Markets

Polygon (MATIC) Traders Could Cause 20% Price Drop With This $129 Million Move

Published

7 months ago

8 July, 2024

Polygon (MATIC) Traders Could Cause 20% Price Drop With This $129 Million Move

MATIC’s price recovery stalled at $0.49 on July 8 after rallying 14% over the weekend. Derivatives market data trends show that most MATIC traders are opting to close their positions amid rising volatility.

MATIC Price Nears $0.50 Retest as Bulls Show Resilience

MATIC’s price action mirrored this trend in the crypto market, which entered a downward spiral in the first week of July 2024. But following the positive Nonfarm Payrolls report released on Friday, Polygon (MATIC) flashed strong signs of recovery.

Built as a scaling solution for Ethereum, Polygon (MATIC) has struggled for traction since Ethereum migrated to Proof-of-Stake (PoS) consensus. This has led to an accelerated downturn as the crypto market sell-off intensifies.

MATIC Price Action | TradingView

During an intense crypto market sell-off, MATIC’s price has fallen below the $0.43 mark. Notably, this is the lowest value in over 2 years, since July 2022. But in comparison, most other altcoins in the top 20 crypto market rankings are still holding considerable gains on a yearly basis.

This highlights how much MATIC has underperformed amid fears of obsolescence since Ethereum completed its PoS migration in September 2023 and the expected migration to a new ‘POL’ token.

Over the past few months, the Polygon team has taken important steps to boost investor confidence. Marco partnerships with trending projects like Chainlink, it could open up new markets and expand the utility of the MATIC token in the coming months.

But recent trends observed in MATIC derivatives markets suggest that investors are not embracing these new initiatives.

The Coinglass chart below tracks changes in the total capital invested in futures contracts for a specific crypto asset. When analyzed against current price trends, it reveals insights into the direction of investor sentiment.

MATIC Price vs. Open Interest | Coinglass

As illustrated in the chart above, MATIC’s open interest stood at $176.9 million on July 1. But since the frenzied liquidations in the spot market that led to a 24% drop in prices, MATIC derivatives traders have shown little resilience.

At the time of writing on July 8, MATIC’s open interest had fallen to $129 million. This $47.9 million decline represents a 27% decline in capital invested in MATIC’s derivatives markets.

When an asset’s open interest falls faster than its price during a market decline, it signals increasing bearish momentum for a number of reasons.

First, it indicates that traders are closing their positions, either voluntarily due to loss-cutting strategies or through forced liquidations, which exacerbates downward pressure on prices.

This behavior suggests a lack of confidence among traders in the asset’s potential for recovery in the short term, leading to a reduction in speculative buying and hedging activities in the derivatives market.

Second, the significant drop in open interest as seen in MATIC implies that new capital is not entering the market to support the asset.

This lack of new investment indicates that traders are either reallocating their capital to other assets with more promising short-term prospects or remaining on the sidelines due to uncertainty.

Consequently, this reduction in open interest, coupled with the recent price drop, reinforces a bearish outlook for MATIC unless there is a notable shift in market sentiment or a resurgence of buying interest in both the spot and derivatives markets.

MATIC Price Prediction: $0.40 Retest Imminent?

MATIC has been experiencing a significant downtrend, as evidenced by the series of lower highs and lower lows on the daily chart. The price is currently trading at $0.4978, just above the ALMA (Arnaud Legoux Moving Average) at $0.4899, which is acting as a short-term support level. However, the broader bearish sentiment remains dominant, and the potential for further downside is considerable.

Recent price action has seen MATIC recover slightly from a low of $0.4602, gaining approximately 4.19% in the process. Despite this short-term bounce, the overall trend remains bearish.

MATIC Price Prediction | TradingView

The Fibonacci Auto Retracement levels indicate that the price is struggling to break above the 23.6% retracement level, which aligns with the $0.5143 resistance. If MATIC fails to sustain above this level, it could lead to another wave of selling pressure.

The key support levels to watch are $0.45 and the psychological level of $0.40. The $0.45 level has previously acted as support, and a break below it could signal a retest of the $0.40 level, which would mark a significant decline.

On the upside, the $0.5143 level acts as immediate resistance, followed by $0.55, which aligns with the 38.2% Fibonacci retracement level. A break above these levels would be needed to invalidate the bearish outlook and signal a potential reversal.

Disclaimer: This content is informative and should not be considered financial advice. The views expressed in this article may include the personal views of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

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Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

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Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

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Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week