Almost nine in 10 Australian financial advisers have been asked by clients about investing in cryptocurrencies but only a third are willing to allow them to do so, according to a new survey.
ETF fund manager BetaShares surveyed 252 financial advisers last month and found that 89.2 percent of respondents had been directly approached by clients about digital assets in the previous 12 months. Yet 70 percent of advisers said they would be “fairly or extremely unlikely” to recommend investing in cryptocurrencies within the next year.
BetaShares’ chief executive Alex Vynokur said the latest survey showed a “strong awareness” of digital assets seemingly at odds with an “underlying sense of caution” on the part of financial advisers.
BetaShares CEO Alex Vynokur. Source: the australian.com.au
More than 60 percent of advisers surveyed believed clients were investing in crypto regardless of their advice. The Betashares survey follows findings published by crypto exchange Gemini earlier this week revealing that 43 percent of Australians first invested in digital assets in 2021 – clearly a big year for crypto adoption.
It appears not all financial advisers received the memo.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Polygon (MATIC)
Polygon MATIC is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications. The MATIC token will continue to exist and will play an increasingly important role in securing the system and enabling governance.
MATIC Price Analysis
At the time of writing, MATIC is ranked the 17th cryptocurrency globally and the current price is US$1.48. Let’s take a look at the chart below for price analysis:
Since its Q1 lows, MATIC has been in a steady bullish trend – printing a 40% gain by mid-March. The price found support near $1.37, at the 70.6% retracement level, during February’s decline.
Last week’s sharp impulse up might have marked the start of a new bullish swing. If so, higher timeframes suggest that $1.80 near the 61.8% retracement, and the 9, 18 and 40 EMAs, may see interest from bulls. The price could reach lower, near $1.40, and still find support.
Currently, the price is contesting a region between $1.55 and $1.45. Closes over this level could confirm it as new support, leading to a move higher.
However, bulls are contending with probable resistance near $1.54, while $1.62 is also likely to be sensitive with the nearest support and resistance this close together.
2. Cardano (ADA)
Cardano ADA is a proof-of-stake blockchain platform whose stated goal is to allow “changemakers, innovators, and visionaries” to bring about positive global change. The open-source project also aims to “redistribute power from unaccountable structures to the margins to individuals”, helping to create a society that is more secure, transparent, and fair. Cardano is used by agricultural companies to track fresh produce from field to fork, while other products built on the platform allow educational credentials to be stored in a tamper-proof way, and retailers to clamp down on counterfeit goods.
ADA Price Analysis
At the time of writing, ADA is ranked the 9th cryptocurrency globally and the current price is US$1.08. Let’s take a look at the chart below for price analysis:
ADA‘s near 60% drop during Q3 found a low near $0.7835 during mid-March before closing over a short-term high.
This daily close over the high could signal a shift in market structure that may reach probable resistance near $1.18. A sustained bullish move may target the swing high at $1.22. If this stop run occurs, a run beyond the high into probable resistance near $1.28 and $1.37 is possible.
Bulls could buy a retracement to possible support near $0.9840, just above the weekly open. A bearish turn in the marketplace may propel the price toward possible support near $0.9325.
However, relatively equal lows near $0.8857 and $0.8522 provide an attractive target for bears if the market resumes its bearish trend. A run on these lows might find support between $0.8247 and $0.8052.
3. Smooth Love Potion (SLP)
Smooth Love Potion SLP tokens are earned by playing the Axie Infinity game. This digital asset serves as a replacement for experience points. SLP are ERC-20 tokens, and they can be used to breed new digital pets known as Axies. The cost of breeding begins at 100 SLP but increases gradually, rising to 200 SLP for the second breed, 300 for the third, 500 for the fourth, 800 for the fifth, and 1,300 for the sixth. Axies can be bred a maximum of seven times, and the seventh breed costs 2,100 SLP. This limit exists in order to prevent hyperinflation in the marketplace.
SLP Price Analysis
At the time of writing, SLP is ranked the 375th cryptocurrency globally and the current price is US$0.02155. Let’s take a look at the chart below for price analysis:
SLP‘s 65% rally during March ran into a 30% retracement near $0.02015. Since then, the price has been consolidating in a 40% range between $0.02124 and $0.02632.
Just below the late-December low, $0.01824 is the first level likely to provide substantial support. If the price breaks down through this level, overlapping levels near $0.01758 might cap a run on the lows near $0.01632 and $0.01575.
The higher-timeframe analysis points to the area near $0.02751 as the next substantial resistance. Significant selling has been occurring here on the daily chart. If this level breaks, the swing highs near $0.03027 and $0.03360 may be the next targets.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Neutrino Dollar (USDN), a dollar-pegged stablecoin backed by the Waves protocol, has lost over 15 percent of its value due to accusations of market manipulation.
Not So Stable After All
USDN fell to US$0.82 on April 4, dragging down a large chunk of the currency’s market capitalisation – over US$200 million from its year-to-date high of almost US$1 billion.
USDN Chart. Source: CoinGecko
USDN is an algorithmic stablecoin whose supply can expand and contract by burning or minting WAVES (Waves protocol’s native token). Along with USDN, WAVES dropped nearly 50 percent from its all-time high of roughly US$64 on March 31; it is currently trading at US$30, as per data from CoinGecko:
WAVES Chart. Source: CoinGecko
When Did It All Start?
The massive sell-off began in response to concerns of manipulation, with the crypto community calling Waves “a Ponzi scheme” on Twitter. Pseudonymous analyst 0xHamz accused the project of borrowing USDC, another stablecoin, to buy the WAVES token, artificially pumping its price over 750 percent in the past two months (significantly, it surged 70 percent following the March 28 launch of Waves Labs).
As the price of WAVES increased, so did the interest earned by stakers, with 0xHamz breaking it down as follows:
the protocol collateralises USDN to borrow USDC on Vires.Finance, a liquidity protocol based on the Waves blockchain;
buy WAVES;
convert the funds to USDN;
use the proceeds to borrow more USDC on the Vires.Finance pool; and
Waves CEO Sasha Ivanov dismissed the allegations and in turn accused Alameda Research – a quantitative crypto trading firm headed by FTX’s Sam Bankman-Fried – of manipulating WAVES prices through a “hostile FUD campaign” fuelled by a “crowd of paid trolls” to ultimately trigger panic-selling:
Get your popcorn ready: @AlamedaResearch manipulates $waves price and organizes FUD campaigns to trigger panic selling.
0xHamZ also accused the project of pumping WAVES under a Russian ETH narrative, which Ivanov also dismissed, stating that neither he (Ivanov) nor the Waves team had any ties with Russia.
Peter Guo, a researcher at Hong Kong-based crypto fund Babel, noted that WAVES’ price surge coincided with Russia’s invasion of Ukraine in late February.
In response, FTX’s Bankman-Fried dismissed Ivanov’s accusation, calling it an “obvious bullshit conspiracy theory”:
After the incident, Ivanov announced that Vires.Finance would be subject to a protocol change proposal under a new DAO (Decentralised Autonomous Organisation) to protect the protocol from market manipulation:
Top-two English Premier League team Liverpool Football Club’s much-maligned foray into the world of NFTs has been heralded a spectacular flop, with less than 6 percent of the collection’s 171,072 NFTs sold in the first week:
Someone has drawn some digital cartoon pictures of Liverpool players which the club have tried to sell for $75 each and fans have replied with a giant raspberry
Last week’s release of ‘LFC Heroes Club‘ was intended to be a “fun and innovative way to celebrate being an LFC fan”, featuring 171,072 NFTs starting at US$75, including 24 “Legendary” one-of-one editions.
The LFC collectibles were available for purchase across a three-day sale window from March 30 until April 1, with half the proceeds going to the superclub’s charitable foundation. At the time, fans complained that the release was exploitative and merely an attempt to increase revenues:
Liverpool are testing the waters on crypto/NFTs, asking fans about their familiarity, feelings, and to what extent a charitable contribution would offset any ill feelings towards them. These are my opinions I shared with the club🧵 pic.twitter.com/N6L9WgurZj
After paying out the promised donations to the LFC Foundation, the club is set to bring in around US$590,000 through the NFT launch, despite sales projections exceeding US$11.2 million.
At the time writing, only 9,721 out of a possible 171,072 NFTs have sold, making LFC Heroes one of the biggest NFT flops in recent memory.
Over the past 12 months, we’ve become accustomed to brands leveraging NFTs to increase revenues and consumer engagement. In the process, countless organisations have faced backlash from fans for their efforts, including SEGA, Salesforce and Uber.
Sadio Mané. Source: Liverpool Football Club
While environmental concerns are often cited, consumer exploitation is the most common cause for complaint, as was the case with the LFC Heroes Club:
Sorry but LFC have some of the most loyal fans in the world. Stop trying to exploit them with absolute rubbish like this!
Opulous, a relatively new blockchain-based music platform built for creators and investors, has seen the price of its token, OPUL, rally 175 percent after the project announced DeFi staking, CEX listings and S-NFT sales.
The biggest driver of interest in OPUL over recent weeks was the 45-minute sellout performance of its latest S-NFT (a non-fungible token sold as a security) for the song Patek Myself, by British rapper Ard Adz:
🔥 SOLD OUT IN UNDER 45 MINUTES 🔥
Congrats to everyone who managed to get the @ardadz 'Patek Myself' S-NFT! 🥳
Did you miss the sale? Don't worry! You can still get on the waiting list and guarantee your investment IF there are any dropouts during the next week 🚀#OPULSEASONpic.twitter.com/S57HBB54Ee
In other Opulous-related news, Algorand-based automated market maker Pact has established two liquidity pools for OPUL to be paired with ALGO and USD Coin (USDC). It has announced a joint campaign with the Algorand Foundation set to distribute 1 million ALGO tokens to supported pools between April 8 and June 2. Opulous has also revealed that new staking pools will join the Algorand DeFi hub, AlgoFi, from April 5:
Pretty good going, in all, for a platform that is little more than a year old. Launched in February 2021, Opulous provides a unique model for music artists to calculate future earnings and accept loans based on that forecast, while retaining 100 percent of their music’s copyright.
The Opulous model provides a monetary incentive for fans to promote the artists they have invested in. The more successful the artist, the more money the fan makes, through royalties paid out monthly. It has rightly been described as “the biggest thing since streaming”.
The British Treasury is to create an NFT. Minted by the Royal Mint, the digital asset will stand as a sign of the UK government’s “forward-looking approach” to cryptocurrency businesses and technology.
Notwithstanding this positive move toward crypto, the proposed NFT has garnered some confusion. As revealed in a keynote speech at this week’s Innovate Finance Global Summit, UK Secretary to Treasury John Glen stated that the government will issue an NFT by the northern summer.
Finally, I am announcing today that the Chancellor [Rishi Sunak] has asked the Royal Mint to create a non-fungible token – an NFT … to be issued by the summer, an emblem of the forward-looking approach we are determined to take … and there will be more details available very soon.
The announcement also included the government’s vision for stablecoins and distributed ledger technologies as part of its pro-crypto strategy for the UK’s financial services industry. This bold move is supposed to help position Britain as a “global crypto-asset technology hub”.
The UK is also playing a role in the new OECD crypto-assets tax reporting framework, which aims to enhance tax transparency and hopefully restore consumer confidence in the sector by enabling a level playing field in global tax reporting.
UK Stablecoin Regulation Under Way
The government says it intends to bring new legislation to stablecoins within its regulatory regime. This means that issuers and service providers offering such products in the UK would need to follow standards set by UK authorities. According to Treasury Secretary Glen, “I can confirm that we will be legislating to bring certain stablecoins into our payments framework … creating the conditions for stablecoin issuers and service providers to operate and grow in the UK.”
Sunak says it is his ambition to make the UK a global hub for crypto and blockchain technology through close oversight of the emerging sector. “We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.”
This move by the treasury comes on the heels of Cambridge University launching its institutional crypto research group at the beginning of March.
Crypto Twitter in a Tizz
With levels of inflation in Britain hitting a three-decade high, according to The Guardian, many seem to be wondering what exactly is the purpose of the proposed NFT:
The UK government hasn’t yet provided any additional details – such as what the funds will be used for or how many NFTs will be minted – apart from the suitably vague release date:
Aiyo i'll do it for you right now it takes like 30 seconds, why u saying it will be like 4 months to do a single NFT??? does Royal Mint need to learn how to use a computer first or something
UK authorities recently seized US$1.9 million worth of NFTs as part of an elaborate tax vision scheme. This new offering may come at a strange time but the broader move into blockchain tech could be positive for the space.
The Australian Securities and Investment Commission (ASIC) has released a document outlining which financial influencers may be in breach of the law. The move is being met with contention by many of these so-called “finfluencers”:
if you are an aussie crypto 'finfluencer' there is only one thing to do… move to another country
Finfluencers have the capability to offer incorrect, or unwise, financial information or products to their followers, either intentionally or accidentally. Some of the points on this guidance note include ensuring finfluencers are properly licensed to deal in a financial product or provide advice on a product, along with managing content to ensure it is accurate and balanced.
While the guide does not explicitly mention the crypto industry and its advisers and influencers, as crypto is counted as “investing services”, the rules still apply. This is backed up by pro-crypto NSW Senator Andrew Bragg.
ASIC’s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product.
Australian NSW Liberal Senator Andrew Bragg
The move from ASIC is being heavily critiqued online by several financial influencers, with many suggesting the guide is all-encompassing in the sense that almost anything in the way of advice could still influence someone to invest.
The tighter regulations will come with penalties of up to five years’ jail for individuals and extreme fines for corporations.
ASIC Cautions Investors and Exchanges
ASIC has issued finfluencer warnings in the past, with the commission last year urging young investors in particular to be cautious. ASIC has stated that while using social media is a viable means of collecting background information on a topic, such info may be unlicensed and inaccurate.
More recently, ASIC has issued a warning aimed at crypto companies, informing them that they should expect tighter regulations in the future with the aim of pulling the crypto industry into line with traditional financial industries.
The high percentage of committed HODLers in Australia is similar to figures found in other parts of the world – from 72 percent in the Middle East to 85 percent in the US.
The survey, which was conducted online between November 23, 2021, and February 4, 2022, asked 30,000 people from 20 countries about their attitudes and behaviour relating to cryptocurrency investments in an effort to uncover trends and characterise the current state of the market.
Percentage of investors who buy and hold, and actively trade, by region. Source: Gemini 2022 Global State of Crypto report
2021 a Huge Year for Adoption in Australia and Globally
Globally, the Gemini survey found the 2021 adoption numbers were even higher – 44 percent of Americans surveyed said 2021 was the year they got into crypto, and over half of all respondents from Brazil (51%), Hong Kong (51%) and India (54%) said 2021 was the first time they’d bought crypto.
Future Looks Bright
Based on the findings from its survey, the Gemini report is bullish about the future of crypto, stating:
In 2021, cryptocurrency reached a tipping point, evolving from what many considered a niche investment into a global, established asset class.
2022 Gemini Global State of Crypto report
The report also points out that the overall crypto market capitalisation topped out at almost US$3 trillion in 2021, making crypto the best performing asset class of the past decade.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Axie Infinity (AXS)
Axie Infinity AXS is a blockchain-based trading and battling game that is partially owned and operated by its players. The Axie Infinity ecosystem has its own unique governance token, known as Axie Infinity Shards AXS. These are used to participate in key governance votes and give holders a say in how funds in the Axie Community Treasury are spent.
AXS Price Analysis
At the time of writing, AXS is ranked the 40th cryptocurrency globally and the current price is US$62.28. Let’s take a look at the chart below for price analysis:
AXS‘s relatively small 30% range could suggest that a larger move is setting up in April.
Aggressive bulls could look for entries at the most recent area of support formed near $60.22. However, equal lows near $56.12 make a tempting target for a stop run into this support. This move could reach support near $53.67.
A decisive move to the downside could run stops below the second set of relatively equal lows near $50.23, possibly reaching support at an old swing high and a daily gap near $47.58.
A recent level near $69.84 provided resistance and caused a swing high to form near $75.88, offering first targets. A move through this high may arrive at new monthly high levels near $80.31 and $86.30.
2. Ren (REN)
REN is an open protocol built to provide interoperability and liquidity between different blockchain platforms. The protocol’s native token, REN, functions as a bond for those running nodes that power RenVM, known as Darknodes. REN aims to expand the interoperability, and hence accessibility, of decentralised finance (DeFi) by removing hurdles involved in liquidity between blockchains.
REN Price Analysis
At the time of writing, REN is ranked the 146th cryptocurrency globally and the current price is US$0.4801. Let’s take a look at the chart below for price analysis:
REN bulls have enjoyed over 80% returns since Q1 2022, with little resistance above to end the current price discovery.
The price may find support near $0.4256. Still, aggressive bulls should be wary of a potential stop run under the monthly open into support near $0.4013. The area around $0.3750 should provide strong support if the price reaches this low.
The air above the current price is thin, but the level near $0.5326 could potentially provide some resistance in the short term. Extensions reaching near $0.5977 and $0.6492 make reasonable take-profit zones if the bullish trend continues.
3. Iost (IOST)
IOST‘s blockchain infrastructure is open-source and designed to be secure and scalable, all in the hope that it will serve as the backbone for online services in the future. One of the biggest challenges that IOST aims to resolve centres on how big companies may not be able to embrace blockchains in a customer-facing environment unless they are scalable. The Internet of Services Token is put forward as a way of tackling this problem.
IOST Price Analysis
At the time of writing, IOST is ranked the 118th cryptocurrency globally and the current price is US$0.0355. Let’s take a look at the chart below for price analysis:
IOST rallied 95% during March and almost set new monthly highs before selling off 30% into its weekly low.
A retest of the monthly open, near $0.03625, started a new wave of selling in early April. The subsequent break of the weekly open created a new area of resistance between $0.04159 and $0.04363 – an area that is also inefficiently traded and has confluence with the 9 and 18 EMAs.
If this resistance breaks, a move toward the monthly highs might find resistance between $0.04074 and $0.04570. Any potential move through this resistance will likely find a ceiling near an inefficient higher-timeframe level at $0.04930.
Old support near $0.03289 created a sharp bullish reaction in late March. This region, down to $0.03074, could provide support again.
However, a longer-term bottom is more likely to be found between $0.02827 and $0.02690, where higher-timeframe charts show an inefficiently traded area.
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Popular NFT marketplace OpenSea has launched direct payments on its platform via MoonPay, thereby simplifying the process of acquiring NFTs for those who don’t own cryptocurrencies.
According to OpenSea, collectors will be able to pay directly via Visa, MasterCard, American Express, Apple Pay and Google Pay, among others:
This move, which will undoubtedly bring newcomers to the NFT space, is the result of a partnership with MoonPay, a fintech player that builds payment infrastructure in the crypto space. As it stands, OpenSea users are required to leverage crypto assets such as ether to purchase NFTs on the marketplace:
OpenSea’s new feature gonna allow ppl to buy NFTs with credit cards?! Huge news if this is the case
The MoonPay integration will change this going forward, and OpenSea visitors will have the ability to choose from an assortment of payment options. MoonPay is also the company that has worked with many celebrities to facilitate Bored Ape NFT purchases for the likes of rapper Wiz Khalifa and ageing pop star Madonna.
Many are excited by OpenSea’s new venture, but some are not altogether convinced it will succeed:
This was a problem for NFT projects with CC purchases in 2019, can’t imagine what it will be like now. Unless they plan on providing a custodial wallet they can control withdrawals from, this could be ugly.
Just recently, OpenSea announced it would be supporting the blockchain network Solana (SOL), after a myriad of rumours, speculation and leaked images had hinted the platform would soon add SOL and Phantom Wallet support. OpenSea is the leading NFT project in terms of sales volume, accruing US$23.5 billion since its inception. It is followed by fellow NFT marketplace LooksRare, which has recorded US$18.16 billion in total sales volume.
