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ADA, ETH send shockwaves
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Bullish sentiment surrounds ETH and ADA as altcoin season expectations grow
Key points:
Bitcoin’s dominance remained under 50%, opening doors for ETH and ADA to lead an altcoin rally soon.
If a rally happens, ETH’s price might cross $3.5k, while ADA can beat the overhead resistance.
News - Bitcoin’s remarkable performance over the last few days has not allowed altcoins to come into the limelight. However, if BTC’s dominance were to fall, top altcoins like Ethereum and Cardano might lead an altcoin rally.
What’s cooking? Crypto analyst Dan Gambardello said Ethereum and Cardano have not made big moves to confirm the much-anticipated altcoin season. This was unlike the last cycle in which ETH led the rally, but it was also accompanied by ADA’s breakout. Therefore, if Bitcoin’s dominance falls in the coming days, history might repeat itself, allowing ETH and ADA to start rallies. As of now, BTC’s dominance sits at 49.4%, despite slipping below 49% earlier. This could offer ADA and ETH the opportunity to dominate the market.
Anything bullish? On-chain data revealed that both ADA and ETH’s weighted sentiment turned positive. The metric suggested that most traders were bullish on the Ethereum and Cardano ecosystems. If the market sentiment remains the same, it might increase buying pressure on both tokens, which can affect their prices positively. Meanwhile, ADA’s volume increased to $685.07 million and ETH’s stood at $15.62 billion. When connected with the price, it appears that the volume might push for an upside.
Circle halts USDC minting on Tron network with immediate effect
Key points:
USDC’s trading volume surged by over 17% in the last 24 hours.
TRON network was one of the biggest chains for stablecoin transfers including USDT and USDC.
News - The issuer of the USD Coin stablecoin, Circle, has announced that it will no longer support USDC on the Tron blockchain. As per the official statement, this decision was made to ensure that USDC remains trusted, transparent, and safe.
What does it mean? The discontinuation of minting USDC on TRON will happen via a phased transition, which was effective immediately. The official announcement mentioned that the decision to discontinue support for USDC on TRON was the result of an enterprise-wide approach that involved the business organization, compliance, and other functions across the company.
Notably, Circle will continue to support Circle Mint customers’ transfer of USDC to other blockchains till February 2025. Retail users and other non-Circle customers can move their USDC on TRON to an exchange or distributor, which supports USDC transfers to other blockchains.
A look at history - This development might have been a result of TRON facing several allegations over the past few years. For instance, an ethics group, Campaign for Accountability, said that Tron “has been named in multiple international law enforcement actions involving billions of dollars in transactions by alleged organized crime groups and sanctioned entities.”
Key points:
FLOKI’s high MVRV Ratio hinted at the possibility of a price correction.
Its trading volume declined by 18% in the last 24 hours.
News - FLOKI was making waves in the crypto world recently, getting way more buzz on social media than even Shiba Inu (SHIB). This made it seem like FLOKI was stealing SHIB's market space, but that didn't last long. Things turned around quickly, and SHIB was back in the limelight, at press time.
The entire story - FLOKI was ranked among the top 10 meme coins that had the highest number of social media mentions in the last 48 hours. This recent uptrend in social metrics helped the meme coin lift its social dominance, even allowing it to outperform SHIB. According to Santiment's data, FLOKI's social dominance rose over the past week while SHIB's decreased.
What happened on the price front? Though the meme coin’s price started to move up along with its social metrics, FLOKI couldn’t sustain the uptrend. In the last 24 hours alone, FLOKI’s value dropped by nearly 7%. At press time, the meme coin was trading at $0.00003261 with a market capitalization of over $312 million.
Well, it was surprising to see that despite the recent price drop, FLOKI's social metrics continued to rise. In fact, bullish sentiment around the token shot up as suggested by a rise in its weighted sentiment metric. In the meantime, Shiba Inu saw a 4% drop in its price over the last day and was valued at $0.000009463, during press time.
Crypto advocates urge Senate Banking Chair to reject Elizabeth Warren's AML legislation
Key points:
The bill was introduced to the United States Senate in July 2023 and, since then, has received much criticism.
The bill specifically seeks to counter the illegal use of crypto assets for financing terrorism and money laundering.
News - The Chamber of Digital Commerce (CDC), a United States-based crypto advocacy group, has reached out to the Senate Banking Committee, urging it not to consider an anti-money laundering bill. The advocacy group took this step as the bill was already receiving criticism.
What is the bill about? For context, the bill would mitigate the risks that digital assets pose to the US's national security. This will be achieved by closing loopholes and bringing the digital asset ecosystem into greater compliance with the anti-money laundering and countering the financing of terrorism frameworks governing the greater financial system.
More details - Perianne Boring, the founder and CEO of CDC, stated that if this bill is approved, it will erase hundreds of billions of dollars in value for US startups and the savings of citizens who have invested in this asset class legally.
Senators Elizabeth Warren and Sherrod Brown, according to the CDC, were "trying to kill the entire industry" with the act. In 2024, Senators Brown and Warren, who represent Ohio and Massachusetts, respectively, will compete for reelection. Apart from the CDC, the Blockchain Association sent a letter to Senator Brown and other US lawmakers stating similar concerns related to the DAAML Act.
More stories from the crypto ecosystem
Did you know?
The largest amount of Bitcoin ever moved in a single transaction was 500,000 Bitcoin, and the highest value ever transferred on-chain was $1 billion.
Cardano's token is named after the world's first computer programmer, Ada Lovelace, daughter of Lord Byron and a 19th-century mathematician.
Shiba Inu was created in August 2020. The cryptocurrency was founded by Ryoshi. The origin of the founder is mysterious and full of humor.
Top 3 coins of the day
Fetch.ai (FET)
Key points:
Despite the price hike, negative sentiment around FET remained high.
Exchange inflow started to increase, suggesting high selling pressure.
What you should know - Fetch.ai caught investors off guard as it began a bull rally. The token’s price surged by more than 5% in the last 24 hours. In fact, in the last week, FET’s value spiked by over 50%. At press time, FET was trading at $1.01. The recent uptrend has allowed FET to once again reclaim its spot in the top 100 list. However, a look at Fetch.ai’s daily chart flagged a bearish signal. The token’s Relative Strength Index (RSI) had recently entered the overbought zone. Hence, the possibility of an increase in selling pressure was high. If the price corrects, FET might plummet to a support zone of $0.64 and $0.76. On the contrary, if FET has to continue its bull rally, its value must first go above the $1.05 mark.
TRON (TRX)
Key points:
TRX’s trading volume surged by 50% along with its price in the last 24 hours.
TRON’s price has maintained upward momentum since the end of January.
What you should know - TRON was among the handful of cryptos on the top 10 list that saw growth. The token’s price surged by more than 2% over the past day. At press time, it was trading at $0.1401 with a market capitalization of over $12.3 billion. Notably, TRX’s value started to grow consistently after it exited a sideways price movement a few weeks ago. Technical indicator MACD displayed the coin had a bullish edge in the market. However, TRX’s price had touched the upper limit of the Bollinger Bands, which suggested that there was a possibility of a price correction in the coming days. If a price correction happens, TRX might fall to its new support of $0.123.
Polkadot (DOT)
Key points:
DOT’s price remained above its 50-day Exponential Moving Average (EMA), which might act as a support.
Its weighted sentiment metric noted an incline, suggesting a rise in bullish sentiment around the token.
What you should know - Several altcoins have been witnessing price corrections of late, and Polkadot was no exception. It dropped by more than 5.4% in the last 24 hours alone. At press time, it was trading at $7.43 with a market cap of $9.6 billion. Predictions for the token looked pretty bearish, as technical indicators like the Money Flow Index (MFI) supported the sellers. DOT’s MFI registered a downtick just like its Chaikin Money Flow (CMF); both of these indicators suggested that the possibility of a continued price decline is high. However, since DOT’s price was above the 50-day EMA, the token might rebound once it touches that level.
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