From Bitcoin bottoming to Stellar’s smart contract launch on the network this year, here are some highlights from the crypto space.
InvestAnswers Anonymous Host said A group of large investors will help form a bottom for Bitcoin.
With BTC trading at $36,614 at press time, down more than 13.5% over the past seven days, InvestAnswers analyst says Bitcoin will bottom at $30,000.
The analyst stressed that buyers with significant purchasing power are turning to Bitcoin at a discounted price.
“What we see today is interesting. Big volume, big buyer. But you can also tell by looking at on-chain data and wallet purchases that these are people buying between $2 million and $8 million worth of Bitcoin at a time. They are not retail investors but they take what they can.”
Buyers used the $36,000 support yesterday and managed to gain a foothold above the 2-hour EMA55.
The big difficulty is the 38.2% Fib resistance ($37,150). So far, this level has held back BTC’s bullish move.
BTC/USD chart. Source: TradingView
Yesterday, buyers were able to propel Ethereum into the two-hour EMA55 area. The daily high was set at $2,511. However, the drop in volume towards the end of the day did not allow the pair to consolidate above average.
ETH/USD chart. Source: TradingView
If bulls can sustain the price above the EMA, ETH is likely to test $2,800 soon. Conversely, a return to the $2,400 level could be a short-term signal for the potential target of $2,200.
Ethereum is trading at $2,451 at press time.
Yesterday there was no strong push from the bears and at the end of the day XRP price was able to test the 2-hour EMA55.
XRP/USD chart. Source: TradingView
As of this morning, the pair has not been able to break through this moving average. If buyers attempt to break the $0.65 area later in the day, the XRP/USD pair can gain a foothold above the average.
XRP is trading at $0.608 at press time.
Last night Bitcoin retested its previous lower high and was rejected in the $38.9K area. This shows that the bullish momentum has not yet returned to the market. Terra is one of the altcoins that has rallied strongly over the past few days, but it remains unclear if this feat will be repeated in the near future. Bitcoin could see more losses and this will drag down the altcoin market as well.
LUNA/USDT chart. Source: TradingView
We can see that the price has tested a longer-term demand zone near the $54.46 support. This support level saw demand in mid-December and buying pressure pushed LUNA to $103.6.
At the time of writing, the price has crossed $54.46 again. On the previous test, the price jumped to the $69.8 level and broke the $68.6 resistance. The $69.8 level is the highest level to hit and retest to shift the structure from bearish to bullish. But LUNA couldn’t break through that level.
The price has made a series of lower highs over the past few days despite Bitcoin’s steady rise. This shows that sentiment is in favor of the bears despite the strong rally.
While many people see XLM as a rival to XRP, there is much more to it as the two cryptocurrencies have very different operating models.
One piece of news that caught the attention of not only investors but also fintech stakeholders was the Stellar Development Foundation’s announcement that smart contracts will make their debut on the XLM network this year.
Smart contracts are coming to Stellar. pic.twitter.com/jwMnsvod5T
— Stellar (@StellarOrg) January 25, 2022
Regarding the DeFi updates, Stellar VP of Technology Strategy, Tomer Weller, shared that MoneyGram is now part of a project to support crypto-to-cash conversions in approximately 300,000 international locations.
However, one use case where smart contracts and international remittances come together is as an automated market generator. This refers to the protocol that allows trading on a DEX without the need for a centralized authority to participate.
News The Sanbox
Virtual world project The Sandbox has announced a Metaverse Accelerator program that will accelerate the space’s growth by investing $50 million in startups. Subsidiary Animoca Brands is partnering with venture accelerator Brinc to fund 30-40 blockchain startups per year for the program.
The Metaverse Accelerator Sandbox program allows for an investment of up to $250,000 per prospective project, with additional incentives for top-performing projects. Rewards include The Sandbox Digital Assets (SAND) and LAND, digital real estate in The Sandbox Metaverse. In addition, the top-performing companies have access to additional investment support and access to renowned advisors.
Reddit jumped on the NFT bandwagon by testing a feature that would allow users to add any NFT they own as their profile picture.
The move mimics Twitter, which less than a week ago rolled out a similar feature under which paying subscribers can add and review NFTs.
Reddit already has its own Ethereum-based NFT collection called CryptoSnoos, which was released in limited numbers last year.
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