New Delhi: Bitcoin and other major altcoins were trading steady on Tuesday, after selloff a day earlier. The price action looked pretty tame and major crypto tokens remained rangebound. Barring the dollar-pegged stablecoins and Dogecoin, all other crypto tokens were trading higher on Tuesday.
The global cryptocurrency market cap was trading higher at the $1.89 trillion mark, jumping about 2 per cent in the last 24 hours. The total cryptocurrency trading volume zoomed about 60 per cent to $96.13 billion.
Bitcoin’s 50 per cent drop from November’s record high is nothing new and the correction is within historical norms, Morgan Stanley said in a research note entitled “State of the Bear Market.”
What’s cooking in India?
Crypto trading exchange CoinDCX has raised $135.9 million from investors led by Pantera Capital and Steadview Capital, doubling its valuation to $2.15 billion in less than a year to become the most valued crypto trading platform in India.
The overall market has experienced a significant downturn since early April, with most bounces being short-lived. Some traders believe as US tax selling comes to a close more buyers will enter the market, said OKX Insights team.
“Sellers remain in steady control,” it added. “Waves token closed March with a huge surge to break all-time highs, only to give up most of the move in recent weeks.”
The fast-growing popularity of the TerraUSD stablecoin comes with some risk because of its dependence on algorithms to hold its dollar peg.
Several US government organizations jointly warned on Monday of the threat posed by cryptocurrency thefts and tactics used by the North Korean state-sponsored group known as Lazarus Group.
“Bitcoin, Ethereum and most cryptocurrencies bounced back on Monday,” said Edul Patel, CEO and Co-founder of Mudrex. “Terra has become the third-largest stablecoin gaining almost 14 per cent over the past day.”
Tech View by Giottus Crypto Exchange
Dominating crypto headlines throughout April is Terra – a blockchain protocol that offers global payment infrastructure via fiat-pegged stablecoins. Amidst rising interest in its stablecoin TerraUSD and partnerships with popular launchpads, its coin – LUNA – seems to be beating market sentiment to deliver strong rallies after brief declines.
LUNA delivered a very strong bounce after a double bottom at $75 mark, rising nearly 20% to $89 in quick time. Now, it looks set to claim the .382 retracement of the drop situated around $92.5, followed by the next resistance at $97.5. It is still a good distance away from the all-time high of $120 achieved earlier this month.
With the $75 level becoming critical to the price action for LUNA, it remains the support that it must hold. With Bitcoin indicating it may have bottomed out on lower-time frames, LUNA has potential to make a run for new highs soon.
Support: $85, $80, $75
Resistance: $92.5, $97.5
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)