Bitcoin
Elastic (XEL) Could Just Be Getting Started
Elastic (XEL) is attracting a lot of attention in the cryptocurrency space right now. The token is up close to 10% on the USD over the last twenty-four hours and a little over 4% on BTC. Interestingly, this isn’t one of those coins that has rocketed during 2017 (the company behind it only conducted its ICO back at the end of June) and this is likely one of the factors that’s driving the increase we are seeing right now.
What do we mean by this?
Well, there are a number of traders and investors that are sitting on the sidelines at the moment feeling as though they’ve missed the boat on the incredible gains many have logged on the back of cryptocurrency positions year to date. Many of the coins that have turned out these incredible gains are now trading for hundreds if not thousands of dollars apiece, meaning that said traders and investors are only able to pick up a limited exposure to any upside potential and – in turn – that the upside potential is somewhat limited based on the limited position size.
XEL Daily Chart
What this is translating to, then, is traders seeking out those currencies that are yet to pick up huge runs on the back of large inflows of volume, one of which is Elastic. As such, and if this concept is valid a valid one, we could just be seeing the beginning of a much larger revaluation for XEL as we head into the close of 2017 and beyond.
So what’s this coin all about?
The company behind XEL, Elastic, which, as mentioned, conducted in ICO back in June this year, is set up to build the first decentralized supercomputer. The concept is relatively complicated but, for the purpose of simplicity, it’s essentially an open source project designed to create what Elastic refers to as a decentralized trustless supercomputer, which is built on cryptography and blockchain technology. The company has created its own proprietary programming language (called ElasticPL), which accounts for one of four major elements of the project – a dedicated blockchain, a core client and the XEL miner.
So where does XEL come into the equation?
Well, in order for people to use the decentralized supercomputer for whatever purpose, they need to pay for the computational power that they require. This computational power is provided by miners, which are rewarded in XEL. So, people buy XEL and use it as a transaction token in return for computational power provided by the miners on the network and, in turn, the latter receive the XEL as a reward – similar in concept to the way that miners on the bitcoin network receive BTC as a reward for the computational power that they dedicate towards solving algorithms and verifying transactions.
So, why is this one running today?
A quick look at the usual communication channels doesn’t reveal anything groundbreaking outside of a pending website redevelopment (which is set to be released near term), and it’s this that leads us to the conclusion that the recent run is rooted in an inflow of speculative volume in anticipation of a much longer term upside move.
If this is the case, it makes for a risky trade, given that we are probably going to need some sort of fundamental development to serve as support for the action we are seeing at some point. Right now, however, that doesn’t make it a non-starter. There could be plenty of room on the upside of the equation before any such fundamental development is required and – for us – this makes Elastic and its XEL token a real potential winner at current prices.
We’ll be on the lookout for any communication from the team over at Elastic as supportive of our thesis and, for now, we’ll be basing our bias purely on volume.
We will be updating our subscribers as soon as we know more. For the latest on XEL, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Elastic
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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