Cardano's magical moments

January 22, 2024

 

Reading time: 7 minutes

ETH's exchange reserve drops dramatically, highlighting whales' HODLing action

Key points:

  • At press time, Ethereum was facing more selling pressure as compared to the buying pressure.

  • Ethereum's trajectory moved southwards, falling as low as $2,407, the bounce from the support at $2,388 could potentially drive ETH higher.

News - Over the past week, ETH’s reserves on exchanges dropped significantly, thus, highlighting the fact that the whales were in a HODLing mood.

Looking at recent events, a technical analyst named Ali Martinez pointed out an important situation for Ethereum. He mentioned that ETH is at a crucial point, especially after bouncing back from the support at $2,388. This bounce could push ETH to go up.

However, Ali Martinez also gave a warning to traders in the market. He said, "If ETH can't stay above this level, there's a chance it might go back down to the next important support area, which is around $2,000."

What do the metrics suggest? The market didn't feel very positive, at press time. Based on CryptoQuant data analyzed by AMBCrypto, the ratio of people buying Ethereum to those selling it has been less than 1 for the past 10 days. This suggested that more sellers were willing to sell at a lower price.

Examining Ethereum's derivatives market revealed that traders expecting a price decrease were more prominent in the press time. Coinglass reported that the Longs/Shorts Ratio for ETH has been below 1 since January 12th. This suggests that there were more positions anticipating a drop in price compared to those anticipating a rise.

Terraform Labs seeks Chapter 11 bankruptcy protection amid legal challenges

Key points:

  • Founded in 2018, Terraform Labs wiped out at least $40 billion in market value and collapsed the crypto industry in May 2022.

  • The bankruptcy filing comes four days after the U.S. SEC agreed to postpone the civil trial against Terraform Labs and the co-founder Do Kwon

News - Singapore-based Terraform Labs, the company behind the now-defunct cryptocurrencies TerraUSD and Luna, has filed for Chapter 11 bankruptcy in Delaware.

Terraform Labs claims the bankruptcy filing is a calculated move to navigate ongoing legal battles, both in Singapore and a forthcoming lawsuit by the U.S. Securities and Exchange Commission (SEC) alleging a $40 billion cryptocurrency fraud. The company assures its employees and vendors that their financial obligations will be met during the bankruptcy proceedings.

What are the estimated assets and liabilities? Terraform Labs' estimated assets and liabilities currently range between $100 million and $500 million, highlighting the significant financial fallout from the crash. Despite this, the company remains defiant, stating its intention to continue expanding in the Web3 space. Recent acquisitions like Pulsar Finance and the launch of the Station v3 wallet demonstrate Terraform Labs' continued engagement in the crypto domain.

In conclusion - Terraform Labs' future remains uncertain, shadowed by the immense losses inflicted on investors and the ongoing legal disputes. The bankruptcy filing, however, signifies their attempt to restructure and potentially revive their operations within the volatile world of cryptocurrencies.

Cardano’s weekly development activity impresses short-term investors

Key points:

  • In the past week, ADA was down by 5%, and market sentiment further turned bearish, at the time of writing.

  • Cardano recently published the latest edition of its weekly development report, highlighting the efforts made by developers to improve the network.

News - Cardano, the blockchain behind ADA, has been buzzing with activity lately. Over the past few weeks, developers have been diligently working on making the network better, leading to a significant surge in code commits and developer contributions.

Well, the trend continued this week as well, as Cardano's development activity once again skyrocketed, according to data from Santiment. The number of people contributing to the project (Dev Activity Contributors Count) also saw a sharp increase.

What's behind this surge? Cardano's latest weekly development report sheds some light. The scaling team has been busy improving how actions are processed and ensuring the network's consistency. They've also completed a new feature that allows users to directly verify certificates from their web browsers.

Meanwhile, the ledger team is focusing on improving safety by refactoring some code related to the Conway-era functionality.

Cardano's growth was further reflected in its updated statistics. The blockchain boasted over 9.45 million native tokens, has processed more than 83 million transactions, and is home to a thriving ecosystem of 157 projects.

FLOKI’s price drops 6% in 24 hours, but predictions look bullish

Key points:

  • FLOKI was down by more than 6% in the last 24 hours. However, market sentiment around the meme coin remained bullish.

  • A bullish pattern had formed on the meme coin’s daily chart at press time, which hinted that the possibility of a northbound breakout was high.

News - Floki, the meme coin that rode a wave of popularity in 2023, could be gearing up for another surge, despite its recent dip. While its daily and weekly charts might paint a gloomy picture, a closer look reveals a potentially bullish pattern brewing beneath the surface.

What’s more? On January 21st, Floki's price saw a brief spike, but it quickly fizzled out. However, a technical analysis by popular crypto influencer Pepper suggests that things might be taking a turn for the better. If Floki manages to climb above the psychological near-term resistance on its daily chart, it could trigger a bull run, potentially even pushing it back to its Q4 2023 highs.

Well, this optimism seems to be reflected in the market too. Floki's social volume has been on the rise, indicating growing interest and its weighted sentiment has turned positive, hinting at investor confidence. Additionally, a plummeting NVT ratio (a measure of an asset's undervaluation) further strengthens the case for a possible uptrend.

So, will Floki recapture its past glory? While the bullish indicators are enticing, the bearish signals can't be ignored. Ultimately, only time will tell if Floki can defy the odds and reach its Q4 2023 highs once again.

Interesting facts

  •  It's estimated that a significant number of Bitcoin have been lost forever. This is due to factors like forgotten passwords, lost hardware wallets, and intentional destruction of private keys. It's estimated that around 20% of the existing Bitcoin supply may be inaccessible.

  • May 22, 2010, is celebrated as "Bitcoin Pizza Day" because on this date, a programmer named Laszlo Hanyecz made the first real-world transaction using Bitcoin. He paid 10,000 bitcoins for two pizzas, a transaction that would be worth millions of dollars today.

  • Bitcoin undergoes a "halving" approximately every four years, reducing the rate at which new Bitcoin are created by 50%. This is programmed to occur every 210,000 blocks. The most recent halving took place in May 2020.

Top 3 coins of the day

Solana (SOL)

  • On a macro-frame, SOL has been on an upward journey starting end of October.

  • Solana is a high-performance blockchain network that is designed for mass adoption. It is open-source and interoperable and can be used for a range of use cases, including finance, NFTs, payments, and gaming.

What you should know - On the daily chart, SOL was trading at $87.34, at the time of writing. The coin faced selling pressure and saw exits of too many traders at the start of the trading session on 22 January. After trading in a range from May 2022, the coin saw a breakout in the upward direction in the first week of November. As soon as the buying momentum picked up, SOL reached $125 within 60 days. However, at the time of writing, the market condition was skewed in favor of sellers. The leading technical indicator stood at the 42 mark, highlighting sellers’ strength.

ApeCoin (APE)

  • APE has been witnessing high volatile pressure in the market for over a week now.

  • On the higher timeframe, APE can be seen trading in a rangebound movement.

What you should know - On January 18th, ApeCoin experienced a 12.2% decrease in its value. However, the overall market structure remained intact. Even though the price dropped to $1.31, it quickly recovered, showing some strength. This decline happened right after a token unlock on January 17th. The coin’s near-term resistance stood near $2.05 and its short-term support was held at the $1.33 mark. The MACD indicator gave a neutral signal, revealing neither the buyers nor the sellers were in command, at press time. As per the other indicators, the market was taking a breather.

Dogecoin (DOGE)

  • In the past week, DOGE increased by 4.77% revealing buyers’ dominance in the trades.

  • Initially, Dogecoin’s value pumped soon after Elon Musk created an XPayments account.

What you should know - The weekly spike in DOGE’s value can be credited to Elon Musk in some part. Notably, Musk’s X (formerly Twitter) recently launched its official XPayments handle. Following which, DOGE reacted positively. The market, on the whole, was pretty much volatile, as can be seen from the reading of the Bollinger Bands (BB). The fear and greed index for the meme coin stood in the neutral category, at the time of writing. Surprisingly, short-term traders were seen cutting losses.

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