Nine out of the top 10 cryptocurrencies were trading higher at 9.30 hours IST, led by XRP, Dogecoin and Polkadot, which gained up 6 per cent. Numero uno digital token Bitcoin raced past the $51,000 mark.
The global crypto market cap increased over 3 per cent to $2.33 trillion. Similarly, the total crypto market volume declined 5 per cent to $119.58 billion.
“The last 24 hours have seen good momentum in the market. Overall market sentiment has been upbeat over the last 7 days with BTC and ETH in the green zone. Others like XRP have also done well,” said Sharan Nair, Chief Business Officer, CoinSwitch Kuber.
Edul Patel, CEO and co-founder of Mudrex, said this week would be interesting for both Cardano and Solana, which witnessed terrific rallies in the past couple of weeks. “The global crypto market cap reached a staggering $2.30 trillion, aided by massive demand from both institutional and retail investors,” he added.
The Indian government’s delay in finalising a legislation on cryptocurrency has prompted intense lobbying, with agencies worried over risks emanating from an unregulated segment with extreme price volatility posing a threat to investors, many of whom do not understand the instrument.
Tech View by Siddharth Menon, COO WazirX
Bitcoin has formed a channel pattern on the weekly timeframe. It is currently trading near the lower trendline of the channel which makes the risk-reward favourable for new investors. The support is expected at $35,000 level towards the lower trendline and resistance is expected at $110,000 towards the upper trendline.
Bitcoin may take a couple of months to make a move towards the upper trendline of the channel, maybe next year. Another interesting indicator is the 21-day EMA (exponential moving average) which is also called bull market support line. Currently, Bitcoin is trading above the 21-day EMA which is a positive sign.
In the past cycles, 21-day EMA on a weekly time frame was one of the crucial indicators to predict trends in crypto markets. If Bitcoin sustains above the 21-day EMA on the weekly timeframe chart, Ether may outperform Bitcoin and make new highs. Interesting infrastructure projects catering to smart contracts like Cardano, Solana, Avalanche and EOS could outperform Bitcoin in coming weeks.
The total value locked in DeFi has marked new highs surpassing $150 billion. Oracles like ChainLink and Band protocol, the backbone of DeFi, may see some serious growth in daily requests fueling the demand of their tokens. With this disruption in blockchain and decentralization, DeFi dominance is expected to grow in the overall crypto market.
Support: $1.04, $0.85
Resistance: $1.4, $1.65
Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC
(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.)