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Chainlink (LINK) Becomes the ‘Tesla’ of Cryptocurrency — What’s Next?

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As Bitcoin (BTC) price continues to trade in a tightening range, the altcoin market has been pushing higher each week, and the most recent surge has come from Chainlink (LINK).

After breaking above the $5 level, LINK price surged nearly 100% in a matter of days and ended by making a new all-time high at $8.40. Through this massive push, LINK surpassed EOS (EOS) and Crypto.com (CRO) to claim a spot among the top-ten cryptocurrencies listed on CoinMarketCap.

Investors are now curious to see if Tezos (XTZ) will continue to follow LINK and there are expectations that other altcoins will also follow LINK’s upward trajectory.

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

What pushed LINK price to $8.50?

LINK has proven to be one of the strongest movers in the cryptocurrency markets of recent years. This was proved once again as the cryptocurrency broke above the previous all-time high of $5 and surged with 85% towards $8.50.

LINK/USDT 1-day chart. Source: TradingView

LINK/USDT 1-day chart. Source: TradingView

In the previous article, a target of $7.00-$7.25 was established using the Fibonacci extension tool. However, LINK overshot that target by a mile.

As the chart shows, the rally might be temporarily over, as sellers are stepping in but this will only be confirmed if the daily candle closes as shown on the chart above. Currently, the candle shows a giant wick on the upside, indicating that there’s more sell than buy pressure.

Aside from the candle, such a giant move is due for a corrective move, so it is good to review the levels to watch for potential support.

LINK/USDT 1-day chart. Source: TradingView

LINK/USDT 1-day chart. Source: TradingView

The 1-day chart is showing clear support levels. One of them is found between $6-$6.50. The previous resistance at $6.57 can be confirmed as support, which would suit a renewed test of the $8.50 resistance level.

However, a clearer signal would be a corrective move towards the $5 level, as that used to be a significant resistance zone before the massive breakout occurred.

LINK/USDT 4-hour chart. Source: TradingView

LINK/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows a bright support/resistance flip of the $5.70 level, which caused continuation and the price to accelerate towards $8.50.

The most likely scenario is a test of the previous high for support. In this case, the $6.50-$6.60 level. A potential wick towards the $6.20 level is an area to watch for.

If this zone holds, a renewed test of the highs at $8.50 is likely to occur. If the $6.50 level is lost, further downward pressure is likely to occur on the markets with a potential retest of the $5 level.

LINK/BTC pair breaks out

LINK/BTC 1-day chart. Source: TradingView

LINK/BTC 1-day chart. Source: TradingView

The LINK/BTC pair shows a massive breakout as well. The resistance zone at 0.00055000 sats was tested several times before the breakout occurred.

This price action is actually quite similar to the resistance zone of Bitcoin that is encountering at $10,000-$10,500. As the saying goes, the more often a resistance gets tested, the weaker it becomes.

In the case of Bitcoin, the resistance zone at $10,000-$10,500 has been a tough area to surmount for a year already and for LINK the 0.00055000 sats barrier has been a resistance zone for seven months.

As the breakthrough of the resistance zone occurred, massive acceleration took place but the chart is showing signs of overextension on the upside. For this reason a corrective motion is likely to occur.

In that case, the potential levels of interest should be the previous resistance at 0.00055000 sats and the area between 0.00065000-0.00066500 sats.

When Chainlink moves, Tezos follows

XTZ/USDT 1-day chart. Source: TradingView

XTZ/USDT 1-day chart. Source: TradingView

Once Chainlink moves Tezos tends to follow. However, in the previous months, Tezos has been lagging heavily but the price finally made a strong move over the weekend.

XTZ/USDT has been showing strength in the previous days and currently faces the final hurdle before a new all-time high.

The pair secured support at the $2.40 level before continuation and acceleration towards $3 occurred. The next step to watch for is a test of the $2.70-$2.77 level for support.

If that level sustains support, it’s likely that XTZ/USDT will break through the $3 barrier and test the all-time high.

The $3 resistance area has been tested three times now and it’s possible that another test of the resistance zone will see the price finally push through it.

If XTZ/USDT breaks above $3, it’s assumed we’ll start accelerating and get a similar move to Chainlink. And that similar move means a new all-time high.

XTZ/BTC breaks above the 100-day moving average

XTZ/BTC 1-day chart. Source: TradingView

XTZ/BTC 1-day chart. Source: TradingView

The XTZ/BTC pair is also showing strength as it recently broke above the 100-day MA. This is also the case with the XTZ/USDT pair. If the previous resistance area at 0.00002900-0.00002950 sats continues to hold for support, a support/resistance flip will be achieved.

Once this support/resistance flip is confirmed, continuation to the upside is likely to occur and traders will set their targets around the all-time high zone around 0.00003700-0.00003800 sats.

If Tezos manages to break through the all-time high levels, the sky’s the limit and savvy traders can look to the Fibonacci extensions in order to determine new targets.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/chainlink-link-becomes-the-tesla-of-cryptocurrency-whats-next

Blockchain

Ethereum DEX Volumes Drop As DeFi Incentives Slowly Dry Up

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The Ethereum DEX volumes drop as the Defi incentives dry up but it’s not all bad news as the price of ETH increased and the locked value in DeFi hasn’t been greater. In our ethereum news today, we are reading more on the analysis.

The Ethereum DEX volumes dropped over the past month and one analyst believes it’s because DeFi incentives dropped. However, prices increased. The volumes on the ETH-based decentralized exchanges dropped off a cliff this month and the trading volume got down by 41% over the most month according to the data from Dune Analytics.

dex volume
DEX Volume Source 24-hours: DeFi Prime

The weekly trading on decentralized exchanges hit a little bit over $8 billion but later on reached a monthly high of $6 billion on September 14. The weekly trading volumes have dropped significantly to under $3 billion as the most recent data from the Dune Analytics platform shows. This marks a decrease of more than 62% since the summer peak. Decentralized exchanges are non-custodial crypto exchanges as the protocols don’t hold custody over your crypto. On some platforms like Uniswap, it’s possible to list any tokens so regulators can’t shut it down.

daily dex volume
DEX Volume Source: DefiPrime

DEXs boomed in popularity this year during the defi boom, starting at the end of June when people invested billions of dollars into DeFi lending protocols and exchanges to take advantage of the high incentives that they offered to users with more than 1000% yields some of the time. The boom was not meant to last so to keep the magic going, protocols offered more incentives to entice people to use their platforms but many didn’t stick around once the protocol ran out of money. Even trading volume on decentralized exchange Uniswap dropped as well despite the increasing dominance over the market.  Johnson Xu, the director of research at Huobi said:

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 “I believe DEX volume is highly correlated with the DeFi market in general.”

With the decline in trading volumes, Xu said that there are other factors at play but that “one of the main reasons is that people are not earning as much yield right now just because these crazy yields are not sustainable and often come with risks.” He continued:

 “The market is now returning to a more rational level, thus the lower DEX trading volume. “When the market cools down a little, these yields will be adjusted accordingly to reflect market consolidation in a healthy way.”

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/uncategorized-en/ethereum-dex-volumes-drop-as-defi-incentives-slowly-dry-up/

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Data firm: OKEx saw $113m in Bitcoin outflows just before suspending withdraws

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Data firm: OKEx saw $113m in Bitcoin outflows just before suspending withdraws

The crypto industry was struck with another unexpected development last night that sent shockwaves throughout the market and caused Bitcoin’s price to reel lower.

Bitcoin’s sell-side pressure began growing earlier today after news broke of the OKEx not being able to process withdraws due to the founder being arrested by Chinese authorities.

He is the sole holder of the key required to process withdraw requests, which must be regularly inputted for withdraw requests to continue being processed on schedule.

His arrest has sparked questions as to why the exchange structured their multi-sig withdraw system in such a way that there is a single point of failure, and has venerated those who believe that decentralized exchanges are superior to centralized ones.

Interestingly, data from Glassnode also reveals that significant sums of BTC were moved off the platform in the 48 hours before withdraws were suspended.

OKEx Bitcoin and crypto withdraws suspended due to Chinese police investigation

For reasons still unknown, a Chinese police investigation targeted the popular cryptocurrency exchange serving individuals throughout Asia, with the founder getting caught in the crosshairs.

It remains unclear as to when the founder was arrested, but it does appear that there was a flurry of Bitcoin being moved out of the exchange in the 48 hours prior to the recent suspension.

Analytics platform Glassnode spoke about this in a recent tweet, noting that $113 million in total were withdrawn in two large batches just before the withdraw suspension occurred.

“Prior to the suspension of cryptocurrency withdrawals from OKEx, we observed large BTC outflows from the exchange. According to our data, a total of 10,000 BTC (~$113 million) were withdrawn in two large batches in the past 48h.”

Bitcoin

OKEx founder’s arrest highlights serious centralization flaw

Dovey Wan – a founding partner at Primitive Crypto – mused this recent imbroglio, noting that it strikes her as odd that a major crypto exchange holding billions worth of Bitcoin and other digital assets has such a single point of failure.

“Something is weird. If multi-sig, then how come the police hold majority of the signers under custody all at once? Usually signers spread out across different geo locations to avoid such case I suppose? Hard to imagine how such single point of failure occurs.”

It does seem as though there’s more to this story that has yet to be revealed, but in the meanwhile, over 200,000 Bitcoin – as well as tons of other digital assets – all remain in limbo.

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Source: https://cryptoslate.com/data-firm-okex-saw-113m-in-bitcoin-outflows-just-before-suspending-withdraws/

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Bitcoin Price Prediction: BTC/USD Struggles to Gain Momentum as the Price Hits $11,641

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Bitcoin (BTC) Price Prediction – October 15

As reveals by the daily chart, the Bitcoin market has been struggling to maintain its momentum as its buy-side pressure wanes.

BTC/USD Long-term Trend: Bullish (Daily Chart)

Key levels:

Resistance Levels: $12,100, $12,300, $12,500

Support Levels: $11,000, $10,800, $10,600

BTCUSD – Daily Chart

BTC/USD bulls may slowly come back into action after a minor battering from the bears in the last two days. If this happens, then the expectation of more recoveries could turn out to be true. Today, BTC/USD is seen trading at $11,549 after soaring to $11,641. The coin then pulled back to where it is trading currently and may continue to head downwards if the bears step back into the market.

Where is BTC Price Going Next?

The market is deciding around $11,549 above the 9-day and 21-day moving averages, where the buyers and sellers are anticipating for a clear breakout or breakdown. Meanwhile, the $11,700 and $11,900 levels may further surface as the key resistances should the $7,600 level holds. However, a strong bullish spike may take the price to $12,100, $12,300, and $12,500 levels.

Moreover, if the market makes a quick turn to the south, the BTC/USD price may likely drop to $11,200, and should this support fails to contain the sell-off, traders may see a further roll back to $11,000, $10,800, and critically $10,600. Meanwhile, the RSI (14) is suggesting an upward movement for the coin.

BTC/USD Medium – Term Trend: Ranging (4H Chart)

The 4-hour chart for BTC is still looking bullish, but the market has been showing a sign of weakness since the daily opening. However, the intraday trading is looking bullish; following the recent rebound at $11,263 which is now a key support level. The next key support levels are $11,300, $11,100, and $10,900.

BTCUSD – 4 Hour Chart

However, considering the recent sharp rebound, the Bitcoin price may re-enter the bullish rally to $11,600 resistance. A climb above the mentioned resistance may further push BTC price to $11,800, $12,000, and $12,200 resistance levels. As it appeared now, it seems the bears may likely return into the market as the RSI (14) may cross below the 60-level and could resume a downward direction.

Source: https://insidebitcoins.com/news/btc-usd-long-term-trend-bullish-daily-chart-29

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