New Delhi: Amid uncertainty over its legitimacy in some of the largest economies, major cryptocurrencies lost momentum and declined in early trade on Tuesday.
Among the top 10 names, Ethereum was the biggest loser, down over 5 per cent. Polkadot, Cardano, Binance Coin and XRP dropped 3-5 per cent. Others also declined over 2 per cent.
“The battle between the bears and bulls continues, which is probably why ETH has been in a consolidating phase over the past few days, trading in a range-bound fashion between $2,800 and $3,200. The asset faces a strong psychological resistance at $3,300, which if the asset crosses and sustains, is likely to witness another strong rally,” said analysts at ZebPay Trade Desk.
The global crypto market cap at $1.89 trillion, fell 3.65 per cent over the last day. The total crypto market volume over the last 24 hours stood at $97.32 billion, down 14.64 per cent.
The total volume in DeFi stood at $16.83B, 17.29 per cent of the total crypto market’s 24-hour volume. The volume of all stable coins was $78.85B, 81.02 per cent of the total crypto market’s 24-hour volume.
Meanwhile, cryptocurrency exchanges and providers of crypto services are scrambling to sever business ties with mainland Chinese clients after Beijing last Friday issued a blanket ban on all crypto trading and mining.
In a culmination of years of efforts to rein in the sector, 10 powerful Chinese government bodies including the central bank, said overseas exchanges were barred from providing services to mainland investors via the internet – a previously grey area – and vowed to jointly root out “illegal” cryptocurrency activities.
Tech View by Giottus Cryptocurrency Exchange
Hedera Hashgraph is a blockchain platform that supports third party applications much like Ethereum and Solana. The key differentiator being that all such applications are supervised by a group of businesses (via an approved group of nodes). Though it raises questions about its decentralized nature, this strategy enables it to support high transaction speeds, which Hedera argues, ensures businesses get the guarantees they need on transaction finality and state. Recently, India’s premier institute, IIT Madras, joined Hedera’s governing council to drive its R&D in the blockchain space.
HBAR is the cryptocurrency of the platform and has been grabbing attention globally due to its recent price actions. HBAR rallied from $0.25 in the beginning of September to a high of $0.576 – a 2.3x gain within a couple of weeks. Since then, it entered a correction phase along with the rest of the market and is currently trading at $0.32. With this movement, it has formed a large head and shoulders pattern on the daily chart – a fundamentally bearish pattern which could send it down to $0.25 or lower if it plays out, especially with Bitcoin’s price actions currently indeterministic. It is also breaking its recent horizontal support level and has formed successive lower highs.
However, HBAR is still trading above its 50-day moving average (currently at $0.30), where it is likely to find considerable support and may bounce, presenting a good long opportunity to traders. Its daily RSI is also nearing 30 – which is oversold territory and indicative of a reversal of its downside. On its BTC ratio, HBAR currently trades at 0.0000077 – near a support level last held a week ago and previously broken earlier in September. Thus, HBAR may not drastically underperform Bitcoin, but its fiat pricing remains somewhat bearish.
Major Levels
Support: $0.3049, $0.2949
Resistance: $0.379, $0.3915
(Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC)
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
