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- FLOKI: Market turmoil ahead?
FLOKI: Market turmoil ahead?
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$62 Million in ETH long positions liquidated: Dive into Ethereum’s market shifts
Key points:
ETH’s long traders have witnessed significant liquidations in the past 24 hours.
Ethereum’s price also witnessed a sharp decline last week.
News - Ethereum experienced a significant spike in long liquidations on 11 June. In fact, as per Coinglass’ data, ETH’s long liquidations reached their highest level since 23 May.
Long liquidations occur when an asset's value drops unexpectedly, forcing traders to exit positions favoring a price increase. ETH’s long liquidation touched $62 million yesterday. In contrast, short liquidations amounted to $7.3 million.
More to the story - Apart from this, ETH’s total trading volume in its options market dropped by 52%, amounting to $321 million. A decline in options trading volume suggests fewer participants are buying or selling options. This might result in wider bid-ask spreads, making it more difficult for investors to execute trades at desired prices.
Additionally, its open interest, which measures the total number of outstanding contracts, fell by 2% to $15.73 billion. This decline indicates that more traders are closing their positions without opening new ones.
Nonetheless, there was good news as well. For instance, Ethereum’s funding rate has remained positive, suggesting that more traders are buying ETH expecting its price to rise.
GameStop (GME) garners more attention, surpasses Dogecoin in social dominance
Key points:
Gamestop stock’s popularity has been helping the GME memecoin which are not correlated.
At the time of writing, GME was trading at $0.01651.
News - GME, a memecoin on the Solana blockchain, created buzz in the crypto space. It witnessed a significant price uptick between 8-9 June, outperforming DOGE.
Notably, this GME token, developed in honor of GameStop stock trader Keith Gill, differs from the well-known GME stock.
The hype around GameStop stock has contributed to GME’s strong performance, with social dominance metrics indicating higher demand compared to DOGE.
Market analysis - Consider this, GME's social dominance was 4.754%, significantly higher than DOGE's 1.881%.
However, the Relative Strength Index indicated GME was overbought with a reading of 81.65, suggesting potential short-term profit-taking that could drive the price down to $0.015.
Trend reversal? The effects of GME’s RSI entering the overbought zone were visible on its price chart. According to CoinMarketCap, the token witnessed a major correction as its value dropped by over 11% in the last 24 hours. At the time of writing, GME was trading at $0.01651 with a market capitalization of over $113 million.
Fortune 100 embrace crypto, on-chain initiatives hit a record high, reveals Coinbase
Key points:
Fortune 100 companies witnessed a record number of blockchain initiatives in Q1 2024.
The volume of onchain initiatives announced by the F100 has increased 39% year-over-year.
News - Coinbase revealed that the number of Fortune 100 companies involved in cryptocurrency, blockchain, or Web3 initiatives rose 39% year-over-year in the first quarter of 2024, reaching an all-time high.
What’s more? As per Coinbase’s report, tech and financial services have found the best product-market fit. The two sectors together had eight in 10 of the F100’s on-chain initiatives in Q1—intensifying a trend from 2023, when they accounted for nearly six in 10. It was interesting to note that 56% of Fortune 500 executives reported their companies are working on blockchain projects.
US at risk? However, the United States faces challenges in capitalizing on these opportunities. Coinbase's report mentioned that the primary reason behind this was a talent shortage. Only 26% of crypto developers are US-based, and small businesses prefer candidates with crypto knowledge for finance, legal, or tech roles.
Nonetheless, there was a strong desire to collaborate with the US, with 79% of large business executives open to partnerships with US firms and 72% supporting a USD-backed digital currency to maintain global economic competitiveness.
FLOKI's downward trajectory intensifies: Analysis suggests further losses ahead
Key points:
FLOKI has fallen below a key support level.
Market indicators hinted at a further price drop.
News - FLOKI, one of the most popular memecoins, hasn’t been performing well - Its value dropped by 28% in the last seven days.
The memecoin was trading within an upward channel since 13 April, this was characterized by higher highs and higher lows. However, after peaking at $0.00035 on 5 June, FLOKI's price began to decline, hitting the support level at $0.00025 before ultimately closing below it.
What’s next? AMBCrypto's analysis suggests that further declines could be imminent for FLOKI. Key momentum indicators, such as the Relative Strength Index (RSI) at 46.55 and the Money Flow Index (MFI) at 46.32, were both below their center lines.
This clearly indicated that selling pressure on FLOKi was high. Additionally, the negative Chaikin Money Flow (CMF) value of -0.04 signaled market weakness and an increased liquidity exit.
The strength of FLOKI’s downtrend was further confirmed by the Aroon Down Line, which was at 100%, hinting at a strong downtrend. If the current trend persists, FLOKI's price could fall below $0.0002, potentially reaching $0.0001.
The better news - Conversely, if new demand emerges, the price might rally back towards the support level of $0.00025 or higher. At the time of writing, FLOKI was trading at $0.0002173 with a market capitalization of over $2 billion.
More stories from the crypto ecosystem
Interesting Facts
The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. It can be considered an on-chain alternative to the Domain Name System (DNS) on the internet. The ENS allows users to register and manage human-readable names for their Ethereum addresses, making transactions more user-friendly and reducing the reliance on long hexadecimal addresses.
In 2014, the GHash.io (GigaHash) pool achieved 51% of total hashrate. Any miner or pool with a majority of hashrate is in a position to attack the network through various means, such as censoring or double-spending transactions. This is known as a 51% attack and is one of Bitcoin’s known vulnerabilities.
In April 2018, Cory Fields, a Bitcoin Core developer since 2013, discovered a potentially critical flaw in the Bitcoin Cash code. He privately alerted the Bitcoin Cash developers about this issue, which, if exploited, could have led to a chain split within the Bitcoin Cash network. Instead of claiming the $100,000 bug bounty reward offered, Fields requested that it be donated to charity.
Top 3 coins of the day
Dogecoin (DOGE)
Key points:
DOGE’s price had dropped by over 11% in the last seven days.
Its fear and greed index had a value of 37% at press time.
What you should know - After a week-long double-digit price decline, Dogecoin’s price finally gained bullish momentum - It increased by more than 2% in the last 24 hours. At press time, it was trading at $0.1427 with a market cap of over $20 billion. AMBCrypto found that DOGE was testing its near-term resistance at press time. A successful breakout above that level might allow the memecoin to touch its next resistance level at $0.174 over the coming week. However, both the memecoin’s Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered downticks and were resting under their respective neutral marks. This hinted at an anticipated price decline, which could result in DOGE dropping to $0.130.
Avalanche (AVAX)
Key points:
Avalanche’s price dropped by over 10% last week.
The market sentiment around the token remained bearish.
What you should know - As the market condition turned bullish, several cryptos capitalized on this situation by painting their charts green. Interestingly, Avalanche’s price volatility dropped in the last 24 hours as it only moved marginally. At the time of writing, AVAX was trading at $32.24 with a market cap of over $12.6 billion. AMBCrypto found that the reason behind this sluggish performance was the crucial support near $31.45, which was weakening, at the time of writing. The possibility of AVAX dropping to its next support level was high as the Chaikin Money Flow (CMF) registered a downtick. However, analysts predict the market situation might as well turn bullish thanks to the reading of Money Flow Index (MFI).
Render (RNDR)
Key points:
RNDR’s social dominance increased in the last few days.
The Relative Strength Index (RSI) remained bearish as it moved southwards.
What you should know - As the market somewhat turned bullish, Render (RNDR) wasn’t left behind, it managed to paint its daily chart green. The token’s price surged by over 3% in the last 24 hours and, at press time, it was trading at $8.69. Market indicators looked pretty optimistic for RNDR. The token’s price had rebounded from the lower limit of the Bollinger Bands, which often resulted in price upticks. If RNDR sustains the bullish momentum, then its price can go above its near-term resistance at $9.32. A continued price rise might as well allow the token to reclaim $11 in the coming days or weeks.
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