Cointelegraph By Rakesh Upadhyay
The astronomical rally in Ether (ETH) is not showing any signs of slowing down. The bulls easily cleared the overhead hurdle at $4,000 today, which also pushed the biggest altcoin’s market dominance to over 19%.
It is not only Ether that is witnessing sharp buying from traders. Litecoin (LTC) and Cardano (ADA) have also risen new all-time highs, suggesting a broad-based altcoin rally.
However, Bitcoin (BTC) seems to have lost its momentum as it continues to struggle near the $60,000 mark. That has pulled its market dominance to below 44% for the first time since July 2018.
However, the recent underperformance of Bitcoin has not shaken the long-term bulls. Morgan Creek Capital Management founder and CEO Mark Yusko recently said in an interview with CNBC that Bitcoin will rival the “monetary value” of gold.
“If gold’s monetary value is $4 trillion, then digital gold should move up to that total,” Yusko added. That means Bitcoin will have to rise to $235,000 in the future to fulfill Yusko’s prediction.
Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical support and resistance levels.
Bitcoin has been sandwiched between the moving averages and the $58,966.53 resistance for the past two days. This tight range trading suggests a status of equilibrium between the bulls and the bears.
If the uncertainty resolves to the downside, the BTC/USDT pair could drop to $52,323.21. The bulls will try to defend this support and if they succeed, the pair could extend its consolidation between $52,323.21 and $58,966.53 for a few more days.
The gradually rising 20-day exponential moving average ($56,611) and the relative strength index (RSI) near the midpoint suggest a balance between supply and demand.
This balance may shift in favor of the bulls if the price sustains above $58,966.53. That could result in a march to the all-time high at 64,849.27. A break above this resistance may signal the resumption of the up-move.
Conversely, a break below $52,323.21 may indicate the start of a deeper correction to $46,985. A break below this support could trigger panic selling.
Ether’s rally has continued unabated. After forming a Doji candlestick pattern on May 9, the bulls have asserted their dominance today and pushed the price to a new all-time high. The sharp rally of the past few days has pushed the RSI above 83.
A deeply overbought level on the RSI indicates a buying frenzy as traders fear missing out on the rally. Generally, such rallies top out after the last bull has purchased. The ETH/USDT pair could rise to $4,528.97 and then to the psychological level at $5,000.
The first sign of the bullish momentum fading could be a correction that lasts for more than three days. A break below the 20-day EMA ($3,173) will signal the start of a deeper correction.
Binance Coin (BNB) rose to a new all-time high at $691.77 today but the bulls are struggling to sustain the price above the breakout level at $680. The long wick on the day’s candlestick suggests a lack of demand at higher levels.
The upsloping moving averages indicate that buyers are in control, but the negative divergence on the RSI suggests the bullish momentum may be weakening. A break and close below the 20-day EMA ($599) could be the first sign of a deeper correction.
On the other hand, if the price rises from the current level or the 20-day EMA, the bulls will make one more attempt to push and sustain the BNB/USDT pair above $680. If they succeed, the pair could embark on a journey toward $760 and then $808.57.
Dogecoin (DOGE) witnessed a sharp dump on May 9 but the bulls aggressively defended the 20-day EMA ($0.44) as seen from the long tail on the day’s candlestick. However, the buyers could not extend the recovery today and the price has resumed its journey toward the 20-day EMA.
The 20-day EMA is gradually flattening out and the RSI has declined below 58, indicating the bullish momentum is weakening.
If the DOGE/USDT pair again rebounds off the 20-day EMA, it will suggest strong buying at lower levels. Such a move could keep the pair range-bound for a few more days.
This view will invalidate if the bears sink the price below the 20-day EMA. if that happens, the pair could drop to the 61.8% Fibonacci retracement level at $0.38.
XRP has repeatedly broken above the downtrend line since May 6 but the bulls have not been able to sustain the breakout. This suggests that traders may be using the rallies to lighten their long positions.
The buyers will have to push and sustain the price above $1.66 to enhance the prospects of a retest of the 52-week high at $1.96. The gradually upsloping 20-day EMA ($1.45) and the RSI above 56 indicate a minor advantage to the bulls.
This positive view will nullify if the price turns down and breaks below the 20-day EMA. Such a move will suggest that supply exceeds demand. The XRP/USDT pair could then drop to the 50-day simple moving average ($1.16).
Cardano made a large outside day candlestick pattern on May 9, indicating strong buying at the breakout level of $1.48. However, the bulls have not been able to sustain the momentum today and the altcoin has formed an inside-day candlestick pattern.
If the bulls do not give up much ground from the current level, it will signal strength and that could enhance the prospects of the resumption of the uptrend.
The rising 20-day EMA ($1.45) and the RSI in the overbought territory also indicate the path of least resistance is to the upside. A break above $1.83 may open the doors for a rally to $2 and then $2.25.
Contrary to this assumption, if the ADA/USDT pair turns down and breaks below the 20-day EMA ($1.45), it will indicate a bull trap. That could pull the price down to $1.28 and then to $1.
Polkadot (DOT) is stuck between the moving averages and the $42.28 overhead resistance. This tight range trading near the stiff resistance is a positive sign as it shows that traders are in no hurry to dump their long positions.
If the bulls can thrust and sustain the price above $42.28, it will suggest that demand exceeds supply. That could result in a rally to the all-time high at $48.36 where the bears are again likely to mount a stiff resistance.
However, if the buyers push the price above $48.36, the DOT/USDT pair could start its journey to $58.06.
Alternatively, if the price breaks below the moving averages, the pair could drop to $34.36 and then to $32.56. If that happens, the pair may extend its stay inside the $26.50 to $42.28 range for a few more days.
Bitcoin Cash (BCH) is facing stiff resistance near the 52-week high at $1,600.89 as seen from the long wick on today’s candlestick. If the price slips below $1,400, the altcoin could drop to the 38.2% Fibonacci retracement level at $1,263.10 and remain range-bound for a few days.
The first sign of weakness will be a break below $1,263.10 and the advantage will shift in favor of the bears if the BCH/USDT pair slips below the 20-day EMA ($1,134).
However, the upsloping moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.
If the price rises from the current level or from $1,400 and breaks above $1,600.89, the pair could start the next leg of the uptrend, which has a target objective at $2,147.36.
Litecoin surged above the resistance line of the ascending broadening wedge pattern on May 9, indicating a pick-up in momentum. The altcoin hit a new all-time high at $412.76 today but the long wick on the candlestick suggests profit-booking at higher levels.
If the LTC/USDT pair rebounds off the breakout level, it will suggest that the bulls are buying every minor dip. That will increase the possibility of the resumption of the uptrend with the next target at $463.31 and then $500.
On the contrary, if the price re-enters the wedge, it will suggest that the breakout on May 9 was a bull trap. That could pull the price down to the 20-day EMA ($309). A strong rebound off this level will suggest the sentiment remains positive while a break below the 20-day EMA will clear the path for a drop to the support line of the wedge.
The bulls pushed Chainlink (LINK) above the resistance line of the ascending channel on May 5 but could not build up on the breakout. After hesitating for a few days, the bulls made a decisive up-move on May 9 and pushed the altcoin to $52.42.
However, the bulls again failed to sustain the rally and the bears are trying to pull the price back into the ascending channel. If they succeed, the LINK/USDT pair may drop to the 20-day EMA ($43).
If the price rebounds off the 20-day EMA, the bulls may make one more attempt to resume the uptrend. On the contrary, a break below the 20-day EMA will suggest the current breakout was a bull trap. The pair could then drop to the support line of the channel.
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.
Gelato Network launches ‘G-UNI’ Uniswap v3 management token
Cointelegraph By Andrew Thurman
While Uniswap’s highly-touted v3 has been racing to the top of TVL charts as of late, the need for active management has kept some retail participants out of their pools — a problem that a new product from the Gelato Network is aiming to fix.
First teased in a community call last week, the Gelato Network has released today the details of their “G-UNI” Uniswap v3 management system. G-UNI aims to perpetually maintain a liquidity range of 5-10% within the current price of an asset pair, with an oracle network checking prices and rebalancing liquidity pool position ranges every half hour. G-UNI also automatically re-invests trading fees for compounding returns.
“Passive G-UNIs work by just providing very broad liquidity, similar to Uniswap v2 that never has to be changed,” an announcement blog post reads. “It thus can be completely free of anyone’s control as it does not require changes in its price range.”
While Uniswap v3 allows liquidity providers to earn more fees by concentrating their funds at specific prices, it opens them up to risk of impermanent loss if the prices of the trading pair moves beyond the provider’s specified range.
Update: REKT ☠️ https://t.co/0MF0gCd9sm
— ameen.eth (@ameensol) May 29, 2021
The blog post notes that G-UNI’s auto rebalancing brings the benefits of concentrated liquidity, but with the option of passively managing the position in a manner more in line with Uniswap v2.
“The advantage of this includes that users can sit back and relax as all the difficulties that come with monitoring LP positions are taken care of.”
Composability and incentives
While the new tool will be a boon to passive liquidity providers, the real benefits of G-UNI might be for other DeFi protocols.
A self-described “Legendary Member” of Gelato, Hilmar, noted that projects can now incentivize concentrated liquidity in “pool 2” liquidity pools. Pool 2 is a colloquialism for a native governance asset paired with a popular base asset, such as ETH or MATIC.
3) Having an ERC20 wrapper around Uni V3 LP positions is extremely powerful, as this enables teams like Instadapp to offer “Liquidity Mining” incentive schemes on top of G-UNI.
This means you can now incentivize your community to provide liquidity around specific ranges
— Hilmar X 冰淇淋 团队 (@hilmarxo) June 16, 2021
Projects often have to provide ample liquidity mining incentives for participants in pool 2s, as liquidity providers take on the risk of the native governance token collapsing in price. Concentrated liquidity rewards may help stabilize native asset prices to a more regular range.
Additionally, G-UNI is a ERC-20 token as opposed to a NFT, which opens it up to a broader number of possible applications in DeFi. Many lending platforms accept liquidity pool tokens as collateral, but aren’t yet widely prepared for positions represented as NFTs; G-UNI will allow them to onboard v3 liquidity positions faster. Likewise, yield vaults like Yearn.Finance, which has been planning to incorporate exchange positions for some time, may find it easier to integrate ERC-20s.
G-UNI will be used out of the gate as part of the launch of Instadapp’s governance token. The team is setting aside 1,000,000 INST tokens for INST/ETH liquidity mining, with 3/4ths of the rewards focused on a higher INST price liquidity range.
Per the Instadapp dashboard, the incentivized pools are currently live and offering 2,200% and 1,800% APY respectively.
Alchemix patches ‘Reverse Rug’ exploit, address $6.5 million shortfall
Cointelegraph By Andrew Thurman
It’s as miraculous as Aladdin taking off on a magic carpet: in a possible first, some of the users of a decentralized finance protocol were the ones to benefit today from an exploit, turning the concept of a ‘rugpull’ on its head.
A colloquialism for when liquidity is drained from a project (often an unscrupulous founder or developer draining the funds themselves), depositors and DeFi users are most often the ones holding bad debt and/or worthless tokens — left to hope for compensation plans that can take months or even years to fully vest.
In an exploit today, however, the users are the ones who got to pull at the seams for a change.
This morning, Alchemix announced that the contracts for one of their synthetic assets, alETH, had experienced an “incident.”
There has been an incident with the Alchemix alETH contracts. Together with the fantastic team at @iearnfinance, we have identified the error and are both working on a post-mortem and a solution to the problem.
Funds are safe.
— Alchemix (@AlchemixFi) June 16, 2021
In a incident report published later in the day, Alchemix developer “n4n0” said that “an issue with the deployment script of the alETH vault accidentally created additional vaults,” some of which the protocol used to incorrectly calculate outstanding debts, which in turn meant protocol funds were used to “pay off user debts.”
As a result, for a short window of time users were able to withdraw their ETH collateral with their alETH loans still outstanding — a rugpull by the community to the tune of $6.5 million.
Alchemix innovating again… this time with the reverse rugpull.. a ‘rugput’
Joking aside there was a little incident with the new alETH vault in which nobody lost any funds but some users actually gained@n4n084191635 with a great incident report herehttps://t.co/Vo3cWRnZPx pic.twitter.com/68G3y1s3x0
— ⟠ toast.eth (@intocryptoast) June 16, 2021
Per the incident report, the team paused the mint contract for alETH two and a half hours after the exploit was discovered. The report notes that no users lost funds as a result of the exploit, and that Yearn.Finance — whose yield vaults automatically repay Alchemix’s synthetic loans — suffered no loss as well. Additionally, a “conservative” initial debt ceiling prevented the protocol loss from being more extreme.
The team, including incident report author n4n0 appear to be taking the loss in stride:
— n4n0 (@n4n084191635) June 16, 2021
A trio of solutions is being deployed to cover the shortfall, including a temporary increase in protocol fees, a injection of ETH liquidity from Alchemix’s treasury, and a sale of DAI from the treasury for additional ETH. The team says they will be deploying an entirely new vault to address the flaws of the original.
Further changes may be on the horizon for the alETH asset as well. Alchemix currently has a alETH/ETH pool live on Saddle, a VC-backed fork of Curve Finance, following Curve reportedly turning down creating a pool for the synthetic Ether. However, in the past 48 hours the Curve social media account has been making overtures in an effort to bring Alchemix’s latest synthetic asset back.
Ethereum2 days ago
Shiba Inu and Chiliz jump 33% and 26% on Coinbase Pro listings
Bitcoin2 days ago
New Bitcoin bull market hodlers are refusing to sell at $40K, data suggests
DeFi3 days ago
Polkadot (DOT) Trading to Be Launched on Coinbase Pro
Bitcoin3 days ago
Within five years, US hedge funds expect to hold 10.6% of assets in crypto
DeFi3 days ago
Tim Draper Says Bitcoin to Hit $250K in 2022
Cryptocurrency2 days ago
Hedge Funds Aim for $300 Billion in Crypto Assets Within 5 Years, Survey Shows – Bitcoin News
DeFi2 days ago
China to Kick Out Bitcoin Miners and Most Are On Their Way to Texas
Regulations2 days ago
Regulations drive Korean exchanges to delist, warn against high risk coins