Bitcoin (BTC) has slowed down after its sharp relief rally over the past 48 hours, but Ether (ETH) is in no mood to rest as it continues to chase new all-time highs.
The biggest altcoin by market capitalization seems to have received a boost from the news of the launch of a 100-million-euro ($120.8 million) digital bond sale on its network by the European Investment Bank.
Meanwhile, Bitcoin’s institutional adoption has continued to expand. Japanese game developer Nexon disclosed the purchase of 1,717 Bitcoin at an average price of $58,226, for a total consideration of about $100 million. Nexon president and CEO Owen Mahoney said the investment was done to protect shareholder value and maintain the purchasing power of cash assets.
It is not only the Bitcoin purchases by companies that is catching investor’s attention. Goldman Sachs said that crypto-related stocks have risen 43% this year, outperforming the S&P 500 by a wide margin, which is up over 13% year-to-date. This shows that legacy investors are piling into stocks closely related to cryptocurrencies.
Will the strengthening fundamentals result in price appreciation across the crypto market? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin’s (BTC) relief rally reached the 20-day exponential moving average ($55,260) on April 27, where it has encountered stiff resistance from the bears. The bears are trying to defend the 20-day EMA and will now attempt to sink the price toward $50,460.
However, if the bulls do not give up much ground from the current levels, it will suggest that demand remains strong. That could result in a possible break above the 50-day simple moving average ($56,947). If that happens, the BTC/USDT pair could rally to $61,825 and then to the all-time high at $64,849.27.
Even if the price drops to the $50,460 support but rebounds off it strongly, it will suggest accumulation at lower levels. That will lead the bulls to make one more attempt to clear the hurdle at the moving averages.
This positive view will be invalidated if the bears sink the price below the $46,985.02–$50,460 support zone. That could result in a decline to the critical support at $43,006.77.
Ether’s (ETH) rebound off the 20-day EMA ($2,336) picked up momentum on April 26, and the bulls pushed the price to a new all-time high on April 27. That was followed by another up-move on April 28, but the Doji candlestick pattern suggests the rally may be tiring in the short term.
The first support on the downside will be $2,500, and if that breaks, the decline could reach the 20-day EMA. A strong bounce off of this support will suggest that traders are aggressively buying on dips.
The rising moving averages and the relative strength index (RSI) near the overbought zone suggest the path of least resistance is to the upside. If the bulls pierce the resistance line of the ascending channel, the ETH/USDT pair could reach $3,000.
Conversely, a break below the 20-day EMA could pull the price down to the support line of the channel. A break below this support could challenge the 50-day SMA ($2,041).
Binance Coin (BNB) is gradually moving toward the resistance line of the symmetrical triangle. The rising moving averages and the RSI in the positive territory suggest the path of least resistance is to the upside.
A breakout and close above the triangle will indicate that demand exceeds supply, and that could result in the start of the next leg of the uptrend, which could reach $808.57.
Contrary to this assumption, if the price turns down from the resistance line, it will suggest that bears are active at higher levels. That could keep the BNB/USDT pair stuck inside the triangle for a few more days. A breakdown and close below the triangle will signal a possible trend reversal.
XRP surged above the 20-day EMA ($1.24) on April 26, suggesting that selling has exhausted in the short term. However, the altcoin is facing resistance at $1.46, just above the 50% Fibonacci retracement level at $1.42.
If the XRP/USDT pair declines below the 20-day EMA, it will suggest that bears are selling on rallies. That could open the doors for a drop to the 50-day SMA ($0.89).
Conversely, if the bulls defend the 20-day EMA and push the price above $1.46, the pair may rally to $1.55. A breakout of this resistance will suggest that bulls are back in the driver’s seat. The pair could then retest the 52-week high at $1.96.
Cardano’s ADA surged above the moving averages on April 26, and the long tail on today’s candlestick suggests traders bought the dip to the 20-day EMA ($1.23). This is a positive sign, as it shows that buyers are accumulating on dips.
The ADA/USDT pair could now attempt a rally to $1.48 where the bears are likely to mount stiff resistance. If the price turns down from this level, the pair is likely to drop to the moving averages and remain range-bound for a few more days.
Contrary to this assumption, if the bulls drive the price above the $1.48–$1.55 overhead resistance zone, the pair could start the next leg of the uptrend, which has a target objective of $2.
For Dogecoin (DOGE), the inside day candlestick pattern on April 26 and a Doji candlestick pattern on April 27 showed indecision among the bulls and the bears. That uncertainty resolved to the upside on April 28, and the bulls pushed DOGE to the overhead resistance at $0.34.
If bulls can clear the hurdle at $0.34, the DOGE/USDT pair could start its journey toward $0.42 and then to the all-time high of $0.45. The rising 20-day EMA ($0.23) and the RSI in the positive zone suggest the bulls are in control.
However, the bears are likely to pose a stiff challenge at the $0.34 resistance. A dip below $0.29 may weaken the bullish momentum. The bears will then smell an opportunity and try to pull the price down to the 20-day EMA. A break below this support could result in a decline to $0.15.
Polkadot’s DOT relief rally is facing resistance near the 20-day EMA ($35.54), which suggests that sentiment has turned negative and traders are selling on rallies. The bears will now try to sink the price back toward the critical support at $26.50.
The downsloping 20-day EMA and the RSI turning down from the downtrend line suggest that bears are at an advantage. A break below the $26.50 support will complete a large head-and-shoulders pattern, which could signal the start of a deeper correction.
Conversely, if the bulls do not give up much ground from the current level, it will indicate buying on every minor dip. That will enhance the prospects of a breakout of the moving averages, resulting in a rally to $42.28 and then a retest at $48.36.
Uniswap’s UNI broke above the $39.60 overhead resistance and made a new all-time high on April 27. The up-move continued on April 28, and the bulls pushed the price above the resistance line of the ascending channel.
If the UNI/USDT pair sustains above the channel, it will suggest strong momentum. The pair could then rally to $44.88 and then $50. The rising 20-day EMA ($34.50) and the RSI trying to break above the downtrend line suggest the bulls have the upper hand.
Alternatively, if the price fails to sustain above the channel, a drop to $38 is possible. If the bulls flip this level to support, the possibility of a break above the channel increases. This positive view will invalidate if the pair turns down and slips below $35.20.
Litecoin’s (LTC) relief rally rose above the 20-day EMA ($247) on April 28, suggesting the near-term selling pressure has eased. However, the bears are unlikely to give up easily.
The LTC/USDT pair is facing resistance near the 50% Fibonacci retracement level at $270.89. If the bears sink the price below the 20-day EMA, the pair could drop to the 50-day SMA ($224). This is an important level to watch out for because if it cracks, the correction may deepen to $168.
On the contrary, if the bulls successfully defend the 20-day EMA, it will indicate demand at lower levels. The buyers will then try to push the price above $270.89 and reach the 61.8% Fibonacci retracement level at $286.02.
This level may again act as stiff resistance, but if the bulls drive the price above it, the pair could be on track to retest $335.03.
Bitcoin Cash (BCH) broke above the downtrend line on April 26, suggesting the start of a relief rally. The pullback is showing the first signs of resistance near the 50% Fibonacci retracement level at $950.13.
The bears will now try to sink the price below the 20-day EMA ($815). If they succeed, the BCH/USDT pair could drop to the 50-day SMA ($661). Such a move will suggest that the sentiment has turned negative and traders are selling on rallies.
Conversely, if the price rebounds off the 20-day EMA and breaks above $950.13, it will indicate that traders are buying on dips. That could push the price toward the 61.8% Fibonacci retracement level at $1,012.29. A break above this level would tilt the advantage in favor of the bulls.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
After the successful proceeding of the first phase of the testing of the Digital Yuan, Hong Kong is in talks with China to stretch its cross-border testing. This has marked yet another step toward wider adoption of the currency.
Hong Kong to Stretch Testing of Digital Yuan to China
The Monetary Authority of Hong Kong has recently conducted tests with the Digital Currency Institute of the People’s Bank of China.
In addition to this, the Hong Kong Monetary Authority said in an e-mailed response to the questions asked that it involved a bank designated by the mainland authority, as well as the merchants and bank staff.
The e-mailed response said:
“We have tested the use of the related app, system connectivity, and certain use cases such as cross-boundary purchases.”
Along with this, the statement said:
“We are discussing and collaborating with the PBOC on the next phase of technical testing, including the feasibility of broadening and deepening the use of e-CNY for cross-boundary payments.”
Also, it should be known that the People’s Bank of China is pretty ahead of other major central banks in the development of its own digital currency.
The bank is looking forward to replacing cash and maintaining control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.
Payment Infrastructure Underpinning e-CNY can Address Substantial Portion of Cost Base
As revealed in the report released on Wednesday by Oliver Wyman, the usage of the Digital Yuan in Hong Kong could lead to a much faster and cheaper cross-border payment and clearing process.
Michael Ho, the Principal of Financial Services at Oliver Wyman and Co-Author of the report said:
“If the payment infrastructure underpinning e-CNY were to roll out for cross-border payments at scale, we believe it can address a substantial portion of this cost base.”
China could promote the overseas use of digital yuan starting with the Greater Bay Area, a massive urban cluster that includes Shenzhen, Macau, and Hong Kong.
In a recent announcement, it has been revealed that the identity platform for fraud prevention and Anti-Money Laundering compliance, Acuant has partnered with Chainalysis. The recent partnership between the AML compliance and the blockchain analysis company is meant to assist financial institutions with AML solutions.
Acuant Partners Chainalysis to Provide AML Solutions
The partnership between Chainalysis and Acuant will be helping in assisting the cryptocurrency businesses assess risk, safeguard them against illegal transactions, automate workflows, and protect their reputations with Anti-Money Laundering solutions.
In addition to this, it should be known that the customers of both partners, Acuant and Chainalysis, will now be able to leverage both the platforms via the interface provided by Acuant to manage transactions that are indicative of higher risk.
The customers will be provided with access to Chainalysis Know Your Transactions (KYT) as well as Chainalysis Reactor, their graphical investigative software.
Talking further about the investigative software, it can be utilized to follow the flow of funds across the blockchain for investigations.
The amalgamation of the Chainalysis Know Your Transactions and Acuant integrates a data set of thousands of services with the solutions that help to review both the fiat and crypto transactions.
The Integration of Identity Platform and Blockchain Analysis Firm
Well, along with this, the integration will be helping in detecting any kind of suspicious activities, manage the investigations, and moreover, file the suspicious activity reports (SARs).
The real-time alerts on the highest-risk activity will be allowing the compliance teams to target the most urgent activity and following that, fulfill the regulatory obligations to report the transactions that are suspicious.
Jose Caldera, the Chief Product Officer at Acuant said:
“Our partnership with Chainalysis will further augment our support to the cryptocurrency industry. This partnership is bringing together and integrating the top Anti-Money Laundering solutions in the marketplace today. We look forward to working with Chainalysis to strengthen our platform and to continue to be a leading solutions provider in the crypto space.”
DeFi lending protocol, Aave protocol, has built a permissioned pool for institutions to test out before getting involved within the DeFi ecosystem. The permissioned test pool is designed to be compliant with AML regulations with mandatory Know Your Customer (KYC) verification process from relevant partners. The pool would be coming to mainnet sooner rather than later.
Aave Permissioned Pool for Institutional Investors
Earlier on May 12, a Twitter user posted a tweet tagging Aave’s official Twitter account expressing concern that an anti-money laundering warning had appeared on Aave’s homepage.
Responding to this, the founder of AAVE, Stani Kulechov tweeted back saying that there had been a mistake and that “The text is actually incorrect and relates to another pool we’re testing out” explaining that Aave is still fully decentralized, and the text had appeared in the wrong place before later revealing that Aave is testing out a private pool for institutional investors.
Another user replied asking whether the specified pool was for testing out compliance features. Kulechov then confirmed the private pool was built for institutions to practice “before aping into DeFi.”
Even though Aave was launched at the beginning of 2020, it has experienced significant growth in total deposits and daily deposits since the summer of 2020.
Aave’s recent launch on Polygon and the introduction of its liquidity program was followed by its total value locked rising from $5.4 billion on April 25 to roughly $11.4 billion on May 12.
Aave Deposits and Permissioned Pool for Institutional Investors
Aave’s head of institutional business development, Ajit Tripathi, confirmed that the protocol had indeed designed a permissioned pool.
However, the “private pool” description in Kulechov’s Tweet was not entirely accurate as the pool will be on public chains but will have permissioned access for institutions, describing that the purpose of the pool was educational.
Aave has totaled over $45 billion in deposits, with 2021 seeing the protocol average $231 million in deposits per day. Over 46,000 unique Ethereum users have become lenders on Aave, with the average all-time deposit reaching $173,000. AAVE is currently trading at $566 at the time of writing.
Top cryptocurrency exchange Binance has recently announced the suspension of withdrawals for Ether (ETH) and tokens (ERC-20) based on Ethereum. Binance has recently tweeted that the withdrawals of Ethereum and all the tokens based on its ERC-20 standard are going to be suspended during the temporary maintenance of the wallet.
Binance Announced Suspension of Withdrawals for ETH and ERC-20
The suspension is going to happen from 8:00 am UTC and extend until 9:00 am UTC.
In addition to this, the exchange assures the users that the trading and deposits will be continuing their operations during this period.
Noticing further, the incident is for the third time that Binance has shut down the withdrawals of cryptocurrencies temporarily.
Earlier this week, the users of the exchange were temporarily unable to withdraw their XLM and ETH.
Following that, the leading exchange suspended all the withdrawals completely, however, they were later restored.
As reported, high gas fees have resulted in Binance suspending the withdrawals of ETH and ERC-20 tokens before the users demanded the exchange reverse its decisions.
This decision by the leading exchange was fueled by the unpredicted volatility in the prices of assets recorded in the entire crypto space, which eventually led to a rise in the gas prices of Ethereum.
Ethereum Expandability Issues Behind the Suspension
Despite many of its benefits, the network currently faces great issues with expandability and has reportedly driven gas prices to heights that were never seen before.
The Etheruem chain is suffering from network congestion, and it was followed by the decision to suspend ERC-20 and ETH transactions increased by over 1,200 gas alongside over 151,000 pending transactions.
The current inflow of the crypto investors may not be able to be supported due to the expandability issues of Ethereum and subsequent network congestion and high gas fees to a large extent.