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Uniswap 57% price crash marks ‘DeFi depression’ for SUSHI, CRV, UNI

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In the previous weeks, the majority of the cryptocurrencies have seen a massive crash. Losses of 50-80% have been witnessed in the markets, particularly affecting the DeFi space.

The major losers in the previous weeks were Curve DAO Token (CRV) and SushiSwap (SUSHI). Next to that, one of the biggest decentralized exchanges UniSwap (UNI) has also seen a substantial correction. Its token UNI dropped by 57% since its recent high at $8.65.

Is the correction over for the DeFi sector, or will the crashes continue to last? Let’s take a look at the charts’ technicals.

UniSwap makes a bounce of 35% since its correction

UNI/USD 6-hour chart. Source: TradingView

The 6-hour chart of UniSwap shows a 57% correction since its high at $8.65. After this, support was found between $3.50-3.80.

Short-term relief is shown on the chart as UniSwap bounced with 35% in the previous days, but the trend still shows a downtrend. The first significant resistance zone is seen between $4.90-5.20, which is colored red. A further move up to $7 is on the tables if UniSwap shows strength and can break through this resistance zone.

UNI/USDT 2-hour chart. Source: TradingView

UNI/USDT 2-hour chart. Source: TradingView

The 2-hour chart shows a temporary trend shift. For the first time since the retracement, the price of UniSwap made a new higher high, as the previous high of $4.50 was broken.

The price of UNI rallied from $3.75 to $5, marking a new higher high, which means making a new higher low now would likely be followed by a move up.

In that perspective, the green zone between $4-4.25 should warrant support for a higher low. If that area sustains support, I’d be looking at a potential rally towards $6.

Will Curve DAO Token and SushiSwap follow?

It’s not surprising for other DeFi coins to follow suit as UniSwap is the leader in the DeFi space.

SUSHI/USDT 2-hour chart. Source: TradingView

SUSHI/USDT 2-hour chart. Source: TradingView

The chart of SushiSwap is less bullish than UniSwap but shows a few signals of a potential trend reversal.

If the $1.30-1.325 area flips for support, a significant support area can be flipped again, which warrants a potential continuation upwards. This upwards run could continue toward the $1.65-1.70 area, as that’s the first significant resistance area.

Of course, if the price of SushiSwap loses $1.30, a further downward drop becomes likely, in which Fibonacci extension has to be used for negative price discovery.

CRV/USDT 2-hour chart. Source: TradingView

CRV/USDT 2-hour chart. Source: TradingView

Curve DAO Token is showing an even worse chart than SushiSwap, and any bullish arguments are hard to find here.

In the previous analysis, the Fibonacci extension tool was used to define lower target zones. If a particular asset goes into positive or negative price discovery, the Fibonacci extension tool is to define potential target zones, as seen with CRV.

The target zone around the 1.618 Fib was hit, but the overall chart still looks overly bearish. In that case, the crucial breaker for Curve would be a breakout above $1.20. If that area breaks as resistance and becomes support, continuation toward $1.65-1.85 is likely.

If that flip of $1.20 occurs, a potential relief rally on the market will likely occur. Overall, the sentiment is close to depression, another argument for a reversal to happen soon.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.





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VC Giant Andreessen Horowitz Announces Its Third $2.2.B Crypto Fund

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With this massive move a16z aims to bring crypto to the mainstream. To expand its operations, a16z is hiring some of the top officials who have worked in the financial regulatory and tech space.

On Thursday, June 24, venture capital giant Andreessen Horowitz (a16z) announced raising a massive $2.2 billion for its Crypto Fund III. The recent commitment from Andreessen comes at a time when the crypto market is relatively undoing massive correction.

GPs Chris Dixon and Katie Haun will be running the Crypto Fund III. Besides, the venture capital firm is also looking to expand its management team that looks after the crypto vertical. In its official press release, the company mentions:

“The largest crypto fund ever raised to date, Crypto Fund III is a validating moment for the ecosystem and another sign that crypto becoming an ever more mainstream part of our financial infrastructure”.

Andreessen Horowitz has been among one of the most active investors in the crypto space. The venture capital giant has also been an early investor in Coinbase Global Inc (NASDAQ: COIN). A16z netted $450 million from selling its Coinbase holdings immediately post its holdings.

Andressen Horowitz and Its Crypto Funds

Back in 2018, Andreessen Horowitz announced its first crypto fund raking $300 million of LP commitments. Its second fundraise came last year in April 2020 as the company clocked $550 million. The venture capital has now four times suggesting its aggressive penetration in the market.

The recent fundraising is a clear testament to the fact that institutional participation and interest in crypto continue to grow. Moreover, this move also helps Andreessen Horowitz to cement its market positions and compete with giants like Tiger Global. With the latest announcement, Andreessen’s total assets under management have moved past $18.8 billion.

A few days back, news publication Newcomer has already predicted that a16z has been working on a $2 billion crypto fund. Besides, the publication also noted that Andreessen already offloaded its crypto holdings before the recent price crash occurred.

Along with the fundraise, a16z also made some important announcements. The Silicon Valley giant is hiring some of the top players from the legal and financial markets.

Bill Hinman, the former official of the US SEC, joins a16z as an advisory partner. Hinman has been one of those SEC executives who has been instrumental in classifying Ether (ETH) as a “commodity”. Besides, a16z also hired several other top honchos from the crypto from the tech and the financial sector. The venture capital firm noted:

“As with any new computing movement, crypto has endured a variety of challenges and misconceptions. That’s why we are also bringing together heavy-hitters across several functions to help translate crypto to the mainstream.”

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Digital Assets AG Launches Tokenized Stocks on Solana

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Founder and CEO of FTX Sam Bankman-Fried is convinced that the stock tokens by DAAG have the potential to cause a shift in market structure.

Switzerland-based Digital Assets has launched its tokenized stocks on the Solana blockchain. These tokens will be available only on the Free Traders Exchange (FTX) at the beginning.

According to DAAG executive, Brandon Williams, the move to Solana will make for more efficient and effective transactions. “It will create a more efficient environment for trading and utilization of tokenized stock,” he stated. The firm notes that a migration of the general traditional finance and capital market to blockchain technology is imminent and Solana is easily the chosen destination for any firm.

Solana is a blockchain network with an open infrastructure that allows any global user access to its network. It leverages Proof of History to achieve scalability, is known for its low cost, super-fast transaction speed and cross-compatibility. The firm recently raised $314 million by selling private tokens. This was done to raise support to accommodate its growing ecosystem and its vision to onboard a billion users.

The launch of the tokenized stocks by Digital Assets AG will allow users of FTX an in-route into the regular equity markets. Per the announcement, all users who have completed their Know Your Customer verification at the time of the initial offering will be able to access 55 free-floating stocks 24/7/365. These will include stocks for Facebook, Google, Netflix, Nvidia, and Tesla to mention a few.

These free-floating stocks are securities approved for trading on tokenized platforms. It excludes locked-in shares by company executives. Per regulation, the tokenized stocks of DAAG are only available in specific locations; with the stock tokens validated for the European Economic Area (EAA) by the endorsement of Liechtenstein’s Financial Market Authority. This means only users in the EAA will be able to make transactions with the assets.

Binance became the first major exchange to offer tokenized stocks after it partnered with DAAG in April. However, there have been regulatory concerns by users. With DAAG and FTX now in the league also, and with regulatory backing sorted, FTX users will be able to transfer assets between markets without restrictions, with near-instantaneous settlement and no counterparty risks.

Founder and CEO of FTX Sam Bankman-Fried is convinced that the stock tokens by DAAG have the potential to cause a shift in market structure.

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An experienced writer and Fintech enthusiast, passionate about helping people take charge of, scale and secure their finances. Has ample experience creating content across a host of niche. When not writing, he spends his time reading, researching or teaching.



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Citi Announces ‘Digital Assets Group’ to Provide Crypto Services to Wealthy Clients

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The banking giant formed a new business unit that will provide crypto services for all of its wealth management clients.

Citigroup is now accelerating its plans to expand its footprint in the crypto space. On Thursday, June 24, the Wall Street banking giant launched a new business unit ‘Digital Assets Group’ that will dedicatedly operate in the crypto and the blockchain space. The bank has been working on this aspect for over the last few months. Last month in May, Citigroup executive Itay Tuchman said that Citi has received considerable demand for crypto services from its clients.

On Thursday, the banking giant also announced that its ‘Digital Assets Group’ will work along with its wealth management division. As per the memo, accessed by The Block, the banking giant said:

“Given the exciting new developments we are seeing around cryptocurrencies, tokenization, and other advances powered by blockchain technology, we are pleased to announce the formation of the Digital Assets Group”.

Alex Kriete and Greg Girasole from the Citi Global Wealth Investments (CGWI) division will look after this new project. The memo notes that “Alex and Greg will be responsible for advancing the efforts of CGWI to become a market-leading partner for our clients interested in all aspects of the digital asset space”. This includes stablecoins, non-fungible tokens (NFTs), cryptocurrencies, and central bank digital currencies.

Experiments of Citi with Crypto and Blockchain

Citigroup has been involved with different activities involving blockchain and cryptocurrencies. Back in April 2021, Citigroup partnered with IDB Bank to test cross-border payments between the US and Latin America. The banking giant leveraged EOSIO-based LACChain Blockchain to perform this experiment.

Citigroup tested this payment from the IDB headquarters in Washington DC to the Dominion Republic. Along with Citigroup several other Wall Street banking giants have also joined the crypto bandwagon. Citibank executive Itay Tuchman said they will be working on something that’s acceptable to regulators. Tuchman added:

“I believe that crypto is here to stay and that we are just at the very beginning of the market. This isn’t a space race. There is room for more than just one flag.”

Banking giant Goldman Sachs is another player making a big bang entry in the crypto sectors. Recently the bank announced its plans to offer Bitcoin and Ethereum derivative products to its clients. Earlier this day, the banking giant also tested a repo trade using JPMorgan‘s private blockchain network.

next Altcoin News, Bitcoin News, Cryptocurrency news, News

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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