DeFi Decoder: A Frisky Forecast on Bitcoin’s Limited Downside and More
Get On Board Or Get Left BehindLook, if we’re all being perfectly frank, the world of cryptocurrencies is a fickle place. Think a rollercoaster meets “Survivor” — you’re strapped in for a thrilling ride and yeah, you might get booted off the island. But boy, do we love it! After analyzing the recent price trends from the last day of January (Cool kids like us refer to it as 1/31), it’s obvious that even Bitcoin isn’t immune to this volatility. However, chin up, buttercup! It appears Bitcoin’s do
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In the ever-evolving landscape of cryptocurrencies, the recent approval of Bitcoin Exchange-Traded Funds (ETFs) has brought the digital asset to the forefront of mainstream finance. However, behind the apparent simplicity of this development lies a convoluted web of financial derivatives, akin to a Russian babushka doll, intricately woven by institutional players. In this article we’ll delve deeper into the layers of financial complexity surrounding #Bitcoin and explore the implications of the s
Chainlink's 40% weekly rally might be a 'bull trap' for #LINK price
LINK's escalating prices coupled with dwindling momentum suggest a divergence, signaling a potential fatigue in the prevailing bullish sentiment within the market.
The price of Chainlink LINK “tickers down” $18.34 has surged by approximately 40% over the past week to hit $19.75, its highest level in two years. At least three catalysts have spurred investor confidence and catalyzed this buying behavior.
However, the price rise does not accompany strong momentum, increasing bull trap risks. Let's look closer at these factors.
Why is LINK price rising?
First, there has been a significant activation of previously dormant wallets, leading to the highest recorded spike in the "Age Consumed" metric. Santiment argues that the sudden deployment of old LINK tokens into circulation has contributed to the price jump.
For instance, the Chainlink supply held by entities holding more than 10,000 LINK tokens has rebounded after the dormant wallet news, suggesting that rich traders are accumulating.
In addition, 47 fresh wallets have withdrawn over 2.23 million LINK worth $42.38M from Binance since Feb. 5, according to data resource Lookonchain. This indicates a growing holding behavior among traders amid the price gains.
Nonetheless, upon closer examination of LINK's weekly chart, a bearish divergence is becoming increasingly evident, hinting at a potential trend reversal . #LINKUSD #ANALYSIS #TrendingTopic
#RONIN (RON) saw its value plummet by 26% right after its listing on the Binance exchange, erasing a 15% gain and marking a nearly 30% drop in the last 24 hours.
Following a short-lived recovery that pushed Ronin above the $3 mark for the first time since February 2022, the digital asset encountered strong resistance and fell below a critical support level.
Despite reaching a two-year peak of $3.538 due to growing investor interest and increased activity on the Ronin network, the asset has now retreated to $2.62 — losing all its recent gains.
The sharp decline has also affected Ronin’s market standing, with its market capitalization dropping below the $1 billion milestone to currently stand at $746.26 million. However, Ronin is still trading at a 23-month high, with the $2.5 support level preventing further losses.
Santiment data revealed a surge in social volume and negative sentiment surrounding Ronin, indicating a stark change in investor sentiment.
Over the past 24 hours, social volume surged by 254%, and negative sentiment jumped from 0.87 to 5.58, indicating a dramatic change in investor outlook. This negative sentiment has led to a surge in selling pressure, with trading volume soaring 275% to $203 million as investors hurried to sell their holdings.
The drastic price drop positions Ronin as the most significant loser among the top 100 cryptocurrencies by market cap in the last day, a stark contrast to its status as the top gainer just a day earlier.
The initial price surge was driven by increased investor interest and a spike in network activity, with trade volume hitting $80 million and daily active addresses increasing fivefold from December to this month. However, the price began to fall just five hours after Binance commenced trading RON.