is usually a re-accumulation period after the Halving, which could last for up to five months.
During this period, he noted that many investors get “shaken out in this stage due to boredom, impatience, and disappointment with lack of major results in their BTC investment in the immediate aftermath of the Halving.” Rekt Capital added that this time could be different since it is the first time this re-accumulation could develop around the new all-time high (ATH) area.
Therefore, he believes this “Re-Accumulation Range may simply take the shape of a regular sideways range and may not last very long before additional uptrend continuation.”
BTC price struggles to establish support | Source: BTCUSD on Tradingview.com
Featured image from Crypto News, chart from Tradingview.com
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As the current bear market in crypto continues to deepen, Bitcoin has fallen by 78%, and Ethereum by 82%. Yet elsewhere in the crypto market, many altcoins are down by as much as 96% or more.
In a recent video, Elliott Wave International Currency & Crypto Analyst Jason Soni sheds some light on why this occurs and what this could mean for various cryptocurrencies.
Breaking Down Why Some Crypto Assets Crash More Than Others
Bitcoin price has retraced by more than 78% from all-time highs set back in 2021. Ethereum, the second-largest cryptocurrency by market cap, saw an approximately 82% retracement from peak to trough thus far.
As you move down the ranks of cryptocurrencies, the total drawdown figures deepen. Cardano, for example, suffered a 92% collapse compared to the top two cryptocurrencies. Solana, once pegged to disrupt Ethereum, dropped by a staggering 96%.
In a new video entitled “Looking at Opportunities for the Next Crypto Bull Market,” Elliott Wave International Currency & Crypto Analyst Jason Soni touches on why – theoretically – this discrepancy exists.
According to Soni, newer altcoins in their first cycle will see the deepest retracement. As cryptocurrencies mature, and go through more boom and bust cycles, retracements are less steep, like we’ve seen with Bitcoin and Ethereum.
ETH 2018 versus ADA 2022 | ETHUSD on TradingView.com
Bitcoin Sets The Standard For Bear Market Corrections
In the video, Jason Soni used a comparison between many newer altcoins today following a similar trajectory and total drawdown as 2018 Ethereum. With each new cycle, new participants join and liquidity in each asset increases, reducing volatility over time and resulting in less and less in terms of max drawdown.
This is perhaps the most visible with Bitcoin. Following Bitcoin’s first major bull market, the first ever crypto asset retraced by 96%. In the second bear market ever in crypto, BTC retraced by 86%. During the 2018 bear market, Bitcoin sank by a grand total of 84%. A softer landing yet might still be possible during this bear market.
Considering the severity of the drawdowns in most cryptocurrencies and the extreme negative sentiment, it could mean that the end of the bear market is near. At this point, Soni recommends avoiding “social media sentiment” at all costs and says to instead “focus on the patterns.”
The video, “Looking at Opportunities for the Next Crypto Bull Market,” is offered exclusively through Elliott Wave International’s Crypto Trader’s Classroom, which delivers three new in-depth lessons each week from top Elliott Wave analysts. Many instructional videos include specific crypto charts and trading setups, using Elliott Wave Theory. You can learn more about Elliott Wave International’s Crypto Trader’s Classroom by clicking here.
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com
Amid the severe crypto downturn in 2022, the price of Dogecoin (DOGE) has held up much better than most of the top assets on the market.
DOGE is the third best performer in the top ten, dropping by 58% this year, beaten only by Ripple (XRP) and Binance Coin (BNB) which saw declines of 57.2% and 53.%.
Looking at the top 10 assets in terms of market capitalization as per Crypto Bubbles data, Bitcoin (BTC), Ether (ETH), Cardano (ADA) and Polygon (MATIC) have all shed considerably more: 65.1%, 67.8%, 80.9 and 68.8% a piece over the past 12 months.
DOGE also comes in well ahead of other big names in top 20 such as Polkadot (DOT), Solana (SOL), Uniswap (UNI) and Avalanche (AVAX) which have all plunged, by 84%, 93.8%, 70.3% and 89.9% each.
Data from Intotheblock (ITB) also has interesting insights, with the majority (54%) of DOGE hodlers currently in the green at the current price of $0.07, while 3% are breaking even and 43% in the red.
ITB’s figures rely on identifying the average cost of token purchases in its tracked wallets and comparing it to the current price of the given asset.
Looking at other assets, ITB data indicates that 46% of BTC holders and 47% of ETH holders are currently in the green at the time of writing, showing the memecoin has performed well despite its volatile history.
The strong performance comes despite no significant news for the Dogecoin network or anything in the pipes to justify excitement going forward, bar some recent speculation that DOGE could potentially, possibly, one day be integrated with Elon Musk’s Twitter.
By way of comparison Ethereum cut its energy consumption rates by 99% this year, with a slew of layer 2 projects helping it to scale. Fundamentals don’t have the power of Memes apparently.
SHIBA INU vs DOGE
However DOGE’s memecoin competitor Shiba INU (SHIB) has also struggled despite community efforts to build a full fledged ecosystem consisting of blockchain games, NFTs and a metaverse platform this year.
The token is down 76.1% over the past 12 months, with just 14% of hodlers in the green, 4% breaking even and 82% in the red as per ITB.
Related: The real-life dog behind memecoin DOGE is seriously ill
As it stands, DOGE is the eight largest crypto asset in terms of market cap at $10.1 billion, while SHIB sits at No.17 with $4.8 billion, according to data from CoinGecko.
In some potentially bullish news for the SHIB community however, pseudonymous lead dev Shytoshi Kusama has hinted that there could be a new partnership in the works relating to the Shibarium project.
Shibarium is an upcoming Ethereum Layer 2 scaling solution that will host the ecosystem’s metaverse platform, games and a decentralized exchange.
Shytoshi Kusama’s bio was recently updated to read “WE are not alone” while their location was set to “With a new fren… guess who?.”
This followed up from a Christmas eve tweet to their 865,400 followers which read:
“Wen Shibarium? Please know it will come very soon*, but not during a crucial time for people to spend with their family (or the resulting New Years party time). Enjoy these next days, next year is an important one for humanity.”
Happy Holidays to more than half the . Wen Shibarium? Please know it will come very soon*, but not during a crucial time for people to spend with their family (or the resulting New Years party time). Enjoy these next days, next year is an important one for humanity.
— Shytoshi Kusama
(@ShytoshiKusama) December 24, 2022
The storm after the calm. Over the last couple of days, the crypto-verse remained relatively stagnant. With no significant price fluctuations in play, investors had finally felt a sense of respite after the takeover of the gruesome bears. Many considered this unusual as the crypto market wasn’t its usual volatile self. Today, however, Bitcoin witnessed an abrupt plummet, pushing the asset down to $22K. Major altcoins like Ethereum [ETH], Cardano [ADA], Solana [SOL], and Ethereum Classic [ETC] followed suit.
Ethereum
While the entire community was preparing for the Merge, Ethereum’s native token Ether [ETH] encountered a sudden drop in its price. Like its counterparts, the largest altcoin recorded a 3.32 percent hourly drop, pushing its price to $1,753 at press time. Over the last 24 hours, the altcoin faced a dip of 4.87 percent.
Additionally, Ethereum’s market cap was at $214 billion.
Cardano
Like Ethereum, the Cardano community has been looking forward to the Vasil hard fork. The constant delays in the hard fork did not upset the community much. However, its latest price movement could undoubtedly toll its investors. Sadly, ADA was experiencing a daily drop of 12 percent. At press time, the altcoin was trading for a low of $0.4739.
After its reasonably stable seven-day streak, Cardano was 84 percent below its all-time high of $3.10.
Solana
The Solana network has been making noise for all the right and the wrong reasons. From a class action lawsuit to opening its first physical store, the asset has seen it all this year. Now, it seemed to be dealing with a significant price crash. During publication, the altcoin was trading for $36.32 with an 11.31 percent daily drop.
Throughout the week, the altcoin encountered a higher dip than its counterparts like Ethereum and Cardano.
Ethereum Classic [ETC]
This altcoin is back from the dead, thanks to the upcoming Merge. While the Ethereum network has created a massive divide in the market, Ethereum Classic seemed to benefit from the same. After the demise of Ethereum’s PoW chain, speculations of the emergence of ETC were surfacing.
Amidst all this, the bears pulled the asset down by 12.80 percent over the last 24 hours. Within the last hour alone, the altcoin dipped by 7.70 percent, pushing its price down to $35.50.
While some were on their way to “buy cheap,” a few others were navigating their way to the exit.
BitMex founder Arthur Hayes said the Bitcoin and Ethereum could be primed for severe losses if they dropped below a certain level.
For Bitcoin, Hayes sees a drop below $20,000 causing a spot-selling cascade. He sees a similar scenario playing out for Ethereum if it falls below $1,000. Hayes says that open interest and positioning in the options market is driving his prediction.
Bitcoin is currently trading around $22,000, while Ethereum is just above $1,200. Both tokens have capitulated heavily in the past 24 hours, and likely face further weakness.
Concerns over a Federal Reserve rate hike this week, rising inflation and potential chaos in the options market have driven the recent crypto rout.
Why are $20K and $1K crucial for Bitcoin and Ethereum?
In a Twitter thread, Hayes said that if Bitcoin and Ethereum were to breach the levels, it would place “massive sell pressure” in the spot markets, due to dealers having to post more collateral to maintain their positions.
But the ones that won’t be able to successfully cover their positions will be forced to sell, creating even more sell-side pressure on the two tokens.
Hayes warned that breaking below the levels could cause an unprecedented amount of selling in the market.
As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the #crypto markets. Bc if these levels break, you might as well shut down your computer bc your charts will be useless for a while.
-Arthur Hayes
Liquidation risks aplenty
With the recent, sharp drop in Bitcoin and Ethereum prices, several major position holders are at risk of being liquidated. The most prolific of these is embattled lender Celsius, which faces a $522 million liquidation of its Bitcoin position.
Michael Saylor’s MicroStrategy also faces a similar position, although its liquidation could be in the billions. While Saylor said that Bitcoin prices would need to hit around $3000 for such a scenario, critics argue that the actual price may be higher.
Any such major liquidation would cause a sharp decline in crypto prices.
MicroStrategy, which has the highest Bitcoin holdings among any publicly listed firm, is currently holding the token at a near $1 billion unrealized loss.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Shiba Inu is proving that despite the previous weeks’ turmoil in the broader crypto market, it can stand its ground and be unfazed by what’s going on.
Following a severe selloff in the previous session, major crypto tokens recovered on Wednesday. However, the increases were modest, indicating sluggish market confidence.
Dogecoin and Shiba Inu, commonly known as “meme cryptocurrencies,” have seen the most growth in recent years, but they have also suffered significant losses as a result of this meltdown.
Except for Terra’s LUNA and the dollar-pegged Tether, other major crypto tokens saw rises. Shiba Inu was up nearly 10%, followed by Avalanche, Solana, which rose 5%. BNB and XRP both climbed by 3%.
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The cryptocurrency market showed signs of life on Wednesday, following the previous day’s precipitous drop, during which many of the leading coins lost 10% or more of their value.
Shiba Inu is weathering the storm better than its rivals (The Goa Spotlight)
Shiba Inu Outperforms Dogecoin
Overall, the market is up a couple percentage points today, and when it comes to meme coins and tokens, Shiba Inu is outperforming its main competitor, Dogecoin.
Despite a 70% collapse in the first three months of 2022, which left the token severely bruised and likely on the verge of extinction, it managed to crawl back up and remain in survival mode.
According to CoinMarketCap data, SHIB is up roughly 5% in the last 24 hours as of this writing, and is currently trading at $0.00001615. Dogecoin (DOGE), on the other hand, is currently trading at $0.109833, up less than 1%.
Given the influential people behind Dogecoin, it’s likely that its drop was not as worrisome in comparison to other cryptos on the market.
In the wake of the broader crypto market upheaval, Shiba Inu struck a seven-month low yesterday, while Dogecoin is down to its lowest point in more than a year — since April 2021.
SHIB total market cap at $8.15 billion on the daily chart | Source: TradingView.com
LUNA Being Hammered
The destabilization of UST caused panic selling of heavyweights such as BTC and ETH, increasing overall market volatility.
The recent UST crisis exposed big weaknesses in the algorithm-backed stablecoin system, which will need to be addressed openly in order to regain investor trust.
The value of UST’s counterpart, LUNA, has roughly halved in the last 24 hours. It was recently trading at $32 per share.
The recovery of LUNA will be dependent on the remedial actions made by the parent network/Luna Guard Foundation, which has amassed a sizable Bitcoin reserve through a series of large-scale BTC acquisitions.
… So Does Bitcoin
Meanwhile, over the previous week, Bitcoin’s value has dropped by more than 20%.
This affects everyone who has money invested in any sort of cryptocurrency, which is why many people are disposing of their holdings at an alarming rate.
The exact day and time of when or if this decrease will come to a stop is unknown.
Suggested Reading | Bitcoin Price Crashes Below $30K As Markets Show Signs Of Paranoia
The crypto bloodbath continues to rage on, as bitcoin drops 13%, although to a lesser degree than what was experienced last week. Due to this, there have been several migration patterns recorded in crypto investors as they look for the best safe haven. The first had been the flight to stablecoins for cover from the unending losses. However, the tide has changed on this once again as investors look to now be flocking back to bitcoin, causing dominance to rise.
Bitcoin Re-Establishes Dominance
The decline has affected all cryptocurrencies in the market but data shows that some more than others have had a worse time of it. Altcoins, especially the small cap altcoins, have recorded the highest losses as expected. Bitcoin is not spared from this though.
Related Reading | Ethereum Hashrate Breaks All-Time High, Will Price Follow?
The largest cryptocurrency by market cap is now down 13% price-wise but this has not stopped it from re-establishing its dominance over the market, touching a new six-month high. It is now at a 44.4% dominance and it hasn’t been this high since October of 2021.
BTC dominance returns | Source: Arcane Research
Mostly, the decline of investor sentiment into the negative has been one of the major factors in driving investors towards bitcoin. Since altcoins are getting hammered in the market, investors are looking to BTC, which they believe to be a safer bet compared to the lesser cap coins.
The result of this has been money from altcoins being moved into bitcoin, leaving altcoins behind this. As such, bitcoin has only recorded a 23% decline since the month of May began, the lowest decline of all the indexes.
Others have recorded higher declines. The Large Cap Index came in with a 28% loss in the last two weeks, the Mid Cap Index with 31% in the same time period, while the Small Cap Index has been hit the worse with a 37% decline.
Stablecoins Take A Hit
The whole UST debacle has begun to settle but the effects of the third-largest stablecoin crashing continue to affect its counterpart. After the UST de-pegging, some of that low sentiment had flowed into the largest stablecoin, USDT, which had lost 10% of its market cap.
BTC dominance reaches six-month high | Source: Market Cap BTC Dominance on TradingView.com
One of the reasons for this though had also been the peg of the stablecoin being challenged as bitcoin’s price declined. It is also speculated that some of the funds leaving USDT had flowed into another stablecoin, USDC, which happens to be the second-largest stablecoin.
Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market
Both these stablecoins have continued to maintain their dollar peg though. This leaves UST as the only stablecoin that lost its peg.
Featured image from Yahoo Finance, charts from Arcane Research and TradingView.com
The cryptocurrency market as a whole is once again blanketed in red, with Bitcoin falling to a multi-month low.
Bitcoin’s price has tanked for four consecutive days, breaching the psychological support level of $35,000. The probable freefall will drag BTC down to the $33,000 support level if sellers maintain this decline.
According to CoinGecko, the most popular and largest cryptocurrency by market capitalization lost 4.5 percent during the past 24 hours, breaching a crucial support level and posting a daily low of $34,405.
The market capitalization of Bitcoin fell to $657 billion, CoinMarketCap data show. As of March 28, this number exceeded $900 billion.
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The price of BTC has crashed for four straight days, breaking past the psychological support level of $35,000. (TechnoPixel)
‘Extreme Fear’ For Bitcoin
BTC is presently selling at approximately $34,515, down roughly 10% in the past week and down 40% year-to-date.
The Bitcoin Fear and Greed Index reached a level of “extreme fear” as a result of a loss of about $6,000 in just a few days, which inevitably caused a significant shift in mindset.
Rick Bensignor of Bensignor Investment Strategies said in a note, “Bitcoin’s failure to hold key support has increased the likelihood of a severe decline.”
Bitcoin has mainly followed the downward trend of equities markets as investors across asset classes react to indications of future interest rate hikes. In the past 24 hours, the market for cryptocurrencies as a whole has fallen by 4.4%.
BTC total market cap at $638 billion on the daily chart | Source: TradingView.com
No ‘Counter-Trend’ Indicators
Katie Stockton, managing partner at Fairlead Strategies, wrote in a note, “Bitcoin currently has no counter-trend indications, but the equities market appears primed for a comeback next week, which we hope will carry over to cryptocurrencies.”
The majority of Bitcoin’s loss occurred after the Federal Reserve raised the Federal Funds interest rate by 0.50 percentage points, which triggered a stock market selloff and effectively promised two more 0.50 percentage point increases.
Institutional investors began selling Bitcoin exchange-traded funds more than a week ago, according to a CoinShares report. Prior week Bitcoin outflows totaled $133 million, the biggest figure since June last year.
Bitcoin is predicted to drop to $30,000. (MoneyWeek)
Analyst Predicts A Drop To $30K
Carter Braxton Worth, the founder of Worth Charting, predicts that Bitcoin’s price will drop by another 13% to $30,000.
As previously indicated, alternative coins are also suffering, with red dominating virtually all charts. Ethereum leads this negative trend with a daily decline of 4.5 percent.
Binance Coin has lost a comparable percentage and is currently trading below $360. Additionally, Avalanche, Cardano, Dogecoin, Ripple, Solana, Polkadot, NEAR, and Shiba Inu are in the red.
Last week, the head of research at IntoTheBlock, Lucas Outumuro, told Fortune, “Until the market begins to look past the influence of the Fed’s quantitative tightening and rate hikes, I believe it impossible for Bitcoin to develop a broader uptrend.”
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Featured image Live Science, chart from TradingView.com
Today’s top meme coins have lost 4.8% in value against the U.S. dollar, as the crypto market carnage has wreaked havoc across the entire digital currency economy. While dogecoin had a phenomenal year in 2021, over the past 12 months, dogecoin lost 82.8% against the USD.
DOGE Tapped an All-Time High a Year Ago Today, Meme Coin Value Is Down 82% Since That Point
Meme coin assets are down this week following the rest of the crypto economy’s downward spiral. Statistics show that dogecoin (DOGE) has shed 14% in value during the past month and 30 day stats show shiba inu (SHIB) is down 24%.
In the last day alone, the $28.3 billion worth of meme tokens lost 4.8% in value. DOGE lost 1.7% over the last seven days and this week SHIB has dropped by 6.8%. DOGE is also down 82.8% from the crypto asset’s all-time high on May 8, 2021, which was exactly a year ago today.
At that time, DOGE reached an ATH of around $0.731 per unit. Six months ago, SHIB tapped an ATH at $0.00008616 per unit and today it’s down 78% since that price point. Both DOGE and SHIB make up most of the $28.3 billion meme token market capitalization by representing 95% with a combined market valuation of around $26.9 billion today.
Google Trends Data Shows Interest in Dogecoin and SHIB Is Low
While most of the meme coin economy has shed significant value in recent times, a relatively unknown meme token called litedoge (LDOGE) has gained 400% this week. Poodl token (POODL) is up 34.2% and dogefi (DOGEFI) is up 27.3% during the past seven days. However, jejudoge (JEJUDOGE) has lost 44.6% this week, lets go brandon (LETSGO) is down 43.3%, and shiba fantom has shed 28.9% in value against the USD.
Meme tokens were all the rage last year, but interest seems to be dwindling fast. After hitting a Google Trends (GT) score of 100 last May, this year during the same weekly timeframe, the search phrase “dogecoin” has scored a three. SHIB hit a 100 in October and GT data shows the search term “SHIB” has scored a four this week, according to worldwide statistics.
What do you think about the meme coin market carnage and the lack of interest in SHIB and dogecoin these days? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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