Lưu trữ cho từ khóa: futures

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Here’s why the DOGS token is rising as cryptocurrencies sink

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DOGS token rose for the third consecutive day as most cryptocurrencies retreated after the U.S. jobs report reignited recession fears.

DOGS (DOGS), which recently launched its airdrop, rose to a high of $0.0011, up by 16.5% from its lowest point this week. Still, it remains 33% below its all-time high.

Its rally was notable because Bitcoin (BTC) and most altcoins continued to fall. Bitcoin dropped below $54,000 for the first time in a month, while Solana (SOL) fell below $130. The total market cap of all cryptocurrencies dropped to $1.92 billion, and the crypto fear and greed index fell to the fear zone of 30.

The DOGS token rally was supported by increased volume in the spot and futures markets. Data shows that its futures open interest rose to $124 million, its highest point since Sep. 3. Additionally, volume in the spot market jumped to $541 million, its highest level since Aug. 31.

The most likely reason for the rally is the ongoing Binance Carnival, which is offering traders 40 million DOGS and 5 million NOT tokens for participating. The event, where users are depositing and trading the tokens’ futures, will end on Sep. 17. 

This carnival likely explains why the DOGS open interest in the futures market on Binance has risen. $55 million of the $124 million in open interest was on Binance, followed by Bybit and Bitget. Binance also accounted for most of the volume in the spot market.

DOGS also rose as other tokens in the TON Blockchain gained after Pavel Durov delivered his first statement following his arrest. Toncoin (TON) rose by 1.67%, while Notcoin jumped by over 2%. In his statement, Durov expressed surprise at the arrest and mentioned that Telegram has an official EU representative handling law enforcement requests.

Durov, Telegram, and TON’s founder, was indicted for allegedly facilitating illegal activities on the app, which is used by over 900 million users. He was also accused of not responding to France’s law enforcement officials and now faces 10 years in prison.

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Theo Crypto News

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Popcat price skids, yet open interest and charts indicate a rebound

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Popcat, a top Solana meme coin, re-entered a bear market, falling by over 22% from its highest point this week. 

The Popcat (POPCAT) token dropped to a low of $0.6098, its lowest level since Aug. 23, erasing most of the gains made earlier this month. This retreat gave it a market cap of over $608 million.

Popcat’s futures open interest is stable

Earlier this month, Popcat rose for seven consecutive days after Binance listed its futures, allowing users to trade it with up to 75x leverage. More exchanges like KuCoin Futures and OKX also listed Popcat’s futures this week.

Cryptocurrencies tend to rise sharply after being listed by top tier-1 exchanges and then pull back as the hype retreats.

These listings explain why Popcat’s futures open interest has been relatively stable this week. It stood at $50.63 million on Friday, Aug. 30, with most of it coming from exchanges like Binance, Bybit, and Bitget. 

The open interest was slightly lower than this week’s high of $59.8 million. These numbers indicate that there is still some demand for Popcat among traders.

Popcat open interest | Chart by CoinGlass

Popcat’s recent retreat has mirrored the performance of many of the larger and more popular cryptocurrencies. Bitcoin (BTC) has continued to consolidate around the $60,000 level. Similarly, most meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Floki have dropped in the past seven days. 

The crypto fear and greed index, a popular measure of sentiment, has retreated from this month’s high of 59 to the neutral point of 46. Meme coins like Popcat thrive when traders are a bit greedy.

Popcat and other Solana meme coins have also faced substantial competition from the newly launched Tron (TRX) tokens. Data from CoinGecko shows that these meme coins have accumulated a market cap of over $370 million. 

Popcat crossed a key support level

Popcat price chart | Source: TradingView

Popcat token rose and peaked at $0.8072 this week and then suffered a harsh reversal, falling 21% to $0.6283, its lowest point since Aug. 23.

It dropped below the important support level of $0.6845, its highest swing on Aug. 29, and the upper side of the cup and handle pattern. It also retested the 50% Fibonacci Retracement point and formed a bullish flag pattern.

Therefore, Popcat’s price will likely have a bullish breakout, with the next point to watch being the psychological level of $0.70.

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Theo Crypto News

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Solana forms bullish patterns as DEX volume, open interest slip

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Solana price has been stuck in a deep bear market as the volume in its decentralized exchanges and futures open interest dipped.

Solana (SOL) has risen for two consecutive weeks and was up by over 33% from its lowest point in August. Still, it remains in a bear market after falling by over 30% from the year-to-date high. 

Solana’s DEX volume retreats

Its price action has mirrored that of other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), which are all in a bear market. 

Solana’s sell-off has happened as the volume in its DEX platforms has fallen in the past few weeks. Data by DeFi Llama shows that its DEX volume dropped by over 45% in the past seven days. In this period, it has handled transactions worth $7.12 billion while Ethereum has processed $8.9 billion.

Solana’s DEX volume has retreated because of the ongoing meme coin sell-off. Top Solana memes like Dogwifhat, Bonk, Popcat, and Book of Meme have all tumbled by over 50% in the past few months.

Solana has become the most popular chain for creating meme coins, due to fast speeds and low transaction costs. The launch of Pump.fun, a meme coin generator, has made it easier for people to launch Solana meme tokens. 

Data shows that these tokens have a combined market cap of over $425 million, with Michi, Daddy Tate, Mother Iggy, and Billy being the largest. 

Meanwhile, Solana’s open interest in the futures market has stalled.

According to CoinGlass, futures open interest on Aug. 18 stood at almost $2 billion, the same level it has been in the past five days. The interest is much lower than the July 30 peak of $3.08 billion. 

Solana futures open interest | Source: CoinGlass

The waning open interest is likely because of the significant liquidations that happened earlier this month as cryptocurrencies slumped.

Solana’s bulls suffered liquidations worth over $39 million while shorts liquidations totalled $21 million on Aug. 8. 

Solana has bullish technicals

Solana price chart| Source: TradingView

On the positive side, Solana has found strong support at the 50-weekly moving average, where it failed to move below earlier this month. 

The coin has also formed a doji pattern, which is characterized by a small body and long upper and lower shadows. It is one of the most popular reversal signs in the market. 

Additionally, Solana has formed a cup and handle pattern, a sign of a bullish continuation. Therefore, the coin may continue a bullish trend in the coming weeks as buyers target the key resistance of $180.

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Solana price flips key resistance as futures open interest nears ATH

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Solana price made a strong bullish breakout on Monday as investors embraced a risk-on sentiment ahead of the Fed decision and key earnings. 

The price of Solana (SOL) rose to a high of $193, its highest point since April 1st. External data shows that the crypto fear and greed index rose to the greed zone of 63, meaning that investors have embraced a risk-on sentiment.

It also rallied as the futures open interest continued its recovery process. According to CoinGlass, the interest rose to a high of $3.25 billion on Monday, its highest level since April 1st when it reached its all-time high.

The open interest has been robust after bottoming at $1.77 billion earlier this month as cryptocurrency prices dived. A higher interest is usually a good sign that there is robust demand of an asset, meaning that it may continue rising. 

Solana futures open interest between December 2023 and July 2024 | Source: CoinGlass

Notably, Solana is not the only cryptocurrency seeing elevated open interest in the futures market. Bitcoin (BTC), the biggest coin in the industry, had a record open interest on Monday after Donald Trump and Robert Kennedy made the case for Bitcoin.

Solana has exciting fundamentals behind it. Data shows that its ecosystem fees have jumped to $2.13 million in the last 24 hours. Participants in Polymarket believe that the blockchain will make higher fees than Ethereum, at least in a single day, this month.

The number of active addresses in the ecosystem has risen to over 1.22 million while key networks like Jito, Marinade, and Kamino have seen strong demand.

Solana price zoomed past key resistance

Solana price chart | Source: TradingView

Technically, there are signs that this breakout could be real. On the daily chart, the token found a strong bottom at $120.50, where it failed to drop below four times since April.

It has also moved above the upper side of the symmetrical triangle pattern. In a recent article, we noted that this triangle was a sign of a bullish pennant chart pattern, a popular continuation sign.

Solana also jumped above the crucial resistance point at $188.20, its highest point in May this year. Therefore, the token may continue rising as buyers target the year-to-date high of $210.15. 

Looking ahead, this week will have several macro factors that could impact its prices. Some companies like Franklin Templeton and Blackrock could submit their Solana ETF documents to the Securities and Exchange Commission. 

The Federal Reserve is expected to signal that it will start cutting interest rates in its September meeting on Wednesday. Such a move will be positive for risk assets like Solana and Cardano (ADA).

Meanwhile, the biggest companies in the US like Amazon, Microsoft, Meta Platforms, and AMD will publish their financial results. Last week, the mixed earnings by companies like Tesla and Alphabet led to a big drop in US equities and some cryptocurrencies.

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Theo Crypto News