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Here’s why analysts say Bitcoin ETFs may ‘completely change the structure of the market’

Analysts still hold a bullish longterm view of Bitcoin price, but they also agree that the newly launched BTC ETFs are a game-changer.

After reaching new all-time highs it's customary for Bitcoin (BTC) price see a bit of cooling off in the form of profit taking, consolidation and uncertainty from traders who are cautious about opening new positions at record highs. This appears to be exactly what is occuring this week as Bitcoin price struggles to hold the $60,000 level as support.

BTC/USDT 4-hour chart. Source: TradingView

Generally, most analysts still retain a bullish macro view of Bitcoin's price trajectory, to the extent that PlanB, Willy Woo and others claim that the second-half of the bull market was certified by the price hitting $67,000 last week. 

Here’s what analysts have to say about what may come next for the price of Bitcoin, along with some insights into the greater market dynamics that are currently at play.

Bitcoin ETFs have “completely changed the structure of the market”

A lot of the hype surrounding Bitcoin price over the past couple of weeks has revolved around the launch of a BTC ETF. For years analysts have aid that the instrument's approval would enable a new level of access for institutional investors and officially cement Bitcoin's "mainstream" status. 

Now that two futures-based BTC ETFs have launched, there has been a rush by many firms to propose new ETFs, including a leveraged ETF filing from Valkyrie and an inverse Bitcoin ETF from Direxion that would allow speculators to short the price of BTC.

The arrival of these ETF options has “completely changed the structure of the market,” according to Ben Lilly, market analyst and co-founder of Jarvis Labs, "as there is now tertiary derivatives in crypto via spot access, CME futures, futures-based ETFs and options on ProShares Bitcoin Strategy ETF (BITO)."

Lilly said,

“This will create a lot of arbitrage opportunities in the market as already exists with the CME spread. This spread will compress in time as more desks allocate capital to Bitcoin strategies. And in effect, volatility is sure to compress moving forward since any swings will see more capital executed as part of various strategies.”

According to Lilly, the main takeaway from the launch of BTC ETFs, is that “more capital will be flowing into various forms of Bitcoin exposure.” He also noted that “this process takes time” and that “spreads can persist until this new equilibrium is found.”

Analysts expect an intense fight between bulls and bears

One issue that has not received much attention amid the rollout of Bitcoin ETFs is how the method that these products determine the price of BTC will affect the actual spot price of BTC, as well as the spread.

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, the “premiums and discounts over fair value” that apply to these products will likely lead to larger spreads between the specific Bitcoin ETF and the underlying spot price “as these other contracts also have a premium/discount which tends to be the wider the farther the contract expiration.”

Lifchitz said,

“Add to that the cost of continuously rolling out the futures from one month to another, which will also weigh on the value of the ETF vs. spot over time, and you end up with a total crapshoot that will not track closely the BTC spot price but just correlates to it!”

As far as BTC price action goes, Lifchitz pointed to the firm rejection at the $63,000 resistance level and noted that “the fight here is intense between Bulls and Bears.”

Lifchitz said,

“However, the previous attempts from the bears to take down BTC have been mild, taking it down to just $58,000 before the bulls charged again... so we keep our potential downside targets around $58,000 and $53,000 in the short term, and looking for the $63,000 resistance to become support for the next leg up.”

Related: Bitcoin price dip matches October 2017 with BTC ‘explosion’ still forecast before 2022

Some expect a pullback to the low $50,000 range

Similar sentiments were expressed by independent market analyst Ryan Cantering Clark, who posted the following tweet outlining why he is “out of BTC completely for now.”

In a follow-up tweet, Clark highlighted lower level support zones to keep an eye on and where a good entry might present itself.

Clark said,

“If $58,000 does not hold, we likely revisit the low $50,000s. So I will either get involved there, or get involved higher. If leverage can be purged from the system without the above conditions, great. Right now that is my main concern.”

The overall cryptocurrency market cap now stands at $2.452 trillion and Bitcoin’s dominance rate is 44.9%.

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.

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Friday’s jaw-breaking $3.2B Bitcoin options expiry could kick-start a new rally

Bitcoin bulls could be in for a $715 million profit if BTC price is above $60,000 ahead of Friday’s $3.2 billion options expiry.

Bitcoin (BTC) has been trading in a descending channel pattern since its $67,000 all-time high on Oct. 20, which was just one day after ProShares’ Bitcoin Strategy ETF (BITO) debuted at Nasdaq.

However, bulls have a sufficient number of incentives to peg Bitcoin's price above $60,000 on Oct. 29 when the $3.2 billion monthly options expiry settles.

Bitcoin price in USD at Coinbase. Source: TradingView

Currently, investors are displaying mixed feelings about the exchange-traded fund’s approval, even though it reached $1 billion in assets under management in 48 hours. Either market expectations for these funds were insanely high, or the 42% gain in October until Oct. 19 was previously priced into the event.

The regulatory uncertainty in the United States is also a decisive factor in keeping some large institutional investors from entering the sector. At an Oct. 26 hearing of the United States Senate Committee, Rostin Behnam, the acting chairperson of the Commodity Futures Trading Commission (CFTC), likened the government agency's enforcement of the digital asset space to a beat cop on duty.

Behnam added:

"The market transactions that are taking place right now are a huge part of the risk that digital assets pose."

Bulls are in for a potential $715 million profit

Typically, these remarks would have little to no impact on a bullish market, which raises the question of whether the 13% correction since the Oct. 20 all-time high marks the end of a positive cycle.

The Oct. 29 monthly expiry will be a strength test for bears because any price above $58,000 means a $385 million or higher profit for bulls.

Bitcoin options aggregate open interest for Oct. 29. Source: Bybt

At first sight, the $1.94 billion call (buy) instruments dominate the monthly expiry by 56% compared to the $1.24 billion put (sell) options.

However, the 1.56 call-to-put ratio is deceiving because bears were caught by surprise and will have most of their put options wiped out if Bitcoin's price remains above $58,000 at 8:00 am UTC on Oct. 29.

Owning a put option, which is the right to sell Bitcoin at $55,000, becomes worthless if BTC price is trading above that level.

Bulls are comfortable above $58,000

Sixty-eight percent of the put options, which denotes the right to sell Bitcoin at a pre-established price, have been placed at $58,000 or lower.

Below are the four most likely scenarios that consider the current price levels. In addition, the data shows how many contracts will be available on Oct. 20 for both bulls (call) and bear (put) instruments.

  • Between $52,000 and $55,000: 6,500 calls vs. 6,530 puts. The net result is balanced between bulls and bears.
  • Between $55,000 and $58,000: 9,510 calls vs. 4,610 puts. The net result favors bulls by $270 million.
  • Between $58,000 and $60,000: 9,900 calls vs. 3,490 puts. The net result continues to favor bulls by $385 million.
  • Above $60,000: 13,870 calls vs. 1,970 puts. The net result will benefit bulls by $715 million.

As shown above, the imbalance favoring either side represents the potential theoretical profit from the expiry.

This crude estimate considers call (buy) options used in bullish strategies and put (sell) options exclusively in neutral-to-bearish trades. However, a trader could have sold a put option, effectively gaining a positive exposure to Bitcoin above a specific price. Unfortunately, there's no easy way to estimate this effect.

Can bears pin Bitcoin below $55,000?

Bears need a 6% correction from the current $58,500 price to avoid a $270 million loss. Although it might not seem much at first, traders must also account for the bullish momentum brought by the ETF approval.

With less than 36 hours ahead of the Oct. 29 expiry, bulls are likely to secure a win by keeping Bitcoin above $59,000. As for the bears, the path to sub-$55,000 seems distant, but might be worthy.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Price analysis 10/27: BTC, ETH, BNB, ADA, SOL, XRP, DOT, DOGE, SHIB, LUNA

Bitcoin and Ether may witness a deeper pullback over the coming days and this move could shake weaker hands out of altcoins and other high risk positions.

Bitcoin (BTC) has broken back below the psychological support at $60,000. While this seems to be negative in the short term, the price action has continued to mirror its movement in 2017. If the similarity continues for the remainder of the year, Bitcoin bulls may be in for a party.

PlanB, creator of the popular Bitcoin Stock-to-Flow (S2F) model, recently proclaimed in a tweet that the second leg of Bitcoin’s bull market has begun. If Bitcoin’s price action continues to follow the S2F model, the analyst believes a rally to $100,000 to $135,000 may be possible by the end of the year.

Daily cryptocurrency market performance. Source: Coin360

Although Bitcoin garners the lion’s share of attention, cryptocurrency exchange Okcoin said in a recent report that institutional investors’ appetite for non-Bitcoin crypto assets has been growing. The report said that 53% of the purchases by institutional investors in September were in altcoins.

Is the current fall in Bitcoin a buying opportunity or the start of a deeper correction? How are the altcoins expected to react? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin failed to retest the overhead resistance zone at $64,854 to $67,000 on Oct. 25, which may have prompted short-term traders to book profits. That has pulled the price down to the strong support at the 20-day exponential moving average (EMA) ($58,948).

BTC/USDT daily chart. Source: TradingView

A break and close below the 20-day EMA will be the first sign that the bullish momentum may be weakening. If bulls fail to reclaim the level quickly, the selling could accelerate and the BTC/USDT pair could slide to $52,920.

The relative strength index (RSI) has dropped to the midpoint and the 20-day EMA is flattening out, suggesting a balance between supply and demand.

This advantage will tilt in favor of the bears if the pair slides and sustains below the 50-day simple moving average (SMA) ($51,556). On the other hand, a breakout to a new all-time high will indicate that bulls are back in command.

ETH/USDT

The bulls tried to resume the uptrend in Ether (ETH) on Oct. 26 and 27 but could not sustain the price above $4,200. This suggests that bears are active at higher levels.

ETH/USDT daily chart. Source: TradingView

The sellers have pulled the price to the 20-day EMA ($3,869), which is an important support to keep an eye on. A strong bounce off the 20-day EMA will suggest that the sentiment remains positive and traders are buying the dips. The bulls will then again try to resume the uptrend.

On the contrary, if the 20-day EMA cracks, it will signal that traders may be booking profits and supply exceeds demand. The bears will then try to pull the price to the 50-day SMA ($3,488).

BNB/USDT

Binance Coin (BNB) turned down from the overhead resistance and broke below the 20-day EMA ($462) today. This is the first sign that the bullish sentiment could be weakening.

BNB/USDT daily chart. Source: TradingView

The long tail on today’s candlestick shows that bulls are attempting to defend the neckline of the inverse head and shoulders pattern.

If they succeed, the BNB/USDT pair could again try to rally to the overhead resistance at $518.90. A break and close above this resistance could signal the resumption of the uptrend.

Conversely, a close below the neckline could pull the price to the 50-day SMA ($423). If this support is breached, the next stop could be $392.20. The flattish moving averages and the RSI near the midpoint do not indicate a clear advantage to either bulls or bears.

ADA/USDT

Cardano’s (ADA) tight range trading between the 20-day EMA ($2.15) and the support line of the symmetrical triangle resolved to the downside on Oct. 27. This suggests that bears have asserted their supremacy.

ADA/USDT daily chart. Source: TradingView

The sellers pulled the price below $1.87 on Oct. 27 but the long tail on the candlestick suggests that bulls are attempting to defend the support. The recovery attempt is likely to face strong resistance at the 20-day EMA.

If the price turns down from the 20-day EMA, the bears will again try to break the $1.87 support. If that happens, the ADA/USDT pair could resume the down move toward the pattern target at $1.58.

The bulls will have to push and sustain the price above the resistance line of the triangle to invalidate the negative view.

SOL/USDT

Solana (SOL) broke above the overhead resistance at $216 on Oct. 25 but the bulls could not sustain the breakout. This may have attracted profit-booking by short-term traders, pulling the price to the 20-day EMA ($177).

SOL/USDT daily chart. Source: TradingView

The long tail on Oct. 27’s candlestick suggests that sentiment remains positive and bulls are buying on dips to the 20-day EMA. The buyers will now again try to push the price above the overhead resistance.

If they succeed, the SOL/USDT pair could resume the uptrend with the next target objective at $239.83. Contrary to this assumption, if bears pull the price below $171.47, the pair could extend the drop to the trendline. A break below this support will signal a possible trend change.

XRP/USDT

The bulls pushed Ripple (XRP) above the downtrend line on Oct. 26 but could not sustain the higher levels as seen from the long wick on the day’s candlestick. This may have trapped the aggressive bulls, resulting in strong selling on Oct. 27.

XRP/USDT daily chart. Source: TradingView

A close below the $1 support will complete a descending triangle pattern that could pull the price down to the strong support zone at $0.88 to $0.85. If this zone fails to arrest the decline, the XRP/USDT pair could extend the slide to the pattern target at $0.77.

The 20-day EMA ($1.08) is flat but the RSI has dropped into the negative zone, indicating that the bears are attending a strong comeback. This negative view will invalidate if bulls push and sustain the price above the downtrend line. That could clear the path for a possible rally to $1.24.

DOT/USDT

Polkadot’s (DOT) failure to rise above the overhead resistance at $46.39 on Oct. 26 may have prompted selling by short-term traders. This pulled the price down to the strong support at $38.77 on Oct. 27.

DOT/USDT daily chart. Source: TradingView

The long tail on Oct. 27’s candlestick shows that bulls are defending the support with vigor. If buyers push the price above $46.39, the DOT/USDT pair could resume its up-move and challenge the all-time high at $49.78.

Alternatively, if bulls fail to clear the overhead hurdle, the pair may consolidate between $46.39 and $38.77 for a few days. A break and close below $38.77 could signal the start of a deeper correction to the 50-day SMA ($35.14).

Related: Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

DOGE/USDT

Dogecoin (DOGE) turned down from $0.28 on Oct. 24, indicating that traders are liquidating positions on rallies. The bulls again tried to push the price above the $0.27 overhead resistance on Oct. 26 but failed.

DOGE/USDT daily chart. Source: TradingView

The selling accelerated on Oct. 27 after bears pulled the price below the 20-day EMA ($0.24). This resulted in a decline close to the strong support zone at $0.21 to $0.19. The long tail on the day’s candlestick suggests that traders continue to defend the support zone.

The 20-day EMA has flattened out and the RSI is just below the midpoint, suggesting a possible range-bound action in the near term. The next trending move could start on a break above $0.28 or a close below $0.19.

SHIB/USDT

SHIBA INU (SHIB) is in a strong uptrend. The long wick on the Oct. 24 candlestick shows that bears tried to stall the up-move at $0.00004465 but they could not sustain the selling pressure. Buying resumed on Oct. 25 and the meme coin resumed its northward march.

SHIB/USDT daily chart. Source: TradingView

The strong up-move has pushed the RSI near the 90 level, which suggests that the rally may be overextended in the short term. However, this does not guarantee the start of a correction because the RSI had reached above 93 on Oct. 6 before a pullback happened.

The bulls have pushed the SHIB/USDT pair above the 161.8% Fibonacci extension level at $0.00006531. If the price sustains above this level, the next stop could be the 200% extension level at $0.00007586.

Vertical rallies are rarely sustainable and they usually end with waterfall declines. Therefore, chasing prices higher after the recent rally may be risky.

LUNA/USDT

Terra protocol’s LUNA token broke above the overhead resistance at $45.01 on Oct. 26 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.

LUNA/USDT daily chart. Source: TradingView

The bears sensed an opportunity and pulled the price below the $39.75 support on Oct. 27, but a minor positive is that bulls bought the dip to the 50-day SMA ($38.16). If the price sustains above $39.75, the bulls may again try to push the LUNA/USDT pair toward $45.01.

Conversely, if the price breaks below the 50-day SMA, the pair could drop to the strong support zone at $34.86 to $32.50. This is an important zone for the bulls to defend because a break below it could accelerate selling.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Mask Network, 1inch and Shiba Inu ignore Bitcoin’s downtrend, posting 20% gains

1INCH, SHIB and MASK go against the grain by posting double-digit gains while BTC price fell to $58,000.

The cryptocurrency market is back on the rocks on Oct. 27 as many of the top assets find themselves in the red on the day after Bitcoin (BTC) price dropped to $58,000 in the early trading session.

Despite the wider struggles of the market, several altcoins have managed to post gains in excess of 22% as major protocol integrations and exchange listings have helped to buffer them against the wider market downturn.

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24hours were 1inch (1INCH), Shiba Inu (SHIB) and Mask Network (MASK).

1inch integrates with Exodus wallet

1Inch is a distributed network and decentralized exchange (DEX) aggregator that connects decentralized protocols across multiple blockchain networks, including Ethereum (ETH), Binance Smart Chain, Polygon (MATIC) and Arbitrum.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for 1INCH on Oct. 26, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. 1INCH price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for 1INCH climbed into the green zone on Oct. 26 and reached a high of 72 around two hours before the price increased 100.5% over the next day.

The sudden spike in the price of 1INCH comes following an earlier announcement that the protocol has integrated with Exodus wallet to bring its functionality directly into the multi-currency, cross-platform wallet.

Shiba Inu contines to hit new highs

Shiba Inu is a canine-themed project that has been gaining momentum throughout 2021 as the project has expanded from being a simple meme into an evolving ecosystem that offers decentralized finance (DeFi) and nonfungible token (NFT) capabilities.

According to data from Cointelegraph Markets Pro, market conditions for SHIB have been favorable for some time.

VORTECS™ Score (green) vs. SHIB price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for SHIB first climbed into the green zone on Oct. 23 and reached a high of 89 on Oct. 24, around seven hours before the price increased 119% over the next three days.

The surging momentum for SHIB comes as the token has been listed on new exchanges over the past month and the developers behind the protocol introduced Shiboshi NFTs, which were available for purchase using the protocol's LEASH token.

Related: Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

Mask Network updates NFT Avatar

Mask Network is a social media-focused protocol that allows users to encrypt posts and chats on platforms like Twitter and Facebook and make it so that only friends and contacts are able to decrypt and access them.

Data from Cointelegraph Markets Pro and TradingView show that after hitting a low of $9.29 on Oct. 26, the price of MASK spiked 98.9% to an intraday high at $18.47 on Oct. 27 as its 24-hour trading volume skyrocketed 1,610% to $599.42 million.

MASK/USDT 4-hour chart. Source: TradingView

The sudden burst in the price for MASK comes following an update to the protocols of "NFT Avatar," which allows users to replace their Twitter avatars with a custom avatar based on an NFT that the user owns that also acts as a verification of ownership.

The overall cryptocurrency market cap now stands at $2.475 trillion and Bitcoin’s dominance rate is 44.9%.

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.

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Shiba Inu fetches a new ATH — 3 reasons why SHIB keeps jumping higher

SHIB keeps hitting new all-time highs, but what's really behind the altcoin's moon mission?

Meme coins burst onto the scene in early 2021 and helped kickstart the bull market after Dogecoin (DOGE) rallied above $0.01 to new highs while being shilled by the likes of Elon Musk and Mark Cuban.

Shortly afterwards, Dogecoin clones and other canine-themed tokens popped up to catch the wave of bullish momentum and Shiba Inu (SHIB) was one of the projects that quickly caught wind and sailed higher. 

Now that Bitcoin has hit a new all-time high again, it appears that the meme tokens are ready to continue their run and this time they're not waiting for the big-name influencers to get on board. In the last two weeks, SHIB has rocketed to new highs and befuddled cryptocurrency traders are scratching their heads as to what the exact cause is.

Data from Cointelegraph Markets Pro and TradingView shows that since trading at a low of $0.0000069 on Oct. 1, the price of SHIB has scorched 914% higher to a new record high at $0.0000699 on Oct. 27 as its 24-hour trading volume surged 137% to $24.67 billion.

SHIB/USD 4-hour chart. Source: TradingView

Three reasons for the surging price and trading volume for Shiba Inu include its listing on multiple exchanges, the launch of its own line of Shiboshi nonfungible tokens (NFT) and SHIB's surging open interest on derivative exchanges.

Exchange listings increase access to SHIB

One of the biggest factors helping to lift the price of SHIB over the past month has been the increase in user access to the token thanks to its listing on multiple cryptocurrency exchanges.

Some of the new listings for SHIB and the protocol's LEASH token include the BitKan exchange, AOFEX, StealthEx and CoinFlex. Change Now also launched a “flip DOGE for SHIB campaign” to celebrate its listing of LEASH.

The ecosystem also got a bump in momentum after it was announced that a partnership with the crypto payment provider NOWPayments made it so that SHIB and LEASH can be accepted as a form of payment, used for donations and is available to issue salaries in crypto via the mass payment feature.

As an added deflationary feature, 3% of the profit NOWPayments receives from all SHIB transactions will be burned.

Shiboshi NFTs

A second reason for the building strength of Shiba Inu was the launch of its own line of NFTs known as Shiboshi’s.

NFTs continue to be one of the most popular sectors of the cryptocurrency ecosystem and is a reliable way for projects to increase their community interaction and support.

The Shiboshi drop included 10,000 individual NFTs and community members had 24 hours to purchase them using the protocol’s LEASH token.

All Shiboshi’s have now been minted and have been listed on the OpenSea NFT marketplace.

Related: Shiba Inu could surpass Dogecoin after a 700% SHIB price rally in October

Surging open interest

A third reason for the rising strength of SHIB has been the surge in futures open interest (OI) on multiple exchanges including OKEx, FTX and Huobi.

Exchange futures open interest for SHIB. Source: Bybt

As seen in the chart above, the OI for SHIB has surged from $15.7 million on Oct. 3 to a record $178.95 million on Oct. 27 as the price of SHIB spiked to a new all-time high.

According to markets analyst and Cointelegraph contributor Marcel Pechman, “the open interest seems to be following the price pump instead of an actual increase.”

What is interesting to note is that while it’s “usually expected during bull runs for sellers to have their position liquidated,” that did not happen in this recent run-up which means traders either “doubled the short by adding more margin,” which Pechman sees as unlikely, or “those are market makers who are fully hedged and don’t care about the price.”

Pechman said,

“Longs are in huge profit, so it's easier for them to keep buying spot and pushing the price up. There seem to be no 'real' short-sellers, only market makers. Had there been huge liquidations, the open interest would have gone down.”

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for SHIB on Oct. 24, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. SHIB price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for SHIB began to pick up on Oct. 23 and climbed into the dark green zone for a high of 89 on Oct. 24, around seven hours before the price increased 119% over the next three days.

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.

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Expanding ecosystem and $1.86B futures open interest back Solana’s $250 target

Derivatives data shows institutional demand remains strong for SOL, and on-chain data points to a rally to $250.

Solana (SOL) price is meeting resistance near its all-time high again, but solid fundamentals and the impressive growth of its decentralized finance (DeFi) and non-fungible token (NFT) ecosystem are likely to drive the altcoin above $250 before year-end.

SOL/USDT 1-day chart. Source: TradingView

Institutional investor interest is likely a key factor behind Solana’s impressive 490% gain since August. For example, SOL is the fourth largest Bitwise 10 Crypto Index Fund ($BITW) component, which overall is a $1.3 billion over-the-counter tradable market instrument.

Traders should remember that this event is not necessarily positive since futures contracts require both a buyer (long) and a seller (short). Nevertheless, the increasing interest allows even more substantial players to participate.

DeFi is gaining traction

Solana’s two most prominent decentralized finance projects are decentralized exchanges with built-in yield generation programs and they hold nearly $2 billion total locked value each.

Saber (SBR) is an automated market maker (AMM) protocol that trades between stable pairs and synthetic assets and provides yields for the platform’s liquidity providers. Meanwhile, Raydium offers a decentralized exchange, yield farming, and liquidity pools.

Evidence of institutional investors’ appetite for Solana was the $12 million weekly inflow in mid-October, as reported by CoinShares recently. In the same week, the United States registered branch of FTX exchange announced support for the Solana blockchain, enabling users to trade, deposit and withdraw NFTs that conform to the Metaplex token standard.

SOL futures open interest reached a record-high

This positive newsflow has been reflected on Solana’s derivatives markets, as depicted by the aggregate futures open interest data below:

Solana futures aggregate open interest. Source: Bybt.com

The indicator reached a record-high $1.86 billion on Oct. 25, which is a 123% increase in 30 days. To put things in perspective, Cardano (ADA) and Polkadot (DOT) currently hold a $900 million futures open interest.

Traders should acknowledge that this event is not necessarily positive since futures contracts require both a buyer (long) and a seller (short). Nevertheless, this increasing interest allows even more substantial players to participate.

Another positive factor is that DeFi protocols maintain a $13.5 billion total value locked (TVL) even though the sector took a substantial hit after the 17-hour network outage during Sept. 14 and Sept. 15.

Total value locked (TVL) on Solana in USD. Source: Defillama.com

The Solana Foundation stated that bots spammed the network as Grape launched its IDO on the Solana-based decentralized exchange (DEX) Raydium. That activity overwhelmed the processing capacity with a transaction load of 400,000 per second, requiring a coordinated hard fork by validators to ignore the spam requests.

$250 seems closer than ever for SOL

VORTECS™ data from Cointelegraph Markets Pro also began to detect a bullish outlook for SOL on Oct. 20, nearly 24 hours ahead of the 15% pump that led to $210.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ score vs. SOL price (white). Source: Cointelegraph Markets Pro

Data illustrates that the current number of tweets from unique accounts discussing Solana is 32% higher than the 30-day average. Tweet volume is one component of the VORTECS™ score that identified bullish conditions for SOL on Oct. 20.

As long as Solana’s ecosystem expands, the network remains a viable solution for DeFi and NFT applications looking for cheap and fast transactions. Both onchain and derivatives indicators signal that $250 SOL by year-end is totally feasible.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

ESL Gaming to Offer NFTs at Flagship E-Sports Event

Everipedia VORTECS™ Score hits record high ahead of upcoming NFT drop to IQ stakers

The VORTECS™ Score for IQ surged to a record high shortly before Everipedia announced that token stakers would receive special NFTs.

In the world of technical analysis, any tool that gives the trader insight into the next possible market move is valued highly because an early signal of impending price action can turn an average trade into a multi-bagger.

In a rare occurrence, Cointelegraph Markets Pro just posted a VORTECS™ score of 98, one of the highest scores ever recorded, for an altcoin called Everipedia (IQ). The project is a blockchain-based encyclopedia that has the vision of creating “a world where all knowledge is available to all people.”

VORTECS™ Score (green) vs. IQ price. Source: Cointelegraph Markets Pro

While the VORTECS™ Score is simply an indicator and does not guarantee any specific outcome in regards to the scores that it provides, previous instances of scores above 95 have often been followed by significant price increases in the associated asset. The indicator works by comparing historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the Everipedia Twitter page indicates that the rising VORTECS™ Score may be associated with the recent launch of nonfungible token (NFT) raffles for IQ stakers through a partnership with Polygon and Chainlink.

According to the announcement, interested parties who wish to have a chance at winning one of the limited series NFTs need to stake IQ tokens with HiIQ before Nov. 1 at 18:00 UTC.

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.

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