PEPE's next ATH revealed

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Bitcoin enthusiasm wanes as on-chain activity drops to 2019 lows

Key points:

  • On-chain activity, indicating transaction volume and user engagement, is at its lowest point since 2019.

  • The decline can be attributed to the broader market sentiment of fear and uncertainty.

News - Bitcoin's meteoric rise at the start of the year appears to be losing steam. After surpassing $70,000, the leading cryptocurrency has seen its price dip over 11% in the last month. This decline has been accompanied by a worrying trend - a significant drop in on-chain activity.

What do metrics say? Data from Santiment, a blockchain analytics firm, reveals that Bitcoin transactions are at their lowest point since 2019. This suggests a cooling interest among traders, a stark contrast to the earlier excitement.

Experts believe this slump reflects a broader sentiment of fear and uncertainty within the market, which historically coincides with periods of high volatility.

What’s more? The slowdown extends beyond Bitcoin itself. The Runes Protocol, which generated record fees upon its launch, has witnessed a significant decline in user engagement and transaction volume. Similarly, the highly anticipated spot Bitcoin ETFs seem to be losing momentum

Further, there has been a decline in the Long/Short ratio for BTC which suggests a decrease in bullish sentiment. It also implies that the number of long-term holders betting on future price appreciation has shrunk.

Charles Hoskinson criticizes CBDCs; advocates for crypto's social contract vision

Key points:

  • Cardano founder Charles Hoskinson argues crypto can create new social contracts promoting accountability.

  • He warns that CBDCs could lead to increased government control and user privacy concerns.

News - Cardano founder Charles Hoskinson emerged as a vocal critic of Central Bank Digital Currencies (CBDCs) in a recent social media post.

He argued that the core principle of cryptocurrency lies in creating new social contracts that hold powerful entities accountable.

Hoskinson urged the crypto industry to focus on this core purpose and avoid getting bogged down in regulatory debates.

Dangers of CBDC - He warned that failing to do so could pave the way for CBDCs to become the dominant force. Thus, leading to increased financial surveillance and limited user control.

This viewpoint aligns with concerns expressed by privacy advocates who fear CBDCs could be used for extensive government monitoring and economic manipulation. Author Robert Kiyosaki has also voiced similar warnings.

However, proponents of CBDCs highlight potential benefits like faster transactions and stronger safeguards against fraud. Well, central banks worldwide are actively exploring CBDCs, with an overwhelming majority of nations considering their implementation.

Memecoin PEPE eyes all-time high as bullish signals emerge

Key points:

  • PEPE is exhibiting a bullish pattern, suggesting a potential price surge.

  • The meme coin is nearing its all-time high and could potentially surpass it.

News - PEPE is stirring excitement with a potential surge towards its record price. Analysts are pointing to a bullish pattern forming on its chart, raising the possibility of PEPE retesting and exceeding its all-time high (ATH).

As of this writing, the meme coin gained over 3.6% over the last week, trading at $0.000008732 with a market cap exceeding $3.67 billion.

More details - Technical indicators suggested a potential breakout for PEPE. The coin's price has been consolidating within a bullish ascending triangle pattern since early April and appears poised for a move upwards. Several metrics support this breakout.

Looking beyond technical indicators, AMBCrypto analyzed Santiment's data for social sentiment. While PEPE's MVRV ratio remains positive, suggesting the coin isn't overvalued, its open interest has declined. This highlights the weakening of investors’ interest.

A potential hurdle - Finally, Hyblock Capital's data revealed a potential hurdle for PEPE's ATH challenge. Liquidations, which can trigger price corrections, are expected to rise sharply near $0.0000092. Overcoming this resistance level will be crucial for PEPE to reach and surpass its all-time high.

North Korean hackers target South Korean crypto firms with new malware

Key points:

  • North Korean hacking group Kimsuky is targeting South Korean crypto firms with a new malware variant called Durian.

  • The malware acts as an installer, deploying additional malicious tools for data theft and remote access.

News - South Korean cryptocurrency firms are under attack by North Korean hackers wielding a malware variant called "Durian." This revelation came from a 9 May threat report by cybersecurity firm Kaspersky, which identified the ongoing attacks.

According to the report, the Kimsuky hacking group, linked to North Korea, has been using Durian in a series of targeted attacks against at least two South Korean crypto firms.

The attacks involved exploiting a vulnerability in legitimate security software used specifically by these companies.

How does the malware work? Durian acts as an initial installer, deploying a chain of malicious tools. This includes a backdoor program named "AppleSeed," a custom proxy tool called "LazyLoad," and even legitimate software like Chrome Remote Desktop.

Kaspersky highlighted that Durian has advanced capabilities, including executing commands, downloading additional malware, and stealing data.

Reportedly, there is a potential connection between Kimsuky and the infamous Lazarus Group, another North Korean hacking group known for targeting cryptocurrency.

Did you know?

  • Bitcoin is the preferred currency of Liberland (government), a micronation proclaimed on 13 April 2015 by Czech politician Vít Jedlička. In fact, Liberland advertises itself as a ‘crypto-friendly sovereign state’ that runs fully on-chain.

  • According to reports, there is a social media post about Bitcoin every three seconds.

  • The world’s first NFT, Quantum, was minted on the Namecoin blockchain by Kevin McCoy in 2017.

Top 3 coins of the day

Tron (TRX)

Key points:

  • Only TRX noted a positive 7-day change out of all the top 20 coins.

  • On the lower timeframe, the market structure looked bullish.

What you should know - From 10 November to 1 February, TRX exchanged hands within a range of $0.0999-$0.0.1124. However, on 2 February, it saw a breakout in the upward direction. Thanks to the buying pressure, the bullish momentum held strong till 28 February. After which, selling pressure outweighed the buying pressure and the coin fell to a low of $0.11042 on 19 March. Since then, this level has been acting as a strong support whereas the $0.14221 area has held firmly as a good supply zone. At press time, RSI was found near the 63.46 mark facing south, thus signifying that the coin was about to see a fall in its price in the next few days.

Dogecoin (DOGE)

Key points:

  • The number of DOGE addresses holding between 100,000 and 1 billion coins has increased.

  • The high liquidity zone appeared at $0.15 and the market sentiment was negative.

What you should know - Dogecoin is currently caught in a bearish trend on higher timeframes. The immediate support zone sat between $0.11113 and $0.12424, which could hold if the downtrend weakens. However, a break below this zone could lead to further price decline. Resistance was strong around $0.18672-$0.20369. Trading near the lower Bollinger Band and forming lower lows since 4 May indicate continued bearish pressure. Overall, the outlook for Dogecoin leans towards further downside unless there's a significant shift in market sentiment or a breakout above resistance.

Polygon (MATIC)

Key points:

  • At the time of writing, MATIC was trading at $0.6522.

  • Its derivatives market saw Open Interest (OI) fall by 2% in the past day.

What you should know - MATIC surged from $0.35 on 25 Jan to $1.2845 (on 13 March) before a steep correction to its then support around $0.90. However, the same level has acted as resistance since 9 April. However, heavy selling on 12 April pushed the price further down to $0.5885. Since mid-April, MATIC has been stuck in a sideways trading range. At press time, the Chaikin Money Flow at -0.14 suggested some capital outflow, potentially hinting at continued weakness. A breakout above immediate resistance or a surge in CMF is needed for a bullish reversal.

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