Barring the dollar pegged stablecoins, all other eight out of the top 10 digital tokens were trading higher at 9.30 IST. Avalanche zoomed 16 per cent to make its way in the top 10 tokens, whereas Solana rallied 11 per cent.
The global crypto market cap gained more than 3 per cent to $2.37 trillion mark compared to the last day. However, the total crypto market volume rallied more than 25 per cent to $131 trillion.
What’s cooking in India?
Cryptocurrency exchanges are set to see consolidation amidst concerns and confusion over government attempts to regulate crypto assets. Some exchanges have begun exploratory talks with other Indian exchanges and foreign players, multiple people involved in discussions have told ET.
Following the US Federal Reserve’s cut back on its coronavirus pandemic stimulus in response to the rising inflation, the price of Bitcoin has surged in the past 24 hours, said CoinDCX Research Team.
With the view that Bitcoin and other digital assets can hedge against any potential debasement of the greenback, investors have turned to crypto amidst the uncertainty.
“Other cryptocurrencies also responded favorably with the recent development. As the US inflation rate rises to a near 40 year high, and coupled with the withdrawal of the stimulus, there may be greater headwinds for the crypto market,” it added.
Emerging economies should regulate cryptocurrencies instead of banning them, International Monetary Fund (IMF) chief economist Gita Gopinath said. She called for an urgent global policy on the issue.
Prices of cryptocurrencies listed on Coinbase Global Inc. and popular data provider CoinMarketCap.com briefly went haywire Tuesday, with many tokens showing astronomical gains that sent users gushing about huge windfalls and others wondering what happened.
NFT-based tokens are going through correction as the whole crypto market is going through a sell-off. Investors should keep an eye on further price action development before jumping into any NFT based cryptocurrencies at this stage, said Hitesh Malviya, Founder, Itsblockchain.
Tech View by Giottus Cryptocurrency Exchange
As the DeFi ecosystem continues to grow, we are seeing an explosion in the number of tokens created on blockchain platforms. This demand has necessitated the need for a tool that enables transfer of liquidity between platforms, including centralized and decentralized exchanges.
Reef, with its REEF token, intends to achieve this as a “cross-chain crypto operating system”. With its relatively small market capitalization of under $300 million, it has failed to hold up on its promise amidst the choppy markets lately.
REEF fell from its October high of $0.038 to a low of $0.015 in December – nearly a 60% drop. Such a large dip creates resistances above at proportionally large gaps, giving REEF both room to consolidate while the journey upwards becomes longer. REEF must deal with the .236 retracement resistance at $0.02, followed by $0.024.
REEF’s market structure also has it contending with a trendline resistance that it must flip into support before further upside. On the lower end, it has bounced previously above a key daily level of $0.01675 and has the wick of the recent crash at $0.015 that could provide a swift bounce on a test for those looking to long.
Support: $0.01675, $0.015
Resistance: $0.02, $0.024
(Time is in UTC and the daily time frame is 12:00 AM – 12:00 PM UTC)
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)