Continuing the trend over the past couple of days, the market has continued to trade within a very narrow range, almost flat. In the past 24 hours, the crypto market has managed to gain less than 0.5% and is trading at the same value of around $1.08 trillion, as yesterday. And if we were to look over the past week, the overall crypto market has lost less than 2% in that timeframe. Now, it must be noted that in the beginning of the past week, we saw some bearishness but eventually towards the end, the bearishness gave way to strength and sustained above crucial levels.
Equities markets in the US also showed similar price action with its tech-focused Nasdaq index gaining about 2.7% while its other larger indices remained subdued. The S&P500 over the past week gained about 0.65% while the Dow Jones, lost about 0.3% in the same timeframe.
The overall crypto market cap saw a bit of a downfall, yes – but nothing as significant that it would be a cause for concern for investors yet. But the scenario is completely different if we were to take a closer look at the price action of a few individual coins.
Taking a look at the king coin, Bitcoin price lost about 3.4% in the past week, and is currently trading just about $23,100 while at the same time Ethereum prices saw a dip too, of about 4.5% – currently trading a little over $1650 – after having touched near $1800 levels the previous week.
However, some altcoins did manage to show impressive returns despite the humdrum state of the market. These include, Filecoin (FIL), FLOW, Optimism (OP) – each of which managed to gain 36%, 30% and 26% respectively over the week as of writing this.
As mentioned earlier, the overall crypto market cap has managed to sustain in value over the past week, despite seeing some corrections in the first part of the week. But technically, that can be expected to have ended. That is because, if you were to look closely at the chart above, the third last and the second last candles are what is known as a doji candle – which usually signifies the end of a particular trend in crypto prices and its reversal into the opposite one.
So, doji candles after a bearish price action indicates prices won’t be moving down anymore and could move up while, doji candles being formed after a bullish price action indicates that prices would have a hard time going up from there and might see some correction. Hence this is typically a strong reversal indicator and quite well known in the world of technical analysis. And that seems to be working out too, with a major green candle popping after the appearance of the two doji candles.
CRYPTO MARKET ABOVE $1.05 TRILLION: WEEKLY WRAP
|Global crypto market cap||$1.08 trillion|
|Rise/Fall in crypto market cap||-1.9% (WoW)|
|Global DeFi TVL||$68.9 billion|
|Rise/Fall in DeFi TVL||0.1% (WoW)|
*As on 5 August, 2022 – sourced from Tradingview, CoinMarketCap & DefiLlama
Additional Read: Top Cryptos to watch this Week
HOW IS BITCOIN PRICE DOING?
Bitcoin price action has been somewhat similar to the overall crypto market cap – however the interesting thing to note is that despite the market cap having fallen less than Bitcoin’s market cap over the past week, a closer observation tells us that Bitcoin’s market cap dominance has gone down despite that. Usually what happens is when the overall market falls, Bitcoin prices fall a bit less than that and end up gaining more dominance in terms of market cap. This week however, Bitcoin price has lost more than the market cap – with a few altcoins managing to gain in the meantime too – thus losing a bit of the market cap dominance.
This indicates a broad base strength in the crypto market, thus gives an overall positive outlook. But specifically in term so Bitcoin only – BTC prices are still trading above the 50-day moving average (marked in cyan blue) and the trendline resistance (marked in dark blue). So on the very short term, there is nothing much to worry about.
Additional Read: Bitcoin Price Prediction Weekly
Check Bitcoin to INR Price here
TOP CRYPTO MARKET NEWS OVER THE PAST WEEK
1. SOLANA FACES YET ANOTHER MULTI-MILLION DOLLAR HACK, OVER 8K WALLETS COMPROMISED
On 3 August, 2022 – Solana ecosystem fell victim to yet another attack of tragic proportions, with users reporting that their funds have been drained without their knowledge from major hot wallets including Phantom, Slope & TrustWallet. Hot wallets are basically the kind of crypto wallets which are connected to the internet to facilitate easy transactions.
Reportedly, the attack has compromised a little less than 8000 wallets, according to Solana’s official handle. Several Solana addresses have been linked to the attack with those wallets amassing at least $5 million worth of SOL, SPL, and other Solana-based tokens from unsuspecting users.
Additional Read: Solana Wallets Hacked
2. FACEBOOK’S META CONFIRMS NFT ROLLOUT
Social media giant and the parent company of Facebook, Meta has confirmed that is has started rolling out non-fungible tokens (NFTs) across a hundred countries. This comes very soon after their integration with Coinbase (COIN) wallet and Dapper. Taking inspiration from Twitter’s modus operandi of enabling users to put up their NFTs on their profile, Instagram users in certain parts of the world will now be able to showcase their NFTs.
3. CHILEANS TURN TO STABLECOINS AMID MAJOR DEVALUATION OF PESO
A Chile based crypto exchange reported a 50% increase in the purchases of two of the largest and commonly used stablecoins in the country – Tether (USDT) and USD Coin (USDC) – during the second quarter of 2022. This comes at a time when the country has been facing very high levels of inflation and major devaluation of their currency, the peso.
4. CRYPTO INVESTMENTS PRODUCTS WITNESS 5TH CONSECUTIVE WEEK OF INFLOWS
Despite the raging bear market from January 2022, capital inflows into cryptos and related crypto based investment products has continued touched new highs as the market attempts to sustain short term gains, especially since the beginning of July. The uptick of inflows into the market suggests that large investors remain optimistic about cryptos despite the sustained sell-off and a proper bounce back may be just around the corner.
5. TRON BECOMES 2nd LARGEST PUBLIC CHAIN BY STABLECOIN MARKET CAP
According to data from TRONSCAN, TRON’s total transfer value has recently surpassed the monumental $5 trillion mark, adding 105 million new accounts and recording over 3.6 billion transactions on its blockchain network, as of 1 August, 2022. To add to that, its total value locked (TVL) has surpassed $11 billion – making it the second largest public chain by market cap and in the top 3 largest public chains by TVL.
TOP CRYPTO PRICES OVER THE WEEK
|COIN||PRICE ($)||PRICE (INR)||% CHANGE (7-DAY)||MARKET CAP|
|FILECOIN (FIL)||$8.2||₹680||35%||$2 BILLION|
|YEARN.FINANCE (YFI)||$10,982||₹8,80,000||23%||$402 MILLION|
|CHILIZ (CHZ)||$0.14||₹12.3||19.7%||$868 MILLION|
|OPTIMISN (OP)||$1.9||₹150.5||18.2%||$466 MILLION|
|COIN||PRICE ($)||PRICE (INR)||% CHANGE (7-DAY)||MARKET CAP|
|ETHEREUM CLASSIC (ETC)||$36.2||₹2950||-17.8%||$4.9 BILLION|
|CONVEX FINANCE (CVX)||$6.8||₹538.6||-13.8%||$456 MILLION|
|STEPN (GMT)||$0.92||₹77||-9.6%||$555 MILLION|
|CURVE DAO (CRV)||$1.38||₹113||-9.3%||$720 MILLION|
CRYPTO MARKET: THE WEEK AHEAD
Overall, the week ahead for the crypto market can be expected to be flat to slightly bullish, extrapolating from the current week’s trajectory. Bitcoin has fallen a bit from its recent highs and re-attaining those BTC prices would be crucial for a further run-up in the king coin. Also, Ethereum prices which had almost touched $1800 the previous week couldn’t even cross $1700 this week – so some weakness still persists here. But, so far there is nothing to worry as trading is happening above critical levels and until those are breached, things will stay breezy
Prices as on 5 August, 2022.
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