Lưu trữ cho từ khóa: Solana

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Solana, Jasmy prices brace for rare risky chart patterns

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Solana, JasmyCoin, and other altcoins continued their strong sell-off this week as the crypto fear and greed index fell.

Solana and Jasmy are in a bear market

JasmyCoin (JASMY) dropped to a low of $0.01717, down by over 58% from its highest level this year, bringing its market cap to $908 million. 

Solana (SOL), the fifth biggest cryptocurrency, retreated to the support of $120, much lower than the year-to-date high of $209. 

This sell-off has mirrored the performance of Bitcoin, which has dropped from over $73,800 in March to $54,000.

Solana’s sell-off has happened as its ecosystem goes through some challenges. Pump.fun, its meme coin generator, is seeing stiff competition from the recently launched SunPump. Data shows that SunPump has collected over $25 million in fees a few weeks after launch while tokens in its ecosystem are valued at over $428 million.

Pump.fun tokens have over $487 million in market cap while its ecosystem has generated over $140 million in fees, nine months after launch. This means that Tron is catching up with it.

Tron has also passed Solana in terms of total value locked in the DeFi industry. It has over $7.69 billion in assets, higher than Solana’s $4.60 billion. Solana has over $3.6 billion in stablecoins while Tron has $60 billion. Most of Solana’s stablecoins are USD Coin (USDC).

Therefore, there are signs that Solana is losing momentum. Technically, the token has formed a triple-top chart pattern, a popular bearish sign.

Most notably, it is about to form a death cross chart pattern as the 200-day and 50-day moving averages are about to cross each other. 

The spread between the two moving averages has narrowed from 13% in August to just 3.70%. Such a pattern will likely lead to more downside, with the initial target being last month’s low of $110.

Solana price | chart by TradingView

Jasmy is also about to form a death cross

Jasmy, a Japanese cryptocurrency, retreated even after Mitsubishi UFJ, Mizuho, and SMBC announced their entry into the crypto industry by testing stablecoin transfers. 

In most periods, Jasmy rises when there is a major crypto-related news from Japan.

Like Solana, the spread between the 200-day and 50-day moving averages has narrowed, rising the formation of a death cross. 

Jasmy formed a golden cross — the opposite of a death cross — in November 2023, leading to a 788% rally. Therefore, if this death cross happens, there is a risk that the token will continue falling in the coming months.

A key risk for Solana, Jasmy, and other altcoins is that the industry may be moving into a crypto winter that can be prolonged. The last winter lasted between November 2021 to January 2023. 

Jasmy price chart | Source: Tradingview

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Theo Crypto News

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Monkey Pox token dives amid significant rug pull concerns

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Monkey Pox, a new crypto token that more than doubled in value on Wednesday, Aug. 5, has since erased all its gains amid concerns over market manipulation.

Monkey Pox (POX) dropped to a low of $0.0355, down 68% from its weekly high. This plunge reduced its market cap from over $92 million to just above $54 million.

The sharp decline is attributed to increasing fears of market manipulation, a common issue in the meme coin space.

Data from DEX Screener shows that Monkey Pox has over 25,000 holders. Further data from RugCheck shows that the largest holder controls 660 million tokens, or 66% of the total supply. The top holders own 72% of all POX tokens in circulation.

Notably, the mutable metadata can be altered by the owner at will, a risky situation since the creator is anonymous. Unlike in the stock market where disclosures are expected and required, many meme coin creators are unidentified.

Therefore, there is a risk that the creators of the Monkey Pox token may manipulate the market and leave many investors holding the bag.

This has happened before. In May, Nigerian singer Davido promoted the $DAVIDO token, which later collapsed. It is estimated that the creator, Sahil Arora, profited significantly as the token initially surged. Arora has reportedly made over $30 million from similar celebrity-themed tokens.

The Monkey Pox token was likely launched to capitalize on the fear surrounding Mpox, which the World Health Organization declared a public health emergency in August. The disease is spreading in several countries, primarily in Africa, evoking memories of COVID-19, which claimed millions of lives.

Meme coin creators are benefiting from the ease of creating tokens on platforms like Pump.fun and SunPump. Data shows that SunPump has generated over $57 million in fees in less than a month since its launch, highlighting the popularity of these tokens.

Solana’s (SOL) Pump.fun, which was used to create the Monkey Pox token, has generated over $219 million in fees in the nine months since its launch. In addition to the Monkey Pox token, creators have developed new tokens to exploit viral events. For example, political tokens like MAGA (TRUMP) and ConstitutionDAO (PEOPLE) have a market cap of over $567 million.

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Theo Crypto News

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Chart of the day: POPCAT traders beware — the worst is yet to come

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In just 10 days, POPCAT has dropped over 30%, but the decline may not be over. A deeper analysis of multiple indicators reveals that further declines could be on the horizon.

Inside POPCAT’s parallel channel

POPCAT respects a parallel channel that defines its movement. While there have been moments when the price broke above or below the channel, it continues to adhere to this pattern over time. The white lines on the chart offer a simplified representation of the price movements within the channel.

Looking ahead, the yellow lines depict a possible future path for POPCAT. The next move could see a drop to around $0.43 in the coming weeks, representing a further decline of over 23% from the current level. After this, the price may then rally towards $0.87 around October to November.

Gartley harmonic pattern on the verge of completion

One strong indication that supports the likelihood of a further downturn in POPCAT is the development of the Gartley harmonic pattern on its daily chart. The Gartley pattern is a type of harmonic price formation that signals potential reversal zones based on Fibonacci ratios and has an 85% success rate. It consists of five points—X, A, B, C, and D—and represents a retracement followed by a continuation of the overall trend.

In the case of POPCAT, the pattern has formed with the final point D yet to be completed. If the Gartley pattern completes as expected, the price could drop to approximately $0.38. This target lies slightly below the lower boundary of the established parallel channel.

MACD Reversal

Another factor pointing toward a potential continued decline in POPCAT is the recent bearish crossover in the Moving Average Convergence Divergence (MACD) indicator. The MACD is a momentum indicator that consists of two lines: the MACD line and the signal line. It shows the strength and direction of a trend by analyzing the relationship between these two lines.

A crossover occurs when the MACD line crosses below the signal line, which is seen as a bearish signal, similar to a “death cross” in moving averages. The crossover means that the momentum has shifted from bullish to bearish.

Counterpoints: Limited downturn possibility

While several factors suggest a continued downturn for POPCAT, there are also indicators that could limit or even conclude the current decline.

First, there is a confluence of multiple Fibonacci golden pockets in the $0.53 to $0.593 range. These include the Fibonacci retracement from the low on August 19 to the high on August 25, the high on July 1 to the low on August 5, and the low on July 5 to the high on July 21. Additionally, the 50% retracement levels from other Fibonaccis also converge within this price zone, which strengthens the support in this area. Until POPCAT drops below $0.53, the downward movement will likely not continue. On the other hand, if it fails to break above $0.593, we also cannot confirm that the decline has ended.

Adding to this, the historical volatility range for POPCAT between $0.50 and $0.55 has been quite an important zone, acting as support or resistance on 38 different occasions. The area closely aligns with the golden pocket confluence, which further reinforces the significance of this zone as a potential floor for the current downtrend.

Lastly, the Visible Range Volume Profile (VRVP) adds another layer of support in the $0.55 to $0.593 area. The VRVP is a tool that displays trading activity at various price levels and highlights areas with high trading volumes as major zones of support or resistance. In this case, the volume bar in the $0.55 to $0.593 range is the biggest and suggests strong buyer interest. However, if POPCAT drops below $0.40, the volume profile thins out considerably, indicating little to no support below that level, which could lead to even steeper declines if breached.

Strategic considerations

At the current price level, POPCAT presents a conundrum. On the one hand, several indicators suggest further downturns, while on the other, key support levels hint that the bearish phase may have already run its course, with bullish momentum potentially on the horizon.

In our analysis, which aligns with insights shared in previous articles, the upcoming monetary policy shift—specifically the anticipated rate cuts in September—combined with the historically weak performance of cryptocurrencies in September could render these support zones for POPCAT obsolete. Given this outlook, the strategic approach would involve shorting POPCAT down to the $0.43 level.

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Theo Crypto News

NFT

Hyperspace shuts down NFT marketplace on Solana

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Hyperspace, a multi-chain non-fungible token marketplace and launchpad, is shutting down its platform on Solana.

The project announced this on Sept. 3, noting that the decision to shut down its NFT marketplace on Solana (SOL) was a difficult one. Hyperspace plans to fully sunset the Solana offering by September 17, 2024, and has advised users to delist their NFTs before this date.

In addition to removing website support for Solana NFTs, the platform will also sunset its application programming interface. This will begin on Sept. 17, as the Hyperspace team posted on X.

“While it’s a difficult decision to make, we’re proud of having been a part of this vibrant ecosystem since Solana summer first started and we’re excited for all that’s to come.”

Hyperspace Avalanche and Sui NFT marketplaces

Hyperspace launched in 2021, entering the market just as the NFT boom followed the Covid pandemic. The platform boasted backing from some of the biggest crypto venture capital firms in the industry, including Dragonfly, Pantera, and Coinbase Ventures.

Despite a slowdown in NFTs in late 2021 and 2022, Hyperspace quickly grew. Apart from Solana, the NFT marketplace is shutting down on Sui (SUI).

Are NFTs dead?

In the broader digital collectibles market, projects such as CryptoPunks, Bored Ape Yacht Club, Pudgy Penguins, and Art Blocks remain top NFTs by sales and volume.

However, the NFT market has failed to see any meaningful recovery since the broader crypto market’s slump during the 2022 bear market.

A recent report suggests that nearly 96% of NFT projects are dead, with 43% of holders currently at a loss. Declines in volume amid this collapse have impacted NFT marketplaces and aggregators, including market leaders OpenSea, Magic Eden, LooksRare, and Blur.

The bear market aside, regulatory issues are also likely to be a major factor. Recently, the U.S. Securities and Exchange Commission issued a Wells Notice to OpenSea over allegations of offering unregistered securities.

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Theo Crypto News

Bitcoin

TRON revenue surged 46%, closing the gap with Ethereum

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TRON network’s revenue saw an impressive rise in August while Ethereum recorded a notable decrease.

According to data shared by Lookonchain, TRON’s (TRX) monthly revenue increased by 46.5% — rising from $41.9 million in July to $61.4 million in August. The network is second to Ethereum (ETH) with $62.6 million in revenue in August.

Data shows that Ethereum’s revenue plunged 33% from July’s $94 million mark. 

Per a crypto.news report, TRON’s daily revenue reached an all-time high of $5.33 million on Aug. 22 after surpassing Ethereum. This happened after the TRON-based meme coin platform SunPump, Pump.fun’s competitor, gained increased attention from investors and traders.

Data from Lookonchain shows that Solana (SOL) secured the third spot with a monthly revenue of $25.6 million. Notably, Solana’s income was almost cut in half in August — falling from $49.8 million.

Bitcoin (BTC) also recorded a 16.8% decrease in its monthly revenue — dropping from $24.9 million in July to $20.7 million in August. 

Per Lookonchain’s data, Binance Smart Chain’s monthly revenue increased by 6.6% — growing from $10.5 million in July to $11.2 million last month. 

According to data from crypto.news’ price page, TRX is the only token from the list to register a price surge over the past 30 days, marking a 22% rise. BTC and ETH declined by 4.4% and 16% in the past month.

TRX 1D chart – Sept. 3 | Source: crypto.news

Binance Coin (BNB) and SOL witnessed 2% and 6.3% drops over the past month.

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Theo Crypto News

DeFi

Pump.fun hits $100m revenue, but users criticize unsustainable model

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Solana’s Pump.fun surpassed $100 million in revenue since its January launch, but users aren’t sure the feat is good for crypto and decentralized finance.

It took the Solana (SOL) memecoin launchpad 217 days, or roughly seven months, to achieve its record revenue. Pump.fun beat DeFi giants like Ethena (ENA), Pancakeswap (CAKE), and even Curve Finance (CRV) to the milestone.

The protocol allows anyone to create meme-inspired tokens on Solana’s blockchain. Once developers launch a coin, the crypto trades on a bonding curve till it exceeds a $69,000 market cap.

Solana became the go-to memecoin chain in DeFi after the service debuted in early 2024. At one point, developers created over 500,000 memecoins via the platform in a month. The launchpad paved the way for oversaturation in the Solana ecosystem since creating tokens became easier than a few clicks. A crypto.news research found that less than 1% of Pump.fun wallets profited $1,000 or more.

Crypto users unhappy with Pump.fun success

Pump.fun may have raced to $100 million in revenue in record time, but many have questioned if it’s a net positive development for DeFi and the whole cryptocurrency industry.

The biggest concern stemmed from the protocol’s sustainability and its promotion of the casino-like underbelly of digital assets. 

One user argued that the platform fueled cash grabs by celebrities that did not align with crypto’s ethos. Several public figures, from Andrew Tate to Iggy Azalea, launched Pump.fun memecoins. Most of the tokens have crashed well below their peaks.

Questions over regulatory scrutiny of the Solana-based platform also remain, with agencies like the U.S. Securities and Exchange Commission insisting SOL itself, and perhaps its ecosystem, violates federal securities laws.

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Theo Crypto News

Altcoin

Widespread negative crypto sentiment ‘evident’ across regions, CoinShares says

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Digital asset investment products experienced multi-million outflows last week, driven by reduced expectations of a U.S. interest rate cut following stronger economic data.

The crypto market is seemingly gripped by widespread negative sentiment “across various providers and regions,” as digital asset investment products saw outflows totaling $305 million last week, according to CoinShares.

In a Sept. 2 blog post, CoinShares head of research James Butterfill said the outflows appear to have been driven by stronger-than-expected U.S. economic data, which has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.

“We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot.”

CoinShares head of research James Butterfill

The U.S. led the outflows, with $318 million withdrawn, while Germany and Sweden also saw outflows of $7.3 million and $4.3 million, respectively, data shows. In contrast, Switzerland and Canada recorded minor inflows of $5.5 million and $13 million.

Weekly crypto asset flows | Source: CoinShares

Bitcoin (BTC) bore the brunt of the outflows, shedding nearly $320 million. However, short Bitcoin investment products saw their largest inflows since March, attracting $4.4 million for the second consecutive week. Ethereum (ETH) also faced outflows of $5.7 million, with trading volumes stagnating at just 15% of the levels seen during the U.S. ETF launch week.

Solana (SOL) defied the overall trend, attracting $7.6 million in inflows. Butterfill noted that blockchain equities also experienced positive momentum, with $11 million flowing in, particularly into investment products focused on Bitcoin miners.

As crypto.news reported earlier, Bitcoin dropped by almost 10% in August, while the Nasdaq 100 index rose by over 2% and gold peaked at an all-time high of $2,530. The performance occurred despite the U.S. dollar index plunging to $100.1, down by over 6% from its highest point this year. Analysts at French blockchain firm Kaiko suggested that the likely reason for the sell-off was that investors are concerned about the falling liquidity in the Bitcoin market and rising worries that governments will start selling their holdings.

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Theo Crypto News

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Helium token forms rare patterns; could rise by 46%

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Helium, the biggest Decentralized Public Infrastructure Network in Solana, continued its strong comeback this week.

HNT price rally continues

Helium (HNT) rose by over 8% on Aug. 29, outperforming all top 100 altcoins. It jumped to an intraday high of $7.5, bringing its 30-day gains to 50%. It has also soared by over 100% from its lowest point this month.

The rally followed the community’s overwhelming vote in favor of the HIP130 and HIP131 proposals. This means that all compatible Wi-Fi access points can be configured to support service providers like Helium Mobile.

Proposal HIP 131, conversely, allows service providers to begin affecting Hex boosting areas only within the highest earning areas. These proposals will start going into effect seven days after the announcement.

Helium also gained momentum after revealing its work with major US telecom companies to handle carrier offloading tasks, a process that reduces network congestion during significant activity, such as large events.

In these situations, such as concerts or sporting events, carriers can offload some users to the Helium Network, increasing HNT token burns and creating value for investors. The carrier offload test has over 500,000 users.

Helium forms a golden cross pattern

Helium price chart | Source: TradingView

HNT’s rally has occurred in a high-volume environment, indicating substantial demand. Data shows that open interest in the futures market has surged to $7.42 million, its highest point since April and much higher than this month’s low of $2.7 million.

HNT’s technical indicators suggest that the ongoing gains may continue. The token formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed, a widely recognized bullish sign.

Helium has also formed a cup and handle pattern, with the recent consolidation forming the handle section. It has moved to the fifth section of the impulse Elliot Wave chart pattern, which is typically bullish.

Further upside will be confirmed if the price breaks above the key resistance point at $8.036, its highest point on Aug. 18. If this occurs, the token may jump to $11.05, its highest point on Feb. 15, representing a potential 46% gain from the current level.

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Theo Crypto News

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Why is Solana down by 30% from its 2024 high?

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Solana price has remained in a deep bear market, falling by over 30% from its highest point in 2024.

Solana (SOL), the fifth-largest cryptocurrency in the industry, was trading at $145, down from its year-to-date high of $210. Its valuation has retreated from a YTD high of $86 billion to $68 billion.

SOL is in a bear market because of its correlation with Bitcoin (BTC) and other altcoins. Bitcoin has dropped by almost 20% from the YTD high while coins like Ethereum (ETH), Avalanche (AVAX), and Cardano (ADA) are down by over 30%.

Altcoins like Solana typically make bigger moves than Bitcoin. They perform better when Bitcoin is rising and significantly underperform when it is in a downtrend. For example, BTC rose by 70% between Jan. 1 and March 24, while SOL and ETH rose by over 80% during the same period.

Solana has also retreated as it faces substantial competition from Tron (TRX), which recently launched SunPump, a meme coin generator. The DEX volume on Solana in the past seven days has fallen by almost 9% while Tron’s has risen by over 210% to $1.70 billion. 

Most of Solana’s meme coins have also retreated. Dogwifhat has dropped by almost 70% from its highest level this year, while Book of Meme (BOME) has fallen by 80% from its all-time high.

Tron has also overtaken Solana in DeFi total value locked, the number of active addresses, and stablecoins. Tron has over $8.3 billion in assets, 2.47 million in addresses, and almost $60 billion in stablecoins. In comparison, Solana has $5.16 billion, 1.74 million, and $3.9 billion, respectively.

Solana’s futures open interest has fallen

Meanwhile, Solana’s open interest in the futures market has been in a downtrend. Most recently, the interest peaked at $3 billion in July and has pulled back to $2 billion, signaling waning demand.

Solana open interest | Source: CoinGlass

Solana has also dropped because of the ongoing performance of spot Ethereum ETFs. The latest data shows that they have not become popular. They have had cumulative outflows of $481 million and have shed assets in five of the last six weeks. 

Therefore, if the trend continues, there is a likelihood that companies like Blackrock, Fidelity, and Franklin Templeton will not apply for a spot Solana ETF. The SEC has also been reluctant to approve these funds. Earlier this month, the agency turned down Cboe Global Markets’ 19b-4 filing for a Solana fund.

Solana price chart | Source: TradingView

Technically, as shown above, the pullback is likely part of the formation of a bullish flag pattern. It is also part of the hand section of the cup and handle pattern on the weekly chart. If these patterns work out well, Solana will likely bounce back later this year.

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Theo Crypto News