According to analysis from CoinShares, investors have favoured smaller layer-one altcoins of late with institutional capital outflows from Ethereum hitting US$17 million:
According to a weekly report by asset management firm CoinShares, institutional investor funds flow to digital assets such as crypto assets (cryptocurrency) investment trusts have exceeded outflows for the second straight week. pic.twitter.com/kgT8iCuN9M
Institutional investors have been shifting their attention away from Ethereum to competing layer-one blockchain projects, with capital inflows for altcoins increasing while ETH products posted outflows for the third consecutive week. Data from CoinShares’ Digital Asset Fund report shows that investors bought up US$3.5 million worth of Avalanche, Solana, Terra, and Algorand.
The data shows total outflows of ETH now amount to US$59.3 million, around 35 percent of the year-to-date outflows of US$169 million.
Weekly Flows from ETH. Source: CoinShares
Decentralised application usage on Solana in the past week has increased, according to data from DappRadar. While the metrics from Avalanche’s DApp usage have not increased over the week, the project’s investment in incentive programs and millions spent bringing developers to the platform signal a bullish future.
Significant Shift in Past Three Weeks
Inflows into Avalanche, Solana, Terra and Algorand were US$1.8 million, US$800,000, US$700,000, and US$200,000 respectively, with Bitcoin recording inflows worth US$2.6 million for the first time in two weeks. Over the past three weeks, total outflows were US$219 million, a significant shift from the US$134 million that left the market in the first week of April.
In March, another report released by CoinShares showed that institutional crypto funds had seen their biggest capital inflows since December 2021, with over US$193 million coming in during the week ending March 25.
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 US$113.76. Let’s take a look at the chart below for price analysis:
SOL has retraced 60% from its December highs and reached possible support last month near $85.34. Resistance might begin near $115.24, which has confluence with the 9 and 18 EMAs.
A more substantial rally might reach near the swing high at $120.23 and the 40 EMA. This high is less likely to break if bears plan to continue the downtrend without a lengthier consolidation.
While not highly probable in the current market conditions, a more animated move upward could reach a wide resistance area between $126.42 and $139.94. This zone is where the last movement down accumulated positions before breaking down.
Possible support rests near $105.34, which showed sensitivity on the last test. While it could provide support again, the higher-timeframe bearish trend is more likely to propel the price into an inefficient area between $96.10 and $90.54. If the price reaches this zone, the May 2021 swing high near $84.13 might mark a more sensitive level.
2. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin, and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 9th cryptocurrency globally and the current price is US$94.89. Let’s take a look at the chart below for price analysis:
LUNA showed significant strength in the face of a mostly bearish altcoin market, rallying over 95% during Q1.
The price is currently retracing from resistance near $114.90, just below the all-time high. Bulls might begin eyeing entries near $90.00, which will soon be near the 18 EMA and between the 61.8% and 78.6% retracement levels of the last leg upward.
A deeper retracement might reach an inefficient zone and the 40 EMA under the last daily swing low, between $87.44 and $84.07. A move below this low suggests a more bearish shift in market structure. If this shift occurs, it could create a short setup to target possible support at the upmove’s accumulation zone, near $79.41.
While the price is retracing, $98.44 offers the closest probable resistance at the yearly open. Just above, near the March monthly open, the consolidation lows near $101.69 are also a reasonable candidate for resistance.
If the price breaks through these resistances, the significant resistance at $107.69 might also break and allow LUNA to set new monthly highs. However, bulls should keep in mind that the overall market is mostly bearish, decreasing the chances of a massive bullish breakout. If the price does break the all-time high and enter discovery, overlapping extensions near $125.40 offer a possible significant target.
3. Tron (TRX)
Tron TRX is a blockchain-based operating system that aims to ensure this technology is suitable for daily use. Whereas Bitcoin can handle up to six transactions per second, and Ethereum up to 25, TRON claims that its network has a capacity for 2,000 TPS. This project is best described as a decentralised platform focused on content sharing and entertainment and to this end, one of its biggest acquisitions was the file-sharing service BitTorrent in 2018. Overall, TRON has divided its goals into six phases. These include delivering simple distributed file sharing, driving content creation through financial rewards.
TRX Price Analysis
At the time of writing, TRX is ranked the 25th cryptocurrency globally and the current price is US$0.06387. Let’s take a look at the chart below for price analysis:
TRX accompanied the rest of the market during the January drop, falling nearly 50% from its mid-December high until it found a low early in February.
Price action formed a weekly support level near $0.06154, which has so far held up the price. The most recent swing low inside this range, near $0.05929, might be the target for any future stop runs. After this low, the swing low near $0.05789 and the gap beginning near $0.05555 mark possible higher-timeframe support.
The price is currently battling with significant higher-timeframe resistance levels, with the closest probable resistance resting near $0.07092, just over the previous monthly open. A sweep of the relatively equal highs above this resistance might find sellers near $0.07535 – but could reach as high as $0.08137.
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.
However, a confluence of factors have turned things around, resulting in the market lifting above US$2 trillion for the first time in over six weeks:
Global crypto market capitalisation. Source: Coinmarketcap.com
After investors’ frustration at what felt like endless sideways price action, the sentiment across crypto Twitter was distinctly upbeat by the positive moves:
The total #crypto market cap is above $2 trillion again!
Digital assets across the board saw material gains, with the crypto economy’s total value holding above US$2 trillion for five consecutive days.
According to Coinglass data, around US$142 million in short liquidations contributed to bitcoin breaching US$47,000 for the first time since January. No doubt, Terra’s decision to buy US$10 billion in BTC is also at least partially responsible for the surge.
At the time of publication, bitcoin is trading at US$47,664, effectively erasing its losses and pushing past break-even for the year.
BTC price action over past seven days. Source: CoinMarketCap.com
Outside of BTC, altcoins similarly enjoyed a strong comeback, with a veritable feast of green candles on display. Analysts have suggested that the positive returns over the past week may be indicative of an impending bull market:
BTC – 12.7 percent
ETH – 14.5 percent
ADA – 30.4 percent
SOL – 22.7 percent
BNB – 7.8 percent
XRP – 4.8 percent
LUNA – 11.8 percent
AVAX – 6.7 percent
POL -15.2 percent
DOGE – 19.6 percent
Market Gets Greedy
It’s been said that fear and greed drive financial markets, and nowhere is that more apparent than in crypto.
Despite his equating Bitcoin to rat poison, Warren Buffett’s cautionary words are perhaps worth noting, especially when the market is seemingly on the up:
Be fearful when others are greedy, and greedy when others are fearful.
The market capitalisation of the algorithmic stablecoin Terra (UST) has soared in comparison to its longer-running counterpart DAI. Year-to-date, UST’s market cap has increased 700 percent, while DAI’s is up 5.7 percent.
Market capitalisation of UT vs DAI. Source: Galaxy Digital Research
What is Terra?
Terra is a blockchain protocol underpinned by a suite of decentralised stablecoins, the most popular being TerraUSD, or UST, an algorithmic stablecoin that runs on its own Tendermint blockchain. The stablecoins maintain their peg via a coin called LUNA, a volatile cryptocurrency whose elasticity of supply keeps the price of the stablecoin in check.
Voted to Burn
UST trended upwards sharply over the November-December period, starting at under US$3 billion in November. The reason for the major uptake in gains came in mid-November after the Terra community voted to burn 89 million LUNA that had been accumulated in the Terra treasury in exchange for UST. According to the founder of Terra Do Kwon, US$2.7 billion had been minted in this way.
UST Now Interacts With BTC Directly
To understand how Bitcoin links with UST, the Luna Foundation Guard (LFG) announced last week that it would be buying US$10 billion worth of Bitcoin, stating that:
As an algorithmic stablecoin, UST’s peg is maintained by a series of open market operations, arbitrage incentives, and countercyclical levers within the Terra protocol to offset market forces pushing the UST peg above or below one USD. LUNA, Terra’s reserve, staking and governance asset, retains an elastic supply to help neutralise directional market pressures impacting the peg.
LFG announcement
Simply put, Bitcoin is used to restore the UST’s peg parity to the US dollar at times when there are market sell-offs.
Three weeks ago, the Luna Foundation Guard announced it would be buying US$1 billion in bitcoin to help restore “peg parity” between its decentralised stablecoin TerraUSD (UST) and the US dollar.
Terra’s founder has now decided to go one step further and declared his intention to acquire up to US$10 billion in bitcoin:
💥Terra founder plans to buy $10 BILLION #Bitcoin for UST stablecoin reserves. 😱
For those unclear as to how bitcoin fits within the context of a decentralised stablecoin such as UST, it’s worth going back to an earlier statement by the LFG Foundation:
As an algorithmic stablecoin, UST’s peg is maintained by a series of open market operations, arbitrage incentives, and countercyclical levers within the Terra protocol to offset market forces pushing the UST peg above or below one USD. LUNA, Terra’s reserve, staking and governance asset, retains an elastic supply to help neutralise directional market pressures impacting the peg.
LFG Foundation announcement
In short, bitcoin is used to restore the UST’s peg parity to the US dollar at times when there are protracted market sell-offs.
Terra Founder Reveals Plan Details
In a Twitter Spaces conversation with renowned crypto troll, Udi Wertheimer, Terra co-founder Do Kwon revealed plans to back UST with bitcoin:
Haven’t been following up with the exact numbers ’cause transactions we generally do this over OTC, but the current clip that we have to buy big coin is about $3 billion [referring to bitcoin] and we will add to that.
Do Kwon, Terra co-founder
He added that “out of that 3 billion, most of it we haven’t bought yet”. Do Kwon went on to describe the move as a “new monetary era of the Bitcoin standard”:
$UST with $10B+ in $BTC reserves will open a new monetary era of the Bitcoin standard.
P2P electronic cash that is easier to spend and more attractive to hold #btc
However, some of the more experienced market participants, including Bitcoiner Adam Back, had more questions. He asked, “Where is the $10 bil coming from?”, to which Do Kwon responded:
It’s not 10B today – as UST money supply grows, a portion of the seigniorage will go to build BTC reserves bridged to the Terra chain. We have 3B funds ready to seed this reserve, but technical infrastructure (bridges etc) is still not ready yet.
Do Kwon, co-founder of Terra
Details remain somewhat muddied and it’s not clear whether even Do Kwon has all his proverbial ducks in a row, having conceded at the end of the Twitter Spaces conversation: “I said more than I shoulda”.
Initial Acquisition More Like $3 Billion
While plans are to acquire US$10 billion in total, as noted by Do Kwon the initial acquisition will be US$3 billion. Eagle-eyed on-chain analysts have already seen evidence of buying with US$125 million already bought, and another tranche of US$125 million imminent:
It appears #Terra is about to buy another $125 million worth of #Bitcoin if the below wallets are anything to go by.
Terra co-founder Do Kwon seems to continue his plan to back a new US dollar stablecoin, with both #BTC and #LUNA.
If Terra’s plans go through as intended, it would become one of the largest bitcoin holders, more so than every corporate outside of MicroStrategy with its 125,051 BTC stash.
Whatever one’s thoughts are on algorithmic stablecoins such as UST, or Terra itself, it’s undeniable that using bitcoin as a tool to maintain peg parity is a unique approach that remains untested. At the very least, it introduces some excitement at a time when the market appears to be in a sideways consolidation phase.
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. Litecoin (LTC)
Litecoin LTC is a cryptocurrency designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology. The cryptocurrency was created based on the Bitcoin protocol, but it differs in terms of the hashing algorithm used, hard cap, block transaction times, and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.
LTC Price Analysis
At the time of writing, LTC is ranked the 20th cryptocurrency globally and the current price is US$121.80. Let’s take a look at the chart below for price analysis:
After setting a low last week, LTC kicked off a recovery trend that gained nearly 24% to break the weekly highs.
The following 60% plummet found support near $104.36, sweeping under the 40 EMA into the 61.8% retracement level before bouncing to resistance beginning at $124.53.
This area could continue to provide resistance, possibly causing a retracement to the 9 EMA and 18 EMA near $129.12, where aggressive bulls might begin bidding. The level near $137.98, which has confluence with the 40 EMA, may see more interest from bulls loading up for an attempt on probable resistance beginning near $152.13.
However, if Bitcoin continues its sideways trend, much lower prices could be seen. The old support near $101.18 could provide at least a short-term bounce. If this level fails, the old monthly lows near $94.23 might also give support and see the start of a new bullish cycle after retesting these support levels.
2. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin, and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 7th cryptocurrency globally and the current price is US$92.65. Let’s take a look at the chart below for price analysis:
LUNA showed significant strength in the face of a mostly bearish altcoin market, rallying over 90% in late February.
The price is currently retracing from resistance near $102.90, just below the all-time high. Bulls might begin eyeing entries near $82.00, which will soon be near the 18 EMA and between the 61.8% and 78.6% retracement levels of the last leg upward.
A deeper retracement might reach an inefficient zone and the 40 EMA under the last daily swing low, between $77.44 and $74.07. A move below this low suggests a more bearish shift in market structure. If this shift occurs, it could create a short setup to target possible support at the upmove’s accumulation zone, near $70.41.
While the price is retracing, $90.44 offers the closest probable resistance at the 2022 yearly open. Just above, near the March monthly open, the consolidation lows near $96.69 are also a reasonable candidate for resistance.
If the price breaks through these resistances, the significant resistance at $100.69 might also break and allow LUNA to set new all-time highs. However, bulls should keep in mind that the overall market is mostly bearish, decreasing the chances of a massive bullish breakout. If the price does break the all-time high and enter discovery, overlapping extensions near $128.40 offer a possible significant target.
3. Zcash (ZEC)
Zcash ZEC is a decentralised cryptocurrency focused on privacy and anonymity. It uses the zk-SNARK zero-knowledge proof technology that allows nodes on the network to verify transactions without revealing any sensitive information about those transactions. Zcash transactions, on the other hand, still have to be relayed via a public blockchain, but unlike pseudonymous cryptocurrencies, ZEC transactions by default do not reveal the sending and receiving addresses or the amount being sent.
ZEC Price Analysis
At the time of writing, ZEC is ranked the 50th cryptocurrency globally and the current price is US$176.30. Let’s take a look at the chart below for price analysis:
ZEC‘s recent bearish flip of the 9, 18 and 40 EMAs might cause bulls to be less aggressive in bidding. However, possible support near $149.47 and $160.96 – between the 41.8% and 58.6% retracements – could see at least a short-term bounce.
Last year’s long-term consolidation suggests that the areas near $136.23 may be more likely to cause a longer-term trend reversal.
Bears are likely to add to their shorts at probable resistance beginning near $180.50, which has confluence with the 18 EMA. A fast break of this resistance could trigger more selling near $192.12, the start of the bearish move.
If an aggressive bullish move does appear, trapped buyers in the probable resistance beginning near $216.41 might provide a ceiling for this impulse.
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.
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. Kava.io (KAVA)
KAVA is a cross-chain DeFi lending platform that allows users to borrow USDX stablecoins and deposit a variety of cryptocurrencies to begin earning a yield. The Kava DeFi hub operates as a decentralised bank for digital assets, allowing users to access a range of decentralised financial services, including its native USD-pegged stablecoin, USDX, as well as synthetics and derivatives. Through Kava, users are able to borrow USDX tokens by depositing collateral, effectively leveraging their exposure to crypto assets.
KAVA Price Analysis
At the time of writing, KAVA is ranked the 118th cryptocurrency globally and the current price is US$3.14. Let’s take a look at the chart below for price analysis:
The last year saw KAVA travel through a massive range from approximately $8 to $2.66. Currently, it is trending downward into the range lows.
Resistance might be found just above the current price, beginning near $3.148. This area has confluence with the 9 and 18 EMAs.
A stronger retracement against the bearish trend could reach the 40 EMA and the March monthly open, near $3.407.
Although unlikely in the current bearish market conditions, a more significant rally might reach over the 2022 yearly open to test an inefficiently traded area from $4.198 to $4.486.
In late February, the price bounced from the support between $2.819 to $2.734 while wicking just under a narrow support zone at $2.594. These two levels could provide support again.
However, the price has been consolidating on higher timeframes since late January. Given the current bearish market conditions, it seems likely that a retest of these two support levels may fail.
Bears might take profits near $1.827 at Q4 2021’s consolidation, which could offer support. However, if the price reaches this far, it’s reasonable to expect continuation through the swing low at $1.123 into an inefficiently traded area on higher timeframes.
2. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 7th cryptocurrency globally and the current price is US$81.77. Let’s take a look at the chart below for price analysis:
LUNA showed significant strength in the face of a mostly-bearish altcoin market, rallying over 100% in late February after raising funds to help stabilise its peg.
The price is currently retracing from resistance near $98.90, just below the all-time high. Bulls might begin eyeing entries near $79.00, which will soon be near the 18 EMA and between the 61.8% and 78.6% retracement levels of the last leg upward.
A deeper retracement might reach an inefficient zone and the 40 EMA under the last daily swing low, between $70.44 and $66.07. A move below this low suggests a more bearish shift in market structure. If this shift occurs, it could create a short setup to target possible support at the upmove’s accumulation zone, near $59.41.
While the price is retracing, $83.44 offers the closest probable resistance at the 2022 yearly open. Just above, near the March monthly open, the consolidation lows near $89.69 are also a reasonable candidate for resistance.
If the price breaks through these resistances, the significant resistance at $89.69 might also break and allow LUNA to set new all-time highs. However, bulls should keep in mind that the overall market is bearish, decreasing the chances of a massive bullish breakout. If the price does break the all-time high and enter discovery, overlapping extensions near $130 offer a possible significant target.
3. Verge (XVG)
Verge XVG is a privacy-focused cryptocurrency and blockchain that seeks to offer a fast, efficient, decentralised payments network that improves on the original Bitcoin blockchain. It includes additional privacy features including integrating the anonymity network Tor into its wallet, called Verge Pay, and providing the option of sending transactions to stealth addresses. The project describes itself as community-driven, relying on volunteers and priding itself on being open-source.
XVG Price Analysis
At the time of writing, XVG is ranked the 278th cryptocurrency globally and the current price is US$0.009039. Let’s take a look at the chart below for price analysis:
XVG has retraced nearly 80% from its November 2021 highs and appears poised to continue its downtrend.
If Monday’s trading fails to reach $0.009471, resistance might begin just above the current price at $0.009235.
Just above this level rests higher-timeframe resistance from $0.009599 to $0.011032. Inside this broad zone, $0.009709 (an inefficiently traded area) and $0.010175 (the March monthly open) might offer the most sensitivity.
A more significant rally would likely find resistance between $0.013500 and $0.015655, where the monthly chart shows inefficient trading. However, the current bear market decreases the probability of a rally reaching this far.
The quarterly chart shows a broad zone of possible support near $0.006907. Inside this zone, $0.005756 – near the 100% extension of the last retracement upward – offers a higher probability for a bounce or bottom. This level is near the midpoint of November 2020’s massive rally.
However, the swing low at $0.003552 and an inefficiently traded area below inside late 2019’s consolidation offers an attractive target for bears. Bulls should be cautious with entries until the trend flips bullish.
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.
The Luna Foundation Guard (LFG) was recently formed to support decentralisation, economic sovereignty, and growth of the Terra ecosystem. Now, in an unexpected turn, it has announced that it has successfully raised US$1 billion to acquire bitcoin to underpin its decentralised stablecoin, UST:
1/ The long awaited [REDACTED] 💎3 is here!
📣 The Luna Foundation Guard (LFG) has closed a $1 billion private token sale to establish a decentralized $UST Forex Reserve denominated in $BTC! 📣
TerraUSD (UST) is a decentralised and algorithmic stablecoin of the Terra blockchain, pegged to the US Dollar. In contrast to centralised stablecoins such as Tether and USDC, algorithmic alternatives do not use collateral to maintain their price. Instead, they maintain their peg by relying on complex market incentives, which LFG describes as follows:
As an algorithmic stablecoin, UST’s peg is maintained by a series of open market operations, arbitrage incentives, and countercyclical levers within the Terra protocol to offset market forces pushing the UST peg above or below one USD. LUNA, Terra’s reserve, staking, and governance asset, retains an elastic supply to help neutralise directional market pressures impacting the peg.
LFG Foundation announcement
One of the common criticisms of algorithmic stablecoins is their reflexive nature during extreme volatility, where the arbitrage incentives to bring the peg back to parity can potentially deteriorate. With the LFG announcement, the bitcoin will serve to provide an additional avenue to maintain the stability of the peg in contractionary cycles that reduces the reflexivity of the system. As LFG noted:
The reserve assets can be utilised in instances where protracted market sell-offs deter buyers from restoring the UST peg’s parity and deteriorate the Terra protocol’s open market arbitrage incentives.
LFG Foundation announcement
LFG added that while initial plans were to acquire bitcoin, it would “expand to other major non-correlated assets within the market moving forward”.
Mixed Reactions, of Course
The announcement was met with both excitement and derision, a feature expected of noisy social media platforms such as Twitter:
Bitcoin gets new demand as treasury reserve asset, and UST/Terra is hardened as stablecoin money.
And while governments bicker about how to regulate stablecoins, the industry is already moving past them 🍻
Given the increased scrutiny on stablecoins in the US in particular, and the willingness of issuers to censor addresses on request, the demand for decentralised stablecoins is self-evident.
It remains, however, to be seen whether LFG’s strategy will foster greater trust in UST. Initial signs are positive, but it is probably too soon to tell.
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. Fantom (FTM)
Fantom FTM is a directed acyclic graph (DAG) smart contract platform providing decentralised finance (DeFi) services to developers using its own bespoke consensus algorithm. Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms – specifically transaction speed, which developers say they have reduced to under two seconds.
FTM Price Analysis
At the time of writing, FTM is ranked the 34th cryptocurrency globally and the current price is US$1.69. Let’s take a look at the chart below for price analysis:
FTM‘s bounce since mid-December ran into resistance near the old all-time highs. This rejection created a set of relatively equal highs near $3.29, possibly forming the next bullish leg’s target. Until then, the price will likely encounter resistance near $2.10.
Currently, the price is testing possible support near the weekly open, around $1.60. This level also has confluence with the 78.6% retracement of the current local range and the 18 and 40 EMAs.
If this level fails to provide support, a zone from $1.49 to $1.40 might mark a possible swing low or consolidation area. This zone is between the 61.8% and 75.6% retracement of December’s swing.
A more bearish tone in the market could propel the price lower. The December lows, near $1.37, might mark an area of possible support as well as a bearish target.
2. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin, and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 9th cryptocurrency globally and the current price is US$60.44. Let’s take a look at the chart below for price analysis:
After breaking its monthly lows last week, LUNA began a range that has been whiplashing both bulls and bears.
Resistance beginning near $62.23 held the price down for the weekly opening, although bulls have shown some strength near the 9 and 18 EMAs.
A quick drop to $53.37, or into the zone beginning near $49.87, could give bulls the fuel to push through the nearby resistance. If this resistance breaks, the high near $69.47 provides a reasonable target.
A break of this level could move further into uncharted territory with the nearest probable resistances projected around $74.28 and $80.57.
More patient bulls might be waiting far below the 40 EMA with bids close to the higher-timeframe range’s 61.8% retracement, near $46.59.
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 346th cryptocurrency globally and the current price is US$0.02164. Let’s take a look at the chart below for price analysis:
SLP‘s 135% rally during February ran into 30% retracement near $0.01815. Since then, the price has been consolidating in a 40% range between $0.02024 and $0.02445.
Just below the late-December low, $0.01797 is the first level likely to provide substantial support. If the price breaks down through this level, overlapping levels near $0.01678 might cap a run on the lows near $0.01524 and $0.01435.
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 $0.03147 and $0.03340 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.
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. The Sandbox (SAND)
The Sandbox SAND is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs), the Sandbox creates a decentralised platform for a thriving gaming community. The Sandbox employs the powers of blockchain technology by introducing the SAND utility token, which facilitates transactions on the platform.
SAND Price Analysis
At the time of writing, SAND is ranked the 36th cryptocurrency globally and the current price is US$4.62. Let’s take a look at the chart below for price analysis:
SAND‘s impressive rally during Q4 halted at $8.50 before retracing 70% of the move. This price action created several areas of possible higher-timeframe resistance in the process.
The price found resistance on its last swing upward near $4.80 – an area that could provide resistance again. If this swing high breaks, the price might find resistance near $5.23. If this area does provide resistance, it would suggest the formation of a higher-timeframe consolidation.
The fast move up left little higher-timeframe support. However, a vast zone between $4.39 and $4.05 has provided support before and could give support again on a retest. This zone is between the 61.8%-to-78.6% retracement levels of Q4’s parabolic move.
Inside this zone, the consolidation high near $3.88 to $3.66 might see more sensitivity and mark the bearish target.
Continuation downward through this level, especially if the overall market remains bearish, could retrace most of Q4’s move to the next higher-timeframe support near $3.42.
2. Terra (LUNA)
Terra LUNA is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. According to its whitepaper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin, and offers fast and affordable settlements. Terra’s native token, LUNA, is used to stabilise the price of the protocol’s stablecoins. LUNA holders are also able to submit and vote on governance proposals, giving it the functionality of a governance token.
LUNA Price Analysis
At the time of writing, LUNA is ranked the 9th cryptocurrency globally and the current price is US$54.47. Let’s take a look at the chart below for price analysis:
After breaking its monthly lows last week, LUNA began a range that has been whiplashing both bulls and bears.
Resistance beginning near $60.23 held the price down for the weekly opening, although bulls have shown some strength near the 9 and 18 EMAs.
A quick drop to $50.37, or into the zone beginning near $47.87, could give bulls the fuel to push through the nearby resistance. If this resistance breaks, the high near $65.47 provides a reasonable target.
A break of this level could move further into uncharted territory with the nearest probable resistances projected around $72.28 and $80.57.
More patient bulls might be waiting far below the 40 EMA with bids close to the higher-timeframe range’s 61.8% retracement, near $45.59.
3. Curve DAO Token (CRV)
Curve CRV is a decentralised exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity. Curve has gained considerable attention by following its remit as an AMM specifically for stablecoin trading. The launch of the DAO and CRV token brought in further profitability, given CRV’s use for governance, as it is awarded to users based on liquidity commitment and length of ownership. The explosion in DeFi trading has ensured Curve’s longevity, with AMMs turning over huge amounts of liquidity and associated user profits.
CRV Price Analysis
At the time of writing, CRV is ranked the 69th cryptocurrency globally and the current price is US$3.39. Let’s take a look at the chart below for price analysis:
Last week, traders enjoyed 20% gains at CRV‘s peak before the price confirmed stiff resistance beginning at $3.50.
The 4-Hour chart shows that support may be forming between $3.10 and $2.94, near the monthly open. Aggressive bulls could enter in this area, although safer entries may be found much further below near $2.88 and $2.81 after a sweep of the current consolidation’s swing lows.
The last swing high near $3.65 provides a likely first target if the price does bounce from this region. Beyond this swing high, the 1.0 extension near $3.90 and the 2.0 extension near $4.25 and $4.38 may provide the next major 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.
