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Chayanika Deka

Uniswap [UNI] faces major opposing force at $25-level

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After a week of staggering price action, Uniswap [UNI] seems to be faltering close to its respective overhead resistance level along with several top crypto-assets. UNI finally broke free from the two major levels as its 7-day gains stood at 11.04%.

The volatility in the cryptocurrency market noted a slight uptick after weeks of remaining suck inside an uneventful consolidation range. The DeFi token has been on a clear uptrend since the 21st of July.

As it reached a crucial resistance level, Uniswap [UNI] noted a decline of 1.22% over the past day which drove the price to $22.03. At the time of writing, the digital asset recorded a market cap of $12.89 billion and a 24-hour trading volume of $502 million.

Uniswap [UNI] Daily Price Chart:

UNI

The daily moving averages have been serving as a major opposing force that has prevented a move higher. Following the latest uptrend, the UNI candle pierced through the 50 DMA [Pink]. The 100 DMA [Blue] and the 200 DMA [Yellow] were currently undergoing a bearish crossover which could stall the positive sentiment in the coin market.

The moderate volume could potentially the back UNI and push the price.

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The Chaikin Money Flow [CMF] spiked above the zero-line after more than a fortnight which depicted the flow of money into the coin market and hence an overall bullish trend. The Klinger Oscillator [KO], on the other hand, appeared to be on the verge of breaking down towards the negative. Besides, the Relative Strength Index [RSI], was heading close to the extreme overbought conditions that were last seen before mid-May.

If Uniswap breaks above the $25-level, resistance levels of $29.45 and $37.8 could come into play. However, a decisive close below the support floor set up by the 50 DMA at $19 could confirm the shift in trend to bearish. Such a move will pave the way for a $14.54 foothold.

Dormant Bitcoins [BTC] are moving again as sentiment turns neutral

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Bitcoin [BTC] was back above $40K after the weekend tumble. August has opened the doors for the silent bulls that have managed to stir a resurgence in the price of the world’s largest cryptocurrency. The dollars invested in Bitcoin and are on the move according to the blockchain analytics platform Santiment.

According to the firm, the mean dollar invested ages in the bull run for both Bitcoin and Ethereum has not stayed dormant. As a matter of fact, more and more dollars are being poured into the coin market and the previously dormant investment was being moved.

Santiment’s latest insight revealed the flattening of the Mean Dollar Invested Age as Bitcoin was marching closer to its all-time high depicting a phase of dry up. However, this trend has since changed. As price saw a series of downtrend after mid-May, the metric for not just Bitcoin but also Ethereum has been moving back up.

The crypto analytic platform revealed,

“We’re seeing some renewed movement in invested dollars (for BTC at least, not ETH), and BTC’s line is curling down again. If the line continues to move down from here, it can be a prime signal to reveal a second bull cycle may be starting.”

BTC

Bitcoin [BTC] sentiment turns to Neutral

Bitcoin addresses currently owning 100-10,000 BTC now collectively hold 9.23 million coins in their wallets. Interestingly, this is a new peak for this tier demonstrating a massive bullish phase. In fact, the previous all-time high was observed to be on the 5th of April, just one week prior to the crypto-asset’s price surging above $64K.

Over the past month, these addresses have accumulated nearly 170K more BTC. This tremendous pace mirrors to that of late December 2020, just before the staggering bull run that started this year.

Additionally, the flagship cryptocurrency finally made a comeback to ‘neutral’ after being stuck in ‘fear’ territory since mid-May. As Bitcoin reached $42,600 after recovery last week, sentiments around the collective crypto market appeared to be returning back to normal.

fear and greed

Jack Dorsey’s Square to buy Afterpay for $39B in Australia’s largest-ever buyout

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Twitter co-founder Jack Dorsey’s digital financial platform Square has announced its plans to acquire ASX-listed buy now pay later behemoth Afterpay in an all-stock deal. At $29 billion, the transaction for the entire deal is said to be Australia’s biggest-ever buyout.

The founders of Afterpay, Nick Molnar and Anthony Eisen will continue to hold the position with the company.

Jack Dorsey asserted that both Square and Afterpay have a shared purpose to create a business to make the financial system fair, accessible, and inclusive. The exec claimed that the Australian ‘buy now, pay later’ firm Afterpay, has built a trusted brand aligned with those principles. Dorsey went on to add that company’s buy now, pay later feature would be implemented with its Seller and Cash app products.

“Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands.”

The main objective behind this acquisition is to facilitate the two entities to deliver innovative financial products and services that foster access to more users and encourage incremental revenue for merchants of all sizes. According to the official press release by the payment juggernaut, the transaction is expected to close in the first quarter of 2022, if all the closing conditions are met.

Commenting on the latest development, Alyssa Henry, Lead of Square’s Seller business stated,

“Buy now, pay later has been a powerful growth tool for sellers globally. We are thrilled to not only add this product to our Seller ecosystem but to do it with a trusted and innovative team.”

Square’s Bitcoin Revenue

Cash App, which happens to be the peer-to-peer payments service of the payment firm Square, raked in $2.72 billion in Bitcoin revenue in the second quarter of 2021. Interestingly, the yearly revenues rose by 200%. Announcing the impressive earnings figures, Square also revealed that its Bitcoin service accounted for the lion’s share of its total net revenue of $4.68 billion for the second quarter which was up by 143% year over year despite a series of market corrections.

Bitcoin revenue and gross profit declined from the first quarter of the year because of unstable prices that had an adverse effect on the trading activity as opposed to prior quarters.

Tron [TRX] gathers pace to initiate a fresh upswing near $0.07

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Tron [TRX] has kicked off August with the right footing. The 25th-largest cryptocurrency saw a 12-straight day of winning streak despite several top altcoins appear to be faltering near their resistance levels. Notably, the volatility in the TRX market has made an uptick which could break the incessant consolidation and induce a legitimate trend change. It raked in weekly gains of 14% amid favorable fundamental and technical catalysts.

Besides, the cumulative market cap surged to $1.66 trillion. TRX price has registered a close above a crucial resistance line, possibly initiating a new trend for the crypto-asset.

Over the past 24-hours, Tron [TRX] was up by 2.79% which drove its price to $0.0657. At the time of writing, it recorded a market cap of $4.71 billion and a 24-hour trading volume of $874 million.

Tron [TRX] Daily Price Chart:

TRX

After a sustained bullish momentum, the volume in the TRX market has seen minor positive change. As matter of fact, the price candles finally pierced through the downsloping 50 DMA [Pink] this week which further reinstated a bullish sentiment. The candlestick arrangement was climbing closer to the 100 DMA [Blue] and the 200 DMA [Yellow] which if breached could trigger a significant push towards the upside.

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The green closing bars of Awesome Oscillator [AO] depicted a strengthening bullish momentum in the coin market. The MACD flipped positive as buying demand shot up. In addition to that, the Relative Strength Index [RSI] also soared above the 50-median line and was now eyeing the overbought territory indicating a sentiment of increasing buying pressure in the TRX market.

If momentum is sustained, Tron’s price can target a rally all the way to the 100 DMA and the 200 DMA at $0.073, and $0.081 levels respectively to eventually aim for yearly highs. The support areas, on the other hand, were found to be at $0.05, and $0.028.

China is in no mood to alleviate the crypto crackdown

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China’s cryptocurrency ecosystem is currently in the throes of turmoil. The lawmakers in the country are still planning to continue a crackdown on cryptocurrency trading and speculation. In fact, the People’s Bank of China [PBoC] said it will keep pressure on the market citing “illicit activities” as a reason behind its move while simultaneously lauding its effort on the aggressive crackdown this year.

In an official statement, the central bank of the country that it aims to counter potential financial risks and reduce the number of high-risk financial platforms in key provinces. The People’s Bank of China also reemphasized that its monetary policy will be flexible, targeted, reasonable, and appropriate and pledged to enforce a good “cross-cyclical” policy design.

The bank also mentioned that it is seeking to expedite its work to formulate a financial stability law. This is in line with Deputy Governor Liu Guiping’s previous proposal revealed in March. The latest development comes just a day after the Chinese officials met to discuss work priorities for the second half of 2021.

China’s crackdown, a windfall to global Bitcoin mining market

Chinese lawmakers had earlier launched an intense crackdown on crypto trading and mining immediately after Bitcoin’s tremendous bull run above $60K that led several altcoins to post massive gains and shoot up to levels never seen before. This was enough to amplify authorities’ concerns over risks of fraud, money laundering, including excessive energy usage. The policymakers of China soon forced a string of regulatory actions attacking monopolistic behavior at well-known online payment firms such as Ant Group Co. over the last couple of months

Furthermore, the series of clampdowns had a damaging effect on the mining industry in China. According to various reports, at least eight China-based Bitcoin mining firms are now eyeing to relocate operations to Paraguay. This comes just a few weeks after Juanjo Benítez Rickmann, who happens to be the CEO of the Paraguay-headquartered mining platform Digital Assets S.A. acted as an advisor to a recent Bitcoin bill that seeks to regulate miners in the South American country and to draw foreign businesses.

Bitcoin on the cusp of breaking $42K amidst improving difficulty, hash rate

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Bitcoin [BTC] clinched 25% weekly gains and was currently flirting with a $42K level. The recovery comes amidst considerable network improvements. The world’s largest cryptocurrency broke the second-longest streak of difficulty mining drop on the 31st of July. At the time of writing, the figure stood at 14.50 T after surging by 6%.

The increase was observed for the first time since China’s crackdown on cryptocurrency mining in May this year which resulted in four consecutive drops. It continued to decline in June and July as the crackdown intensified in China, causing them to leave the country or sell their mining equipment. The damage was severe since Chinese miners contributed to more than 65% of the Bitcoin network’s hash rate at the time.

Downward trend slowly reverses as BTC miners complete relocation process 

The largest drop in mining difficulty occurred on the 3rd of July of this year when the rate fell by 28%. Two weeks later, the Bitcoin network encountered another drop of almost 5%. While it was still far from the all-time high of 25.05 T, the positive adjustment revived the network from the 13 T level, where it had dropped during the previous adjustment.

Difficulty Line 150426 BTCCOM

Several industry experts have speculated the quick expansion of mining facilities across North America, as well as the comeback of Chinese miners via overseas hosting sites as two major factors that have fostered the growth of Bitcoin mining difficulty.

Bitcoin’s Hash rate up by 27%

Besides, this difficulty adjustment essentially marks the beginning of a surge in hash rate in the coming year. Since meandering in the lows below 85 exahash per sec, the BTC hash rate has gone by more than 27% in less than a month. It has managed to maintain an upward consistency. Needless to say, Beijing’s crackdown on Bitcoin and cryptocurrency mining has been no less than a disaster for miners in the country. But it can also be a stroke of good luck for the miners in other parts of the world.

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Many experts are of the opinion that Bitcoin might have surpassed the minimum low difficulty point and since now the network could potentially follow an uptrend if there aren’t any regulatory upheaval or changing BTC price.

Polkadot [DOT] bulls take a breather before next leg up

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After a remarkable uptrend, Polkadot [DOT] took a breather near the overhead resistance. The broader cryptocurrency market’s uptrend also halted as the cumulative valuation stood at $1.54 trillion. As a result, a squeeze in volatility was observed for many crypto-assets including Polkadot. This poses a threat to its price release above a key level.

DOT had previously failed to deviate from the mild rebounds underpinning most cryptocurrencies off the June low. In the following month as well, for the most part, sellers have largely been in control of Bitcoin prices, which has had a domino effect on other altcoins as well. However, DOT gained significant strength depicting an investor engagement with the digital asset.

Over the past 24-hours, Polkadot [DOT] noted a decline of 0.62% and was currently being traded at $14.61. At the time of writing, the digital asset recorded a market cap of $14.69 billion and a 24-hour trading volume of $1.098 billion.

Polkadot [DOT] Daily Price Chart:

DOT1

Polkadot’s [DOT] price was steadily rising since hitting multi-month lows on 21st July. It neared the 50 DMA [Pink] after more than two months of facing resistance. The moving average was sloping downwards after sustaining a death cross and a bearish crossover with the 200 DMA [Yellow] and the 100 DMA [Blue] respectively. If the DOT candles manage to reclaim the moving averages, a fresh bost could take the price of the digital asset.

The volume has been moderate on the daily price chart which could aid in the asset’s growth.

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The consistently declining green closing bars of Awesome Oscillator [AO] depicted a trend of weak bullish momentum. The Chaikin Money Flow [CMF] was yet to climb above equilibrium. The RSI finally broke above the 50-median line indicating a renewed sentiment of increasing buying pressure in the market.

Polkadot bulls appear to have relaxed their ambitions. To re-establish confidence, the asset will first need to breach the moving averages at $16.2, $23.67, and $26.93 to aim for yearly highs. On the other hand, the support levels stood firm at $10.83, and $5.05 respectively.

Robinhood Clinches $2.1B in IPO; Valuation sits at $32B

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The popular trading website, Robinhood Markets has raised $2.1 billion in its long-awaited initial public offering [IPO] after selling 55 million shares at $38 each, the low end of its $38-to-$42 price range. According to the official reports, the approach adopted by Robinhood was quote is unlike any other company going public.

The popular investing app is planning to make the most out of individual investors’ fascination with crypto-asset and stocks such as GameStop Corp which have witnessed erratic price swings after becoming the subject of trading speculation on social media platforms such as Reddit. Even after the infamous Gamestop blunder that shook the market, the number of monthly active users on the platform has remained unfazed. In fact, Robinhood saw a rise in these figures from 11.7 million at the end of December 2020 to 21.3 million as of the end of June 2021.

Robinhood had previously launched its IPO Access feature, in May this year. This feature offered retail investors the opportunity to purchase shares of some new issues before they begin trading on an exchange. As a result, market players were able to buy stock in firms such as FIGS [FIGS], F45 Training Holdings [FXLV], as well as Clear Secure [YOU].

Robinhood’s Controversies

Despite being one of the most valuable U.S. companies to have gone public year-to-date, Robinhood hasn’t stayed far away from controversies. The company was at the receiving end of intense scrutiny for its use of payment for order flow [PFOF], in other words, this refers to the practice of directing client trades to trading platforms that conduct the transactions and profit from the bid-ask spread.

Almost 80% of Robinhood’s first-quarter revenue originated from PFOF. Many are of the opinion that such practices discourage brokers from obtaining the best trades for their customers. Currently, the United States SEC is reviewing PFOF.

More recently, the company had also revealed that it was under the Financial Industry Regulatory Authority’s [FINRA], investigation for the non-registration status of its co-founders Baiju Bhatt and Vlad Tenev.

Bitcoin Miner Genesis Digital Assets Raises $125M

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Bitcoin mining operator Genesis Digital Assets has raised $125 million in equity funding to drive its aggressive expansion plans. According to the official press release, the funding round was led by Kingsway Capital, a UK-based private equity fund with over $2 billion in assets under management [AUM] that focuses on frontier emerging markets. As part of the funding round, Kingsway’s CEO Manuel Stotz has joined the Genesis Digital Assets board of directors.

Stotz spoke about the importance of Bitcoin in terms of financial inclusion of the global poor and unbanked and said that BTC mining provides security to make this possible. He also revealed that the team behind the mining operator has been building highly profitable large-scale mining farms for approximately eight years while the industry as a whole has only been around for twelve. The exec also added,

“There’s no one else in the bitcoin mining industry that has this level of experience and we’re incredibly excited to support their next wave of growth and long-term vision.”

Bitcoin Mining Firm’s Aggressive Expansion Plans

Genesis Digital Assets plans to pour in the freshly acquired capital of $125 million to buy equipment and develop new data centers across the United States and the Nordic region. As of July 2021, the firm’s data center capacity is at more than 150MW. This represents a total hash rate of over 2.6 Exahashes (EH/s); which accounts for almost 3% of the global Bitcoin mining hash rate. Within a year, the BTC mining firm anticipates an additional 5.5 EH/s to be online. Besides, the GDA also expects to reach a capacity of over 1 gigawatt by the end of 2023.

Following the development, Abdumalik Mirakhmedov, Executive Chairman and co-founder of Genesis Digital Assets, reportedly stated,

“Our mission is to provide the infrastructure that will power the open-source monetary system revolution and we’re excited to have Kingsway Capital and Manuel onboard as we continue to scale our mining operations.”

Will Ethereum [ETH] break the $1800-defensive region

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Ethereum [ETH] has emerged as one of the best-performing assets as renewed bullish momentum catalyzed upside potential. The weekly gains for the world’s largest altcoin totaled 23.53%. The crypto market led a new charge of strength as the cumulative valuation of a whopping $1.55 trillion. Both Bitcoin and Ethereum have rallied in the past week, but the latter exceeded in terms of trading volume as it grew rapidly in the first half of the year.

Over the past 24-hours, Ethereum [ETH] was up by approximately 5% which pushed the price to $2,306.3. At the time of writing, the crypto-asset recorded a market cap of $269.6 billion and a 24-hour trading volume of $22.2 billion.

Ethereum [ETH] Daily Price Chart:

ETh1

The volatility in the Ethereum [ETH] market has increased after seven straight days of green ascending candles. Since May-lows, the crypto-asset has been oscillating in a descending triangle pattern and exhibited no definitive trend while fortifying its support for the most part. The triangle transpired as the losses were maintained above a defensive region of $1,808. However, a breakout from this pattern would mean that the crypto-asset could see more losses over the coming days.

The moving averages did not help its case either. A death cross lurks close despite the 50 DMA [Pink] and 200 DMA [Yellow] falling below the ETH price candles. Moreover, it also needs to steer clear of the 100 DMA [Blue] which continued to act as a crucial resistance level.

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The indicators, however, depicted a completely different picture. The green bars of the Awesome Oscillator [AO] flipped above the half-line suggesting an increasing bullish momentum. The Chaikin Money Flow [CMF] also surged exhibiting a rise in capital inflow to the coin market. The RSI also surged to the 60-mark after more than two months as buying pressure kicked in

Ethereum market was increasingly bullish at press time. Considering the above factors, the price could see a short-term dip before its next upcycle. The resistance levels that the asset could target are $2,535, $2,895, and $3,380 respectively. The support level, on the other hand, stood at $1,808, and $1,406.