Sunday, July 3

What else is moving as the price of Bitcoin moves towards a new ATH?


Bitcoin (BTC) is hot and clearly in the hands of bulls. Yes, eventually an exchange-traded fund (ETF) will come and after that a price of $ 100,000, not $ 120,000, cross that out, $ 150,000 BTC will be on the board.

Bla bla bla.

Anyone who logs into crypto Twitter will be bombarded with all this bullish bullshit straight from the jump and that’s great, we’re all happy Bitcoin is doing it right. I have been a starter since the beginning of 2016, so of course I am happy. But isn’t there more to cryptocurrencies than just Bitcoin? Are there no other assets moving?

Wouldn’t it be nice to hear about them? before They go on a 150% parabolic race and then your favorite Twitter trader with a Rolex and an Audi advises you on what levels of support to buy on the next pullback?

Let’s take a quick look at some of the other assets that could be on the verge of a move. Of course, this is not financial advice. DYOR. Just because we’ve covered you does not mean that you are actually going to do anything, so don’t fool us if prices are stable or if you lose money.

SLP / USDT

Axie Infinity has been literally blazing a trail all year long and by the looks of it, the blockchain gaming sector to win is poised for further growth and Axies’ metrics, along with its AXS token, look great. .

The platform recently launched the AXS stakeout and before that, the team distributed an absolutely massive airdrop to early adopters.

Sadly for some, as AXS has risen, SLP (the in-game currency used to pay users and purchase in-game items) has dropped. I mean, really depressed. To the point where prominent and relatively anonymous crypto Twitter traders are now calling for a fund.

SLP / USDT daily chart. Source: TradingView

The daily chart shows SLP trading practically at its late May low at $ 0.06 and for many traders, the market structure suggests that the asset has bottomed out. Last week, the price tried some recovery to $ 0.10, but then failed to maintain momentum and eventually fell back into the current range.

One thing that caught my attention is the increase in trading volume, which is a possible sign of accumulation.

Bag bearers are hopeful that Axie Infinity will eventually redefine the use of SLP or curb its inflation to expand its utility and boost demand, but at the moment there are no promises.

Lovers of technical analysis will point out that SLP is currently finding resistance at the 50-day moving average (MA) and that the altcoin has turned from the 20-day moving average to support. An ‘eventual’ convergence between the 20-MA and the 50-MA can also be seen if buyers continue to raise the price. These traders would also point out that the Moving Average Convergence / Divergence Indicator (MACD) and Relative Strength Index (RSI) on the daily time frame look promising.

At this stage, it appears that SLP is trying to break out of its downtrend, but from a risk-reward point of view, opening a position is still risky as the low is more than 20% of the current price.

Risk-averse traders might consider waiting for further confirmation of a trend reversal. Something like a daily close above the 50-MA and some higher candles above the $ 0.10 level could indicate that AXS is gaining momentum.

ALCX / USD

Alchemix is ​​another “looks like it might have hit rock bottom ” altcoin and recent developments around the project could be a sign of strengthening fundamentals. In late October, the project was voted by Tokemak (TOKE) holders as one of the assets added to the platform’s liquidity pools called ‘reactors’.

Tokemak claim (is to be “a protocol that enables sustainable DeFi liquidity” and they framed the current issue that DeFi has by saying:

“The protocols have difficulty coordinating users to pool liquidity in exchanges. They can incentivize users through high APY (liquidity extraction) inflationary means, but this is inefficient and extremely costly. ”

Effectively reactors are one-sided pools of liquidity where projects and users place their tokens and TOKE holders vote on where the liquidity is directed. The goal is to “allow protocols to retain control over where liquidity goes, rather than having to incentivize users through issuance” and this one-sided involvement means that LPs stake an asset and liquidity managers stake by TOKE and stakeholders receive rewards from TOKE.

How is this relevant to ALCX?

Well, TOKE has done incredibly well since its initial DEX offering (IDO) and the liquidity funds have been quite popular and stable. There is great interest and demand for TOKE, and the fact that ALCX was selected from 42 other projects to have a liquidity pool means that holders are eager to bet and receive TOKE.

Alchemix was also selected as part of Olympus DAO’s “Olympus Pro” product, which has some similarities to Tokemak. The platform aims to prevent the mercenary capital scenario by allowing “the protocols to accumulate liquidity to ensure longevity and price stability for all involved.”

Cointelegraph recently explained how awarding bonds for a specified period of days is beneficial to the bondholder and the protocol. The following image provides a fairly straightforward summary.

Olympus Pro explains it. Source: Olympus DAO Finance

On October 8, the Alchemix team announced plans for a v2 update to their platform and also suggested that their “self-liquidating loans” would be more understandable to the public. The project also aims to open up the potential uses of collateral so that users can exercise various “delegation of credit” options, instead of using only interest to pay off the loan.

Typically, protocol updates and mainnet releases are bullish events for the native token, but what makes the fundamentals of ALCX look juicy is the token’s cross-integration with other protocols that work well.

On October 13, Olympus (OHM) price recovered within a hair of its all-time high and since the Olympus Pro launch, integrating with Tokemak, announcing plans to launch on Arbitrum and taking integration and commission from DeFi platforms such as Wonderland Money and Abracadabra. , the bullish sentiment surrounding OlympusDAO has skyrocketed.

ALCX / USD daily chart. Source: TradingView

From a technical analysis point of view, ALCX is still “consolidating” and, apart from the recent sudden volume increases, it appears to be in an “accumulation phase” rather than a “bottom phase”.

Like SLP, a daily close with some higher highs above the $ 490 level would be an encouraging sign of a trend reversal. High-volume nodes on the Volume Profile Visible Range Indicator (VPVR) also indicate that there is resistance in the current range of $ 400 to $ 480 and a break above this level could cause the price to advance rapidly to $. 700.

Other positives pointing to increased bullish momentum include consecutive daily closes above the 20- and 50-day moving averages, along with an imminent convergence between the moving averages.

The integration of ALCX with Olympus DAO, Tokemak, the upcoming v2 update, the project’s bounce from its recent $ 4 million exploit, and the token ‘accumulation phase’ seen on the daily chart are also possible signs that the asset could be on the verge of a trend. change.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.