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Dogecoin is at risk
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Dogecoin drops out of top 10 cryptocurrencies amid bearish market sentiment
Key points:
Dogecoin’s whale transactions within the $100,000 to $1 million range significantly decreased.
A breakout above the $0.083 resistance zone could help DOGE recover.
News - Dogecoin was down by more than 12.7% since the beginning of the new year. The latest price drop resulted in the meme coin shedding a substantial amount of its market cap, which pushed it out of the list of the top 10 cryptos.
What caused this? A possible reason behind this episode might have been DOGE’s declining network activity. On the 9th of February, Dogecoin’s transaction volume was over a billion. However, things changed later, as the number decreased to 115.97 million, which was almost a 10x decline compared to the last few days.
Apart from that, whale activity around the meme coin also dropped along with its volume, suggesting that fewer participants were buying and selling DOGE. Dark days for the meme coin might continue further as technical indicators remain bearish. For instance, both its Money Flow Index (MFI) and Relative Strength Index (RSI) registered downticks, minimizing the chances of a strong recovery.
Who took the cake? While DOGE suffered, Chainlink took DOGE’s spot on the top 10 list as its market cap reached $11.97 billion. On a year-to-date (YTD) basis, LINK’s price has increased by 30.07% while changing hands at $20.20, during press time.
MicroStrategy's Michael Saylor credits Bitcoin ETF listings for price surge
Key points:
MicroStrategy wishes to rebrand as a Bitcoin development company, reflecting its core focus.
Saylor notes a significant imbalance in the supply and demand dynamics of Bitcoin.
News - Michael Saylor, the executive chairman of MicroStrategy, believes the recent launch of Bitcoin exchange-traded funds (ETFs) is propelling the cryptocurrency's price upwards. He attributes this phenomenon to two key factors: a significant imbalance between supply and demand, and a decade of pent-up investor appetite for a readily accessible Bitcoin product.
What more did he say? Saylor emphasized Bitcoin's appeal as an asset uncorrelated to traditional risk factors. He highlighted its lack of exposure to specific countries, companies, quarterly earnings cycles, weather events, wars, employee issues, or supply chains. According to him, this unique characteristic positions Bitcoin as a valuable diversification tool for investors seeking exposure to uncorrelated assets.
Saylor also said that MicroStrategy will be re-branding to a Bitcoin development company. Thus, reflecting its strategy to accumulate more Bitcoin and promote the growth of the network.
Well, after the launch of spot BTC ETF, the immediate reaction of the market was somewhat negative, however, of late the market outlook has massively changed. BTC briefly touched the $50K mark on 12 February only to trace back later.
Polygon’s network activity surges and surpasses that of Solana and BNB
Key points:
Polygon’s daily active addresses surged by 75% in the last two months.
MATIC addresses in the user cohorts holding between 1,000–10 million coins jumped considerably in January.
News - Polygon recently outshined other blockchains, such as Solana and BNB, in terms of its network activity. To be precise, Polygon clocked the second-highest transactions, totaling 3.41 million on the 1st of February.
Additionally, the blockchain has recorded an average of 3.5 million daily transactions since the beginning of February. Thanks to this rise, Polygon flipped Solana in the metric of ‘daily users’ count’, with more than 672K unique active addresses compared to Solana’s tally of 644K.
Polygon NFTs are benefiting - The number of daily active addresses has increased largely due to the Inscriptions. Therefore, Polygon’s NFT space also witnessed more traction. CryptoSlam data pointed out that the blockchain’s monthly NFT sales went up by nearly six times from October 2023 to January 2024.
The magnitude of this massive growth can be better understood by the fact that Polygon flipped Ethereum in 24-hour NFT sales for the first time during the last month. It has also been the fourth-largest chain for NFT trading over the previous week.
How did MATIC react? Though the aforementioned update looked optimistic, MATIC’s immediate response was not on par as its price dropped. The token was down 18% on a year-to-date (YTD) basis. Most traders were betting on MATIC’s price decline in the derivatives market. At press time, the coin was trading at $0.8776.
South Korea to ban “unsuitable” crypto exchanges from the market
Key points:
Authorities plan to conduct a thorough examination before the enactment of the country's consumer protection law regarding virtual assets
The Financial Services Commission (FSC) announced that offenders in the crypto industry who handle over $3.8 million in illicit gains may be sentenced to life in prison.
News - South Korea's Financial Intelligence Unit (FIU) recently announced that it plans to tighten regulations and scrutiny over crypto exchanges in the country. The FIU will expel platforms deemed "unsuitable" from the local market starting this year.
What’s the motive? The FIU plans to implement a preemptive trading suspension system that will freeze transactions even before the pre-investigation phase for suspicious transactions on platforms available in the market in South Korea.
FIU now plans to verify and scrutinize renewal applications for anti-money laundering infrastructure, operational capacity, and consumer protection measures of multiple exchanges before renewing their license.
Rhee Yun-su, the commissioner of the FIU, said that as the Virtual Asset Consumer Protection Act is likely to be enacted in the latter half of this year and as numerous renewal registrations take place, KoFIU will quickly move forward with the institutional changes required to guarantee the smooth running of the cryptocurrency market.
This new law was passed by the National Assembly back in the first half of 2023, which integrated 19 crypto-related bills, allowing authorities to impose penalties for multiple sorts of illicit trading activities like market manipulation among others.
More stories from the crypto ecosystem
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Top 3 coins of the day
Solana (SOL)
Key points:
Solana’s trading volume surged by 84% in the last 24 hours.
SOL’s demand in the derivatives market was high as its funding rate increased.
What you should know - Solana’s price has once again gained upward momentum, thanks to the overall bullish market condition. In fact, SOL was the star gainer in the top 5 list of cryptos - its value surged by nearly 20%. In the last 24 hours alone, SOL’s price has shot up by 7%. If the current price trend continues, the coin might face strong resistance near $120.9. Similarly, its support level was found near the $82 mark. Solana’s MACD displayed a bullish crossover, suggesting the price uptrend would continue. Its On Balance Volume (OBV) was also high, reflecting positive volume pressure that can lead to higher prices. Considering these market indicators, the possibility of SOL reaching its resistance level seemed high.
Avalanche (AVAX)
Key points:
A bullish ascending triangle pattern formed on AVAX’s daily chart.
Positive sentiment around Avalanche increased, reflecting investors’ confidence in the token.
What you should know - Like several cryptos, Avalanche also benefited from the bullish market condition as its value climbed by nearly 6% in the last 24 hours. Over the past few months, the token displayed laudable performance, helping it earn a spot on the top 10 list of cryptos by market capitalization. Things looked good for investors as AVAX’s price was trading above its 20-day Simple Moving Average (SMA), which generally suggests that the chances of a continued uptrend are high. However, the possibility of a price correction can’t be ruled out yet. Well, at press time, AVAX was overvalued - Its price touched the upper limit of the Bollinger Bands, which indicated that selling pressure on the token might increase in the coming days.
Toncoin (TON)
Key points:
Toncoin’s Chaikin Money Flow (CMF) registered a sharp uptick, which looked bullish.
TON’s supply held by top addresses dropped, suggesting that whales sold their holdings.
What you should know- Toncoin witnessed a major price uptick on the 12th of February 2024, allowing it to gain a noteworthy amount of market capitalization. To be precise, the token’s price surged by nearly 6% in the last 24 hours. At press time, it was trading at $2.20 with a market cap of over $7.6 billion, making it the 15th largest crypto. The uptrend happened after days of sideways movement. The token has a strong support near $2.03 and a resistance zone at $2.27. A breakout above the resistance zone could allow the coin to reach new highs. The possibility of that happening was quite achievable at press time. The Relative Strength Index (RSI) went up recently, reflecting that buying pressure on TON was high.
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