Part ways with Ethereum?

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Crypto market liquidations closes in at $500 million as Bitcoin, alts slump

Key points:

  • A widespread decline in prices eradicated $475.11 million in liquidations.

  • BTC climbed back above $65,000 while ETH revisited $3,445.

News - Nearly half a billion dollars was wiped out in traders’ positions between the closing hours of 17 June and the early periods of 18 June.

Specifically, the value of liquidations was $475.11. million in 24 hours. Out of this, long positions were hit the most with $413.47 million. For shorts, the value lost was worth $61.90 million

What happened? The plunge in crypto prices triggered the widespread wipeout. For some time, Bitcoin (BTC), Ethereum (ETH), and many other altcoins have been trading sideways.

However, most market participants expected the consolidation to foreshadow a price increase. But they were caught unawares as BTC dropped to $64,637. ETH’s price, on the other hand, slid to $3,380. As a result, contracts related to ETH had the highest liquidations.

Meanwhile, prices have bounced as BTC rose above $65,000 again while ETH recovered to $3,445. Furthermore, the crypto market cap at large has decreased to $2.36 trillion.

To buy the dip or not? In addition, the recent correction sparked different conversations in the market. For some analysts, this decline is a rare opportunity to buy at discount prices. However, others opined that the perfect accumulation opportunity is not yet here.

Trump-related tokens nosedive amid doubts over DJT legitimacy

Key points:

  • Prices of other Trump memecoins plummeted after news spread that the former president plans to launch an official token.

  • At press time, it was unclear if the rumor was fake or had solid backing.

News - A tittle-tattle hit the crypto streets that U.S. Presidential candidate Donald .J. Trump was planning to launch his token on Solana. According to the unconfirmed reports, the token would have the ticker “DJT.”

Other Trump meta fall - As a result of the speculation, already-launched tokens in Trump’s name tumbled. For instance, TRUMP’s (MAGA) price plunged by 30.60% in the last 24 hours, data from CoinMarketCap showed.

Another token NEVER SURRENDER (TRUMP) lost 44.16% of its value within the same period. Following, the development, several DJT tokens appeared on the Solana blockchain.

Also, many of them did incredible numbers within a short period. Per DEXScreener, one of the DJT tokens rallied by 1,602% in 24 hours with the market cap crossing $1 million.

Is this good for the industry? Meanwhile, there have been some comments about the purported plan, and the potential impact on the crypto market. For instance, David Bailey, a vocal part of the crypto community said:

“If the DJT Solana memecoin is fake, whoever propagated that needs to be tarred and feathered and chased out of our industry for good. This is how you make the whole industry look back and signal to the President and his team we're a liability, not an asset.”

At the time of writing, Trump nor any member of his campaign team has come out to confirm or deny the plan.

Bitcoin bullish indicator suggests massive gains: To what price?

Key points:

  • An analyst predicted that BTC would soon begin its increase above $100,000.

  • On-chain data revealed that the coin continues to face sell-offs.

News - Gert van Lagen, an analyst on X, shared his opinion that Bitcoin’s price can reach $127,000 this cycle.

Despite the bullish prediction, the coin struggled to revisit $70,000 while trading at $66,000. However, on-chain analysis showed that the analyst’s forecast might not come to pass anytime soon.

Network becomes overvalued - This was because of the signals from the NVT Ratio. NVT stands for Network Value to Transactions. When it increases, it means that the Bitcoin network is overvalued. However, a fall in the metric suggests that the network is underpriced.

Data obtained from Glassnode showed that the NVT Ratio spiked. This indicates that BTC could face selling pressure, and its price might decrease to $65,000.

Selling pressure dominates - Another metric that fueled the bearish outlook was the Taker Buy Sell Ratio. This metric tracks the buying and selling pressure in the market. Values above 0.50 indicate high selling pressure for the Taker Sell Ratio, and if it is the same for the Taker Buy Ratio, it indicates buying pressure.

According to CryptoQuant, the Taker Sell Ratio was above the threshold while the Buy Ratio was below it. Hence, Bitcoin could face another downturn. However, if the coin were to reach $127,00, it would be in the long term.

Is Ethereum’s price at risk following the decline in Stablecoin volume?

Key points:

  • Stablecoin volume on Ethereum closed in on bear market lows.

  • ETH holders remained optimistic about the price potential.

News - In an unexpected turn of events, ETH could be close to falling into the bear market. Evidence of this was reflected in the stablecoin volume on the blockchain.

According to historical data, a decline in Ethereum’s stablecoin volume to $30 billion confirms a move to the bear phase. From AMBCrypto’s observation, the volume fell from $81 billion to $40 billion, indicating that the altcoin needs a good money flow to prevent the occurrence.

Investors are confident - Despite nearing such levels, ETH holders continue to show belief in the token. This was shown by the LTH-NUPL. This acronym stands for Long Term Holder-Net Unrealized Profit/Loss.

It indicates the sentiment long-term investors have about a cryptocurrency. As of this writing, the LTH-NUPL was in the belief zone, meaning that investors were confident in the price potential.

High volatility, and a bull phase - Furthermore, volatility around the token increased. This means that prices can fluctuate rapidly to a high level if buying pressure increases. But if selling pressure remains present, ETH could plunge to unanticipated low levels.

In addition, the Market Value to Realized Value (MVRV) Long/Short Difference proved that ETH might not fall into the bear zone. Positive values of this indicator mean that a cryptocurrency is in a bull market. However, if the reading is negative, it means that the assets have dropped into the red zone. For ETH, it was the former.

Interesting facts

  • Before Hall Finney advanced the Proof-of-Work (PoW) concept as the consensus mechanism behind Bitcoin, the original idea was to prevent spammers from using a high computational power to send a high amount of email to many users at once. This was also the first use case of PoW.

  • The EOS blockchain holds the record for the highest amount of money raised in an Initial Coin Offering (ICO). For context, ICO is a means by which a project raises money for a cryptocurrency venture. Between 2017 and 2018, EOS, founded by Hong Kong-based company, raised a staggering $4.1 billion by selling over 1 billion EOS tokens. In June 2018, the firm launched the EOS blockchain.

  • Several global crypto adoption reports identify India as the country with the most crypto users. According to the reports, the country has over 90 million people holding one cryptocurrency or another. Other nations like China, the United States, the Philippines, Vietnam, and Nigeria also fall into the top 10.

Top 3 coins of the day

Shiba Inu (SHIB)

Key points:

  • SHIB’s price fell to its lowest point in almost five months.

  • The token was oversold, suggesting that the price may bounce soon.

What you should know - For the first time since the 1st of March, SHIB fell to $0.000018. This was a result of a 10.76% plunge in the last 24 hours. On the 4-hour chart, AMBCrypto observed that the Relative Strength Index (RSI) was 26.43. When the RSI reading is below 30, it means that a cryptocurrency is oversold. Therefore, despite the bullish sentiment in the market, a slight buying pressure could help SHIB bounce. If this happens, the price of the token may retest $0.000020 within a few days. On the other hand, if the bearish momentum continues, SHIB’s price might hit new lows.

Worldcoin (WLD)

Key points:

  • WLD distribution continued, suggesting a further price decline.

  • The next target for the token could be $2.50 as momentum trended downwards.

What you should know - Worldcoin was one of the biggest losers of the last 24 hours. As of this writing, the price was $2.77. However, it does not seem like the price would erase this loss anytime soon. This was the signal the Accumulation/Distribution (A/D) indicator gave. As of this writing, the A/D line trended downwards, suggesting that selling pressure was intense. Furthermore, bears breached the $3.29 support, reinforcing that it could be challenging for WLD to recover. Apart from that, the Awesome Oscillator (AO) was negative, indicating increasing downward momentum. By the look of things, WLD could decline to $2.50 if the market condition does not get better.

Binance Coin (BNB)

Key points:

  • With decreasing volatility, BNB might find it difficult to retest its all-time high.

  • A potential rebound could see the coin hit $605.30 in the short term.

What you should know - BNB was the first altcoin from the 2021 bull market to break its all-time. But since it rallied past $700, the price has been falling. As of this writing, BNB’s price was $592.70. A look at the Bollinger Bands (BB) showed a decrease in volatility. Hence, the coin might not experience notable price swings in the short term. If prices bounce, BNB may jump to the $605.30 resistance. On the other hand, an increase in selling pressure could lead the cryptocurrency down to $572.

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