New Delhi: After a decent rise in the previous session, crypto cart saw a strong weakness on Tuesday. However, the movement in the crypto market has been range-bound over the last few days. The digital tokens are wobbling as investors wrestle over attractive pricing and rising inflationary worries, coupled with looming fears of economic slowdown.
A majority of tokens were trading sharply lower on Tuesday. Avalanche tanked another 9 per cent, whereas Polkadot and Ethereum plunged 7 per cent each. Bitcoin slipped 6 per cent. Meme tokens Dogecoin and Shiba Inu fell 5 per cent each.
The global cryptocurrency market cap was trading sharply lower at the $1.21 trillion mark, declining as much as 5 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed over 58 per cent to $81.34 billion.
Bitcoin again dipped below $30,000 in the past 24 hours. This drop is due to Bitcoin miners liquidating their holdings as BTC continues to fall since mid-May, and that mining has become less profitable, said Edul Patel, CEO and Co-founder, Mudrex.
“Bitcoin has been trading in a tight range of $29,000 and $31,000 and is struggling to break above the $31,000 level,” he added. “We may likely see volatility in the market for some more days.”
It is believed that Bitcoin is unlikely to take any deep dives for the time being and will remain range bound. Volatility is fading whereas fear and greed index is also ticking up higher, said Kunal Jagdale, Founder, BitsAir Exchange.
“Institutional investors are buying the dip and one should not ignore the high rate of inflation across the globe. In such cases zero yield assets tend to perform well,” he added.
Wealth managers in Asia are holding back from offering digital assets to investors despite soaring demand due to a lack of understanding of these assets, according to an industry survey by consulting firm Accenture.
The US Securities and Exchange Commission is examining whether Binance’s initial coin offering of its Binance coin token in 2017 was an unregistered security offering that should have been registered with the regulatory agency, Bloomberg reported.
The Bored Ape Yacht Club (BAYC) Discord server was hacked Saturday, with the attacker making off with 200 ETH ($360,000) worth of non-fungible tokens (NFTs), according to Yuga Labs.
Binance Labs, the venture capital arm of Binance, the world’s largest crypto exchange by trading volume, has made an investment in PancakeSwap, a decentralized exchange built on the BNB Chain.
Tech View by Giottus Crypto Exchange
Tron (TRX) is the native and governance token of the Tron network – a decentralized operating system that lets developers create dApps using smart contracts. TRX remains one of the few cryptocurrencies that have performed well recently despite the bear market.
Since Jan. 2022, TRX has maintained its value while other layer 1s such as ETH and SOL have lost 53% and 80% value respectively. This is aided by the introduction of a new algorithmic stablecoin USD, making it a top 3 DeFi ecosystem by total value locked.
TRX’s attempts to break past the $0.10 level were thwarted in May after which it began to register some lower highs leading to the long-term trendline support of $0.06-0.07. It bounced again to test long-term trendline resistance at $0.088.
TRX has been forming a symmetrical triangle in the last 10 days. TRX is currently testing the crucial .618 Fibonacci retracement level post which a breakout can happen on the upside. In case of a downturn, TRX might test support at $0.078 and next at $0.074.
Resistance: $0.085, $0.09
Support: $0.078, $0.074, $0.069
(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.)