In recent weeks Solana (SOL) has been climbing the ranks of market cap and total value locked (TVL) among the top 10 protocols. The public blockchain has seen a noticeable gain in price along with the surge of DeFi and NFT projects being built on the chain, bringing it closer to the top five cryptocurrencies.
SOL, the native token of Solana, a public blockchain backed by Sam Bankman-Fried, founder of crypto exchange FTX, hit a record US$218.90 on October 25, according to TradingView. In the past week, Solana has gained 35 percent, mostly driven by DeFi and NFT projects.
Last week’s results have seen the total crypto market capitalisation pass the US$2.5 trillion mark, a new milestone for the cryptocurrency industry, with SOL flipping Ripple (XRP) to become the sixth-largest cryptocurrency by market cap.
SOL was a top performer over the last few months … [It’s] only natural for it to perform well during the next leg of the bull cycle.
Ashwath Balakrishnan, research associate, Delphi Digital
Solana’s Major Increase in TVL
One of the main factors pushing this ride up was the surge of DeFi, DAO and NFT projects on the Solana blockchain. Funds have been streaming into the decentralised finance (DeFi) economy, enabling users to loan funds, earn interest, swap tokens and generally make their money work for them.
According to DeFi data provider Defi Llama, TVL in Solana reached an all-time high of approximately US$14 billion on October 25. TVL is the US dollar value of the cryptocurrency committed to DeFi protocols.
Solana TVL: DeFi Llama
A handful of projects on the Solana blockchain have brought in billions for the chain, significantly increasing its TVL. The dominant project is Saber, an automated market maker (AMM) protocol that enables Solana users and applications to trade between stable pairs of assets and earns yields by providing liquidity, which has raked in US$2.05 billion.
Another four protocols – Radium (US$1.91 billion), Sunny (US$1.73 billion), Serum (US$1.69 billion) and Marinade Finance (US$1.63 billion) – have locked in over US$5 billion for the public blockchain.
Money Flows From Bitcoin to Other Layer 1 Platforms
Bitcoin (BTC) reached its new all-time high of US$66,974.77 last week as money flows from it to other Layer 1 solutions, resulting in an altcoin season. Layer 1 is the base layer, the main network on which a cryptocurrency such as bitcoin runs.
According to TradingView, the bitcoin dominance ratio, which measures bitcoin’s market capitalisation relative to the total crypto market cap, dropped to as low as 44.62 percent last weekend before returning to roughly 45 percent on October 25. That decrease in the dominance ratio indicated that at least part of bitcoin’s momentum had shifted to other tokens.
When bitcoin momentum slows down, Layer 1 tokens often perform better than any category […] Layer 1s have been the best-performing tokens since the June bottom – and, quite frankly, they boast the highest year-to-date returns, too.
Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
In this article:
Crypto Market Outlook
Last Week’s Performance
This Week’s Trades
Crypto Market Outlook
The entire crypto market cap peaked to a new all-time high (ATH) at US$2.7 trillion last week, showing strong confidence in the market. Prices are taken from Binance exchange.
Total crypto marketcap reaching US$2.7 trillion
Bitcoin itself reached a new ATH of US$67,000 after clearing the previous high of US$64,900. Despite having a daily candle close above the previous ATH, bitcoin has pulled back below for the past four days, finding support at US$59,500, which has previously proved to be a key level of support/resistance.
BTC currently sitting on daily support level
If this key level of BTC support holds, we are expecting to see some more bullish action with an initial target of US$78,000. I have outlined the reasons I believe this to be a good target in a separate blog post. If this price level were to break below and close, we could see a decent pullback to the US$53,000 zone, which will likely bring ALTS with it.
Why have we picked US$53k as a bearish target for BTC? You’ll see in the image below we have a confluence of strong daily support: with the 50EMA and 50% Fibonacci level in bull runs, a 50% retrace can be typical. For beginners to technical chart analysis, we’ve got your back and can teach how to use these tools to plot your own trades in our Trading Fundamentals Course available on The Crypto Den website.
Possible bearish price target
Ultimately in our TradeRoom, the general consensus is that we still hold a bullish bias with BTC. However, as traders we must adapt and move with the market, and have a trade plan for both scenarios of an up and down market.
In our courses and live lessons, we teach people to use the correct risk management strategies to have a plan in place no matter the direction the market takes.
Last Week’s Performance
Last week in TradeRoom there were three trades we entered for Ethereum (ETH), as it tested its previous ATH showing some bullish signals in the charts. Some of the trades we made were successful and saw profit up to 500%, using staggering buy positions.
We discussed in our community that taking profits and also leaving some capital to ride through was the best strategy for this one; our members have used this strategy before with great success.
See our entries and exits below:
Trade #1: ETH/USDT
ETH/USDT: Initial entry at support level US$3,349
ETH/USDT: Next entry at new support of US$3,446
ETH/USDT: Some profit taken at resistance of US$3,641 and some at US$3,958
ETH/USDT: New entry at support of US$3,641 with profit taken at US$4,370
Trade #2: SOL/USDT
The next trade was one of our community favourites, Solana (SOL). In our TradeRoom live market scan on October 14, I drew a chart live with our members showing my plan for entering a new SOL trade. A week later, luckily, this trade went to plan and saw a profit up to 700%!
I love these live market scans as we can discuss the trades as a group and learn together. We are stronger together!
SOL/USDT: Live market scan entry shared at US$151
SOL/USDT: Profit taken at US$212
This Week’s Trades
As with most weeks, our market outlook ultimately depends on how BTC opens after the weekend. As mentioned previously, we are currently sitting on a solid level of support, however if BTC breaks below this level, we’ll be either catching a retest for a counter-trend short or waiting for US$59k to hit to enter a long position.
BTC/USDT
BTC/USDT: Bearish scenario
What we’re looking for at the current price level is solid candlestick analysis. We want to see a bullish engulfing candle causing a breakout of the local downtrend BTC has been in for the past four days and retest the 50EMA as support for an entry.
BTC/USDT : Bullish scenario
ETH/USDT
One of the biggest movers this week could definitely be ETH as the charts suggest. As outlined above in last week’s trades, ETH has performed extremely well lately and we see no reason for that momentum to slow just yet.
In the TradeRoom we are currently watching this symmetrical Triangle, having tested the Fib golden pocket (a key retrace level of 61.8% – 65%). A breakout to the upside here could very well see ETH on the path to a new ATH of US$5,000! Tune in next week to see if it happens!
ETH/USDT: Testing local uptrend line
SOL/USDT
It’s hard not to be watching the frontrunners from last week’s success and, like ETH, we agree SOL is still looking very bullish. Market structure is up even after BTC had a little pullback. SOL has tested that 50% Fibonacci level again with a price projection of US$252 in price discovery. If this plays out to plan, the key entry on 50% fib has been missed, however SOL certainly has room to move here! Definitely one to keep a close eye on.
One thing we’ve learnt about trading altcoins is that they are absolutely subject to what BTC is doing. If BTC takes a bullish path we may see the altcoins follow it up, whereas if BTC takes a bearish path we may likely see them follow it down.
If you would like to become a better trader, you are invited to join our TradeRoom where we share daily charts and market analysis. In our community we strongly encourage and teach correct risk management strategies to keep our members safe in this new volatile crypto market.
The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them.
Since then we have taught thousands of members the basics of technical analysis and trading strategies to further progress and perfect their trading abilities.
In the TradeRoom you will be included in a supportive environment which encourages personal growth, education and community support.
It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!
By October 21, SOL was trading at its highest point in more than a month and was just 10 percent off its all-time high of US$214.36. Since then it has pulled back slightly, trading at US$201.85 at the time of writing.
Solana Runs With the Bulls
“Solana has moved into bull market territory,” notes Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital. “With this week’s jump from $160 to above $190, it placed a bullish flagpole in the chart.
Analysts will now wait to see if that pole leads to a bull flag, meaning a steadying of the price, which would signal further bullish moves and new support. If it consolidates around US$180, this could create a strong support flag leading to further gains.
Joe DiPasquale, CEO, BitBull Capital
The token has broken through some important resistance levels lately, which confirms that buyers are “not concerned about downward pressure”.
Nick Spanos, co-founder of Zap Protocol, concurs with DiPasquale’s view that SOL’s short-to-medium-term outlook looks “very bullish”.
We have seen SOL build momentum this month and it has attracted plenty of new buyers in the past few weeks, with the number of active token holders increasing considerably.
Traders will be keeping an eye on the RSI [relative strength index], but the price action is more important. In particular, the bulls will be looking for SOL to convincingly breach the US$188 resistance level before targeting a breakout through the token’s all-time high of $191.04, as this would pave the way for even stronger gains.
Nick Spanos, co-founder, Zap Protocol
Synchrony Raises $4.2 Million in Strategic Funding, MonkeyBall Makes $3M
Yesterday, Solana-native asset management protocol Synchrony closed US$4.2 million in a strategic funding round led by Sanctor Capital, with participation from Wintermute Trading, GBV Capital, HashKey Group, Magnus Capital and 0xVentures, among others.
This week also saw MonkeyBall, a crypto startup building a play-to-earn NFT soccer game based on Solana, raise US$3 million in a seed funding round. Investors included Jump Capital, CMS Holdings, Solana Capital, 6th Man Ventures and NFX.
Future looks bright for Solana after mixed fortunes in September.
Last month was one of mixed fortunes for Solana. On the one hand, the mass migration of content creators from Ethereum to Solana flagged its expansion in the NFT marketplace, with non-fungible tokens proliferating faster on Solana than in any other protocol.
But around the same time, resource exhaustion in the network caused Solana to suffer a DoS (Denial of Service) episode, which resulted in the SOL token taking a 15 percent tumble. Just two days earlier, Solana had recorded its first million-dollar NFT deal.
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. Solana (SOL)
Solana SOL is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralised finance (DeFi) solutions. The Solana protocol is designed to facilitate decentralised app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
SOL Price Analysis
At the time of writing, SOL is ranked the 7th cryptocurrency globally and the current price is A$222.80. Let’s take a look at the chart below for price analysis:
SOL retraced nearly 63% from its high before finding a low in late September. Since then, the price has been sweeping stops on both sides of its local range as the current consolidation sets up the next move.
Aggressive bulls might bid near A$212, although a sweep of the stops near A$201 could reach below the next swing low into possible support near A$192. A continued downtrend might run into the weekly gap near A$179.
Some bears might add more shorts near A$229, although a push to A$237 is reasonable. A daily candle close over the swing high near A$245 could suggest that a longer-term trend reversal may be in play, with bulls possibly entering on a retracement near A$260.
2. Selfkey (KEY)
SelfKey KEY is a blockchain-based identity platform. The technology provides individuals, companies, exchanges, fintech startups and banks with a platform to manage identity data (often KYC). SelfKey aims to revolutionise the KYC on-boarding process and remain true to the ethos of Self-Sovereign Identity, where individuals should be able to own and control their identity.
KEY Price Analysis
At the time of writing, KEY is ranked the 558th cryptocurrency globally and the current price is A$0.01506. Let’s take a look at the chart below for price analysis:
KEY‘s nearly 70% retracement continues to make lower lows while showing no definitive signs of bullish reversal.
Stops below the swing low near A$0.01433 mark the next likely bearish target, with the daily gap near A$0.01369 providing some chance of a short-term bounce. Swing lows near A$0.01245 and A$0.01187 are the next likely targets if this gap fails, with both lows marking areas of possible support.
A sweep of the most recent swing highs near A$0.01643 might find resistance beginning near A$0.01700, with a more substantial move reaching up to A$0.01839. Closing above this level could hint at a longer-term trend reversal and form the range high of any following consolidation.
3. Filecoin (FIL)
Filecoin FIL is a decentralised storage system that aims to “store humanity’s most important information”. The project was first described back in 2014 as an incentive layer for the Interplanetary File System (IPFS), a peer-to-peer storage network. Filecoin is an open protocol backed by a blockchain that records commitments made by the network’s participants, with transactions using FIL, the blockchain’s native currency. The blockchain is based on both proof-of-replication and proof-of-spacetime.
FIL Price Analysis
At the time of writing, FIL is ranked the 26th cryptocurrency globally and the current price is A$89.80. Let’s take a look at the chart below for price analysis:
After dropping almost 86% from its highs, FIL has been consolidating in a range for the second half of Q3.
The recent sweep of the lows near A$87.46 could set the stage for at least a short rally higher, with bulls possibly buying near A$90.13 for a move toward the relatively equal highs near $98.10. A close over these highs might hint at a longer-term move toward probable resistance near A$105.24, likely following a retracement.
Rejection from possible resistance near A$92.34, potentially including a sweep of the highs around A$115.34, could signal a run to the swing low near A$84.23. If this move occurs, bears might target the swing low and support near A$79.05.
Where to Buy or Trade Altcoins?
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.
Genopets, the world’s very first mobile ‘Move-to-Earn’, or ‘play-to-earn” (P2E) non-fungible token (NFT) game, has raised US$8.3 million in seed round funding to “bridge the physical and digital world(s)”, the company announced on October 18.
Genopets is an innovative game built atop the Solana (SOL) blockchain in which users can create a Genopet – an NFT connected with their fitness data. Genopets is one of three exciting P2E games launching on Solana. The game allows users to do real-world exercises to earn rewards within the game, which they can later cash out.
The funding round was co-led by Pantera Capital and Konvoy Venture (investors and board observer at Axie Infinity).
Exercise Brings Measurable Rewards
Genopets has said that the money raised in the seed round will fund its goal “to bridge the physical and digital world(s)”. The game aims to “provide income to individuals as an incentive to stay physically active”, CEO Albert Chen said in a statement.
Josh Chapman, managing partner at Konvoy Ventures, added:
Genopets is a liquid digital asset representation of a gamer’s physical activity in the real world. It sits at the intersection of gaming, play-to-earn, and physical activity. This platform connects a gamer’s real-world steps with their progression, customisation, and value creation in the Genopet universe.
Josh Chapman, managing partner, Konvoy Ventures
P2E Is a Key Force Behind the Massive Growth of NFTs
The announcement of the seed funding round comes at a time when the NFT space, and specifically the NFT-gaming industry, is exploding. Other NFT gaming platforms such as Sydney-based “Immutable” recently raised A$82 million (US$60 million) in a Series B funding round, bringing its total funding raised to A$105 million. Creators of SimCity also recently launched Proxi – a blockchain-based AI-driven game that employs NFT technology.
Paul Veradittakit, partner at Pantera Capital, had this to say about the booming NFT gaming industry:
Play-to-Earn pinpoints an intersection of gaming and blockchain that has struck a chord with users – earning real money proportional to in-game performance.
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. Solana (SOL)
Solana SOL is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralised finance (DeFi) solutions. The Solana protocol is designed to facilitate decentralised app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
SOL Price Analysis
At the time of writing, SOL is ranked the 6th cryptocurrency globally and the current price is A$228.74. Let’s take a look at the chart below for price analysis:
August’s 150% rally ended with a drop as early October reached the 58.6% retracement level of SOL‘s last bullish leg.
The price is currently testing possible support beginning near A$218.34, just below the October open. Some bulls might be buying here, but many may be waiting for the price to show a willingness to move up from this level.
Below, just under the October monthly open and 41.8% retracement level of a more significant bullish swing, the area near A$203.65 could provide more substantial support. However, if the price reaches this far, it’s likely to touch possible support near A$192.05 around the 68.6% retracement level.
Near-term, the top of the mid-September consolidation near A$245.38 may provide resistance. A break through this level could reach near the last significant swing high with resistance likely to begin near A$261.70.
2. Stellar (XLM)
Stellar XLM is an open network that allows money to be moved and stored. When it was released in July 2014, one of its goals was boosting financial inclusion by reaching the world’s unbanked – but soon after, its priorities shifted to helping financial firms connect with one another through blockchain technology. The network’s native token, lumens, serves as a bridge that makes it less expensive to trade assets across borders. All of this aims to challenge existing payment providers who often charge high fees for a similar service.
XLM Price Analysis
At the time of writing, XLM is ranked the 26th cryptocurrency globally and the current price is A$0.4147. Let’s take a look at the chart below for price analysis:
XLM kicked August off with a nearly 85% rally, spiking through the Q3 highs before testing possible support at the old high’s candle body near A$0.4011.
This area could provide support, although any sharp downturn in the market is likely to drive the price towards possible support around the current range’s EQ and the 9 EMA, near A$0.3756. A surge of traders selling during this week could pressure the price back down into accumulation before the next bull trend begins.
If bulls fail to step in at the possible mid-range support, a deeper retracement to possible support near A$0.3488 is likely. This area has confluence with the 61.8% retracement level, 18 EMA, and 40 EMA.
The highs near A$0.4597 are likely to provide some short-term resistance. However, a break of this level brings attention to the round numbers at A$0.4933 and A$0.5316 as the next probable resistances where bulls might take profits.
3. Tezos (XTZ)
Tezos XTZ is a blockchain network that’s based on smart contracts, in a way that’s not too dissimilar to Ethereum. However, there’s a big difference: Tezos aims to offer infrastructure that is more advanced – meaning it can evolve and improve over time without any danger of a hard fork. This is something that both Bitcoin and Ethereum have suffered since they were created. People who hold XTZ can vote on proposals for protocol upgrades that have been put forward by Tezos developers.
XTZ Price Analysis
At the time of writing, XTZ is ranked the 26th cryptocurrency globally and the current price is A$11.89. Let’s take a look at the chart below for price analysis:
XTZ‘s 285% rally since mid-July saw a second leg after last week’s market-wide drop ran the previous consolidation’s stops.
The level near A$11.95 is providing some resistance. However, continuation through the all-time high at A$12.23 is not out of the question. Aggressive bulls might bid in the current region near A$11.82.
If the price runs the recent swing low, bulls might bid in the gap near A$11.25. A deeper retracement could reach near the mid-September level and a gap near A$10.76. The region near A$9.83 and A$9.35 may also provide some support during a deeper retracement.
Where to Buy or Trade Altcoins?
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.
Iconic Sol, an NFT project on the Solana blockchain, has apparently rugged its investors after failing to deliver several artwork pieces and disappearing with US$500,000.
A 17-year-old 3D artist is presumed to be behind the project. The teenager promised to deliver 8,000 NFT artworks on the project’s Discord channel and some of the tokens were supposed to be available in an October 1 presale. A total of 2,000 NFTs were up for grabs at a price of 0.5 SOL, many of them selling out quickly.
The presale generated the anonymous artist 1,000 SOL, or US$138,000, but the estimated amount of stolen funds is over half a million dollars. The event was reported by SOL Big Brain, a popular member of the Solana NFT community:
Damn.. @IconicsSol just RUGGED. Did a presale for 2K at .5 and made off with I think 1000 SOL.
FUCK YOU SCAMMERS!!
Sorry to anybody who took the L here. I minted a bunch also as art looked good. Lesson Learned.
Onwards, with that out of the way lets focus on the GOOD STUFF!
Data from Solana Explorer shows the person(s) behind the project has already sent the money to different addresses. And just as concerning for investors, instead of receiving the NFTs the artist sent them a bunch of random emojis.
This is probably the first rugpull on the Solana network. But it’s hard to say as controversy still surrounds a previous Solana project backed by American rapper Lil Uzi called Eternal Beings, whose floor price plunged after the rapper deleted his Twitter posts regarding the project.
Fake and non-existing NFTs are becoming an increasing concern in the DeFi space. As Crypto News Australia reported, last month an NFT collector paid almost US$500,000 worth of ETH for an NFT that never existed.
Another day, another rug pull in the crypto world – or at least that’s what it seems with the recent price plunge of Eternal Beings, computer-generated NFT avatars that were promoted by American rapper Lil Uzi Vert.
US rapper Lil Uzi Vert. Source: vogue.com
What Happened?
Eternal Beings is an NFT project built atop Solana (SOL), consisting of 11,111 alien avatars with a similar appearance to Uzi – as in his clothes, hair and tattoos.
The rapper promoted the project to his Twitter followers with guaranteed price moonings and hype. The avatars were launched on the Solanart marketplace on September 28, but after the NFTs sold out at a mint price of 2.5 SOL, Lil Uzi deleted all of his posts related to the project, causing the floor price to dip and hover below 1.60 SOL.
These idiots just copypasta text from their handlers. Lil Uzi later deleted it along with all his Tweets about his NFT drop. Hard rugged. But posts like this with price guarantees are damning. I’m pretty sure it’s the same group behind most of these rapper drops. Stay safe frens. pic.twitter.com/Rbt9kw2mya
It’s unknown if Uzi was behind Eternal Beings or if he was just being paid to promote the project to his followers. Moderators in the project’s Discord tried to calm their users by reassuring them Uzi was still part of the project. Yet that didn’t go so well as moderators started blocking several users who contradicted them.
What the crypto community and Eternal Beings’ more than 45,000 members believe is that this was another hyped-up rug pull. But another question arises: will the US Securities and Exchange Commission intervene if the regulatory body determines Uzi’s tweets to be the promotion of an investment product? The deleted tweets can be found on internet archive WayBack Machine:
If this was a rug, it would make it Solana’s second rug pull by far. In August, Crypto News Australiareported how Luna Yield, a cross-chain yield aggregator built on the Solana blockchain, stole nearly US$10 million from liquidity pools.
A new NFT-based gaming marketplace is coming to Solana as SolPugs becomes the first platform to launch a live virtual claw machine on the blockchain.
We are the first live virtual claw machine on the blockchain- the idea is that we will build a gaming arcade that will be fully integrated with the blockchain and where people can win NFTs.
SolPugs spokesperson
SolPugs, a new blockchain-based company, will bring an NFT marketplace to the Solana chain next month. The company aims to build a fully integrated gaming arcade into the blockchain that will enable users to win NFTs.
As the NFT market continues to explode, there are no signs of it slowing down any time soon. In addition to its virtual claw machine, SolPugs will also launch its own NFT.
The company will be offering 5,000 uniquely generated pugs, each with more than 70 distinctive attributes, to be made exclusively for the Solana blockchain and SolPugs’ NFT Gaming Marketplace. Each pug is drawn by hand by an in-house digital artist.
Our system algorithm is designed to generate a unique pug with every minting session. This way, each of our pugs is unique in its own way and you will never find two identical pugs with us. So you will have 5,000 randomly generated Sol Pugs here with 70-plus different attributes to choose from. It’s going to be a unique experience for our users.
SolPlugs spokesperson
The company also has a whitelist that people can win, either through its whitelist competition or by playing on SolPugs’ virtual claw machine. Pugs come in five different rarities, ranging from Common to Legendary. When a member mints a pug, it will be assigned a rarity.
After the launch, SolPugs will list the pugs on all major NFT marketplaces, including Solanaart.io, Solsea.io, and Digitaleyes.market.
Aiming to bring utility to its pugs, the company will allow members who hold pugs to post their NFTs in their marketplace. People can then win the NFTs, allowing the seller to reap the rewards.
SolPugs Joins Others in the Digital Arcade Game
SolPugs will join Decentraland in hosting a digital arcade claw machine. Decentraland allows users to play the claw machine by paying a set amount of Mana, after which they can win NFTs such as Crypto Kitties and Axies.
The below video posted on YouTube explains the digital arcade claw on Decentraland:
Atari Hotels recently announced that it intends to accept its own Atari Token (ATRI) for use on its premises. Although it’s still unclear exactly what they will be used for, they may take the form of digital arcade tokens that allow users to play their favourite games in the Atari gaming playgrounds.
Traders woke up to a rough Monday as the crypto market saw up to double-digit percentage losses across the board. The sudden drop saw Solana, Cardano and Ripple (XRP) drop millions from their market caps, and Bitcoin (BTC) and Ethereum (ETH) plunge 10.4 and 14.7 percent respectively over the past seven days, according to data from CoinGecko.
Liquidations occur when traders borrow excess capital from exchanges or brokerages to place bigger bets on the assets they trade, known as margin trading or trading futures.
Traders pay a fixed fee for borrowing while exchanges close out these positions at a predetermined price. If a trader’s collateral is equal to the loss on that position, a trade then becomes ‘liquidated’.
Of all the traders liquidated in the past few days, a shocking 91 percent of them were in the ‘long’ market. Being in the long market means traders had put on positions betting on higher asset prices.
According to data from Bybt, 136,690 traders were liquidated in the past 24 hours, while the total value of liquidations during that period reached over US$635 million.
Total liquidations observed. Source: Bybt
Investors REKT
Liquidations of US$236 million BTC and US$216 million ETH were recorded, while large-cap altcoins such as Solana (SOL) and XRP saw liquidations worth US$26 million and US$17 million respectively in that 24-hour period.
The largest single liquidation order took place on Bitfinex-ETH, to the value of US$14.52 million.
The golden cross is a chart pattern that is generally seen as an indicator of bullish price action to come, but this is not always the case. Given the market is more mature, diminishing returns ought to be expected.
Investors should approach with caution, and not rely on a single indicator to guide them. Many factors influence the price, none of which is predictable.
Just a ‘Bit’ Too Soon
September is proving itself to be a worthy opponent to those finding their way in the crypto market.
Investors are still reeling from the previous round of liquidations on September 7, in which over US$3.7 billion worth of cryptos were liquidated after BTC and other major altcoins tanked.
During that period, a total of 375,824 traders were forced out of the market after becoming overleveraged as sudden crypto price drops were experienced.
