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Cardano Price Will Overcome Consolidation? Find Out!

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Cardano Price Will Overcome Consolidation? Find Out!
  • Since June, the total volume has decreased.
  • Charles Hoskinson revealed the Alonzo hard fork in August 2021.

In October, the bitcoin market re-emerged. The total crypto market value has grown to $2.3 trillion in eight days.

Cardano’s ADA coin is one of the best-performing cryptocurrency assets, owing to the overall market increase. Cardano’s price has been trending downwards in recent weeks. However, a higher bottom was made at the end of September, indicating bullish momentum.

It is retracing after failing to remain above the $2.30 barrier, indicating a further decline. The pivot point support zone for the daily ADA currency technical chart and price trend is $1.90, followed by $1.65.

ADA/USDT: Source: TradingView

Since June, the total volume has decreased. The volume has risen in recent days. End-of-September saw a significant drop in Cardano’s average number of big transactions. Since the recovery began, the average transaction volume has remained below the 6-month norm.

Charles Hoskinson revealed the Alonzo hard fork in August 2021, triggering a 116 percent increase in Cardano pricing the following month. The Cardano ‘Alonzo’ hard fork launched on September 12, 2021, introducing smart contracts to the network. After the launch, over 100 smart contracts were deployed in 24 hours.

Absence of Institutional Buying

The layered blockchain team claims that their technology has proven useful in developing decentralized applications and smart contracts. Large transaction investors enable transfers of $100,000 or more. As a consequence, a drop in major transactions indicates a drop in movement. This means that addresses with a balance have made fewer transfers since September 15.

It also showed a lack of institutional purchasing. According to the same, Bitcoin received $68.7 million while Ethereum received $20.2 million. Cardano, on the other hand, only received $1.1 million. According to CoinMarketCap, Cardano price today is $2.27 USD with a 24-hour trading volume of $1,930,950,478 USD.

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TA: Bitcoin Reclaims $50K, Why 100 SMA Is The Key For Larger Increase

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Bitcoin is recovering and trading above $50,000 against the US Dollar. ETH must settle above $51,000 and the 100 hourly SMA to continue higher.

  • Bitcoin started a recovery wave above the key $50,000 resistance zone.
  • The price is now trading near $51,000 and the 100 hourly simple moving average.
  • There is a short-term bullish trend line forming with support near $49,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a decent upward move if there is a close above $51,000.

Bitcoin Price Gains Momentum

Bitcoin price started a decent recovery wave after a major decline below $45,000. BTC climbed back above the $46,500 and $48,000 resistance levels to start the recent recovery.

The price is back above the $49,200 resistance level. There as a break above the 50% Fib retracement level of the key decline from the $57,690 swing high to $40,150 low. Besides, the bulls were able to push the price above the key $50,000 resistance zone.

There is also a short-term bullish trend line forming with support near $49,600 on the hourly chart of the BTC/USD pair. The pair is now trading near $51,000 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $51,000 level and the 100 hourly SMA. It is close to the 61.8% Fib retracement level of the key decline from the $57,690 swing high to $40,150 low. A clear break above the $51,000 resistance zone could open the doors for more upsides.

The next key resistance is near the $52,500 level, above which the price could accelerate higher. In the stated case, the price could rise towards the $53,500 level.

Fresh Decline In BTC?

If bitcoin fails to clear the $51,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $50,200 level.

The first major support is now forming near the $49,600 level and the trend line. A downside break below the $49,600 support may perhaps start a fresh decline. The next stop for the bears might be $46,000.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.

Major Support Levels – $50,200, followed by $49,600.

Major Resistance Levels – $51,000, $52,500 and $53,500.

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Number Of Cardano Wallets Staking ADA Crosses 1 Million

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Picture of a Cardano logo

Cardano has now crossed the 1 million staking wallets milestone. The project has been one of the most promising in the space and has garnered a cult-like following since it debuted in 2017. The altcoin held the number one spot for the network with the highest amount of coins staked until recently when Solana took over that title. Nevertheless, it has held its own in the market.

Breaking A New Record

On Sunday, December 5th, crypto investor Jesse Blount took to Twitter to congratulate Charles Hoskinson, the founder of Cardano, on its latest milestone. In the tweet, Blount included a picture that showed that the number of delegators on the Cardano network had crossed one million.

Related Reading | Cardano Ambassador Addresses FUD Surrounding The Project

Staking on the network had ramped up following the release of smart contracts capabilities on the blockchain. Developers had finally been able to release DApps on the network and the projects which launched on the blockchain enjoyed tremendous success due to the anticipation. What followed was a rapid increase in the number of users that were staking their ADA on the network.

Number of staking wallets on Cardano surpasses 1 million | Source: Twitter

The image posted by Blount showed that there were a little over 1 million wallets staking on the network across 3,108 staking pools. A total of 33,085,775,493 ADA were staked on the network at the time of the post, representing 72% of the total ADA circulating supply staked. It remains one of the largest proof-of-stake blockchains.

Cardano price chart from TradingView.com

ADA drops to $1.28 | Source: ADAUSD on TradingView.com

First DEX Coming To Cardano

The launch of DEXs on the Cardano blockchain has been one of the major reasons behind the increased activity on the network. As users move towards other blockchains from the high fees of the Ethereum network, Cardano has begun absorbing this user base.

SundaeSwap is set to be the first DEX to launch on the Cardano network. According to a post on IOHK’s official Twitter, the DEX was set to launch on the Cardano testnet. The developer anticipates high usage and transaction, hence the reason for the partnership is to ensure it runs smoothly.

Related Reading | Cardano Records Over 20 Million Transactions Ahead of DEX Launches

This launch signals the official launch of DeFi on Cardano. The DEX will first go through the testnet to see how it performs under high throughput. The community was too to expect bugs in the DEX, but to also keep in mind that it is still in the early stages. As DeFi makes its home on Cardano, there will definitely be some kinks to straighten out before it is working perfectly.

Featured image from CadaNews, chart from TradingView.com

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The People’s Bank Of China’s Report On Blockchain Tech And Their Upcoming CBDC

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People’s Bank Of China, China's flag waving

Apparently, the People’s Bank Of China is considering using blockchain technology to power the Digital Yuan CBDC. The coin, also known as Digital renminbi or digital RMB, has been in beta-testing for a while now. However, Di Gang, deputy director of the Digital Currency Institute of the People’s Bank of China, recently presented an extensive report on blockchain technology. It was at “the 18th annual global meeting of the International Finance Forum (IFF) on Dec. 5,” and Chinese journalist Colin Wu translated the main points for us to analyze. 

Related Reading | How Samsung Will Help The Bank Of Korea With CBDC Development

Before we do that, let’s consider this. Their CBDC is a completely centralized affair. Why would the People’s Bank Of China use a blockchain? In other words, why would China need a blockchain for its CBDC if its aim is not decentralization or censorship resistance? A centralized database is orders of magnitude more efficient than a blockchain. And it doesn’t need mining to validate transactions, nor PoW or PoS to reach consensus. Let’s dive into the report and see if we can find answers to these questions.

What Does The People’s Bank Of China Think About Blockchain Tech?

The report begins with stats and a survey’s results:

“According to Di Gang, 2021, the results of blockchain research conducted by relevant consulting organizations for ten countries, including the United States, the United Kingdom, Singapore, Germany, China and Japan, show that 81% of the institutions surveyed believe that blockchain technology is widely scalable and is being adopted by the mainstream, with the percentage of financial institutions agreeing with it being as high as 84%, and all the global financial institutions surveyed have made blockchain an an imperative strategic priority.” 

Notice that they talk about belief and about making blockchain a priority, but not about actual usage among traditional financial institutions. The report does go on to say that “A research institute in September 2021, research on the use of blockchain by the global TOP 100 listed institutions shows that 81 institutions are using blockchain technology,” but no source is given. Where are those projects? Are they still in development?

Then, Di Gang claims: 

“Blockchain landing achievements are increasing and playing more and more value advantages; on the other hand, blockchain technology has realized landing in cross-border payment, supply chain finance, agricultural finance, trade finance, inclusive finance, social city, “three rural areas”, people’s livelihood, etc.”

Are these crypto-projects, government-related, or traditional finance projects? The report doesn’t specify, so we can’t know their characteristics. Then, Di Gang says “Some large international financial institutions are also actively expanding blockchain application scenarios, including trade finance, information sharing, foreign exchange trading, equity trading, etc.” Why do those institutions need a blockchain to do all that?

Does The Digital RMB Or Digital Yuan Need a Blockchain?

Apparently, it does. Apparently, the Numerical Research Institute is already working on an implementation:

“First, a unified distributed ledger was built in the digital RMB system based on blockchain technology. The central bank acts as a trusted institution to upload the transaction data onto the chain to guarantee the authenticity and reliability of the data, and the operating institutions can conduct cross-institutional reconciliation, collective maintenance of the ledger, multi-point backup, etc.”

The Institute wants to build a “blockchain platform for trade finance, with the goal of penetratable information, transferable trust and shareable credit, and to complete the construction of a blockchain-based trade finance ecosystem.”

Relationship betwwen the US Dollar and the Chinese Yuan FXCM | Source: USD/CNH on TradingView.com

Technical Challenges In Blockchain Technology

The People’s Bank Of China identified the following problems with blockchain technology:

  • Problems with performance and scalability.
  • Not Enough privacy protection. “Innovation from the theoretical level is still needed, as well as from engineering technology,” Di Gang said.
  • It needs to further strengthen security technology innovation.
  • “In terms of regulatory auditing, Di Gang believes that there are still many nodes inside the blockchain that are anonymized and dense, which are difficult to supervise by decentralization,”
  • There’s technical friction between blockchain technology and traditional technologies.
  • Someone needs to build an interoperability standard system.

So, essentially the same problems every crypto company already identified plus one, “regulatory auditing.” Is it fair to say that this is what this report is really about? 

Related Reading | Central Bank of France Tests Blockchain-Backed CBDC Targeting Debt Market

The People’s Bank Of China Will Release Their CBDC For The Winter Olympic Games

Apparently, the PBOC’s plan to further test the Digital RMB during the Winter Olympic Games is still a go. Di Gang said:

“The digital RMB has been piloted since the end of 2019 and is now being piloted in 10 regions and the 2022 Beijing Winter Olympic Games scenario, and in July this year, the PBoC released the White Paper on the Progress of R&D of China’s Digital RMB, and as an important part of the digital RMB R&D pilot and the Winter Olympic Games preparation, the pilot of the digital RMB Beijing Winter Olympic Games scenario is also is advancing in a steady and orderly manner.”

And that’s where China currently stands regarding blockchain technology and their CBDC.

Featured Image: glaborde7 on Pixabay | Charts by TradingView
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