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Ethereum (ETH), Like Most Cryptos, Enters Consolidation Mode

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Ethereum (ETH), like most crypto assets, is currently consolidating. There is little fundamental news driving prices at present and the best option for traders is to use short-term price levels to initiate short-term positions.

Fundamental Analysis

While there are several ongoing stories about Ethereum, none of them are currently driving the price.

The ICO market has seen a recovery in May, which is helping to support the ETH price. Successful ICOs on the Ethereum blockchain attract more ICOs, which in turn drives demand for ETH tokens. However, increasing numbers of blockchain projects hold ETH on their balance sheets. They need to sell these to release working capital, and in the case of a downturn in the ETH price, there is a risk of these companies liquidating their ETH holdings. This dynamic is sure to lead to continued volatility in the price of Ether.

While there have been no major announcements with regard to addressing the scalability of Ethereum, scalability is also not currently a problem.

Ongoing debates in the US over whether or not Ethereum is a security or a commodity are actually more likely to have implications for other coins than for ETH itself.

Technical Analysis

With few fundamental drivers to go on, investors and traders alike need to focus on the price action. The largest 5 cryptocurrencies have been very highly correlated since March – most of them put in a low on 6th April and a high on 6th May. Any significant moves are therefore likely to occur across the board.

The high correlation means that for longer-term positions, traders should look for confirmation from BTC, LTC, and BCH before initiating positions in Ethereum.

Ethereum 4 Hour Chart (Image Credit: www.tradingview.com)

For short-term positions, there are two levels to watch. The down sloping resistance line going back 10 days, has been rejected four times. Resistance is now at $715, and if this level is broken a rapid move to $760 and possibly $820 would follow.

The support line has been very sharply rejected five times, suggesting very little selling at these levels. This support level is now at $650 and would be a good level for long-term bulls to accumulate. However, a break below this level would suggest a move back to $500, and possibly even $365.

Ethereum vs Bitcoin Weekly Chart (Image Credit:www.tradingview.com)

As far as the relative performance of ETH and BTC is concerned, if history is to repeat itself we may only see another week or two of ETH outperformance before we see a sharp reversal. If the above pattern was to hold it would imply an average long-term ratio of 0.07 BTC per ETH. Alternatively, if the ratio breaks out of the pattern we could see a much longer period of outperformance.

Conclusion

The next move for Ethereum, like most other cryptocurrencies, is unclear at present. After a large three to four-month correction, we saw a one-month rally followed by another smaller correction. Most crypto assets are now consolidating – Ethereum included.

For now, traders can look for short-term trades around the levels mentioned above, or use the volatility to build longer-term positions. It must be said, however, that the long-term picture is far from clear at present.

This article was written by FX Empire.

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more. One of the ways to have a successful…

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Altcoins

Should Crypto Projects Devote Resources to Community Growth and Marketing?

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2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for.  While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory.  When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion.  But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.

I mention both of the above projects as they have each taken slightly different paths to achieve greatness.  Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion.  Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special.  Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.

Cryptocurrency vs. Blockchain Technology

It’s important to make a distinction between blockchain technology and cryptocurrency.  Although they are often used interchangeably, they are different.  Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…

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Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

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Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has…

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