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Ethereum Price & Technical Analysis: ETH Still Correcting

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On Thursday, January 14th, the Ethereum altcoin keeps correcting, trading at $1,122 USD.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

  • Tech analysis of ETH/USD.
  • The ETH reached its all-time high in January.
  • Vitalik Buterin is propelling the idea of social wallets.

On W1, ETHUSD keeps correcting in an uptrend. The aim of the decline can become the next Fibonacci level – 61.8%. The MACD histogram is above zero, which means the upward dynamics will restore soon. The signal lines of the indicator have crossed zero and keep growing, additionally supporting the trend. The Stochastic is in the overbought area, perhaps on the verge of forming a Black Cross, which will predict a correction before further development of the uptrend. Judging by all the above, the quotations are likely to go on correcting in the nearest future and continue the uptrend later. The aim of the growth will be 1,420 USD.

Photo: RoboForex / TradingView

On D1, the situation is similar to that on W1. The aim of the pullback is 920 USD. The MACD histogram keeps declining, enhancing the signal for the correction. The signal lines might form a Black Cross in the nearest future, giving yet another reason for a correction. The aim of the growth after the pullback should be 1,420 USD.

Photo: RoboForex / TradingView

On H4, the picture is almost like on D1: the quotations are correcting from the resistance level in an ascending channel. After the pullback is over, the coin has all the chances for further development of the uptrend. The Stochastic has formed a Black Cross in the overbought area, giving another signal for a correction before the uptrend resumes. The aim for the growth (as on larger timeframes) is 1,420 USD.

Photo: RoboForex / TradingView

In January, the ETH reached a new all-time high – on January 10th, in the Kraken exchange, the quotations rose to 1,285 USD. Now the price is much lower, but most market participants are quite sure that the ETH is on the verge of another stage of growth.

Traders took very seriously the idea that after the ETH crossed 800 USD, the aim for the growth shifted to 5,200 USD. There are more conservative positions as well – with the aim at 1,751 USD. This or that way, the market is not quitting the idea of the altcoin’s flourishing.

The creator of the Ethereum Vitalik Buterin states that we need to focus on designing methods giving users private keys from wallets in case of emergency. Now, this is impossible without the participation of third parties. The idea is to create so-called “social recovery wallets”. They will work as normal wallets except that the chain includes “guardians” – this is a group of persons that will be authorized to make an application on behalf of the wallet’s owner to help them retrieve access to the wallet. Ideally, this group should be anonymous so that the probability of their communication and harming the wallet’s owner was minimal.

For Buterin, who is very keen on social technology, the idea of losing access to the wallet for good is unacceptable. Currently, the use and storage of cryptocurrencies is the responsibility of their owner solely.

For this article, we’ve used ETHUSD charts by TradingView.

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Disclaimer: Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Altcoin News, Cryptocurrency news, Ethereum News, Guest Posts, News

Kseniia Klichova
Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.





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83% of cryptocurrencies that peaked in 2018 are still down by 90%

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Data published by crypto market data aggregator Messari shows that 83% of crypto assets that tagged all-time highs in January 2018 are still down by at least 90%.

The data was spotted by CMT Digital analyst Matt Casto, who tweeted data showing the average return-on-investment, or ROI, of crypto assets sorted by the year in which they posted record price highs.

The data set included 410 assets that posted record prices during 2017 or later, with 2018’s 157 star coins performing the worst with an average of -90.71% since the previous ATH. 

2017’s top crypto’s have since crashed by 82% on average, while 2019’s crop is down 72%, and 2020’s standouts have shed 53%.

The data may help support the ‘great repricing’ concept, that the capital that once flowed into the “ghost-chain” layer-one blockchains that dominated the sector in 2017 and 2018 is now being redirected towards the nascent DeFi sector.

The concept is even a trading strategy for some, with dHedge pool manager Wangarian describing his strategy as longing “tokens that obtain direct value accrual (DeFi)” while shorting “dogs**t L1s that have no value accrual whatsoever.”

However, despite the poor performances of many altcoins from yesteryear when compared to their record highs, many older altcoins have still produced enormous percentage gains since bottoming out.

Since finding local lows during the “Black Thursday” crash of March 2020, Cardano (ADA) has increased nearly 1,700%, Zilliqa (ZIL) is up 2,670%, and Decred (DCR) has gained 14,130% from their respective price floors.





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All-time high social activity accompanies 100% rally in Cardano price

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Social media mentions about Cardano have been growing since the beginning of the year, and during this time, the price of its ADA token has more than doubled, in the process surpassing Bitcoin Cash (BCH) to become the sixth-largest cryptocurrency by market capitalization. 

A deeper dive into data from Twitter data failed to identify a specific driver of ADA’s bullish price action, but data from The Tie did show that Cardano mentions recently reached an all-time high, with the price tracking the increase.

Cardano 30-day average tweet volume vs. price. Source: TheTIE

Keyword analysis of Cardano-related tweets also failed to identify the motivating factor behind the recent social media surge but terms like “pool,” “stake” and “staking pools” were the most frequent trigger words in the majority of discussions led by community members.

In private comments with Cointelegraph, Joshua Frank, founder of The Tie, said that chatter regarding an “interoperability bridge between Cardano and IOTA” that began making the rounds on Jan. 2 seems to have corresponded with the upward price movement and a relatively large increase in tweets.

This is referring to a recent discussion on Iota’s discord in which project co-founder Dominik Schiener was asked if the Iota Foundation was interested in developing a “bridge to Cardano.” In response, Schiener stated, “Yeh 100%. Once we’re ready I’ll reach out to Charles again.”

According to Frank:

“24 hours after the idea started being discussed Cardano saw a 63% increase in tweet volume and price surged 27% vs. USD and 25% vs. BTC, suggesting that this was an uncorrelated move.”

ADA price vs. tweet volume. Source: The Tie

Development enters the Gougen phase

Cardano’s roadmap indicates that the project recently transitioned from the Shelly era to the Goguen era.

The Shelly era brought decentralization to the core of the network and enabled ADA holders to stake and delegate their tokens to earn rewards.

Now that the project has entered the Goguen era, the focus of development is on the integration of smart contracts and the ability to build decentralized applications, or DApps, on the network.

The addition of smart contracts and DApps opens a whole new realm of functionalities for the Cardano network, including the ability to create decentralized finance applications.

In a recent conversation with Cointelegraph, Cardano founder Charles Hoskinson opined on the future of DeFi and how the team plans to “take the lead in the DeFi space by developing partnerships in the African continent.”

According to Hoskinson, the real potential of DeFi will be realized in developing countries where he sees the potential to acquire 100 million new users within the next three years.

Hoskinson said Cardano was:

“Built for the purpose of creating liquidity for the poorest people in the world and allow them to build wealth and protect the wealth that they’ve acquired.”

Staking backs ADA’s rally

On Jan. 1, prior to any well-known mentions of a bridge between Cardano and Iota, ADA was trading at $0.173, with a 24-hour trading volume of $1 billion.

Over the past two weeks the price and volume increased by more than 200%, with the current daily trading volume averaging $3 billion and ADA trading near $0.358.

ADA/USDT 4-hour chart. Source: TradingView

One possible source of the upward price pressure is a decrease in the circulating supply due to a large number of ADA holders staking on the network.

Data from Staking Rewards indicates that 70% of ADA’s total supply (21.84 billion ADA) is being staked on the network. Investors who stake earn 4.28% APY for each epoch (5 days), and payouts are automatically distributed at the protocol level.

Total ADA staked. Source: Staking Rewards

There are currently 1,468 active validators on the network serving 140,130 total delegators, with the largest validation pool holding 1.77% of the total ADA supply being delegated by 851 unique wallet addresses.

A continued uptrend in the staking participation rate over the past month, as seen in the chart above, has the potential to lead to further price appreciation as the number of ADA available for trading slowly dwindles.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.