Market

What’s Next for Algorand (ALGO) as Millions Hit Order Books?

Published

3 weeks ago

June 12, 2024

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Algorand’s (ALGO) price reached a monthly low of $0.15 on Tuesday, June 11, despite trading around $0.18 in early June. On-chain analysis examines the token’s potential, highlighting indicators that may drive ALGO’s price action.

In March, ALGO followed the broader altcoin rally, reaching a yearly peak of $0.31. However, as the market fell to the demand of bearish forces, so did ALGO. Is the token ready for respite, or is a further downtrend in the works?

Algorand Sellers on the Sidelines

BeInCrypto examines the Order Books of 11 crypto exchanges to gain insight into this. Employing this metric, one can ascertain whether investors plan to sell off many tokens or buy them.

The Order Books have the “bid” and “ask” segments, as shown below. In simple terms, a bid is a price level at which traders are willing to buy a cryptocurrency. The opposite is ask, which describes prices targeted at selling.

According to data obtained from IntoTheBlock, Algorand investors have placed bids to buy 53.97 million tokens. At an average price of $0.16, those assets are worth $8.09 million.

Algorand (ALGO) order books on exchanges — Algorand Order Books On Exchanges. Source: IntoTheBlock

On the other side of the divide, another set lined up to sell a staggering $80.27 million ALGO. This average asked price was $0.16, meaning the value that could be sold is $12.84 million.

Therefore, the significant difference between the buy and sell orders indicates that bears are in charge.

Read more: What Is Algorand (ALGO)?

Bearish Sentiment Lingers For Algorand

Furthermore, Santiment data revealed that the Weighted Sentiment around Algorand was negative. Weighted Sentiment tracks the level of positive or negative comments about a project. If the metric is positive, it means that the average market participant is optimistic.

This could lead to increased buying pressure and a possible price increase. Alternatively, a negative reading suggests that most participants share cynical opinions about a token.

In this instance, it becomes difficult for the price to bounce except on rare occasions where the negative sentiment becomes extreme.

Algorand bearish sentiment — Algorand Weighted Sentiment. Source: Santiment

In summary, ALGO may attempt to revisit $0.16. However, the block of sell orders in that region and the bleak outlook may force a rejection. If this prediction plays out, Algorand’s price may slide further.

ALGO Price Prediction: Can It Slide to $0.14?

Besides the abovementioned indicators, the Global In and Out of Money (GIOM) supports this bearish forecast. In non-technical terms, the GIOM categorizes addresses based on those making money at a breakeven point and addresses holding at a loss.

With this metric, one can identify support and resistance regions. The larger the group, the more a price level can hold as resistance or support.

The chart below shows that 1.12 million addresses purchased 2.68 billion Algorand tokens at an average price of $0.19. This means that if ALGO approaches this sell-wall, holders may try to break even. Hence, this could be a resistance point for ALGO, and a rejection to $0.14 may be likely.

Algorand addresses in and out of money — Algorand (ALGO) GIOM and Price Prediction. Source: IntoTheBlock

However, one may need to look for Algorand’s network activity. For instance, the number of zero-balance and active addresses on the network has been increasing since June 10. Precisely, active addresses were 102.670 on June 11. Zero-balance addresses were, however, 37,980 on the same day.

Active addresses estimate the number of users on a blockchain, while zero-balance addresses measure the number of new wallets interacting with a network.

The increase in both metrics may be positive for Algorand. If the number continues to grow, it could invalidate the bearish theory.

Algorand network activity improves — Algorand Active Addresses. Source: IntoTheBlock

In addition, one has to keep an eye on the $0.15 region. This could prevent ALGO from another downturn since millions of holders bought a ton of tokens at that price.

Beyond that, network activity has been the most intense in the same region this month. If these holders mount pressure on the token at this point, ALGO may bounce toward $0.17.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:ALGO Algorand Books Hit Millions Order Whats

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Market

Crypto Whales Dump $148 Million in Bitcoin and Ethereum

Published

14 mins ago

July 2, 2024

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Crypto whales significantly impact market trends by offloading substantial amounts of Bitcoin (BTC) and Ethereum (ETH). Recent data indicate a continued pattern of these extensive sales, totaling over $148 million in crypto, moved to various exchanges for probable liquidation.

Since last week, Bitcoin has been trying to recover after dipping to $58,500. Attempts to rally were evident; Bitcoin nearly reached $64,000 on Monday. However, increased selling pressure forced prices below $63,000.

Bitcoin ETFs Recorded $129 Million in Inflows While Crypto Whales Sell

On Monday, a prominent crypto whale linked to the wallet address 3G98j transferred 1,800 BTC valued at $114 million to Binance at around $63,333. This move typically signals an intent to cash out, reflecting a common strategy among crypto whales during market volatility.

“The Bitcoin price started declining after the whale unloaded BTC,” Spot On Chain said.

Further analysis highlights a significant shift in trading behavior. From June 19 to 21, the crypto whale withdrew 6,725 BTC, valued at $437 million, from Binance and OKX at an average price of $65,008.

This marked the crypto whale’s first major BTC accumulation in over 1.5 years. However, as prices declined by over 4.11%, the crypto whale has sent 3,481 BTC back to Binance in the past five days, indicating a bearish sentiment.

Historically, this crypto whale has shown strategic trading acumen, netting about $1 billion from BTC transactions between 2022 and 2024. During the 2022 bear market, he amassed 41,000 BTC at an average of only $19,000. He later capitalized on this by unloading 37,000 BTC at around $46,800 during the bull markets of 2023 and 2024.

Ethereum has also seen similar whale activities. On early Monday, the crypto wallet 0xedo, allegedly associated with Abraxas Capital, deposited 42,000 ETH, worth approximately $34.78 million to Bitfinex. Despite these large transactions, this crypto whale still holds a significant position in ETH, with over $112 million currently spread across lending and farming platforms like Spark, GearBox, and Stargate, securing a profit of $4.53 million.

Meanwhile, there has been a glimmer of hope for Bitcoin investors. Spot Bitcoin ETFs recorded a substantial inflow on Monday, with $129 million entering the market.

This is the highest in the past 16 trading days. The Fidelity Wise Origin Bitcoin Fund attracted the largest inflow, with $65 million. Moreover, both BlackRock’s iShares Bitcoin Trust and Grayscale Bitcoin Trust reported 0 inflows on Monday.

Spot Bitcoin ETFs Net Flows. Source; SoSoValue

This contrast between whale sell-offs and significant ETF inflows illustrates the complex and often contradictory forces shaping the crypto market. Such insights are essential for anticipating market shifts and protecting investments, ensuring stakeholders remain informed and vigilant.

Moreover, Bitcoin bull Tom Lee has predicted that Bitcoin will still hit $150,000 by the end of the year. He believes that after the market absorbs the effect of Mt. Gox sell-offs, Bitcoin can strongly rebound.

“If I was investing in crypto, knowing that one of the biggest overhangs will disappear in July, I think it’s a reason to expect a sharp rebound in the second half. I think 150 is still within,” Lee said.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

XRP Price Maintains Support Level: What It Means For The Bulls

Published

1 hour ago

July 2, 2024

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XRP price climbed higher and tested the $0.4840 resistance zone. The price corrected gains but the bulls are able to protect the $0.4750 support.

XRP price is eyeing an upside break above the $0.4840 resistance zone.
The price is now trading above $0.4720 and the 100-hourly Simple Moving Average.
There is a connecting bullish trend line forming with support at $0.4760 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair might gain bullish momentum if there is a close above the $0.4840 resistance.

XRP Price Corrects Gains

XRP price started a decent upward move above the $0.4740 resistance like Bitcoin and Ethereum. The bulls were able to push the price above $0.480. However, the bears were active near the $0.4840 resistance zone.

A high was formed at $0.4839 and the price recently started a downside correction. There was a move below the $0.4800 and $0.4780 levels. The price even spiked below the 50% Fib retracement level of the upward move from the $0.4695 swing low to the $0.4839 high.

It is now trading above $0.4740 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $0.4760 on the hourly chart of the XRP/USD pair.

On the upside, the price is facing resistance near the $0.480 level. The first major resistance is near the $0.4840 level. The next key resistance could be $0.4880. A clear move above the $0.4880 resistance might send the price toward the $0.5050 resistance.

The next major resistance is near the $0.5120 level. A close above the $0.5120 resistance zone could send the price higher toward $0.5250. Any more gains might send the price toward the $0.5320 resistance.

More Losses?

If XRP fails to clear the $0.4840 resistance zone, it could continue to move down. Initial support on the downside is near the $0.4765 level and the trend line.

The next major support is at $0.4740, the 61.8% Fib retracement level of the upward move from the $0.4695 swing low to the $0.4839 high, and the 100-hourly Simple Moving Average. If there is a downside break and a close below the $0.4740 level, the price might continue to decline toward the $0.4640 support in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.

Major Support Levels – $0.4765 and $0.4740.

Major Resistance Levels – $0.4800 and $0.4840.

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Market

The Rise of Liquid Staking on Solana: Key Insights

Published

2 hours ago

July 2, 2024

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Solana, the fifth-largest crypto asset by market size and the third-largest proof-of-stake (POS) network, saw its liquid staking ratio rise by 1.76% quarter-over-quarter.

According to DefiLlama, over $54 billion worth of crypto assets are staked across liquid staking platforms. Liquid staking, unlike traditional staking, lets users earn extra yield and retain liquidity with a derivative token for DeFi.

The Rise of Liquid Staking on Solana

Data from Dune Analytics shows over 23 million SOL, valued at over $3.6 billion, staked on liquid staking platforms. Solana has a higher staking ratio than Ethereum, around 60%, but only 6% of staked SOL is in liquid staking. This indicates untapped potential in Solana’s liquid staking sector, as well as potential growth opportunities.

Read more: What Is Liquid Staking in Crypto?

Solana Liquid Staking Ratio. Source: Dune Analytics

Solana’s two-day unbonding period, shorter than many other blockchains, might also impact the popularity of liquid staking. Konstantin Boyko-Romanovsky, founder and CEO of Allnodes, explains how this can be an advantage over other blockchains like Polkadot or Ethereum.

“Since Solana’s unbonding period is only two days, liquid staking might not be as popular as blockchains with unbonding periods of 2-3 weeks. In the context of staking, the unbonding period is when staked assets are unlocked and available for use after a user decides to unstake them,” Boyko-Romanovsky, told BeInCrypto.

Platforms like Sanctum and Jito Labs are also driving the liquid staking boom on Solana. According to researcher and analyst Tom Wan, Sanctum lowered the barrier of entry and is helping projects build their own liquid staking tokens (LSTs) and scale.

Jito currently has about 91,000 Solana investors staking on the platform, with an APR of over 8% and over 10.6 million SOL staked.

“Sanctum is able to take the torch. The launch of INF, Sanctum Router, and Sanctum Reserve, has lowered the barrier to entry, buklding foundation of a Cambrain explosion of the liquid staking sector on Solana,” Wan shared in a post.

Solana Dominance of Liquid Staking Token. Source: Dune Analytics

Boyko-Romanosvky also highlights the influence emerging trends like re-staking can have on liquid staking’s growth in Solana.

“Emerging technologies like re-staking can potentially influence the development and adoption of liquid staking on Solana and similar blockchains. By providing continuous liquidity, increasing yield opportunities, and offering greater flexibility, re-staking can enhance the attractiveness of liquid staking even on platforms with short unbonding periods like Solana. However, ensuring the security and reliability of these technologies, alongside effective market and liquidity management, will be crucial for their success and widespread adoption,” Boyko-Romanosvky shared.

As liquid staking continues to grow in popularity, Solana could benefit from increased user participation and enhanced network security. So far, two major filings for a Solana ETF have been made in the US. If liquid staking popularity continues to grow, it can give Solana a competitive advantage and attract investment firms.

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