Altcoins
Tron Price is on the Cusp of a Bearish Breakout
Tron price remained in a consolidation phase in the past few days as cryptocurrencies recoiled. TRX was trading at $0.054, which was about 21% above the lowest level this month. Like other cryptocurrencies, Tron plunged by more than 50% in 2022.
Consolidation continues
Tron is a leading blockchain project that was started by Justin Sun, the controversial Chinese software engineer. It operates as a blockchain operating system that handles billions of dollars worth of stablecoins on a daily basis.
Tron has been used to build some popular dApps in the industry. For example, it was used to build DeFi platforms like JustLend, JustStables, Sun.io, SocialSwap, and UniFi among others. According to DeFi Llama, Tron has a total value locked of over $4.5 billion, making it the third-biggest chain in the world.
JustLend is a major player in the DeFi industry. It is a lending platform that is an alternative to Aave. It has a TVL of over $3 billion, giving it a market dominance of 66%. Users can supply, borrow, and earn rewards at any time.
According to the website, it has a total supply of over $3 billion and total borrow of over $386 million. Most of these assets are in Tron followed by USDD, USDT, and SUN.
A key risk for JustLend is that it has some exposure to USDD, a relatively risky stablecoin that is similar to Terra USD. Like UST, the stablecoin is backed by a basket of assets like Bitcoin and USDC. Therefore, if it loses its peg, there is a likelihood that it will have a negative impact on Tron.
Another risk for Tron is JustLend’s market dominance. Like we saw with Fantom and Solana, having one entity with so much power can be risky. The second-biggest player in Tron, JustStables and Sun have a TVL of $931 million and $593 million, respectively.
Tron price forecast
The daily chart shows that the TRX price has been in a slow bullish trend in the past few days. Along the way, it formed a small ascending chanel shown in green. It moved slightly below all moving averages while the MACD has formed a bullish divergence pattern. Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $0.0045.
Solana price joined in on the recent rally in the global cryptocurrency market, jumping nearly 17% in the past week. Solana has made substantial gains this year, climbing 102% in its year-to-date price. SOL ranks as the 11th largest cryptocurrency after Binance USD and ahead of Polkadot. Despite the altcoin’s recent rally, the total volume of the coin traded has continued to dwindle.
Fundamentals
Solana price was trading slightly higher on Friday as Bitcoin and other altcoins extended their rally despite the bank contagion fears weighing on the markets. Bitcoin and Ethereum have been leading the recent rally in the market, jumping more than 30% and 20% in the past week, respectively.
Investors have welcomed the resilient crypto prices amid the recent crisis in the banking sector this week. The week started with the collapse of Signature Bank and Silicon Valley Bank on Sunday until the focus shifted to Credit Suisse and First Republic Bank. Traders have been digesting the fate of Credit Suisse even after the bank said that it would borrow up to 50 billion Swiss Francs from the Swiss National Bank.
Several analysts have linked the recent rally in the crypto market to lingering bank worries. Even so, crypto prices are heavily influenced by inflation and the Federal Reserve interest rate hikes. According to analysts, the recent decline in banking stocks points to the vulnerability of traditional institutions, raising liquidity concerns…
Ethereum price staged a strong recovery over the weekend, wiping out its previous losses after jumping by more than 11%. ETH has moved past the crucial level of $1,500 and is currently trading at 1,588.98. The altcoin’s total market cap has jumped by more than 8% over the past 24 hours, while the total volume of the coin traded increased by nearly 37%.
Fundamentals
Ethereum price staged a strong comeback during the weekend, breaking its 5-day consecutive downtrend. Ethereum’s recovery is in line with the overall recovery in the crypto market. The global crypto market cap has jumped past the $1 trillion level and currently sits at $1.02 trillion. The total crypto market volume has increased by more than 31% over the last day.
Last week was a tough week for the crypto community. The Silvergate crisis, as well as fears about potential further interest rate hikes, had been weighing on the crypto market in the past week. Silvergate recently announced its plans to wind down its operations and liquidate its bank, staging the biggest hit on the crypto market after FTX’s collapse and Terra’s LUNA crash.
Notably, Fed chair Jerome Powell warned that the US central bank is likely to impose further interest rate hikes to higher levels than previously anticipated. The raising of interest rates over the past year has heavily weighed on risk assets such as cryptocurrencies and stocks.
Binance, the…
Cardano price has been under intense pressure for the past few days as Silvergate poses for a potential bankruptcy. ADA has slipped by more than 7% in the past week but remains 32% higher in the year to date. At the time of writing, ADA was 2.54% lower at $0.3221, while its total market cap inched nearly 1% lower. Cardano ranks as the 7th largest cryptocurrency by market cap after XRP and above Polygon.
Fundamental Analysis
Cardano price has recorded a sharp decline for the past few days as Silvergate’s crisis continues to weigh on cryptocurrencies. Silvergate Capital is a Californian bank that pioneered money transactions between cryptocurrencies and hard cash. The Silvergate crisis looks to be the next big failure after the collapse of FTX and Terra’s LUNA meltdown.
Data by Coinmarketcap show that the global crypto market cap has continued to move lower to $1.01 trillion, pointing to a bearish outlook in the crypto market. Bitcoin’s dominance has also inched lower as the digital asset remains at the $22,000 level.
Fears of higher interest rates by the US Federal Reserve have been gnawing at the markets, following Powell’s hawkish tone. Fed chair Jerome Powell announced on Tuesday that the Federal Reserve is prepared to return to bigger interest rate hikes in a bid to fight inflation.
The US central bank has been struggling to cool the economy despite a year-long campaign of…
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