The global crypto market cap hovered around the $2 trillion mark, declining more than a per cent compared to the last day. However, the total crypto market volume moved over 7 per cent higher to $122.40 billion.
A little-known digital token linked to the Cardano blockchain has just become the third-largest virtual currency in the world as network developers look to ride the boom in decentralized finance.
In 2021 so far, Ethereum has outperformed Bitcoin, rising more than 320% against Bitcoin’s 54% gain. ETH has gained over 60% in the last 30 days and the bullish sentiment that has set it only seems to get stronger.
The rapid growth of decentralized finance (DeFi) applications has resulted in strong inflows from institutional investors. In addition to that, the recent London hard fork brought in a new fee burn mechanism which has significantly reduced the daily net issuance, said ZebPay Trade Desk.
Some Ether enthusiasts are anticipating the rally to go on and above $5,000. The recent upgrade has paved the way for Ethereum, and the network will soon adopt proof-of-stake consensus which is likely to make it slightly deflationary in nature, it added.
Finance Minister Nirmala Sitharaman said she is awaiting an approval from the Cabinet on a bill on cryptocurrency as the proposed legislation is before it. It has recommended that all private cryptocurrencies, except any virtual currencies issued by state, will be prohibited in India.
The inter-ministerial panel on cryptocurrency under the Chairmanship of Secretary (Economic Affairs) to study the issues related to virtual currencies and propose specific actions has already submitted its report.
Tech View by Giottus Cryptocurrency Exchange
Polygon (formerly Matic Network) is amongst the most popular altcoins and Ethereum Layer 2 solutions. Having delivered multiple returns to holders through this year, its native token MATIC was the last to fall during the May crash, hovering at $2 while the market burned.
Last week, MATIC regained some of its previous losses after the company reported the acquisition of Hermez, a zero-knowledge crypto scaling solution. Hermez will be integrated into the Polygon blockchain in a first such blockchain merger and MATIC will continue to be the native token.
MATIC’s movement has set off several bullish signals after breaking through its 50-day moving average ($1.44) and 20-day exponential moving average ($1.22). Having consolidated near resistance at the $1.5 range, MATIC also briefly broke out on Monday and seemed headed for its next resistance at $1.7, before a dip in Bitcoin’s price played spoilsport.
MATIC has found support at $1.43 and given its neutral daily RSI of 64, another rally is possible. In the upcoming week, MATIC is likely to attempt to break out of its $1.5 resistance and reclaim $1.7, three months since it last scaled it. Should it break down, it may find support at $1.33 – which is its 10-day exponential moving average.
Support: $1.43, 1.25
Resistance: $1.5, $1.7
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)