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Price Analysis

Chainlink (LINK) Soars As Japanese Web3 Consulting Firm Joins Forces

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Chainlink (LINK) witnessed a glimmering rise of 3% in the weekly chart, accompanied by a miner increase in the daily chart, earlier today. This surge can be attributed to the network’s latest partnership announcement.

A tweet revealed an exciting collaboration with Pacific Meta, a prominent Japanese Web3 consulting firm. The strategic alliance aims to bolster the adoption of the network services, particularly the Chainlink BUILD program, and drive the growth of Web3 technology in Japan.

The press release shared further insights into the partnership. Pacific Meta, renowned for its comprehensive marketing support for foreign Web3 projects in Japan, will now join forces with Chainlink Labs. 

Their joint efforts will unlock opportunities for expanding the Chainlink BUILD program and promoting the use of Chainlink VRF within the Japanese market.

Pacific Meta’s role in driving Web3 adoption in Japan is significant. The firm provides a wide range of services, including strategy development, localization, promotion, and community management for overseas Web3 projects. 

They also operate in-house media channels, utilizing platforms such as web media, Twitter, YouTube, Discord, and Instagram, to raise awareness of Web3 projects among Japanese users.

To further fuel adoption, Pacific Meta organizes marketing events, such as educational seminars and workshops, where the network’s team members are welcome to attend and present their expertise.

By collaborating with the network, Pacific Meta aims to empower startups and enterprises in the Japanese market with access to Chainlink’s cutting-edge Web3 services. 

They will focus on assisting Web3 gaming studios, leveraging Chainlink VRF’s verifiable randomness for diverse use cases. This partnership is yet another stride towards driving Web3 adoption in Japan, with Pacific Meta leading the charge.

Chainlink (LINK) Price Analysis

According to the latest data from CoinMarketcap, LINK is currently trading at $6.42, showcasing a modest upside ride of approximately 0.09% within the past 24 hours. The weekly chart displays a noteworthy surge of 1.77%, signifying a touch of market volatility.

LINK 1D graph coinmarketcap 5
Source: CoinMarketcap

Drawing attention to LINK’s trading volume, it has observed a notable decline of 2.73% to a staggering $110,540,589. The market capitalization has also experienced a slight decrease of 0.08%.

LINK’s technical analysis suggests a long-term bearish trend, indicating a predicted decrease of $0.0168 within 7 days, reaching $6.40 by June 9th, 2023. In the short term, machine learning predicts a neutral trend for LINK, with a slight possibility of both an increase and a decrease in the next few hours.

Related Reading | Unstoppable Momentum: DigiToads Rises to New Heights, Despite Ethereum’s Reduced Trading Volume

Bitcoin Poised to Break Six-Month Positive Monthly Trend

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Bitcoin (BTC) has shown signs of recovery since last Thursday, but it remains likely to experience its first monthly decline since December. The primary cryptocurrency, valued by its market capitalization, was trading around $27,800 at the time of writing, reflecting a 7.5% increase from the previous week’s lows below $25,900.

Bitcoin
Bitcoin Poised to Break Six-Month Positive Monthly Trend 3

However, despite this improvement, prices are still down approximately 5% for the month, marking the first monthly decrease of the year (assuming this loss is maintained until the UTC close on Wednesday). Bitcoin had a positive performance in January, March, and April, while February ended with minimal change.

Compared to Ether (ETH), Bitcoin appeared poised to record a monthly decrease of approximately 7%.

Bitcoin’s disappointing monthly performance coincides with bond traders reestablishing their belief that the Federal Reserve (Fed) will maintain higher interest rates for an extended period due to persistent inflation and a robust job market. Previously, traders in the interest rate market anticipated a decrease in the Fed funds rate, which is the primary borrowing cost, to reach 4.5% or even lower by the conclusion of 2023, down from the current rate of 5%. However, the market sentiment has shifted, and now there are no expectations of the Fed implementing any interest rate cuts within this year.

Bitcoin (BTC) has shown signs of recovery since last Thursday, but it remains likely to experience its first monthly decline since December. The leading cryptocurrency, valued by its market capitalization, traded around $27,800 at the time of writing, reflecting a 7.5% increase from the previous week’s lows below $25,900. However, despite this improvement, prices are still down about 5% for the month, marking the first monthly decrease of the year (assuming this loss is maintained until Wednesday’s UTC close). In comparison to Ether (ETH), CoinDesk data indicates that Bitcoin appeared poised for a monthly decline of nearly 7%.

Bitcoin’s underwhelming monthly performance aligns with the renewed belief among bond traders that the Federal Reserve (Fed) will keep interest rates higher for a longer duration due to persistent inflation and a resilient labor market. Previously, interest rate traders anticipated a drop in the Fed funds rate, the primary borrowing cost, to reach 4.5% or even lower by the end of 2023, down from the current rate of 5%. However, the market no longer foresees the Fed implementing any rate cuts this year.

The recent shift in sentiment towards a more hawkish Fed has given a boost to the U.S. dollar this month, leading to a 2.7% appreciation against a basket of fiat currencies, including the euro. It’s worth noting that Bitcoin generally moves inversely to the dollar.

Capital has been exiting the cryptocurrency market since early last year, and this trend has continued in the current month, with the market capitalization of stablecoins reaching a 20-month low of $130 billion. Stablecoins are digital assets pegged to an external reference like the U.S. dollar and have been widely used to purchase other cryptocurrencies in recent years.

Markus Thielen, head of research and strategy at crypto services provider Matrixport, suggested that the market may need a new driver or theme to push prices higher, as the previous liquidity wave related to lower inflation appears to have run its course. While the tech sector has found new momentum with advancements like AI and Chat GPT, Bitcoin has yet to benefit from these developments.

Bitcoin’s correlation with Wall Street’s technology-heavy index Nasdaq has weakened as Nasdaq has experienced a nearly 8% increase this month. According to Griffin Ardern, a volatility trader at crypto asset management firm Blofin, the ongoing high-interest rate environment will work against Bitcoin bulls. Ardern explained that in such an environment, investors are drawn to high-risk-free returns offered by money market funds, making the lack of liquidity in the crypto market persist.

Dick Lo, the founder and CEO of quant-driven crypto trading firm TDX, commented that Bitcoin’s 4% surge on Sunday was a relief rally triggered by the announcement of a provisional deal by U.S. leaders to raise the $31.4 trillion debt limit reached in January. However, Lo cautioned that further gains for Bitcoin may be difficult to achieve.

“Seeking Equilibrium”: Navigating Bitcoin’s Volatility With Glassnode’s Insights

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Glassnode, a prominent on-chain analytics firm, has released its latest report titled “Seeking Equilibrium,” providing insights into the current state of the Bitcoin market and offering tools to navigate the upcoming volatility.

Bitcoin Outperforms Major Commodities

The report highlights the recent uptick in global market liquidity, with digital assets and precious metals showing positive responses. However, BTC and Silver have experienced a correction of around 10.8% and 10.6%, respectively, from their 90-day highs. 

Gold, on the other hand, has fared better, with only a 5.4% drawdown. WTI Crude Oil prices continue to struggle, down by 12.1% since April.

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Bitcoin’s performance has remained strong, outperforming other major commodities. While it is 14.5% above the February close, it falls short of the peak performance seen in the year’s first quarter.

The market appears to be gearing up for higher volatility, as evidenced by the declining momentum and low on-chain activity. Monthly Realized Volatility had dropped 34.1%, below the 1-standard deviation Bollinger Band. 

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Such low-volatility regimes historically account for only 19.3% of market history, suggesting an expectation of increased volatility in the near term.

Transfer volumes on-chain have been cyclically low, indicating a decline in exchange activity. The activity ratio, comparing current exchange deposit/withdrawal transactions to the 6-month average, reveals a 27.3% drop. 

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Investor activity remains exceptionally light even when considering Binance only, which excludes FTX ceased operations.

Using the Net Unrealized Profit/Loss (NUPL) metric, Glassnode identifies the current market phase as an equilibrium. With a NUPL value of 0.29, it falls within the lower bound of the equilibrium phase, historically observed in around 37.5% of Bitcoin trading days. This phase typically lasts for several months.

To assess likely boundaries of near-term volatility, Glassnode introduces psychological ranges based on an investor cost basis. 

The Active Investor Cost Basis stands at $33.5k, providing an upper bound price model, while the Investor Cap Price model indicates a lower bound trading at $17.65k. These models suggest potential price levels that could trigger significant psychological responses from holders.

The market currently lacks a clear direction, with prices returning to the Short-Term Holder (STH) cost basis. The STH Unrealized Profit/Loss Ratio has cooled off, indicating a balanced profit and loss position for new investors. A price contraction often follows a fall below this level, but resilient bull runs tend to find support at this point.

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Glassnode presents on-chain tools to navigate the current equilibrium phase. The Supply side of Long-Term Holders (LTH) shows cyclical patterns, with spending increasing as the market breaks the previous cycle ATH. Long-term holders have demonstrated remarkable resilience during extreme volatility.

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By analyzing market sentiment and LTH spending intensity, Glassnode identifies four sub-categories: Capitulation, Transition, Equilibrium, and Euphoria. 

The market is in the Transition phase, with an uptick in LTH spending observed. These tools will help identify overheated conditions and monitor the behavior of Long-Term Holders as volatility unfolds.

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Related Reading | Weekly Market Watch: Bitcoin & Ethereum Recovery, Altcoins Follow Suit

Chainlink Holders Suffer Over 80% In Losses: Is A Market Bottom In Sight?

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Renowned cryptocurrency analyst and consultant Katherine recently took to Twitter to share a fascinating observation regarding Chainlink, one of the leading digital assets in the ever-evolving crypto space. 

According to data sourced from Intotheblock, an esteemed analytics platform, Katherine highlighted that an astounding 80% of Chainlink holders currently find themselves in the undesirable realm of loss.

This revelation beckons attention, as the last instance of such a predicament occurred was in December 2022. During that period, the price of Chainlink plummeted mercilessly, sinking below the $6 mark. According to Katherine, could this striking similarity be an omen, hinting at the possibility of an impending market bottom?

The notion of a market bottom holds significant implications. In simple terms, it signifies the lowest point of a downtrend, ultimately leading to a potential reversal and subsequent upward movement.

If the current statistics mirror the past, it could serve as a pivotal moment for Chainlink, with the prospect of an impending price recovery.

Nevertheless, the fact that a considerable majority of Chainlink holders currently grapple with losses demands attention and prompts further analysis. 

However, as LINK’s price trajectory unfolds, market participants eagerly await developments that could offer glimpses of a brighter future or further turbulence in the ever-shifting crypto seas.

Chainlink Price Analysis

LINK is currently showing bearish signs, as per the latest data from CoinMarketcap. The cryptocurrency is trading at $6.30, down by about 0.22% in the last 24 hours. However, the weekly chart recorded a decline of about 3.30%, indicating some market volatility. 

In addition, LINK’s trading volume has witnessed a decrease of 28.28%, reaching $100,273,734, whereas the market capitalization has decreased by 0.66%.

LINK 1D graph coinmarketcap 4
Source: CoinMarketcap

According to the PricePredictions site, an analysis of Chainlink’s technical indicators reveals a bearish trend in the long term. Consequently, experts predict a projected decrease of $0.10912 in the price of Chainlink over the next 7 days, with the anticipated value reaching $6.20 by June 2nd, 2023.

On the other hand, in the short term, a machine learning algorithm has identified a bullish trend for LINK. Therefore, investors should anticipate a slight increase in its value within the upcoming hours.

Related Reading | Litecoin Soars: 160M Transactions Milestone & Anticipation Builds For Halving Event

Avalanche’s Price Battles Bearish Momentum Amidst Encouraging Network Developments

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Avalanche (AVAX), the 17th-ranked cryptocurrency in the market, valiantly countered the recent bearish trend in recent days. In just one week, AVAX experienced a decline from $15.28 to a daily low of $14.03 yesterday. 

However, hope is on the horizon as the network displays promising signs with a series of recent developments, which could potentially lead to a price surge in the coming days.

Currently, AVAX is trading at $14.17, with a slight increase of about 0.16% in the daily chart and a 2.93% dip in the weekly chart. The trading volume is also down in the last 24 hours.

AVAX 7D graph coinmarketcap
Source: CoinMarketcap

According to data obtained from PricePredictions, a prominent site known for its accurate cryptocurrency forecasts, technical analysis of AVAX indicates a bullish trend in the long term. 

Based on this analysis, experts predict that the price will witness an increase of $0.00389 over the next seven days, reaching an estimated value of $14.23 by the 1st of June 2023.

In the short term, a machine learning algorithm has identified a bullish trend for AVAX. It suggests that investors should anticipate a slight increase in value over the next few hours. It’s a positive signal for those who have invested in Avalanche and are closely monitoring its performance.

However, the battle against the bearish trend by Avalanche brings a glimmer of hope for enthusiasts and stakeholders alike as they await the potential recovery in the days to come.

Avalanche Network Developments

Avalanche made a significant announcement today on Twitter, revealing the introduction of AvaCloud, a Web3 Launchpad, by Avalabs official. The tweet stated that launching your own Subnet has become even more convenient with this new platform. 

AvaCloud aims to assist various entities, including large consumer enterprises, AAA games, and Web3 startups, in expediting the process from concept to launch while reducing expenses.

Meanwhile, Global digital financial technology firm Circle has launched Euro Coin on Avalanche, marking the first in a series of multi-chain launches for the euro-backed stablecoin. The move aims to enhance payment efficiency and financial services for developers and users. 

By introducing Euro Coin to Avalanche, Circle aims to boost euro liquidity and offer global users the option to transact in euros with Euro Coin and in U.S. dollars with USDC. The integration is seamless for Avalanche developers already supporting USDC, as the two stablecoins share similar smart contract designs. 

However, the launch of Avalanche’s platform allows for near-instant and cost-effective financial transactions, expanding possibilities for payments, remittances, and foreign exchange. Circle Account holders can access Euro Coin liquidity on Avalanche for trading, lending, custody, and payments. 

As per the announcement, Leading apps and wallets, including Coinbase Wallet, MetaMask, and Trader Joe, will support Euro Coin on Avalanche, while developers can integrate with the Euro Coin smart contract to tap into growing liquidity.

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Bitcoin’s Recent Drawdowns Pale In Comparison To Previous Bull Cycles: Glassnode

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In the latest revelation, renowned cryptocurrency data analytics firm Glassnode has taken to Twitter to unveil a striking observation about Bitcoin’s recent price action. 

According to their tweet, the magnitude of drawdowns experienced during the recent upswing in Bitcoin’s price remains significantly lower when compared to previous bull cycles.

Glassnode’s tweet suggests that the recent drawdowns are relatively marginal if we assume the November low is a longer-term low for Bitcoin. To support their claim, Glassnode highlights the drawdown percentages experienced during various bull cycles throughout BTC’s history.

Starting with the genesis to 2011 bull peak, Glassnode reports a drawdown of -49.4%, indicating a significant dip in Bitcoin’s price during that period. Moving forward to the 2011-2013 bull peak, the drawdown deepened to -71.2%, reflecting a substantial decline in BTC’s value.

However, the situation appears to be more promising for BTC’s recent bull cycles. Glassnode’s data indicates that the 2015-2017 bull peak drawdown was comparatively lower, at -36%. Similarly, the drawdown experienced from 2018 to 2021 stood at -62.6%, indicating a moderate downturn during that period.

The latest figures shared by Glassnode suggest that the ongoing bull cycle, which began in 2022 and continues into the present, has witnessed an even smaller drawdown. 

According to Glassnode, the current bull peak drawdown stands at -18.6%. It represents the lowest drawdown percentage in recent years and may indicate a more resilient Bitcoin market.

However, Glassnode’s findings provide a fascinating insight into the resilience and stability of BTC’s recent price movements. While previous bull cycles experienced significant downturns, the current cycle has demonstrated a comparatively mild pullback, bolstering optimism among Bitcoin enthusiasts.

Bitcoin Price Analysis

BTC is currently showing bearish signs, as per the latest data from CoinMarketcap. The cryptocurrency is trading at $26,641.87, down by about 1.92% in the last 24 hours. However, the weekly chart recorded a decline of about 2.66%, indicating some market volatility. 

BTC 1D graph coinmarketcap 3
CoinMarketcap

In addition, BTC’s trading volume has witnessed an increase of 23.87%, reaching $9,175,204,273 in the last 24 hours, whereas the market capitalization has decreased by 1.92% in the same time frame. 

Related Reading | Weekly Market Watch: Bitcoin & Ethereum Struggles While Altcoin Surges

Weekly Market Watch: Bitcoin & Ethereum Struggles While Altcoin Surges

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During the past week, there was a noticeable decrease in positive sentiment within the cryptocurrency market, creating a challenge for optimistic investors who were trying to counter the prevailing downward trend. Both Bitcoin and Ethereum remained within a narrow trading range below key resistance levels.

This occurrence had a negative impact on the overall market outlook. However, several altcoins saw significant growth in the weekly chart.

Render Token (RNDR) is at the top of the list of altcoins experiencing significant gains this week, followed by Litecoin (LTC) and TRON (TRX) in second and third place, respectively.

Render Token has witnessed a remarkable surge of 37% in the last seven days, surpassing other top 100 tokens in terms of market capitalization. The impressive performance of RNDR can be attributed to the recent announcement of the latest edition of “Behind the Network” [BTN]. 

This week’s post showcases the newly unveiled Render Foundation website, accompanied by an exclusive feature highlighting the contributions of two artist collectives.

At present, RNDR is trading at $2.48, demonstrating a 5.63% increase in the past 24 hours and a significant 178.13% surge in the 24-hour trading volume. The token hit its peak of $2.4995 and closed the week at $2.3496 after beginning at $1.8357, displaying a strong and remarkable performance. 

RNDR 7D graph coinmarketcap 1
Source: CoinMarketcap

Meanwhile, Litecoin (LTC) is also gaining attention from the community as a second top weekly performer. Over the past week, LTC has experienced an impressive surge of approximately 12%. The Litecoin (LTC) network has experienced a significant increase in activity with a rise in Ordinal inscription minting on its blockchain.

Currently, LTC is trading at $92.42, having reached a peak at $94.87 and closing the week at $92.37 after starting the week at $80.31. These figures indicate a noteworthy performance. In the last 24 hours, the token has experienced a 0.98% increase, while its trading volume has surged by 19.12% in the same time period.

LTC 7D graph coinmarketcap 2
Source: CoinMarketcap

Additionally, TRON (TRX) has also recently gained significant attention due to its weekly performance and notable gain of about 10%. Since January, the token has surged by 38%, currently trading at $92.42. Over the past 30 days, it has experienced an impressive 16.2% increase.

TRX 7D graph coinmarketcap
Source: CoinMarketcap

Moreover, some popular coins are experiencing gains in weekly charts, including XRP at 7.65%, LDO at 8%, and SNX, with an increase of 13%, according to the data from CoinMarketcap. 

Bitcoin (BTC) & Ethereum (ETH) Weekly Review

Bitcoin’s recent bullish momentum has turned bearish, disappointing investors. Despite its previous strong performance, the popular cryptocurrency has been unable to break its losing streak. 

On May 10, Bitcoin experienced a significant dip from $28,000 to $26,883.67. Since then, it has been trading within a narrow range of $27,646.35 to $26,600.14.

BTC 7D graph coinmarketcap
Source: CoinMarketcap

Cryptocurrency analytics firm Santiment’s tweet stated that With the resurgence of Bitcoin to the $26k level, traders are expressing heightened concerns regarding a potential decline back to the $20k to $25k range. 

Notably, Santiment observed a significant surge in Bitcoin’s social dominance, often indicative of fear among market participants. This increased fear factor could potentially pave the way for a rebound in Bitcoin’s value, as fear signals have historically been associated with a higher likelihood of price recovery.

Similar to Bitcoin, Ethereum also went through a comparable trend in the past week. It encountered a decline from its significant resistance level of $1,900 and managed to maintain a consistent trading range between $1,835.55 and $1,742.40.

Meanwhile, Santiment tweeted that Bitcoin and Ethereum are witnessing an ongoing shift of their supplies into self-custody. Decreasing coins on exchanges suggest potential future bull runs, although it’s not a perfect indicator.

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According to CoinMarketCap, Bitcoin is currently trading at $26,707.90, with a 1.92% decrease over the past seven days but a 0.87% decrease in the past 24 hours. On the other hand, ETH is being traded at $1,804.26, experiencing a 0.85% decrease in the past 24 hours and a 0.54% decrease over the past seven days.

ETH 7D graph coinmarketcap
Source: CoinMarketcap

Polkadot’s Price Bounces Back: +2% Gain Amidst Ecosystem Evolution

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Polkadot (DOT) is experiencing a modest 2% price recovery as significant changes unfold within its ecosystem. These fundamental transformations potentially impact the protocol’s future outlook significantly.

According to the data from CoinMarketcap, DOT is currently trading at $5.42, with a 1.58% gain in the weekly chart, while marketcap is also facing a slight increase. Over the past few days, the token has witnessed a steady resurgence. 

DOT 1D graph coinmarketcap 1
Source: CoinMarketcap

Displaying exceptional resilience, the token has emerged from its slumber, bouncing back from a low point of $5.1607 to reach an impressive daily high of $5.4617.

Whereas, as per the digitalCoinPrice site, all technical indicators are pointing towards a bearish sentiment for Polkadot. The Fear & Greed Index is currently reading 21.56, indicating extreme fear among investors. 

It comes as all technical analysis indicators suggest both bullish and bearish signals, painting a picture of uncertainty in Polkadot’s price predictions.

Over the past 30 days, Polkadot has experienced a significant decline of -14.09%. While a slight recovery is anticipated in the coming month. By the end of May, there is expected to be a remarkable increase of 114.43%, pushing the value of Polkadot close to $11.63.

Polkadot: Upgrades, Swaps, And Referenda Galore

The renowned Web3.0 educator Bill Laboon has brought attention to the ongoing Polkadot News Referendum 121 in a recent tweet thread. The highly anticipated Polkadot News Referendum 121 has been put up for a crucial vote. 

This proposal aims to elevate the relay chain to runtime 9420, a significant upgrade from the existing 9370 version. The most striking feature of this upgrade is the introduction of Polkadot OpenGov, which fosters a more democratic and transparent on-chain governance system by eliminating the Council and Technical Committee. 

Notably, this change will coexist with the traditional Gov1 processes until another governance decision overrides it. In another noteworthy development, Referendum 119, originating from the Council, is gaining traction. 

This proposal advocates for a parachain lease swap between two distinct parachain IDs controlled by Acala. With 53% of the votes currently in favor and 24 days remaining for the vote, its passage seems increasingly likely.

However, Referendum 117 faces an uphill battle, aiming to force a transfer back to the Treasury from a prior Treasury Proposal. With 76% in favor but only 9 days left to vote, it requires a supermajority to pass.

Meanwhile, Referendum 118 is making headway with its proposal to gradually increase the ideal number of validators in the active set to 400. At present, it boasts 81% in favor and still has 19 days for voting.

Lastly, Referendum 120 is unanimously on track to pass, as it suggests upgrading the Collectives parachain runtime to v9420, enabling the incorporation of the Fellowship within this parachain. The voting period for this proposal spans 11 more days.

However, the Polkadot community now finds itself with an extensive slate of 17 Referenda under consideration on the Kusama OpenGov platform. 

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Bitcoin’s 2-Week Super Trend & Dormant Coin Surge Inspire Price Speculation

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In a recent tweet, renowned cryptocurrency expert CryptoCon, known for his expertise in Bitcoin technical analysis, unveiled a fascinating observation regarding the 2 Week Bitcoin Super Trend. According to his findings, this trend holds two significant implications for the future of Bitcoin.

The first key takeaway shared by CryptoCon highlights the importance of meeting resistance around the trend flip, which is currently transpiring in the market. He emphasizes that encountering resistance at this stage is not only normal but also healthy for the overall trajectory of Bitcoin.

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Additionally, the analyst asserts that trend resistance often precedes massive bull runs. This insight suggests that investors and enthusiasts should remain patient as it indicates higher prices are on the horizon. By exercising patience, individuals may have the opportunity to position themselves strategically and potentially reap substantial gains in the future.

To support his claims, CryptoCon shared a chart that encompasses Bitcoin price analysis spanning from 2012 to 2023. The chart serves as a visual representation of the top prices Bitcoin has achieved throughout this period, along with instances of healthy resistance. 

This historical perspective bolsters his argument, providing evidence for the patterns he believes are currently unfolding in the market.

The insights shared by CryptoCon have stirred excitement within the cryptocurrency community, as investors and traders eagerly anticipate the potential for higher BTC prices. His tweet has garnered significant attention and sparked discussions among enthusiasts who are seeking to capitalize on these observations.

Significant Increase In Dormant Bitcoin Supply Aged 5-7 Years

Meanwhile, in a tweet, Glassnode, a prominent blockchain data provider, shared a fascinating revelation regarding the Bitcoin supply that remained inactive for a period ranging from 5 to 7 years. The tweet highlighted a remarkable surge in the size of this particular supply category, with a staggering acquisition of +862,000 coins during the 2018 topping formation.

These newly acquired coins remained dormant throughout subsequent market events, including the 2019 Bear Market, the COVID-19 Crash, and the LUNA/FTX contagion. However, they have now successfully completed what Glassnode refers to as the “maturity gauntlet,” entering the 5-year age band.

This substantial expansion in supply has had a direct impact on the Market Capitalization (Market Cap) of the total coins aged 5 to 7 years, catapulting it to an all-time high (ATH) of $49.9 million. This remarkable achievement underscores the increasing value and significance of these long-held Bitcoin assets.

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Nevertheless, the influx of these coins into the 5-year age band implies a potential shift in the market dynamics and introduces new variables that may impact Bitcoin’s future price trajectory.

Whereas, as the market eagerly follows the developments surrounding Bitcoin, CryptoCon’s analysis offers a valuable perspective that could guide investment decisions and shape the future of the cryptocurrency landscape. 

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Litecoin Surges 15% In Weekly Chart As Network Development Unleashes Future Potential

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Litecoin is causing a stir in the market as it records an impressive surge of nearly 15% in the weekly chart. This significant gain indicates a potential shift in momentum for the cryptocurrency.

Furthermore, the network usage of Litecoin is experiencing a remarkable increase, indicating growing interest and activity surrounding the digital currency.

Adding to the excitement, Litecoin’s halving event is looming ahead, which is anticipated to impact its value and market dynamics further.

According to the data from CoinMarketcap, Litecoin (LTC) is presently being traded at $92.00, experiencing a slight increase in value over the past 24 hours. Earlier today, the coin reached its daily peak at $94.87.

LTC 7D graph coinmarketcap 1
Source: CoinMarketcap

However, the weekly performance indicates a notable transformation as the coin initiated the week at $81.07 and steadily progressed toward crucial resistance levels.

Despite this, the current trading volume and market capitalization both indicate a decline, with a decrease of approximately 30.31% and 0.10%, respectively, in the last 24 hours’ time zone.

The technical indicators suggest a bullish sentiment, but the Fear & Greed Index shows extreme fear. Litecoin has decreased by -9.26% in the last 30 days, but a slight recovery is expected in the coming month.

However, the coin is projected to increase by 110.75% by the end of May to approximately $194.22. Currently, it is trading below the 200-day simple moving average (SMA), which has shown a buying signal since December 31, 2023. The price is also below the 50-day SMA, indicating a buy signal.

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According to the indicators, the 200-day SMA will drop, and the price is expected to reach $82.35 by December. In the short term, the 50-day SMA suggests a price of $89.62. Additionally, the Relative Strength Index (RSI) is currently at RSIValue, indicating a neutral position for the LTC market.

Litecoin Soars To Second Place As Price Rally Continues 

Litecoin’s (LTC) significant rise in the weekly chart makes it the second-best-performing digital asset, with a market capitalization of over $1 billion. The value of open futures contracts tied to Litecoin has reached $478 million, the highest since December. 

This suggests a rise in new investment, although the market sentiment remains uncertain. According to Markus Thielen, head of research and strategy at Matrixport, LTC has benefited from congestion on the Bitcoin network caused by the surge in Bitcoin Request for Comment (BRC-20) tokens. 

Litecoin also saw increased activity with the introduction of LTC-20, a fork of BRC-20. However, Thielen warns that Litecoin’s price may decline in the coming weeks as Bitcoin’s network congestion eases. 

Additionally, historical data indicates a dominant selling trend leading up to Litecoin’s upcoming mining reward halving, expected in less than 80 days. Traders are advised to consider setting up shorts as momentum potentially turns lower.

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