There are many things happening with cryptocurrency today and it can be difficult to know what to look out for. We’ll go over some of the major trends that are emerging, as well as a few other notable things to keep in mind.
Ethereum price has been able to break above the $1,233 resistance mark
If you were a believer in Ethereum, then you might be pleased to see the price of the second largest cryptocurrency by market cap have moved above $1,233. However, there are some concerns regarding this breakout. A few of the key indicators suggest that the market is still in a downtrend and that the price of the asset may experience further declines in the near term.
The Relative Strength Index (RSI) has stabilized in the mid-range, and a four-hour RSI of 50 indicates that the bullish momentum has decreased. This could mean that there is a potential rejection of the pivotal resistance zone.
Furthermore, the 50-day moving average line is acting as a significant impediment to further declines. In fact, the 50-day EMA is shown as a velvet wave in the chart above.
Wombat Exchange
The Wombat Exchange is a multichain stableswap protocol that offers single sided staking, an open liquidity pool and low slippage. It also promotes product scalability, accessibility and efficiency.
Aside from providing a platform for single sided staking, Wombat Exchange is also home to an asset liability management (ALM) model that maximizes capital utilization. This allows users to earn interest on any stablecoin currency. In addition to that, it features a coverage ratio model that balances the liquidity of each token in the pool.
Wombat Exchange is currently listed on two crypto exchanges. The most popular of these exchanges is PancakeSwap v2. With a 24-hour trading volume of $ 80,171, it’s not surprising that the Wombat Exchange is one of the best-performing crypto assets of this ilk.
Optimism, Avalanche and Fantom in sights
The Optimism protocol, Avalanche and Fantom have been in the news recently. These three cryptos have been generating the buzz of late, with many analysts predicting the next bullish wave could be around the corner.
Optimism is a layer 2 scaling solution, and it works on the Ethereum mainnet. Using the eponymous token, the Optimism protocol is fueled by protocol revenue. Similarly, it uses Optimistic rollups to bundle transaction data into digestible batches. This enables cheaper transactions and an easier way to send ETH to other cryptocurrencies.
The Optimism protocol has also got the attention of the big hitters in the space, including Binance, Huobi, Uniswap and Bybit. They have all adopted the Optimism logo on their home pages, with the Optimism blockchain explorer available as a free download from their website.
Binance temporarily halting withdrawals of the USD Coin
Binance, the world’s largest crypto exchange, is temporarily halting withdrawals of the USD Coin stablecoin. The move comes amid rumors that the company faces a possible criminal investigation.
Binance CEO Changpeng Zhao explained why the pause in withdrawals was necessary. He said it was because the exchange’s USDC reserves were inadequate, and it needed to complete a token swap to increase the amount of money on hand.
As a result of the swap, Binance will have a small amount of USDC on hand to honor withdrawal requests. It’s unclear how the exchange will use these new funds. But it could be moved to online digital wallets or used to make network upgrades.
Binance also reportedly holds about $1.2 billion of the currency in its exchange reserves. That’s enough to cover its daily operations, according to its official account.
High inflation caused by Russia’s invasion of Ukraine and massive fiscal stimulus by governments during Covid-19 lockdown
Inflation has risen in many countries, and the recent Russian invasion of Ukraine is a major contributor. The rapid decline in commodity prices has accelerated global shipping, and manufacturing sectors have also seen a spike in prices. Several European countries are using fiscal policy to offset these costs on consumers.
A key driver of inflationary pressures in the developing world is the increase in the price of wheat. Russia is a major supplier of this crop, and the increased demand for the commodity has pushed prices in world markets higher.
During the COVID-19 pandemic, governments responded with large fiscal stimulus. It helped support a strong economic rebound, and has also limited the threat of a recession. However, it has created supply constraints, which have slowed economic recovery.