We catch up with @Minted_Max to talk about the positive news of the Fed keeping interest rates level for the rest of 2023. What is the impact on the Crypto Market?
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🐳 The largest #Ethereum wallets continue forming an encouraging pattern, with exchange wallets now reduced to 6-month lows (8.03M $ETH) and non-exchange wallets soaring to an #alltimehigh (41.03M $ETH). More and more coins continue moving to self custody.
📊 #Bitcoin (+6.9%), #Ethereum (+12.2%) #SP500 (+8.5%), and #gold (+1.5%) have had encouraging November performances. Particularly with the stock market, it has rapidly caught up to #crypto over these past couple weeks. If $BTC makes a run from here without stocks following suit, this would be a strong sign that the correlation between sectors is breaking once again, which is typically a recipe for a #cryptocurrency #bullmarket.
If we look into Ethereum itself, we might see massive divergencies across many metrics.
All above are red flags suggesting a dump. Divergencies quite massive all over the board, we might need to dive deep to reset it.
There is a reaction from holders that are probably scared by recent negative news - stablecoin dolphins and sharks:
And also some increased onchain activity on a number of altcoins forming a positive bullish divergence. For example, UNI:
The period of increased volatility is here. What's your bet?
The APT token experienced a substantial price decline in the last week following a prolonged rally. According to CoinMarketCap, APT ranked as the cryptocurrency asset with the most losses in the last seven days.
A look at the daily chart revealed that holders have heavily distributed their APT tokens. The position of the CMF lent credence to this. It was positioned at -0.01 at the time of writing. A negative CMF indicates a decline in buying pressure and is usually accompanied by a price drawdown.
Further, the Aroon Up Line was in a downtrend at 21.43%. When the Aroon Up line is close to zero, the uptrend is weak, and a price decline is underway.
Weighted sentiment for APT was negative and has so been since the month started. This showed that negative sentiment lingered in the market as investors remain unsure of a continued price rally.
It is no longer news that Ether [ETH] had an impressive run in January. Within that 31-day period, the leading altcoin's price rallied by over 30%. The price jump also caused it to trade at levels last seen prior to FTX's unexpected implosion.
However, as profit-taking intensifies, the alt might be gearing up to shed some (if not all) of its gains in February. A look at ETH's Aroon Indicator on the daily chart revealed that bullish sentiment has weakened significantly in the past few weeks. The Aroon Up line was spotted at 21.43%.
Usually, when the Aroon Up line approaches zero, it suggests a weak uptrend and a distant recent high, indicating the possibility of a trend reversal.
Also, currently, there is a dearth of new demand to help drive up the alt's price.
Lido Finance kicked off the 2023 trading year by displacing MakerDAO as the decentralized finance (DeFi) protocol with the highest total value locked (TVL). Still maintaining its spot, its TVL currently sits at $8.22 billion, per data from DefiLlama.
The reason for the rally in TVL is not far-fetched. With the Shanghai upgrade scheduled to take place before the close of Q1, 2023, the liquid-staking platform has witnessed a surge in the number of staked deposits on its platform.
Further, the growth in user activity on Lido Finance has contributed to a rally in the value of its native token LDO. On a year-to-date basis, LDO's price has gone up by 163%.
Interestingly, while the LDO addresses that hold between 100 and 1,000,000 LDO tokens have spent the last month accumulating the altcoin, holders of 1,000,000 to 100,000,000 LDO tokens gradually let go of their holdings.
In 2022, the play-to-earn gaming ecosystem experienced a significant decrease in user engagement due to the overall decline in the cryptocurrency market.
However, the current year has seen a resurgence of interest in the gaming aspect of the crypto industry. According to DappRadar, the leading P2E gaming platform, Axie Infinity, has observed a 59% increase in unique active wallets since 1 January.
Additionally, sales volume on the platform has risen by 214%, and the daily transactions count has increased by more than 100% during the year so far.
Due to heightened activity on the platform, new demand for its native tokens, Smooth Love Potion [SLP] and Axie Infinity Shards [AXS], and the number of daily active wallets trading these tokens rallied significantly to reach a peak by 14 January.
Since touching this peak, the prices of SLP and AXS have declined by 11% and 12%, respectively.