The total market capitalization of the crypto space again slipped below the $1 trillion mark, with Bitcoin barely holding on to the $21,000 level while Ethereum dropped below the $1,500 level. Rising fears of economic slowdown continue to haunt the riskier assets.
All the top crypto tokens were trading lower during early hours on Tuesday. Polygon plunged over 9 per cent, whereas Avalance and Shiba Inu tumbled 7 per cent each. Ethereum and Solana dropped 6 per cent each.
The global cryptocurrency market cap was trading lower at the $968.77 billion mark, dropping more than 4 per cent in the last 24 hours. However, the total cryptocurrency trading volume jumped close to 16 per cent, close to $75.97 billion.
What’s cooking in India
Community-led investing platform for cryptocurrencies, Crypso, has raised $3 million in seed funding. The company will use the fresh round of funding to grow its user base and increase the breadth of product offerings and technology.
Investors including Hashed Emergent, Athera Venture Partners (formerly Inventus), Better Capital, Whiteboard Capital, Polygon founders Sandeep and Jaynti, Kunal Shah of CRED, and other angel investors participated in the funding round.
Bitcoin started the week on a bearish note falling below the $22,000 level, confirming the weak buyer sentiment. If Bitcoin falls below the current level, it may decline to $19,000, said Edul Patel, CEO and co-founder, Mudrex.
“The second largest cryptocurrency, Ethereum, was seen testing the $1,400 level. If buyers lose control over this level, we might see Ethereum at the $1,300 level in the next few days,” he added.
Crypto and global financial markets are poised for increased volatility and turbulence as we have significant macroeconomic events in the week ahead in the form of the FOMC meeting, said CoinDCX Research Team.
The FED is expected to implement another 75 bps rate hike to curb inflation which could negatively impact risk-on assets such as crypto due to a high interest-rate environment that could potentially lead to increased selling pressure, it added.
Bitcoin fell even as the Chicago Board of Options Exchange’s volatility index, a measure known as Wall Street’s fear gauge, showed an absence of investor anxiety ahead of an expected US Federal Reserve rate increase on Wednesday.
Layer 1 blockchain Aptos Labs raised $150 million in a Series A funding round that was led by FTX Ventures, the venture capital arm of crypto exchange FTX, and Jump Crypto.
Investment bank Moelis and Co. has started a group to focus on venture deals in the blockchain and digital asset industry, according to a press release.
Wallets connected to developers of BNB Chain-based Teddy Doge sold over $4.5 million worth of its TEDDY tokens for other cryptocurrencies over the weekend, causing concerns among investors.
About $1.1 million worth of Audius’ AUDIO tokens were stolen over the weekend in a sophisticated attack that involved the project’s governance forums.
Tech View by Giottus Crypto Platform
Polkadot (DOT) is an interoperable multichain network that facilitates the cross-chain transfer of data, tokens, or asset types across blockchains. It is the top 20 crypto asset by market cap and was specially built to serve as the infrastructure layer for Web 3.0.
Despite its formidable utilities, the network has been badly hit by the tumultuous market conditions and is down by 87% from its November ATH of $55. DOT is trading at $6.70, down 12% in the last seven days. While still in a downtrend, DOT has been moving in a falling wedge pattern since May.
A falling wedge usually represents a bullish signal as the downtrend steadily loses momentum when the pattern nears completion. DOT squeezed out of the pattern in July to break above the upper trendline resistance at $7. However, DOT has formed a series of lower highs after reaching a high of $8.1 and is now close to its .236 fib level of $6.6.
DOT needs to reclaim the psychological resistance of $8 to restore market confidence and attempt another rally. Its price is below all key moving averages, and the RSI of 42 doesn’t show much strength either. If DOT continues its downswing, $6 will form the next support.
Resistance: $7.4, $7.8, $8.0
Support: $6.5, $6.0
(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.)