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Top 5 cryptocurrencies to watch this week: BTC, ETH, XRP, XMR, UNI

If Bitcoin consolidates near $16,000 for a few days, traders may shift their attention to altcoins and DeFi tokens….

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Bitcoin (BTC) has long been touted as digital gold by crypto enthusiasts. Now as the digital asset faces its first economic crisis since its birth, Bitcoin has validated the narrative and outperformed gold by a large margin in 2020. This suggests two important things, Bitcoin is here to stay and it is a better bet than gold.

Some popular traditional investors have already jumped on the Bitcoin bandwagon and analysts at Whalemap believe that institutions have been the primary buyers in the $12,000 to $15,000 range.

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The over-the-counter trading desk at Galaxy Digital also reported an increase in trading volumes by the institutional investors. The company’s CEO Mike Novogratz and head of sales Tim Plakas, both showed confidence that more traditional investors and funds could enter the crypto space in 2021.

While most investors seem to be bullish on Bitcoin, on-chain data suggests that some whales believe that the rally could have topped out in the short-term, hence, they have turned into sellers.

Let’s analyze the charts of the top-five cryptocurrencies to determine whether the rally may continue for some more time or is a short-term top around the corner.

Bitcoin (BTC) has not closed below the 10-week exponential moving average ($15,613) since Oct. 8. This shows that the trend is strong and the bulls have been buying on every minor dip without waiting for a larger correction.

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The upsloping moving averages and the relative strength index in the overbought territory suggest that bulls are in control. The buyers are currently attempting to sustain the price above the immediate support at $16,000.

If they succeed, the BTC/USD pair could resume its uptrend with the next target objective at $17,200.

Conversely, if the pair drops below the 10-day EMA, it will suggest profit booking by traders at higher levels. There is a minor support at $14,800 but if that also cracks, the correction could extend to $14,000.

TradingView

The 10-EMA on the 4-hour chart has flattened out and the RSI is close to the midpoint, which suggests a balance between supply and demand. The bearish divergence on the RSI warns of weakening momentum.

If the bears can drag the price below the 50-simple moving average, a drop to $14,800 and then to $14,400 is possible.

Contrary to this assumption, if the price rebounds off the current levels or from the 50-SMA and rises above $16,500, the next leg of the uptrend could begin.

Ether (ETH) has turned around from $478.058 on Nov. 13, which is just below the stiff overhead resistance at $488.134 where the previous rally had topped out on Sep. 1. It is usual to expect some amount of profit booking near the resistance.

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However, if the bulls do not allow the ETH/USD pair to give up much ground, it will increase the possibility of a breakout of $488.134. Above this level, the bears may again try to stall the rally at the psychological level at $500.

If the bulls can thrust the price above the $488.134 to $500 resistance zone, the rally may extend to $550. The upsloping moving averages and the RSI in the positive zone, suggest advantage to the bulls.

This positive view will be invalidated if the price breaks below the 10-day EMA. If that happens, the pair may drop to $420 and then to $400. Such a move could point to a possible range formation in the short-term.

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The 4-hour chart shows that the pair has broken below the support line of the rising wedge pattern and the RSI has also formed a bearish divergence.

Moreover, the downsloping 10-EMA and the RSI in the negative zone, suggest that bears have the upper hand.

If the pair sustains below the 50-SMA, a fall to $440 and then to $424 is possible. This short-term bearish view will be negated if the price turns around and rises above $478.058.

XRP had been stuck in a range between $0.23 to $0.26 for over two months. The range resolved to the upside with a strong breakout of $0.26 on Nov. 13. However, the bears are unlikely to give up without a fight.

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The tussle between the bulls and the bears could pull the price down to the breakout level of $0.26. If the bulls purchase this dip and the price rebounds off the breakout level, it will suggest that traders are buying as they anticipate higher levels in the future.

The upsloping 10-day EMA ($0.258) and the RSI in the positive territory suggest that bulls have the upper hand. The next target on the upside is $0.30.

Contrary to this assumption, if the bears pull the XRP/USD pair back below $0.26, it could catch several aggressive bulls off guard who may then have to liquidate their positions in a hurry.

The ensuing panic selling could sink the pair below the 50-day SMA ($0.248) and keep it range-bound for a few more days.

TradingView

The moving averages on the 4-hour chart are sloping up and the RSI is above 59, suggesting the advantage is with the bulls.

If the pair rebounds off the current levels, it will indicate that the bulls are buying on dips to the 10-EMA, which shows that the sentiment has turned bullish.

Contrary to this assumption, if the bears sink the price below the 10-EMA, a retest of $0.26 will be on the cards. If the price breaks and sustains below this support, it will suggest that bears have made a comeback.

Monero (XMR) had been in a correction since topping out on Oct. 26. The bulls pushed the altcoin above the downtrend line on Nov. 10 and are currently attempting to propel the price above the $118.10 to $120.7773 resistance zone.

TradingView

If they succeed, the XMR/USD pair could move up to $128 and if this level is also scaled, the rally may extend to $139.2885. The 10-day EMA ($115) has flattened out and the RSI is just below the midpoint, which suggests that the selling pressure has reduced.

This bullish view will be invalidated if the price turns down from the current levels or the overhead resistance zone and plummets back below $110. Such a move could drag the price down to $104.

TradingView

The 4-hour chart shows the formation of an ascending triangle pattern that will complete on a breakout and close above $118.10. This bullish setup has a target objective of $132.90.

On the other hand, if the bears sink the price below the support line of the triangle, it will invalidate the bullish setup and could drag the price down to $110.

Both moving averages are flat and the RSI is just above the midpoint, which suggests a balance between supply and demand. The break above or below the triangle could start the next short-term trending move.

Uniswap (UNI) bottomed out at $1.7563 on Nov. 5 and since then embarked on a strong uptrend. The up-move in the past few days has resulted in a rally of over 136%.

TradingView

The 10-day EMA ($3.27) has turned up and the RSI has risen from close to the oversold zone to the overbought territory. This suggests that the bulls are back in the game. They will now try to push the price to the psychological level of $5.

This level may act as a resistance as the bears will try to stall the up-move in the $5 to $5.55 zone. However, if the bulls do not give up much ground from this zone, then the uptrend could continue.

The first sign of weakness will be a break below the 10-day EMA. Such a move will suggest profit booking by the short-term traders and shorting by the aggressive bears.

TradingView

The 4-hour chart shows that both moving averages are sloping up and the RSI is in the overbought zone. This suggests that the bulls are in control. The immediate resistance is at $4.50 where the bears may try to stall the rally.

If the bulls defend the 10-EMA on the downside, it will suggest that the momentum still favors the bulls. This positive view could be invalidated if the price turns down and sustains below the $3.50 support.

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.

Source: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-eth-xrp-xmr-uni

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Cointelegraph

The future of DeFi is spread across multiple blockchains

Creating interoperability, not competition: Multichain solutions will positively impact the blockchain space in terms of accessibility, innovation and economic viability.

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Long stuck in the shadows of Bitcoin (BTC), Ethereum (ETH) finally took hold of the market in 2020 during the decentralized finance summer. Designed to recreate traditional financial systems with fewer middlemen, DeFi is now being used across lending, borrowing, and the buying and selling of tokens. The majority of these decentralized applications (DApps) are run on Ethereum, which saw activity on the network increase during 2020. This activity also trended upwards due to yield farming, also known as liquidity mining, which enables holders to generate rewards with their crypto capital.

But as activity on Ethereum increased, so too did the network’s transaction fees. In May, it was reported that Ethereum gas fees were skyrocketing. It’s intuitive that engaging in DeFi is only worthwhile when handling capital that exceeds any network fees. Consequently, it soon became clear to users that the blockchain was verging on unusable.

Related: Where does the future of DeFi belong: Ethereum or Bitcoin? Experts answer

Without a doubt, Ethereum remains the most active and populated blockchain, but other potential players are popping up, providing a viable alternative to Ethereum. For example, layer one protocols such as Binance Smart Chain (BSC) and Solana (SOL) are attracting billions in assets under management, whereas layer two solutions such as Polygon (MATIC) are capturing Ethereum’s disgruntled users’ attention due to their compatibility with Ethereum-based protocols. This is in addition to delivering low fees and quick transaction speeds. However, despite Ethereum gas fees reaching a high over the past year and the growth of faster networks, none of these chains have killed Ethereum yet.

It’s because of this, as we enter the second half of 2021, that the narrative of “Ethereum vs. the rest” is starting to change — developers are realizing the value of a cross-chain future rather than having to pick one blockchain to build on. It’s no longer a case of creating a chain with a competitive edge, but of ensuring all chains can work interchangeably to improve the industry.

Related: A multichain future will accelerate innovators and entrepreneurs

Benefits and drawbacks of a multichain future

Due to its prominence and longstanding presence in the market, Ethereum has the first-mover advantage and remains the most significant blockchain within the DeFi ecosystem as of Q1 2021. But with other chains gaining momentum, it is these alternatives to Ethereum that are providing the benefits of faster transaction speeds and significantly lower fees.

The introduction of other chains isn’t necessarily a bad thing, even for Ethereum fans. After all, a multichain ecosystem brings additional space for new protocols to enter, each with a strong user base. Each new chain also creates a new community, vacancies for services, and an individual identity and culture.

Related: Too little, too late? Ethereum losing DeFi ground to rival blockchains

One possible drawback, depending on how you look at it, is that some blockchains require unique programming languages, such as JavaScript, Rholang, Simplicity, Rust or Solidity, which may present a barrier to entry for developers. At the same time, however, different coding languages can present a new way for developers to solve a problem. And as the blockchain space moves further towards multichain, it may inspire developers to create and innovate as they witness the diversity in viable blockchain projects. It’s for this reason that projects which don’t innovate could be seen as lagging and abandoned by their community.

Not only that, but separated blockchains create innovation silos, presenting challenges to progress and adoption. Joining the multichain future together can be seen as seamlessly connecting these specialized groups. This could be seen as a difficult objective to achieve in the traditional tech world, but cryptocurrency and blockchain are challenging these existing infrastructure monopolies, and this industry has the ability to pioneer an ecosystem that works cohesively rather than competitively.

Related: Life beyond Ethereum: What layer-one blockchains are bringing to DeFi

More blockchains, more value

It’s inevitable that projects will eventually connect multiple blockchains, making the transfer of information from one chain to another seamless. In fact, the cryptocurrency market and multichain adoption is less of a zero-sum game than is often cited. And, as the multichain future becomes more apparent, it will only become clearer that the additional functionality, usability and scalability it brings is contributing to the onboarding of new users.

Related: The great tech exodus: The Ethereum blockchain is the new San Francisco

Rather than viewing the existence of a multichain future with doubt, it should be looked on positively. There are plenty of different smart contract platforms in the crypto ecosystem, all of which impact the blockchain space in terms of accessibility, economic viability and innovation. Blockchains may be separated right now, but everything will come together in the end, creating an interoperable and fast network of protocols that fulfils our daily needs. The beauty of this is that we won’t have to worry about how we’re transacting or what we’re transacting on, as it won’t matter.

We’re still far from achieving the end goal of interoperability, but once it’s achieved mass adoption, the crypto industry will be unstoppable. And, as the sector continues to grow, projects are finding that they have to adapt to a multichain future soon or risk getting left behind.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Michael O’Rourke is the co-founder and CEO of Pocket Network. Michael is a self-taught iOS and Solidity developer. He was also on the ground level of Tampa Bay’s Bitcoin/crypto meetup and consultancy, Blockspaces, with a focus on teaching developers Solidity. He graduated from the University of South Florida.

Without a doubt, Ethereum remains the most active and populated blockchain, but other potential players are popping up, providing a viable alternative to Ethereum. For example, layer one protocols such as Binance Smart Chain (BSC) and Solana (SOL) are attracting billions in assets under management, whereas layer two solutions such as Polygon (MATIC) are capturing Ethereum’s disgruntled users’ attention due to their compatibility with Ethereum-based protocols. This is in addition to delivering low fees and quick transaction speeds. However, despite Ethereum gas fees reaching a high over the past year and the growth of faster networks, none of these chains have killed Ethereum yet.

Source: https://cointelegraph.com/news/the-future-of-defi-is-spread-across-multiple-blockchains

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Chainalysis raises $100M in Series E funding led by Coatue

Chainalysis secures its second $100 million investment round in three months.

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Chainalysis has secured hundreds of millions of dollars in the second quarter as venture firms allocate more resources to the emerging blockchain sector.

Chainalysis raises $100M in Series E funding led by Coatue

Blockchain analytics company Chainalysis has secured $100 million in Series E financing, bringing its total valuation to a staggering $4.2 billion and highlighting once again the tremendous growth of the cryptocurrency industry.

The round was led by global investment manager Coatue, with additional participation from 9Yards Capital, Altimeter, Blackstone, GIC, Pictet, Sequoia Heritage and SVB Capital, Chainalysis announced Thursday.

Chainalysis said the funds will go toward expanding its blockchain data capabilities, which includes investing in new data tools, software and APIs.

“We believe blockchain data is the asset that can help public and private sector organizations understand the risks and opportunities surrounding this asset class and promote its adoption safely and successfully,” the company said.

Chainalysis’ valuation has more than doubled in the last quarter thanks to several strategic investments. As Cointelegraph reported, the company closed out a $100 million Series D round in March led by Paradigm, a crypto-focused investment firm. At the time, Chainalysis’ director of communications Maddie Kennedy told Cointelegraph that the funds will be used to expand the company’s enterprise data offering.

Related: Crypto-finance company Amber Group valued at $1B following $100M raise

Mega-million-dollar funding rounds have become commonplace in the cryptocurrency industry over the last six months. Venture firms have poured billions into crypto startups this year alone, with the likes of Andreessen Horowitz going a step further by announcing a new $2.2 billion crypto venture fund.

What’s more, dealmaking seems to be happening irrespective of current market conditions, which marks an important evolution from the 2017 bull market that saw venture funding dry up once the initial coin offering mania faded.

Source: https://cointelegraph.com/news/chainalysis-raises-100m-in-series-e-funding-led-by-coatue

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Crypto miners eye cheap power in Texas, but fears aired over impact on the grid

Can Texas meet the electricity demands of migrating Chinese Bitcoin miners?

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The recent crackdown on crypto mining in China has seen concerns expressed over the potential impact a hashrate migration could have on Texas’ unreliable electricity market, as an increasing number of dislocated miners eye the Lone Star State.

Texas’ abundant sources of renewable energy and highly deregulated power grid make the state an obvious choice for migrating miners from China and elsewhere, with 20% of Texan electricity being generated by wind as of 2019.

Speaking to CNBC, Brandon Arvanaghi, a former security engineer at crypto exchange Gemini, predicted Texas will see “a dramatic shift over the next few months” as miners look to set up shop.

“We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible,” he said, adding:

“Texas not only has the cheapest electricity in the U.S. but some of the cheapest in the globe.”

Castle Island Ventures’ founding partner, Nic Carter told CNBC that half of the world’s hashing power could ultimately exit China’s borders and will need new homes, stating:

“Every Western mining host I know has had their phones ringing off the hook. Chinese miners or miners that were domiciled in China are looking to Central Asia, Eastern Europe, the U.S., and Northern Europe.”

Global hash rate has fallen by one-third since early May following reports that China’s mining industry would be subjected to stricter supervision.

But is the Texan power grid up to the challenge of providing power for an influx of more crypto miners? The Electric Reliability Council of Texas (ERCOT) has just requested that Texans curb their electricity usage amid the recent heatwave that saw many residents turning up their air conditioners earlier this week.

Roughly 12,000 megawatts of generation capacity was offline as of Monday — enough to power 2.5 million homes. ERCOT described the scale of forced outages as “very concerning.”

The regulator warned that a failure to heed the request could result in a repeat of the widespread winter power failures that left 69% of Texans without electricity, and roughly half without water in February. According to Buzzfeed, February’s outages could have resulted in up to 700 deaths in the state.

Angela Walch, a Texas research associate at University College London’s Centre for Blockchain Technologies, tweeted her concerns regarding the share of Texas’ electricity being devoted to Bitcoin mining, emphasizing that her family has been “asked to reduce our air conditioning use, not run washing machines & dryers, etc.”

Obviously, Bitcoin is not the sole cause of this cluster*^% that our poor political leadership in Texas has caused.

But, I am curious to know the portion of the grid it uses. Maybe Bitcoin miners are the first to be shut down in times of grid stress.

— Angela Walch (@angela_walch) June 15, 2021

However Tierion CEO Wayne Vaughan responded by asserting that much of the electricity used to power Texan mining operations comprised stranded resources that “would never be able to reach your home to power your appliances.”

Others argued that wholesale Bitcoin mining operations could actually alleviate Texas’ power issues, with Texas’ seasonal surges in electricity demand incentivizing miners to sell power back to the state’s grid that otherwise go uncaptured.

In September 2020, the Peter Thiel-backed crypto miner Layer1 in West Texas reported it had reaped profits exceeding 700% by selling renewable electricity back to the grid amid surging summer demand.

While up-to-date data for global hashrate distribution is not available, the Cambridge University’s Bitcoin Electricity Consumption Index (BECI) estimates that China represented 65% of the world’s hashing power as of April 2020.

Earlier this month, district regulators in Western Xinjiang and Yunnan issued notices mandating the suspension of virtual currency mining enterprises. BECI estimates the two regions account for 40% of the country’s hash rate.

Castle Island Ventures’ founding partner, Nic Carter told CNBC that half of the world’s hashing power could ultimately exit China’s borders and will need new homes, stating:

Source: https://cointelegraph.com/news/crypto-miners-eye-cheap-power-in-texas-but-fears-aired-over-impact-on-the-grid

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