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Expert Urges Caution: Will $140 Support Drive SOL To $200 Or To $100?

Mark Brennan
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Expert Urges Caution: Will $140 Support Drive SOL To $200 Or To $100?

As many holders have come to realize, Solana (SOL) is at a pivotal moment. It is now trading around the $140 support level. This is big since the coin’s next move could lead to a rise towards $200 or a drop to $100. The formation of a bullish flag pattern suggests potential, but bearish risks are still significant.

This text can be valuable not only for Solana (SOL) holders, but also for those looking for more diversification and stability opportunities.

Solana (SOL) Network Surge: Will Increased Activity Propel It Higher or Present a Buy-the-Dip Opportunity?

There has been 151% more activity on the Solana (SOL) network. This has caused its price to rise between $143.07 and $149.55. Despite this leap, Solana (SOL) struggles to regain the $155 mark. The 10-day moving average is at $147.17 and the 100-day moving average at $155.09. Market sentiment is mixed, with some experts noting that the $130 support level could act as a critical floor if the upward trend falters.

Mario Solana Tweet
Mario Solana Tweet

The price of Solana (SOL) faces big problems at resistance levels of $203.39 and $234.92. The Relative Strength Index (RSI) of 44.79 shows that the coin is neither overbought nor oversold. That means it could move either way.

SOL USD Trading View
SOL USD Trading View

In the coming days, Solana (SOL) ability to maintain current levels will be crucial. Boosted network activity might help it break through resistance and target higher prices. Conversely, a dip towards $130 could provide a buying opportunity for those looking to enter at a lower cost. With strong network fundamentals and rising activity, any pullback might offer a chance to jump in before a potential rally. Those interested should monitor these key levels and indicators closely to gauge Solana (SOL) short-term price trajectory.

Minotaurus (MTAUR): 74% Off Beats Solana’s Potential Decline

In case Solana (SOL) drops from its current price of $144.84 to $130, it would represent a 10.3% decline. In contrast, Minotaurus (MTAUR) is priced at $0.000053 per token in its presale, with a projected listing price of $0.0002. This equates to a nearly 400% surge. Even if Solana (SOL) dips, the substantial potential upside from Minotaurus (MTAUR) could offset any negatives for your portfolio. Being a potentially more stable alternative in this period of volatility is a huge selling point for this project.

Minotaurus And Bulls
Minotaurus And Bulls

Minotaurus (MTAUR) is already revolutionizing several niches and generating buzz by blending gaming with blockchain technology. With engaging hybrid casual gameplay, Minotaurus (MTAUR) enters a fast-growing niche and offers tokens at almost 74% off.

The project features multi-layered incentives, including referral bonuses and vesting perks. Backed by solid tokenomics, verified smart contract safety, and AI-driven in-game utility, Minotaurus (MTAUR) ensures a secure and immersive experience. Supported by an experienced team and a clear roadmap, it also presents a promising opportunity for crypto enthusiasts to explore the impressive potential of both gaming and blockchain.

Conclusion

This is a critical moment for SOL as we discuss its possible future and current volatility. For those seeking stability and substantial growth potential, MATUR offers a compelling alternative now more than ever. With a presale price at 74% off, it could significantly strengthen your portfolio amidst SOL uncertainties.

Meme Coins Vs Stablecoins: Which Is Right For You?

Andrew MacGill
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Meme Coins Vs Stablecoins: Which Is Right For You?

Since the inception of coins in 2009, the cryptocurrency landscape has significantly transformed from a niche market into a major global force in finance. Today, thousands of cryptocurrencies exist, each with its unique features, purpose, and communities. Among these digital assets, two types of digital assets have gained a lot of attention, which are stablecoins and meme coins.

Stablecoins are designed to provide stability in an otherwise volatile market and are tied to traditional fiat currencies and other assets. Meme coins, on the other hand, are born from internet culture and social media trends that are community-driven and can be very unpredictable. Depending on your risk tolerance and financial goals, this guide will provide the valuable insights needed to help you choose the right investment for you.

What Are Meme Coins?

Meme coins are cryptocurrencies that often originate from internet memes or pop culture references. These meme coins are created mainly for entertainment and speculative trading. Like most cryptocurrencies, meme coins are highly volatile, with prices subject to rapid fluctuations driven by public sentiment and social media trends. 

ReadWrite’s Michael Graw says that there are several new meme coins to buy with the value exceeding 10,000%. This is because meme coins have undergone a significant transformation from being perceived as a bit of fun to transforming into legitimate crypto projects that tackle real-world issues. For instance, projects like Pepe Unchained ($PEPU) have its own Layer 2 blockchain and Wiener AI ($WAI) provides an AI trading bot solution, highlighting how meme coin projects have developed into more serious projects with specific use cases. These features and functions help legitimize meme coins as more than just speculative assets.

The strong communities surrounding meme coins play a pivotal role in their success and value. Investors are often attracted to the cultural relevance and entertainment value these coins offer. The rise of meme coins has been heavily influenced by social media dynamics and celebrity endorsements. For example, Elon Musk’s tweets about meme coins have shown how social media can dramatically impact the value of these coins. 

What Are Stablecoins?

Stablecoins, on the other hand, are designed to maintain a stable value by pegging their worth to a reserve asset like the U.S. dollar or gold. Stablecoins were created to reduce the volatility the crypto market is known for by maintaining a fixed exchange rate with a stable asset. This makes it more suitable for transactions and as a store of value within the crypto ecosystem.

Stablecoins are often used for everyday transactions, trading on exchanges, and as a bridge between traditional fiat currencies and cryptocurrencies. They allow investors to easily convert their crypto holdings into a stable asset, making transactions easier and minimizing the risk associated with price fluctuations.  

There are four different types of stablecoins, each with its own strengths and weaknesses: 

  • Fiat-backed: These specific stablecoins are backed by fiat currency like the U.S. dollar and are held in a bank account or with a trusted custodian. Popular fiat-backed stablecoins include Tether (USDT), USD Coin (USDC), and TrueUSD (TUSD).
  • Crypto-backed: This specific category of stablecoins is backed by other cryptocurrencies. Smart contracts manage the collateralization and ensure that these stablecoins maintain their peg. The Dai (DAI) is backed by a mix of cryptocurrencies and managed through the MakerDAO protocol.
  • Algorithmic-backed: These stablecoins use algorithms and smart contracts to control the supply of the coin, adjusting it based on demand to maintain price stability. These stablecoins are not backed by any collateral but rather rely on market mechanisms to stabilize their value. Ampleforth (AMPL) and TerraUSD (UST) are examples of this specific stablecoin.
  • Commodity-backed: These stablecoins are backed by a physical asset like gold. The value of the coin is tied to the value of the underlying commodity. Examples include Paxos Gold (PAXG) which is backed by physical gold held in custody.

Pros and Cons of Stablecoins

Pros

  • Price stability: Stablecoins maintain a stable value that reduces the volatility typically associated with crypto. 
  • Integration with DeFi: These coins provide a stable medium of exchange for various decentralized finance apps. 
  • Liquidity: Stablecoins provide liquidity to crypto markets, allowing traders to move in and out of positions quickly without needing to convert to fiat currencies.
  • Ease of use: Stablecoins operate from wallets in similar ways to traditional cryptocurrencies, making them relatively easy to use.
  • Hedge against failing markets: Stablecoins have become quite popular with traders to hedge against other cryptocurrencies when the markets experience a price decline, for instance.

Cons

  • De-pegging risk: Changes in the market, lack of trust, or possible issues with available funds can lead to stablecoins moving away from their intended value, as seen in the collapse of TerraUSD. 
  • Centralization risk: Many stablecoin assets are issued by centralized entities like Tether that control the backing assets and the issuance process. Investors have no choice but to trust that the issuer maintains sufficient reserves and operates sustainably.
  • Reserve management: In the case of fiat-backed stablecoins, the management and auditing of reserve assets are crucial. The lack of transparency, poor management, or any fraudulent behavior by the issuer can seriously undermine the asset’s liability.
  • Counterparty risk: having to rely on external reserves introduces the risk of entities holding the reserves, which could potentially fail to honor redemption requests.
  • Lower yields than DeFi: Compared to traditional cryptocurrencies, yields on stablecoins and DeFi applications are much lower, although still significantly higher than traditional bank interest rates.

Pros and Cons of Meme Coins

  • Potential for high returns: Meme coins can experience rapid price increases, leading to substantial profits for early investors. For instance, coins have seen dramatic price surges, allowing early adopters to realize significant gains. Additionally, the success of meme coins has seen significant strides towards mainstream adoption accept meme coins as a valid form of payment.
  • Low barrier to entry: Many meme coins are inexpensive compared to established cryptocurrencies, making them accessible to new investors. This low cost allows individuals to experiment with small investments.
  • Community engagement: Meme coins often foster vibrant communities centered around humor and shared interests. This social aspect can enhance the investing experience, making it entertaining and engaging.
  • Market accessibility: Meme coins are typically listed on popular exchanges, making them easy to buy and trade. This accessibility attracts retail investors who may not have a deep understanding of blockchain technology.
  • Innovation and experimentation: The meme coin space serves as a testing ground for new ideas and concepts in the cryptocurrency world. This environment can lead to innovative features and applications that may benefit the broader crypto ecosystem.

Cons

  • High volatility: Meme coins are notorious for their price volatility, which can lead to significant losses for investors. Rapid price fluctuations can happen based on market sentiment and social media trends, making them risky investments.
  • Lack of transparency: Many meme coins are created by anonymous developers, making it difficult for investors to assess the legitimacy and reliability of the projects. This anonymity can lead to trust issues within the community.
  • Limited liquidity: Some meme coins may not have a large or active trading community, resulting in limited liquidity. This can make it challenging for investors to sell their holdings when needed, potentially leading to losses.

Key Considerations Before Investing

Investment Goals

Meme coins offer the potential for high returns in a short period but also carry a significant risk of losses. They are more suitable for speculative investors seeking rapid gains. Stablecoins provide price stability and are much better suited for investors looking to preserve capital, use cryptocurrencies for payments, or as a hedge against volatility in other crypto assets.

Risk Tolerance

Meme coins are known for their extreme volatility and can experience quick, unpredictable price swings. Investors need a high-risk tolerance to stomach the potential for large losses. On the other hand, stablecoins are designed to minimize this volatility, making them a lower-risk option. However, they are not immune to risks like de-pegging, operational issues, or loss of confidence in the issuer.

Market Conditions

Meme coins tend to thrive in speculative, hype-driven markets where social media trends and celebrity endorsements can rapidly inflate prices, whereas stablecoins provide stability in unpredictable crypto markets and are useful for trading and transactions when other assets are experiencing price swings.

Use Case

Meme coins have limited utility beyond speculation and collecting, however, new projects are providing real-world solutions like $PEPU and $WAI. Most meme coin’s value is driven by community interest rather than real-world use cases. Stablecoins have several use cases including payments, remittances, DeFi applications, and as a bridge between crypto and fiat currencies. 

Conclusion

When deciding between investing in meme coins or stablecoins, it’s crucial for you to carefully consider your financial goals and risk tolerance. Stablecoins offer price stability and are ideal for those looking to preserve capital or engage in transactions without the volatility associated with other cryptocurrencies. Meme coins can provide high-risk, high-reward opportunities, driven by community engagement and social media trends. Ultimately, aligning your investment choice with your financial goals and risk appetite is crucial.

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Please note that The Crypto Basic does not endorse or support any content or product on this page. We strongly advise readers to conduct their own research before acting on any information presented here and assume full responsibility for their decisions. This article should not be considered investment advice.

 

Ethereum Supply Surges: ETH Enters Inflationary Phase as Emissions Outpace Burns

Albert Brown
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0
Ethereum Supply Surges: ETH Enters Inflationary Phase as Emissions Outpace Burns

Leading blockchain network Ethereum transitioned from a deflationary to an inflationary state amid a lower burn-to-mint ratio in the first half of 2024. 

CoinGecko, an independent crypto data aggregator, recently revealed that Ethereum emitted 540,958 ETH while only 465,657 ETH were burned from the beginning of 2024 up to now. This shift marks a significant reversal in Ethereum’s token economics, netting a total increase of 75,301 ETH in its circulating supply.

Ethereum Flips to Inflationary Trend

CoinGecko observed that Ethereum exhibited deflationary characteristics between the fourth quarter of 2022 and the first quarter of 2024. 

Notably, Ethereum’s emissions totaled 220,454 ETH, though this was followed by a higher burn rate of 333,555 ETH, effectively reducing the overall supply by 113,100 ETH. However, this trend reversed in the second quarter as the network saw decreased activity, pushing Ethereum into an inflationary phase.

According to CoinGecko, throughout the second quarter of 2024, the Ethereum network emitted 228,543 ETH while burning only 107,725 ETH, which resulted in an increase of 120,818 ETH in circulation. Notably, July 2024 experienced the lowest monthly burn rate on record for the year, with just 17,114 ETH burned, marking a significant 35.0% decline from June’s figures.

Ethereum burn and mint graph by CoinGecko
Ethereum burn and mint graph by CoinGecko

Notably, since the enactment of EIP-1559 in June 2021, which established a system for burning part of the transaction fees, Ethereum has burned over 400,000 ETH. To date, the cumulative total of ETH burned has reached 4.36 million.

Uniswap Burned 71,915 ETH 

Uniswap leads the charge in ETH burning, eradicating 71,915 ETH from the market in 2024, including 2,470 ETH in July alone. Behind Uniswap, ETH transfers and Tether (USDT) transactions are major players in the burn mechanism. 

To date, ETH transfers have led to 33,538 ETH being burned, while Tether’s activities have removed 23,332 ETH from circulation this year. Other platforms also participate in burning ETH, though to a lesser degree.

Ethereum Supply Grows as Spot ETF Attracts Fresh Inflows

Ethereum’s shift to an inflationary state coincides with its recent surge in investor interest, as evidenced by a $4.9 million net inflow into the Ethereum spot ETF. This influx marked the first in four trading days, coinciding with Ethereum’s 3% price gain, outperforming major assets like Bitcoin and Solana. 

The growing supply, driven by emissions outpacing burns, and the renewed investor confidence highlighted by the ETF inflow reflect the complex dynamics at play within Ethereum’s ecosystem as it navigates both inflationary pressures and market optimism.

As of press time, ETH traded at $2,718.94, indicating a 2.7% price increase in the past 24 hours.

Circle CEO Weighs in on Election’s Impact on Crypto: What’s at Stake for the Industry

Abdulkarim Abdulwahab
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0
Circle CEO Weighs in on Election’s Impact on Crypto: What’s at Stake for the Industry

The U.S. presidential election looms just 90 days away, and the crypto community closely monitors the candidates’ positions on digital assets. 

Jeremy Allaire, the CEO of USDC issuer Circle, has voiced his thoughts on what the outcome could mean for the industry.

During a recent interview, Allaire highlighted contrasts in how the current administration and the leading candidates like Donald Trump are approaching cryptocurrency. 

Allaire first noted that there has been some bipartisan progress in crypto legislation over the years—enough that crypto seemed to be a “purple” issue or lucky for a while. Yet, the overall stance of the current administration has been less favorable, driving innovation and jobs overseas. 

This has created an environment where policy is being shaped more by courts than by Congress, a situation Allaire believes is detrimental to the growth of a new technology industry like blockchain.

Leading Candidates’ Approach to Cryptocurrency 

Notably, former President Trump has made efforts to position himself as crypto-friendly. Meanwhile, the depth of his understanding and commitment to digital assets is still being scrutinized. 

On the other hand, Vice President Kamala Harris is making a concerted effort to engage with the crypto community to repair the soiled image.

This is evident in the meeting involving Ripple, Circle, and other industry leaders. Her campaign actively seeks to understand the industry’s key issues, but no official position has been communicated.

“The crypto community is looking for clear statements, particularly from Harris, regarding her economic policy agenda,” Allaire noted.

The stakes are high for the crypto community, as the next administration will play a critical role in shaping the regulatory environment for digital assets in the U.S. 

Also, with Europe and other markets moving ahead with comprehensive regulation, the U.S. risks falling behind if it fails to adopt a supportive stance on crypto. 

Essentially, for the crypto industry, the upcoming election is more than just a political event. It’s a defining moment that could either bolster or hinder the U.S.’s position as a leader in digital assets.

GOP presidential candidate Trump continues to use this point to court the crypto community, promising to make America the epicenter of crypto advancements.

What Do You Need to be a Millionaire if Shiba Inu Only Hits 1 Cent

Sam Wisdom Raphael
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What Do You Need to be a Millionaire if Shiba Inu Only Hits 1 Cent

A market participant might need much fewer Shiba Inu tokens to become a millionaire in USD if SHIB eventually reaches the 1 cent dream.

The Shiba Inu success story remains one of the best representations of the cryptocurrency market’s ability to transform pennies into fortunes. According to a CoinGecko report, SHIB’s meteoric surge from 2020 to 2021 turned a $12 investment into $1 million in less than two years.

Shiba Inu Investors Continue to Hold

This impressive success has played a role in sustaining the optimism around Shiba Inu. Of the total 1.35 million addresses holding SHIB, data from IntoTheBlock indicates that 1.05 million of them have been holding the asset for over a year. This cohort of addresses, aptly called “HODLers,” represents 77% of the total SHIB wallets.

Shiba Inu Addresses by Time Held
Shiba Inu Addresses by Time Held | IntoTheBlock

However, it bears mentioning that the number of addresses held for over a year was just 887,380 exactly a year ago. This shows that more investors have continued to hold onto their Shiba Inu tokens regardless of the market conditions.

Despite SHIB witnessing a series of declines and occasional upsurges, these investors have remained optimistic. This is due to an expectation of an imminent price rally that could see Shiba Inu reach greater heights. These investors believe SHIB is capable of replicating a fraction of the 2020/2021 rally to create more millionaires eventually.

How Much Needed to be a Millionaire if SHIB Hits 1 Cent

Most of these market participants expect price surges to certain price targets, such as the $0.01 or 1 cent goal. Amid the bullish expectations, the host of Altcoin Daily recently asked if it’s really possible for SHIB to hit the 1 cent goal and transform investors into millionaires.

In March, Lucie, a Shiba Inu ecosystem marketer, stressed that she believes SHIB is capable of reaching $0.01. However, she emphasized that this goal might not materialize anytime soon. Meanwhile, analysts at crypto platform Telegaon projected last November that Shiba Inu might hit $0.01 between 2030 and 2040. 

Should this $0.01 price goal ever come to fruition, an investor would need only a modest amount of SHIB to become a millionaire. At such a price, one would only need 100,000,000 (100 million) Shiba Inu to sit on a $1 million investment. These tokens are currently worth $1,384 at SHIB’s current price.

While this assessment presents a clear investment plan, crypto investments are rarely ever so straightforward. Shiba Inu would need to skyrocket by up to 72,154% from its current price to hit $0.01. Such a massive requirement reduces SHIB’s chances of reaching the level.

CryptoCom Unveiled as UEFA Champions League Crypto Partner

Sam Wisdom Raphael
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CryptoCom Unveiled as UEFA Champions League Crypto Partner

Leading Singapore-based crypto exchange platform Crypto.com formed a multi-year deal with UEFA as the UEFA Champions League crypto partner.

The crypto exchange announced the development through a press release on Aug. 14. This multi-year agreement positions Crypto.com as the first cryptocurrency platform to partner with UEFA, as well as the only. The sponsorship will cover the commercial cycle from 2024 to 2027. 

Details of the UEFA Partnership

The partnership will be officially revealed when the recent Champions League winners Real Madrid meet against the recent Europa League champions Atalanta for the Super Cup final in Poland today. Notably, the partnership also extends to related UEFA events like the Futsal Champions League and the Youth League.

This new deal marks a major milestone for Crypto.com, a company that has steadily grown its presence in the sports world. For context, the final of the Champions League commands an average of 400 million viewers, one of the largest for any sporting match. 

The recent disclosure comes two years after Crypto.com pulled out of a previous partnership deal with UEFA, which would have made them the chief sponsor of the Champions League at the time. Reports confirm that the partnership deal amounted to $495 million, but Crypto.com pulled out due to legal issues.

The latest collaboration will increase Crypto.com’s visibility among these millions of football fans who follow the UEFA Champions League. With this deal, the company continues to bridge the gap between sports and cryptocurrency, aiming to promote digital currencies on a global scale.

Previous Partnerships

Crypto.com has been proactive in forming strategic partnerships within the sports industry. Previously, the company secured sponsorship deals with major sports organizations such as the FIFA World Cup 2022 in Qatar, Formula 1 and UFC. 

These collaborations have helped Crypto.com grow its customer base. Interestingly, the exchange revealed in May 2024 that it had surpassed 100 million users globally.

Beyond Crypto.com, collaborations between crypto and sports entities have gained momentum through various other significant deals. Binance, another leading cryptocurrency exchange, partnered with football superstar Cristiano Ronaldo in 2022 to launch a series of NFTs, further solidifying the bond between digital assets and sports. 

Additionally, other football clubs, such as Paris Saint-Germain and Manchester City, have embraced blockchain technology through partnerships and fan tokens, providing unique fan experiences and engagement.

MetaMask Launches Crypto Debit Card in Europe and UK 

Lele Jima
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MetaMask Launches Crypto Debit Card in Europe and UK 

Ethereum-based digital wallet provider MetaMask partners with Mastercard and Baanx to launch the pilot version of its MetaMask debit card. 

The initiative, announced in a blog post today, allows select European and UK users to spend crypto directly from their MetaMask Wallet. Additionally, MetaMask also announced the development in a lengthy X thread today. 

With MetaMask Card, eligible users can conveniently spend their cryptos anywhere Mastercard is accepted, bypassing the complicated process of first converting cryptocurrencies to fiat. 

MetaMask Card Eligibility 

Since the MetaMask Card is currently in its pilot phase, it is only available to select users in Europe and the U.K. MetaMask users within these regions are required to check whether they are eligible for the offer. They can do this by checking for a “Card” tab on their “MetaMask Portfolio.” 

Once eligible, MetaMask will redirect them to Baanx’s Crypto Life platform, where they can set up their accounts and cards. 

Conversely, users who are not eligible for the pilot program are required to fill out a form to receive a notification when they can sign up for the service. 

Support and Other Features 

At its pilot launch, MetaMask Card will only support three Linea-based assets, such as USDT, USDC, and WETH. The pilot phase also supports the card’s integration with Google Pay and Apple Pay for immediate use.  

The MetaMask Card is a groundbreaking initiative that leverages Mastercard’s global payment network, MetaMask’s security, and Linea network’s efficiency. 

Through this combination, MetaMask Card’s users will enjoy fast, secure, and cost-effective spending experiences for in-store and online purchases. 

Consensys Product Manager Reacts 

Commenting on the initiative, Lorenzo Santos, the Senior Product Manager at MetaMask’s development company, Consensys, said the card will give users greater flexibility in spending their cryptocurrencies.

He revealed that the MetaMask Card marks a significant advancement in eliminating the barriers separating blockchain technology from real-world commerce. 

“This is a paradigm shift that offers the best of both worlds,” Santos remarked. 

Bitcoin Rebounds to $61K But Experts Predicts $65,000 Target Following Positive US CPI Data

Albert Brown
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Bitcoin Rebounds to $61K But Experts Predicts $65,000 Target Following Positive US CPI Data

Bitcoin has experienced a notable rise, extending an overnight rebound amid an improvement in risk sentiments. 

The crypto rose by 3% today, reaching $61,024 and effectively recovering from the sharp losses it endured last week. Despite this rebound, Bitcoin’s further gains remain constrained by limited institutional inflows. 

$65,000 is The Target

Analysts and industry leaders anticipated further upsurge in Bitcoin’s value following the inflation data release. For instance, Dr. Martin Hiesboeck, Head of Research at Uphold, noted that Bitcoin could potentially reach $65,000 if the Consumer Price Index (CPI) numbers do not negatively impact the market.

The market’s positive movement reflects rising expectations for a 50 basis point U.S. interest rate cut, following the Producer Price Index (PPI) data released on Tuesday.

Despite traders still considering the possibility of a 25 basis point reduction, the recent Consumer Price Index (CPI) data, which shows general inflation below expectations but core inflation in line with predictions, supports the case for lower interest rates.

Such reductions typically enhance liquidity, making speculative assets like Bitcoin more attractive to investors.

Technical Analysis Highlights Bull Pennant Pattern

Additionally, technical analysis from Ali Martinez points to a bullish trend for Bitcoin, supported by the formation of a bull pennant pattern on shorter time frames.

This pattern typically follows a strong uptrend, characterized by a sharp price increase followed by a consolidation phase. The consolidation phase forms a symmetrical triangle, suggesting that the previous uptrend may continue upon a breakout.

Screenshot 9
Ali Martinez’s analysis chart

On Martinez’s chart, Bitcoin is currently trading near the 0.786 Fibonacci retracement level, indicating a key area of support during the consolidation. Should Bitcoin break out above the upper boundary of the pennant, a significant upward move is likely. 

The levels around $63,556 and $64,110 are key targets where price might face resistance. This aligns with the expectation of a surge towards $64,000 if the bullish momentum persists.

The price of Bitcoin has risen by over 3% in the last 24 hours and by 6.6% over the past week to trade at $60,941. 

Bitcoin Price Analysis: Can US CPI and Grayscale Investments Spark BTC Rally?

Mark Brennan
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0
Bitcoin Price Analysis: Can US CPI and Grayscale Investments Spark BTC Rally?

Bitcoin’s price broke above $61,700 on August 14, after climbing 7% in the last two days. On-chain data reveals increased whale demand from Grayscale’s investments trust coinciding the dovish US CPI data. Could BTC be on the verge of a $65,000 breakout?

BTC Surges 7% in 48-Hours

Bitcoin began August with a shaky start, but over the past week, the cryptocurrency has gained steady upward momentum. The most recent wave of Bitcoin’s rally can be linked to Grayscale, a major institutional investor, which announced new crypto asset offerings to its U.S.-based clientele.

The uptrend started when Grayscale launched new cryptocurrency trusts for SUI, TAO, and MKR. This event, occurring on August 12, was perceived by investors as a deepening of institutional adoption in the crypto space. The bullish sentiment from Grayscale’s move has since extended to Bitcoin, driving up its price.

Bitcoin Price Action (BTCUSD) | TradingView
Bitcoin Price Action (BTCUSD) | TradingView

As the chart above indicates, Bitcoin’s price has risen 7% in the last two days. On August 12, BTC was trading around $58,000, and by August 14, it had surged to $61,700. This price increase underscores the positive impact of Grayscale’s actions on the market.

Now, Bitcoin seems poised for further gains, driven by an imminent shift in the U.S. macroeconomic landscape.

Dovish CPI Could Drive BTC Further Upwards

Building on the momentum from Grayscale’s recent activity, Bitcoin’s price is also being buoyed by favorable macroeconomic conditions. On August 14, the U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI) data for July, which provided additional bullish sentiment for Bitcoin.

As shown in the chart above, the U.S. CPI rose by 2.9% year-over-year, slightly below the estimated 3.0%. Meanwhile, the core CPI, which excludes food and energy prices, increased by 3.2% year-over-year, matching the forecast. These figures suggest that inflation is slowing, reinforcing a dovish outlook on monetary policy.

US CPI Chart, Aug 2024 | TradingEconomics
US CPI Chart, Aug 2024 | TradingEconomics

A dovish CPI report can be interpreted as a signal that the Federal Reserve may halt its interest rate hikes or even consider a rate cut in the near future. Many market participants now expect an interest rate cut as early as September. Lower interest rates generally lead to a weaker U.S. dollar and higher demand for alternative assets like Bitcoin.

The combination of Grayscale’s institutional actions and the dovish CPI report presents a compelling case for a bullish Bitcoin price trajectory in the near term.

BTC Price Forecast: All Eyes on $65k Target

As Bitcoin continues its upward trajectory, strategic traders are closely watching the $65,000 target. The technical indicators in the chart below suggest that BTC is leaning bullish, with key resistance and support levels now in focus.

First, the Keltner Channels (KC) indicator highlights critical resistance at $65,000, with support solidified around $58,000.

Bitcoin Price Forecast (BTCUSD) | TradingView
Bitcoin Price Forecast (BTCUSD) | TradingView

If Bitcoin’s price breaks above the upper KC band at $65,000, it could trigger a robust bullish momentum, potentially driving the price even higher. On the downside, a breach of the lower KC band at $58,000 could signal a prolonged retracement, but this appears unlikely given the current market dynamics.

Bitcoin price outlook remains positive, supported by both institutional demand and favorable macroeconomic conditions.

Cardano Price Analysis: ADA Flashes $67.5M BUY Signal after 3-Day Consolidation

Mark Brennan
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0
Cardano Price Analysis: ADA Flashes $67.5M BUY Signal after 3-Day Consolidation
Cardano’s price hovered around $0.33 on Wednesday, August 13, consolidating within a narrow 2% range over the last three days. On-chain data indicates growing market demand for ADA, potentially signaling a breakout in the near term.

Cardano Posts 3-Day Consolidation at $0.33

ADA, the native coin of the Cardano blockchain, has underperformed the broader cryptocurrency market over the past week. The global cryptocurrency market cap surged by over 25.44%, adding more than $431 billion since August 5, fueled by bullish news such as Solana ETFs being approved in Brazil and Russia legalizing crypto mining.

Cardano Price Analysis (ADAUSD) | TradingView
Cardano Price Analysis (ADAUSD) | TradingView

Despite these market-wide gains, Cardano’s price action has been lackluster. ADA’s price rose modestly from $0.28 to $0.33, achieving just a 21% gain. Over the past three days, ADA’s price has stagnated around the $0.33 level, yet recent data suggests that demand for ADA is on the rise.

ADA Witnessing Market Demand Surge

After three days of price stagnation, growing market demand could soon propel ADA into a significant breakout. On-chain data reveals an influx of buy orders for ADA this week, which could be a precursor to a bullish move.

Exchange Order Books, which track buy and sell orders, typically show bullish signals when buy orders outweigh sell orders.

Cardano Exchange Order Books (ADAUSD) | TradingView
Cardano Exchange Order Books (ADAUSD) | TradingView

The chart above indicates total buy orders amounting to 198.86 million ADA, compared to 161.42 million ADA in sell orders. This excess demand, valued at approximately $67.5 million at the current average price, underscores the bulls’ growing influence in the market.

Two factors suggest that this could be bullish for ADA in the coming days. First, the sheer volume of buy orders indicates strong market confidence in ADA’s potential upside. Second, the accumulation of ADA at current levels could create a solid support base, making it more difficult for bears to push the price lower.

ADA Price Forecast: $0.35 Target in Sight?

Although Cardano has been consolidating, technical indicators suggest a bullish outlook. The Keltner Channels indicator highlights that ADA is trading near its lower band, which often acts as a support level. If the price can maintain above this lower band, it could rise toward the middle band at $0.35, which serves as the next key resistance level.

Cardano Price Analysis (ADAUSD) | TradingView
Cardano Price Analysis (ADAUSD) | TradingView

A break above $0.35 would likely attract more buying interest, potentially driving ADA toward the upper Keltner band at $0.43. However, should ADA fail to hold its current support at $0.28, a retest of this level could occur before any upward movement.

In conclusion, while ADA’s recent performance has been underwhelming, growing market demand and bullish technical indicators suggest that a breakout to $0.35 is achievable in the near term.

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