Binance Coin [BNB] Price Analysis: Bullish Momentum Taking Root
– Binance Coin [BNB] has reacted extremely positively over the past two days of trading, gaining 20.5% within four days.
– The daily market structure has turned bullish and a retracement before a sustained move higher up the charts remains possible.
– Spot CVD is surging past February highs in response to demand, while funding rate has slowly climbed back into positive territory, indicating long positions are once more dominant in the market.
Bullish Market Structure
The daily timeframe showed that the market structure for Binance Coin seemed to be bullish once more. The recent lower high at $294 was beaten during the latest reversal, but the $309-mark had posed some resistance over the past 24 hours. A strong confluence of support at $292 was found, which included the 78.6% Fibonacci retracement level and Value Area Low (VAL). Moreover, the price action from early March showed that this region ($285-$292) was significant support on the lower timeframes too.
The Relative Strength Index (RSI) crossed above 50, which indicated that bullish momentum had taken root in the market. The On Balance Volume (OBV) also recorded gains and could continue higher if buyers remain active in this period of consolidation.
Demand Rising In Spot Market
The spot Continuous Derivative Volume (CVD) rose significantly, surpassing its previous February highs in response to rising demand for BNB tokens among traders and investors alike. However, Open Interest (OI) dipped slightly over 48 hours despite an increase in price – suggesting there may be room for further upside movement if buyers remain active in this period of consolidation.
Potential Retracement Levels
Longer-term buyers can wait for a retracement into the $285-$292 zone as it has shown significant support on lower timeframes since early March and remains a potential entry point based on Fibonacci levels too. More risk-averse traders can wait for a positive reaction over three days before looking to buy and trade with the trend while monitoring indicators like RSI and OBV closely as well as keeping an eye on OI levels too.
In conclusion, Binance Coin [BNB] is showing signs of strength with its latest surge higher up the charts accompanied by strong demand from spot markets as seen by rising CVD figures along with funding rates returning to positive territory – suggesting longer positions are once more dominating current sentiment in this market segment . Traders should keep an eye out for potential pullback levels around $285-$292 before entering any new positions depending on their risk appetite while monitoring indicators like RSI and OBV closely too alongside OI levels as well
• Voyager has started the process of liquidating its digital assets, which includes 100,000 ETH.
• This could lead to a wave of sell pressure in Ethereum’s market, pushing prices below $1,500.
• Shorts traders might take advantage as bearish expectations continue to mount due to anticipated rate hikes from the Federal Reserve.
Voyager Starts Liquidation Process
Voyager recently filed for bankruptcy after suffering heavy losses and has begun the process of liquidating its digital assets. Initial data reveals that the company holds slightly over 100,000 ETH in addresses which will be sold off to creditors. The estimated value of these ETH holdings is over $150 million.
Ethereum Sell Pressure On The Way?
The impending liquidations may translate into a large amount of sell pressure within the next few days and possibly trigger a deeper bearish move below $1,500. So far bears have managed to push Ethereum’s price down by 12% since February highs to its press time price of $1,527.
Bearish Outlook Strengthens
Bearish expectations have been further strengthened courtesy of expected rate hike increases from Federal Reserve chairman Jerome Powell during a recent Senate hearing. He revealed that they might have to raise rates if they want to combat inflation better.
Leverage Ratio Suggests Short Positions Increase
This could be seen in futures estimated leverage ratio which has improved over the last two weeks as prices dropped. There appears to be healthy demand for short positions judging by the surge in this metric in the past two days alone despite bearish conditions prevailing overall.
Overall it looks like shorts traders will likely take advantage as sell pressure rises from Voyager’s liquidation and rate hikes remain on the horizon. It remains uncertain how much Ethereum’s price will drop but any sharp drops should not come as too much of a surprise given current market conditions
• Cardano’s stablecoin Djed has become the fourth largest project in the ecosystem.
• It was developed by Input Output and COTI networks and allows users to borrow and use it as collateral.
• Aada Finance is working on a full integration of Djed, which will allow users to borrow DJED and SHEN tokens.
Cardano’s Stablecoin Djed Rises to Fourth Largest Project
Djed Becomes Cardano’s Fourth-Biggest Project
Cardano’s [ADA] stablecoin Djed which launched on 31 January, has surpassed many projects in the ecosystem to become the fourth largest. Created by the blockchain’s development group Input Output in collaboration with the COTI network, Djed serves as the algorithmic stablecoin for Decentralized Applications (dApps) in the Cardano ecosystem.
COTI Team Pleased with Milestone
COTI, the blockchain enterprise provider revealed details of the development via a 2 March Medium post. According to their blog post, they were glad about this milestone and are now focusing on increasing adoption of DJED by creating more use cases for it and its reserve coin Shen. In February, Djed boasted of a 600% reserves ratio with 27 million ADA backing the stablecoin. With this over-collateralization mechanism, Djed would be able to remain stable irrespective of market conditions.
Djeds Contributions to Total Value Locked
It is also significant that DJED has contributed significantly to Cardano Total Value Locked (TVL). This metric shows how many unique deposits are made into an ecosystem by protocols. As of this writing, DeFiLlam showed that DJED’s addition to TVL was around $10.49 million despite its decline in last 30 days. This rise helped DJED gain 9% of total Cardano TVL according to Adaverse News | Cardano and Ergo News (@AdaverseNews).
Aada Integration With Djeds
Further details from COTI release disclosed that they were preparing a full integration with Aada Finance which is a lending protocol within Cardano’s system. This full implementation would allow users not only borrow but also lend both DJED & SHEN tokens through Aada Finance platform .
All these developments point towards increased usage for DJs reserve coins along with its over-collateralization mechanism making it resilient against market fluctuations . The team is focusing on expanding its adoption & usefulness while ensuring secure transactions among other features thus making it one of major projects within Cardanos eco system .
• Grayscale CEO Michael Sonnenshein discussed the importance of a spot Bitcoin ETF in an interview on „What Bitcoin Did“.
• Grayscale filed a lawsuit against the U.S. Securities and Exchange Commission after their application to convert GBTC to a spot Bitcoin ETF was rejected in mid 2022.
• Sonnenshein expects a decision by the fall of 2023 and oral arguments for the case will begin on 7 March.
Grayscale’s Lawsuit Against SEC
Grayscale Investments, a leading digital asset manager, filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in June 2022 after their application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange traded fund (ETF) was rejected by the securities regulator in mid 2022. The company is now looking for legal recourse as it believes that when an agency like the SEC treats two similar issues differently, it violates the U.S administrative procedures act.
The Importance of Spot Bitcoin ETF
In an hour-long interview on “What Bitcoin Did”, Michael Sonnenshein, CEO of Grayscale Investments, discussed various matters related to his company including the importance of having a spot Bitcoin ETF instead of GBTC which has been trading at 45% discount to its net asset value due to lack of arbitrage mechanism. According to him, converting GBTC into an ETF would ensure that its share price remains in line with its underlying asset while avoiding any discounts or premiums as seen currently with GBTC shares.
Relationship With Genesis
Michael Sonnenshein clarified that his firm did not have any operational reliance on Genesis which was undergoing chapter 11 bankruptcy proceedings at press time and thus does not affect its legal proceedings against SEC either way.
Oral Arguments for Lawsuit
The oral arguments for the lawsuit will begin on 7 March this year and according to Michael Sonnenshein’s expectations there should be some sort of decision by fall 2023 – if they lose their appeal they may go for re-appeal in United States Supreme Court too..
GBTC Investors Counting On Grayscale
Speaking about why investors are counting on them despite all obstacles he said: “We have now over a million investor accounts that own GBTC, (from) all 50 states, GBTC investors all over the world, that are counting on us to do the right thing for them.“
• Solana’s key DeFi indicators showed signs of recovery in an otherwise under par February.
• The chain’s daily DEX trading volume also showed signs of a rebound after it more than doubled at the time of writing.
• SOL has come out of the FTX-induced negativity to a great extent in 2023 with its price exhibiting higher volatility.
Solana’s Key DeFi Indicators Show Signs Of Recovery
Solana’s key DeFi indicators showed signs of recovery in an otherwise under par February. According to an 18 February tweet by Kamino Finance, Solana’s decentralized exchange (DEX) activity was better than other chains if a particular metric was put into consideration. Called ‚DeFi Velocity‘, the metric basically measures the trading volume versus total value locked (TVL) on a blockchain. The report highlighted that Solana’s average DeFi velocity for January stood at 0.25, more than twice of the second-ranked Polygon [MATIC] on the list.
Solana Witnesses Uptick In Its DeFi Activity
DeFi recovery on the cards? Solana witnessed an uptick in its DeFi activity with its TVL registering a 6% jump over the last week, data from DeFiLlama pointed out. This development came even as Solana underperformed in the month of February, impacted by a waning interest in its ambitious meme coin, BONK. The chain’s daily DEX trading volume also showed signs of a rebound after it more than doubled at the time of writing, plunging to a monthly low on 11 February. Despite this, the cumulative weekly volume dropped by 2.3%, highlighting the stress Solana has been in February.
SOL Price Performance
What does SOL’s price say? SOL has come out of the FTX-induced negativity to a great extent in 2023. According to data from CoinMarketCap, the token locked gains of 112% since the start of 2023. Of late, the price has exhibited higher volatility with wild inter-day swings. At press time, it was valued at $22.99 with a 1
• Ethereum [ETH] was the largest L1 in terms of TVL and fees, with a market cap of more than $183 billion.
• Santiment’s data revealed that despite the price decline, the amount of available ETH sitting on exchanges continued to fall.
• LunarCrush’s data revealed that Ethereum’s social mentions and social dominance recently hit three-month highs.
Ethereum [ETH] Leads Cryptocurrency Market
Ethereum led the cryptocurrency market at press time, as it remained the largest L1 in terms of Total Value Locked (TVL) and fees. At the time of writing, it was trading at $1,501.74, with a market capitalization of more than $183 billion.
ETH On-Chain Performance Looks Bullish
Despite Ethereum’s price dropping by 13% since peaking on 7 February, its on-chain performance looked bullish. Santiment’s data revealed that there have been 37% fewer coins in terms of dollar valuation on exchanges since the merge.
Bullish Signals for ETH Price
Not only this but several other factors were also indicating a positive future for Ethereum [ETH]. CryptoQuant’s data showed that Ethereum’s exchange reserve was decreasing which indicated less selling pressure; Glassnode noted that ETH’s open interest in perpetual future contracts reached a three-month high; finally, LunarCrush’s data showed an increase in Ethereum’s social mentions and social dominance over the last three months.
Will ETH Experience Another Bull Run?
Overall, these updates looked favorable for Ethereum [ETH] and hence it will be interesting to see whether or not it experiences another bull run soon.
Ethereum continues to dominate the cryptocurrency market with its impressive performance across various metrics such as TVL and fees. Furthermore, its on-chain performance looks bullish given recent developments such as decreases in exchange reserves and increases in social activity around it. It remains to be seen if this will lead to another bull run for ETH soon or not
• Ordinals is a recent NFT project that has recently gained popularity in the Bitcoin [BTC] community, with over 81,000 Ordinals minted at the time of writing.
• This increased activity has had a positive impact on the number of active and non-zero addresses on the Bitcoin network, reaching an all-time high of over 44 million.
• Despite this, Bitcoin’s price has remained below $22,000 and has not been significantly affected by Ordinals.
Ordinals is a recent NFT project that has recently gained popularity in the Bitcoin [BTC] community, with over 81,000 Ordinals minted at the time of writing. This new initiative to integrate NFTs into the Bitcoin ecosystem was introduced last month and saw its peak on 9th February 2023 with more than 20,800 inscriptions for that day alone.
Impact on Active Addresses
The increased activity from Ordinals have had a positive impact on the number of active and non-zero addresses on the Bitcoin network, reaching an all-time high of over 44 million as observed by Glassnode data. Furthermore Santiment’s metric showed a downward trend in January but an upward trend setting in during February resulting in a measure higher than what was seen in the better parts of January.
Despite this increased activity from Ordinal projects, it hasn’t been able to significantly affect BTC’s price which currently stands at about $21,700 despite being around $22k just weeks ago.
Overall there have been positive signs for Bitcoin as seen by its increasing active address count along with other metrics being positively impacted by new NFT projects such as Ordinals which have added more use cases to the king coin beyond peer-to-peer payments for first time since its inception 14 years ago. Despite this however BTC’s price still remains relatively low and hasn’t been significantly affected yet though this may likely change soon enough if more projects like these keep popping up regularly within crypto space.
Q: How much are 1 10 100 BTCs worth today?
A: Currently 1 10 100 BTCs is worth about 21 700 USD as per current market prices.
• South Korea’s Financial Services Commission (FSC) has issued a set of guidelines outlining which types of digital assets will be considered and regulated as securities in the country.
• The FSC will also permit security token offerings (STOs) through the amendment of its Electronic Securities Act.
• Cryptocurrencies that meet the definition of security tokens will be governed by the Capital Markets Law, while digital assets that do not meet the definition of securities will be subject to new regulations.
South Korea’s Financial Regulatory Guidelines for Digital Assets
Definition of Securities
The Financial Services Commission (FSC) of South Korea has issued a set of guidelines outlining which types of digital assets will be considered and regulated as securities in the country. It emphasized that digital assets that meet the requirements outlined in the country’s Capital Markets Act will be treated as securities. Securities are defined by law as financial investments in which investors are not required to make additional payments after their initial investment.
The FSC also gave examples of digital assets that are likely to be classified as securities, such as tokens that give holders a stake in business operations, rights to dividends or residual assets, or profit to investors. Bitcoin and Ethereum (ETH), crypto tokens with no centralized issuer, will not be considered securities.
Security Token Offerings Permitted
By amending its Electronic Securities Act, the FSC will also permit security token offerings (STOs). Cryptocurrencies that meet the definition of security tokens will be governed by the Capital Markets Law of the country. Meanwhile, digital assets that do not meet the definition of securities will be subject to new regulations. According to the FSC, token issuers and brokers such as crypto exchanges will use these regulations to determine which crypto is classified as a security. The evaluation process for this classification is done on a case-by-case basis according to FSC criteria.
Tracking System Implemented
South Korea has been an active participant in cryptocurrency for quite some time now and recently announced plans for establishing a decentralized digital commodities exchange in Busan city with government officials saying it should go live this year.. On 29 January 2021 ,the South Korean government announced implementation tracking system to combat money laundering and recover funds associated with criminal activities .
Global Crypto Center
The financial regulator also stated that these new guidance is part South Korea’s preparation for legalization ,issuance ,and distribution Security Tokens . This would make South korea one global crypto center leading technology market globally .
• PancakeSwap [CAKE] broke into the top five of daily active users (DAU) with 127,790.
• Despite the upturn in usage, CAKE failed to register a price increase and experienced a 2.56% loss in 24 hours.
• Investors may be taking profits due to an overbought RSI and continually hitting the upper Bollinger Bands (BB).
PancakeSwap’s DAU Surge
PancakeSwap saw a significant surge in Daily Active Users (DAU), breaking into the top five with 127,790 according to Token Terminal. This 12.1% increase in 24 hours indicated a surge in address interaction and transactions, being only behind Binance Coin [BNB], Polygon [MATIC], and Ethereum [ETH].
CAKE Price Not Keeping Up
Despite this strong performance, CAKE has yet to register an increase in its price. At press time, it had lost 2.56% of its value in the last 24 hours, with similar losses over seven days but gains of 26.53% over 30 days according to CoinMarketCap. The Relative Strength Index (RSI) indicates that selling pressure could be increasing due to the token being overbought as it was around 70 on 24 – 29 January before slipping back down currently at 62.75 on the daily chart according to TradingView.
Proposed Changes To Emissions
PancakeSwap is looking to make changes to its emissions by streamlining activity and voting started on 30 January which will end within 24 hours of its start date. This proposal aims to alternate distribution between staking, farming, and trading without changing total emissions overall.
Price Reversal On The Horizon?
Due to various metrics such as RSI and BB indicating an overbought status for CAKE combined with investors potentially taking profits, there might be an impending price reversal lower than what was seen recently for CAKE if these trends continue according to TradingView data analysis..
Overall PancakeSwap’s DAU surged significantly enough for them break into the top five however their token [CAKE] has not seen any real gains from this despite having some losses more recently due potential profit-taking by investors combined with metrics such as RSI suggesting it has become overbought
• MakerDAO voted in favor of a 2% extra yield income from Yearn Finance.
• The proposal centered around a DeFi strategy to help Maker earn an annual 2% yield, which would also help with PSM USDC reserves and transfer.
• MakerDAO’s Total Value Locked (TVL) increased by 20.42%, DeFi Llama’s data showed.
MakerDAO has recently voted in favor of a 2% extra yield income from Yearn Finance. This proposal centers around a DeFi strategy to help Maker earn an annual 2% yield, which would also help with PSM USDC reserves and transfer.
The vote showed that 71.56% of the MKR community voted in favor of the proposition, while 28.44% preferred to say no to the „Yearn to earn Yield“ proposal. Maker Governance is also voting to approve or reject the offboarding of the USDC-A, USDP-A, and GUSD-A vault types.
The approval of the proposal has meant that MakerDAO has added another means to generate income and add to its reserves. Despite the compliance, Maker remained second in the DeFi Total Value Locked (TVL) standings. Nevertheless, MakerDAO’s TVL increased by 20.42%, according to DeFi Llama’s data.
At press time, the MakerDAO TVL was $7.5 billion, which is massively down from its 2022 All-Time High (ATH). On 23 January, the governance arm of the DAI stablecoin developers put out another offer for voting, which points to the offboarding of the USDC-A, USDP-A, and GUSD-A vault types.
Overall, the MakerDAO community has shown its trust and confidence in the Yearn Finance protocol by voting in favor of the 2% extra yield income proposition. This could potentially lead to a growth in its Total Value Locked (TVL) and help to increase its reserves. Although Maker is still not at its All-Time High, it remains one of the most popular DeFi protocols and will likely continue to evolve and progress.