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Ethereum Price & Technical Analysis: ETH Busy Consolidating

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On Tuesday, September 8th, the ETH is consolidating, generally trading at $347.97 USD. Since the beginning of the months, the rate of the main altcoin has dropped by 25%.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

On D1, ETH/USD keeps correcting in an uptrend. The price is currently testing 38.2% Fibo. A breakaway of this level will signal further correction to $290.00 USD. Meanwhile, a bounce off 38.2% Fibo will signal further development of the uptrend. The MACD histogram is below zero, and the signal lines have formed a Black Cross. Judging by all the factors, in the nearest future, the pair will go on correcting to the target level of 50.0% Fibo. The goal of the growth after the pullback remains at $500.00 USD.

Photo: RoboForex / TradingView

On H4, the pair keeps correcting the uptrend. The Stochastic is in the oversold area, trying to form a Golden Cross. This may signal the end of the correction, though the chances for a decline to $290.00 USD are still quite high. Upon completing the correction, the pair may go on developing the uptrend to $500.00 USD.

Photo: RoboForex / TradingView 

According to the Santiment observations, key keepers of the Ethereum coins have started getting rid of the asset. Data shows that during a week, the volume of the ETH kept in the wallets of the leading users shrank by 6.1% to 15.89 million coins from 16.92 million earlier. Could this lead to a decline in the ETH rate? Yes, sure, but the leaders must have had some reason for getting rid of the asset.

The ETH has been having a strong fundamental driver – the upcoming launch of the Ethereum 2.0 network. We used to expect it in summer, but the summer is over, and the presentation never happened. The company keeps carrying out separate partial tests but gives no clear information about the date of the full-scale launch. This might be the reason for the decrease in the coin volumes in the top-100 wallets.

Some say that the decrease in the number of coins stored in the largest wallets is no signal for the upcoming sales of the asset. If so, we are just witnessing the process of reshuffling.

Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

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Kseniia Klichova
Author: Dmitriy Gurkovskiy

Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.





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Chinese Ride-Hailing Firm Didi Targets $60+ Billion Valuation in IPO

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Going by Didi’s updates prospectus, Morgan Stanley Investment Management Inc has shown interest in acquiring a share of up to $750 million in the IPO.

China’s ride-hailing giant Didi Global Inc is expecting that an IPO could value it at over 60 billion. An SEC filing made Thursday shows that the company is going to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol ‘DIDI’.

Didi will offer 288 million American Depository Shares (ADS) or 72 million Class A common stock, valued at $13-$14 each. At the upper end, the company could raise $4.03 billion, making it the biggest US IPO of 2021. It would also be the biggest U.S. share sale done by a Chinese company since 2014.

Moreover, in case of an over-allotment, the company could sell 43.2 million extra shares thereby raising an extra $605M.

Initially, Didi (Xiaoju Kuaizhi Inc.) wanted to list on the Hong Kong Exchanges (HKEX) but turned instead to NYSE. The business sought to mitigate risks for increased regulatory scrutiny in its practices, including using part-time drivers and unlicensed cars.

Already, the State Administration for Market Regulation (SAMR), China’s market regulator, has launched an antitrust probe on Didi. Investigations will determine if Didi has used unfair competitive practices, in addition to transparency in the ride-hailing pricing mechanisms. The probe is the latest, with Alibaba Group (HKG: 9988) and Tencent Holdings Ltd (HKG: 0700) having preceded.

Concerns over more Chinese regulatory crackdown have now cut the company’s IPO valuation by 33%. The drop was also attributed to uncertainty in the company’s growth prospects.

Didi Market Perspective and NYSE IPO

Going by Didi’s updates prospectus, Morgan Stanley Investment Management Inc has shown interest in acquiring a stock of up to $750 million in the IPO. Singapore’s Temasek Holdings Ltd. (SGX: TEKB) would also like to subscribe to $500 million worth of stock. Other giant tech firms in Asia counted as investors are SoftBank Group Corp (TYO: 9984), Alibaba, and Tencent.

Goldman Sachs Group Inc (NYSE: GS), JPMorgan Chase and Co (NYSE: JPM), and Morgan Stanley (NYSE: MS) are the IPO’s lead underwriters. On Thursday, Didi added to this cluster to include Barclays, Citigroup, and BofA Securities, among others.

Founded in 2021, the ride-hailing firm operates in 15 countries internationally, making it one of the top-five private start-ups worldwide. The firm also has over 490 million annual active users globally and it intends to reach 800 million by 2022.

As the company recovered from pandemic-inflicted sales, its Q1 revenue more than doubled year-on-year to reach $6.4 billion. The company also posted a profit for the same period.  Net income was $837 million before shareholder payouts, with a comprehensive net income of $95 million.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Robinhood Delaying Its IPO Plans amid Expansion of Its Crypto Business

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The initial plan of Robinhood was for the IPO to be done in June but the plans stretched to July.

A reliable source has it that In the past, the SEC has been concerned about Robinhood‘s growing business related to cryptocurrencies. While the company may be listed by summer, those plans may as well be achieved later, probably in fall. Robinhood plans to put its house in order and publicize its past financial performances to make way for the public listing. A company’s spokesperson disclosed that a successful Initial Public Offer (IPO) filing was done earlier in the year, March. According to Bloomberg, the initial plan of Robinhood was for the IPO to be done in June but the plans stretched to July.

Robinhood Activities amid Its IPO Plans

Robinhood began trading cryptos two years ago, 2018. Today the company’s portfolio includes Bitcoin, Litecoin, and even meme-based Dogecoin which started as a joke. Besides the mentioned digital coins, clients can get many products on this platform. Robinhood is particularly popular with first time (novice) crypto investors. Robinhood became both popular and controversial during the pandemic and has elected new members to its board. The company is also popular for meme stocks.

The crypto market has been very volatile this year. Bitcoin achieved a high of $64,000 after being backed and endorsed by high-profile investors, notably Elon Musk. However, the rally was short-lived and the prices dipped to as below $30 K in June. Other crypto have been following the same trend increasing uncertainty in the general market.

Sometimes in the near future, Gary Gensler, the current SEC chair, is expected to make momentous rulings on digital assets. Robinhood made the application in a “bad year”. The SEC has been busy, thanks to the many IPOs, particularly for Special Acquisition Companies (SPACs) in their in-tray. These delays have however caused an equity backlog in capital markets. As per Bloomberg’s report, SEC staff has however warned lawyers that this time around, it may take well over a month to review SPAC paperwork. Additionally, they can expect another two to three weeks to get feedback on changes and amendments.

What Ails the Cryptocurrency Market

In the recent past, China has intensified its crackdown on crypto, particularly Bitcoin. Following the Chinese government’s decision to launch a Central Bank Digital Currency (CBDC), the digital Yuan, Bitcoin was no more welcome. In fact, all Bitcoin-focused activities were banned.

Last month, the Chinese government denied rumors suggesting that they wanted to ban Bitcoin mining. However, the same authorities reviewed the same matter, but this time said that they wanted Bitcoin miners out ASAP.

The decision was informed by the thinking that Bitcoin and the digital Yuan would not thrive in a common environment. Government authorities believed that when put in the same ecosystem, Bitcoin would outshine the digital Yuan and possibly hinder its growth.

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Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.



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Chinese Electric Car Maker Xpeng to Raise $2B, to List on Hong Kong Exchange

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The increasing level of tension between authorities in China and the United States is forcing the hands of many US-listed Chinese companies to list on the Hong Kong stock exchange as a way of protecting themselves against both governments.

Per a report from CNBC, Guangzhou-based electric car maker Xpeng is on the verge of raising almost $2 billion via its listing on the Hong Kong stock exchange.

According to the report, Tesla‘s rival had said it would be issuing 85 million Class A ordinary shares at a price of 180 Hong Kong dollars ($23.19) each. It was also revealed that the final offer price will then be set on or before the end of June.

Going by this, it means Xpeng would be able to raise 15.3 billion Hong Kong dollars at the maximum offer price, which roughly translates to $1.97 billion, before related costs, such as underwriting fees are removed.

Interestingly, this affirms a previous report where it was indicated that the electric carmaker could be looking to raise new funds for its operations.

Xpeng’s new listing is quite unusual as it is another primary listing. While companies like Alibaba and JD.com have employed secondary listing tactics, as they have a main listing location such as the United States, and they are also selling their shares on another exchange. The carmaker is not towing the same path.

The CNBC report revealed that Xpeng’s new listing in Hong Kong would lead to a “dual-primary listing. That means it will be subject to the rules and oversight of both US and Hong Kong regulators.”

Another interesting aspect of this new listing is that Xpeng could still make more than the projected $2 billion if demand for its stock is high which would lead to the firm and its underwriters issuing more shares that would inadvertently lead to an increase in what the company would get from its listing.

The proceeds of the listing will be channeled towards the development and expansion of the product, “Xpeng said it would use the proceeds from the Hong Kong listing to expand its products and develop more advanced technologies, as well as marketing and expanded manufacturing.”

In recent times, the electric car market in China is growing as startups like Nio, Li Auto, Tesla and a host of others are competing for a share of the market.

Tensions between US and Beijing Pushing the Need for Xpeng Listing in Hong Kong

The increasing level of tension between authorities in China and the United States is forcing the hands of many US-listed Chinese companies to list on the Hong Kong stock exchange as a way of protecting themselves against both governments.

The Securities and Exchange Commission (SEC) has imposed stricter auditing requirements on foreign companies listed in the country. Failure to comply with this policy by these companies could lead to delisting.

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Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.



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