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Crypto Focus: A Mixed Week, with Ups and Downs in the Top 10 and Top 25 Coins

August 5, 2022
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This week so far has seen a few ups and some downs. The top 10 coins and the top 25 have spent most of the week on the sell before we saw some late week demand come back into the markets, lifting coins off weekly lows. The CRYPTO10 index fell 7% to its lows this week, and the CRYPTO25 hit just over 8% lower to its weekly low.

Solana was a talking point this week as hackers cleaned out up to 8000 wallets to the tune of six million USD. This was a total disaster for the users and quickly led to heavy selling of Solana. Wednesday saw the coin trade up to 9% lower as the news hit the markets. The price recovered on Friday but still remained 11% lower overall. The hacker or hackers targeted wallets used by users and was not directed at the blockchain itself.

“The root cause is still not clear, but it appears to be due to a flaw in certain wallet software – rather than in the Solana blockchain itself,” said Elliptic. Elliptic is a blockchain consultancy that helps clients combat crypto-related crime.

For me, security remains one of the bigger hurdles facing the crypto market.

Getting back to the broader market this week, it wasn’t all stories of weaker starts and stronger finishes. A few standouts presented themselves during the week. BNB gained 14%, leading the way in the top 10. FLOW sored adding over 48%, DOT gained 6.7%, ICP 13.1% and FTM saw 11.5% added. These are a few I noticed but I’m sure there were more.

Looking at the weekly charts this week could see a break in the run we have seen over the last two and in ETHs case, the last four weeks. We discussed a supply area seen on the CRYPTO25 chart last week, and for now, that level remains in play and as a point of focus. BTC and ETH have both grinned lower this week with a bull bar on Friday. We would like to see that momentum continue with a new test and break of resistance to show us that the current recovery trend is set to continue.

We want to take a quick look at FLOW as the price continues to break higher after news Meta expanded its NFT support. This allows more users to post digital collectables minted on the FLOW blockchain.

We have our breakout from a base of accumulation after a strong downtrend. Is this news enough to drive a new trend? Will we see enough new interest gained for buyers to set up a new push at the May or April highs? The pattern so far looks good, but we want to see the price stay above $2.10. A close below that level suggests that the price has returned back to the range. The breakout does face one last resistance test at $2.96. We would also like to see further buyer momentum break resistance. The next pullback is from a clean-looking higher low, followed by a new high to continue showing buyer control.

All times are AEST.