New Delhi: Major cryptocurrencies were trading with decent gains on Tuesday. Crypto traders shrugged worries of curbs and restrictions on digital tokens, which had led to volatility in the last few sessions. Eight out of top 10 digital tokens were trading with gains at 9.30 hours IST, surging as much as 9 per cent.
Ether investment products and funds posted record outflows in the last week of June, bearing the brunt of negative sentiment on cryptocurrencies, according to data on Monday from digital asset manager CoinShares.
“Bitcoin network fundamentals are reflecting mass mining migrations. Despite the negative press in the UK, and the mining ban in China, the latest BTC price action shows that the largest cryptocurrency by market capitalization is still making good headway upwards, back close to $35,000 levels,” said Zebpay Trade Desk.
“However, in the longer-term what that means is the network would clear more blocks. Hence the remaining miners would become more profitable. In addition to that, after El Salvador decided to use the asset as a legal tender, Paraguay seems to be keen on doing so as well which further enhances Bitcoin’s global reputation and reach,” it added.
The US dollar’s status as the global reserve currency is unlikely to be threatened by a foreign central bank digital currency (CBDC) and any proposals to create a digital dollar issued by the Federal Reserve must be subject to careful scrutiny, Fed Vice Chair for Supervision Randal Quarles said.
Tech View by Giottus Cryptocurrency Exchange
Cardano (ADA) has held up exceptionally well against BTC through the recent bearish period, and during BTC’s recent visits below $30K. This show of strength demands a closer look at the charts, given Cardano is poised to evolve into a sophisticated ecosystem with smart contracts being introduced to the blockchain in Aug. 2021.
Earlier in June, ADA had broken its trendline resistance of the falling wedge pattern and signalled a bullish move. However, its failure to hold its backtest, followed by Bitcoin’s decline, led to a revisit of the $1 range. Currently, ADA, at $1.33, is trading below several short-term key indicators – the 20D SMA , 30D SMA ($1.48) and several EMAs.
Longer-term indicators like the 50-day and 100-day SMA and EMAs have been exhibiting sell signals since the May crash. While not unique to ADA, this, coupled with a low RSI (relative strength index) of 45, indicates downward pressure that could result in lucrative buying opportunities for the long term.
As ADA trades in its descending triangle pattern, a bullish breakout may see it revisit $1.5 levels, while a bearish breakout could take it closer to $1 with support at $0.8. The broader market trends continue to be bearish. On the hourly chart, ADA has also formed a triple top. However, with ADA’s MACD seeming to bottom out, the market could have some surprises in store.
Support: $1.00, $0.8
Resistance: $1.5, $1.75
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.)