Crypto Focus: Volatility Returns but is Crypto on the Up?
This week got off to a similar start as last, with buyers controlling momentum for the first four days of trade. Friday saw a heavy fade set up with half of the week’s gains cut on the top 10 and top 25 indexes after seeing just over 10% of gains to the week’s high.
Some headlines have come out where Bitcoin has briefly moved back above 48K. Ethereum is set for an upgrade, and it’s being called a merge. This will be a joining of mainnet and the beacon chain proof-of-stake system. The ‘merge’ will mark the end of proof-of-work (PoW) for Ethereum in favour of the proof-of-stake (PoS) mechanism. This is due in the second quarter of 2022.
Ronin hack, around 600 million was stolen from the Ronin network. A blockchain associated with the popular pay-to-earn game Axie Infinity. This was one of the largest hacks in Crypto history. Around 173,600 Ether and 25.5 stable coins were taken.
Looking at this weekend and next week’s session, we are wondering if the current fade is short term or if something deeper is happening here. This is the third straight week of solid gains before heavy selling developed.
Following on from the fade, Ripple is in an interesting position. Price failed at key resistance and has made a breakthrough the fast uptrend. Price bounced off the main uptrend but, for now, sits in no man’s land. A hold after the test of the main trend line could set up a new continuation higher, but if we see a break of the main trend line, this could suggest that a deeper correction could be underway.
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