An Ethereum-based altcoin that rallied over 11x from this year’s bottom is now likely to witness a corrective move, according to a leading analytics firm. BarnBridge (BOND), a blockchain protocol that aims to tokenize risk, exploded from its 2022 low of $2.18 last month to a high of $24.99 on July 24th, marking an increase […]
The post Ethereum-Based Altcoin Surges 1,046% From 2022 Low, Triggering Alert From Crypto Analytics Firm Santiment appeared first on The Daily Hodl.
While an ongoing technical divergence between BOND's price and volumes suggests upside exhaustion.
A new and relatively unknown DeFi token called BarnBridge (BOND) has rallied over 800% to reach $20 on July 26.
The BOND price surge comes more than a month after bottoming out at around $2.19. In comparison, top coins, Bitcoin (BTC) and Ether (ETH) have only rebounded by 18% and 54% in the same period, respectively.
BarnBridge is a cross-chain risk management protocol that offers a suite of composable DeFi products for investors to hedge against interest rate fluctuations and price volatility.
Examples include SMART Yield — a product that enables investors to secure fixed rate yields from the debt pools of other projects such as Aave, Compound, Cream, or Yearn.finance — and SMART Exposure, which offers investors tools to rebalance portfolios.
BarnBridge's latest product, SMART Alpha, allows investors to hedge against price fluctuations and provides them leverage for bullish theses. Meanwhile, BOND serves as a governance token to the Ethereum-based DAO representing BarnBridge.
On the surface, the latest BOND price pump should reflect a booming interest in risk-trenching protocols, primarily when many projects in the DeFi sector have failed. But the token's gains appear largely speculative if one focuses on its trading volume concentration.
Notably, more than 50% of BOND volumes have originated at Binance in the past 24 hours, according to data tracked by CoinMarketCap. At the same time, the daily trading activity of the benchmark BOND/USD pair has been declining during the price pump, as shown below.
The price-volume divergence suggests that fewer investors have been behind the BOND price pump, increasing the chances of a sharp correction in the coming days or weeks.
Drawing a Fibonacci retracement graph from BOND's swing high of $37.50 to its swing low of $2.18 churns out a sequence of potential support and resistance levels, as shown in the weekly chart below.
BOND has been retreating after testing $24 as its interim resistance, and now anticipates to undergo an extended correction toward $15.60, down 17.5% from July 26's price. A further breakdown risks crashing the price to $10.50, or a 45% decline.
Related: Institutional ETH sentiment turns positive after 11 weeks of outflows
Conversely, a rebound above $24 could have BOND test $30 as its next upside target. Another breakout move could shift the target to $37.50, up 95% from current price levels.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
An altcoin from the decentralized finance (DeFi) sector has outperformed the entire crypto market by a large margin over the past seven days as the project gears up for its next phase. BarnBridge (BOND) is a cross-platform risk management protocol aiming to allow users to minimize the risks associated with DeFi. BOND, BarnBridge’s ERC-20 token […]
The post Overlooked DeFi Altcoin Skyrockets Over 720% in a Week Ahead of Project’s Anticipated New Update appeared first on The Daily Hodl.
Four low-cap altcoins are surging, more than tripling in value over the past week as the digital asset markets abruptly come to life. One of this week’s biggest gainers is the native asset of RSK Infrastructure Framework (RIF), a collaborative marketplace designed to offer a suite of blockchain-based solutions such as storage, domaining and payments. […]
The post Four Under-the-Radar Altcoins Skyrocket 233% or More in Just Seven Days As Crypto Shows Signs of Life appeared first on The Daily Hodl.
The bullish outlook appears as the Russian central bank imposes stricter capital controls on its citizens, including a ban on using rubles to buy the U.S. dollar.
Bitcoin (BTC) has declined by around 30% after topping out at 5.8 million rubles a token on March 9. Nonetheless, the said drop could be an excuse for traders to dump another big stash of the Russian national currency if a classic bullish continuation pattern plays out.
Dubbed the "ascending triangle," the pattern appears when the price consolidates between a rising lower trendline (support) and a flat upper trendline (resistance). It completes after the price breaks out of the consolidation range in the direction of its previous trend, eyeing levels at length equal to the maximum distance between the triangle's upper and lower trendline.
BTC's price against the ruble has been trending inside a similar structure since January 2021, as shown in the chart below. It closed above the triangle's upper trendline, rising more than 20% to its all-time high of 5.88 million rubles.
Nonetheless, BTC corrected to test the range's resistance as support, a common sight following breakouts as traders seek confirmation of the pattern with more upside.
If this is the case, the likelihood of rebounding and continuing toward 11 million rubles appears high in the future, an almost 140% rise.
The technical bullish outlook for the BTC/RUB market also comes amid an ongoing exodus from Russian assets since Russia's invasion of Ukraine, as western nations have collaborated to damage the country's ties with the global banking system.
As a result, Moscow Exchange has suspended trading from Feb. 28 until further notice. Similarly, shares of Russia-backed companies abroad have suffered, with an MSCI index tracking their exchange-traded funds reporting nearly a 78% outflow since the invasion began on Feb. 24.
Related: Ally or suspect? The war in Ukraine as a stress test for the crypto industry
As of March 7, the ruble had tumbled by more than 50% year-to-date against the U.S. dollar, its biggest decline since 1998 when Russia defaulted on its debt. The Russian central bank intervened through a sequence of capital control measures, including a ban on foreign currency sales for six months.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Investors have grown weary of El Salvador’s dollar debts as the country further adopts Bitcoin, meanwhile the IMF has recommended that BTC not be used as legal tender.
El Salvador’s dollar-denominated bonds have fallen to an all-time low as the Central American nation’s debt started trading in "distressed territory" this week.
El Salvador’s USD bonds fell to 64.4 cents to the dollar on Monday, Nov. 22, following the weekend news that the Central American country would use Bitcoin (BTC) bonds to fund its Bitcoin City initiative. Dollar bonds have fallen steadily since April 2021 when they topped $1.10 according to Bloomberg data.
A dollar-denominated bond is a bond issued outside of the United States by a foreign company or government, that is denominated in USD instead of their local currency.
Monday’s drop resulted in the country’s debt becoming among the worst performers in global trading, Bloomberg reported. Investors are concerned that President Nayib Bukele has shut out the IMF from assisting the nation with development funds.
Managing Director of investment banking company Stifel Nicolaus, Nathalie Marshik, commented that “this announcement cements the ‘anything-but-the-IMF’ path,” before adding that bonds are falling “as the market reassesses possible recovery value lower on the unpredictability of policies.”
The Bitcoin bond will pay 6.5% annual interest in addition to 50% of El Salvador’s Bitcoin gains once its initial investment costs for its mining infrastructure have been recovered. Dividends will be paid in USD or Tether (USDT), according to Samson Mow, Blockstream’s Chief Strategy Officer.
Mow believes that the Bitcoin bond will be an alternative way for institutional investors to gain exposure to Bitcoin without having to hold Bitcoin themselves. It will also be a way for investors to help El Salvador develop more rapidly. Mow, who has been working with the El Salvador government on developing the Bitcoin bond, told Bloomberg TV on Nov. 23,
“We’re trying to structure this in a way that people can present [the Bitcoin bond] to boards and directors as a normal bond because it is a normal bond. It just happens to have a large chunk of Bitcoin tied in.”
In response to Mow’s interview with Bloomberg, Podcaster and popular Bitcoin advocate Anthony Pompliano predicted that they will be “ridiculously oversubscribed.”
PREDICTION: The El Salvador bitcoin bond will be ridiculously oversubscribed pic.twitter.com/2Kj0urm0SN
— Pomp (@APompliano) November 23, 2021
El Salvador has been in talks with the International Monetary Fund (IMF) for much of 2021 over a possible $1.3 billion loan. Those talks could be fading into obscurity as President Bukele has decided to fund more local initiatives, such as school building, with Bitcoin over USD.
Related: El Salvador to build 20 ‘Bitcoin Schools’ with surplus from Bitcoin Trust
The IMF issued a concluding statement regarding El Salvador’s funding request on Nov. 22. Although El Salvador’s economy has rebounded quickly from the pandemic, fiscal deficits and high public debt services are creating bigger holes in the services the country can provide, it stated.
The report added that efforts to improve financial inclusion and raise growth are welcome, “but risks arising from Bitcoin as a legal tender, the new payments ecosystem, and trading in Bitcoin should be addressed.”
“Because of those risks, Bitcoin should not be used as a legal tender. Staff recommends narrowing the scope of the Bitcoin law and urges strengthening the regulation and supervision of the new payment ecosystem.”
