New Delhi: Most major cryptocurrencies plunged on Wednesday as bears continue to push prices lower. Barring US dollar pegged coins, the top 10 traded cryptocurrencies were down up to 25 per cent in the last 24 hours.
Bitcoin was down 8 per cent while Ethereum tanked 21 per cent. Binance Coin, XRP and Cardano were also down in double digits. Interestingly, the sell-off happened at a relatively higher volume, meaning this trend may continue for some time, said analysts.
“The markets are currently dragged down by bears. Although this was not a major panic selling session, the momentum prevailing across the markets is pretty bearish. BTC is toying with the $33,000 level. ETH fell below the $2,000 mark creating a sense of scare across altcoins. This sort of volatility can be expected to continue throughout the week,” said Edul Patel, CEO and co-founder of Mudrex.
Selling, though, was not just contained in the crypto market but equities across the world were also under pressure. The major reason behind this is the more than expected rise in inflation in the US, which pushed yields and US dollar higher.
The US consumer price index jumped 0.9% in June, the Labor Department said on Tuesday. That was above market expectations and the largest gain since June 2008.
Analysts believe the upcoming Grayscale unlockings, coupled with the Taproot upgrade, is likely to lead to an increased buying by wealthy investors and BTC whales.
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Curve is a decentralized exchange for stablecoins and uses AMM’s to provide and manage liquidity on the platform. It was launched in January 2020 and has now become one of the largest decentralized exchanges, since it witnessed phenomenal growth in the latter part of 2020. In August last year, Curve introduced a decentralized autonomous organization (DAO), with CRV as its native token.
The DAO is built on an Ethereum-based tool, Aragon, which connects multiple smart contracts that enable users to deposit liquidity. As of June 2021, there are 39 active pools available for swapping between stablecoins and assets on the platform.
CRV after making the low of $1.057 surged almost 174 per cent up to $2.9 The asset faced stiff resistance around $3 mark and witnessed another fall. However, it did not test the previous lows and reversed from $1.216 and started moving upwards and rallied up to $2.099. Post this, CRV resisted around $2 and made a ‘Shooting Star’ pattern (bearish pattern) and witnessed another correction.
The asset has a strong support at $1.35. If it sustains the support level then we can expect some relief rally, else we may see a further downfall, and the prices may slide to the next support level of $1.057.
(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.)