Investors are worried about rising energy prices that have already increased significantly over the last few months and wider inflationary pressures across the globe.
Barring the US dollar-pegged Tether, all of the top digital tokens were trading higher on Tuesday. BNB and Avalanche rallied as much as 4 per cent, followed by a 2 per cent rise each in Bitcoin, Terra and Solana.
The global cryptocurrency market cap today jumped to $1.73 trillion, adding more than 2 per cent in the last 24 hours. Total cryptocurrency trading volume jumped as much as 25 per cent to $85.50 billion.
What’s cooking in India
In recent months, several types of ETFs linked to cryptos have debuted globally – some invest in virtual assets directly, some stick to futures, while others focus on stocks of companies that are in blockchain & other crypto-related areas.
In India, ETFs are typically offered by mutual fund companies and markets regulator Sebi has limited them to stocks and their indices, gold, and silver. According to industry players, asset management companies won’t come up with crypto ETF plans until there is a law in place.
Bitcoin and Ethereum rose a bit after falling over the weekend. Intraday charts suggest BTC to be oversold, while the support level at $37,000 can stabilize the pullback, said Edul Patel, CEO and Co-founder, Mudrex.
“Most top cryptocurrencies have also shown up in the green in the past 24 hours. Although investors are largely keeping themselves away from the high-risk assets amid the ongoing tension between Russia and Ukraine,” he added.
- In less than a week, the Ukrainian government has raised more than $50 million worth of crypto after Russia launched a full-scale invasion on February 23.
- Ukraine is buying bulletproof vests and night-vision goggles using crypto. Some of the military suppliers to Ukraine have crypto accounts, said the Ukraine government.
- Coinbase (COIN)is blocking 25,000 Russian-linked crypto addresses it believes are tied to illicit activity, Chief Legal Officer Paul Grewal said in a late Sunday blog post.
- In other news, fresh investment inflows into crypto funds jumped threefold last week to the highest in almost three months, despite outflows from European products.
Tech view by Giottus Crypto Exchange
Cardano (ADA) is a layer 1 blockchain operating with the goal of delivering advanced smart contract capabilities and decentralized applications with secure crypto transactions.
After a massive run that took the coin from $0.25 to over $3 in Q4 2021, ADA has failed to consolidate and experienced a downtrend. The year 2022 has been largely negative as it continued to dip and recently hit a low of $0.745
However, there are now signs of reversal since ADA seems to have flipped a resistance trendline to support and is currently back-testing it. This test is in confluence with a double bottom and if played out, could see ADA rally to resistance at $1.13 in the coming weeks.
Continued bullish momentum could bring targets of $1.37 within reach. ADA is a fundamentally sound crypto and many would agree that current levels, despite the deep retracement and loss of supports, are good levels to buy for the mid to long term.
Support: $0.79, $0.74
Resistance: $1.13, $1.37
(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.)