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Cardano is currently trading at $2.24 following a magnificent 17.63% bounce from its weekly low of $1.91.

The polarising cryptocurrency, which is the third largest in terms of market cap, recently launched its highly-anticipated smart contracts platform that will pave the way for DeFi development.

However, the positive sentiment surrounding the upgrade rapidly subsided as traders capitalised on the “buy the rumour, sell the news” thesis, with price subsequently plunging by more than 30%.

This typically happens with most major news events as hype builds into the event before deleveraging punishes those that bought at the top. A good example of this was when Coinbase went live on Nasdaq the day of Bitcoin’s all-time high at $65,000.

ADAUSD chart by TradingView

In Cardano’s case, whilst this week’s recovery has shown signs of strength, it remains stuck at a number of road blocks from a technical perspective.

The daily 50 exponential moving average became a key point of support since it surged above it on August 1. The most recent sell-off saw Cardano slump below that key moving average, with it now beginning to act as a bitter level of support.

If ADA can close a daily candle above the 50EMA at $2.28, it will likely float back to the top of the range at around $2.65.

A rejection from this level would signal a clear downtrend with downside price targets beginning to emerge as low as $1.55 and $1.39.

Cardano pricing

Current live ADA pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Cardano price. Pricing is also available in a range of different currency equivalents:

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Australian Dollar – ADAtoAUD

Russian Rouble – ADAtoRUB

Bitcoin – ADAtoBTC

About Cardano

Cardano claims to have tried to change the way cryptocurrencies are designed and developed, balancing the best of the functionality of several cryptocurrencies into one coin. The project began in 2015, the work of a global team of scientists and academics. ADA was released in September 2017.

Cardano is one of the largest cryptocurrencies and is one of The Top 10 Cryptocurrencies by market capitalisation.

More Cardano news & information

If you want to find out more information about Cardano or cryptocurrencies in general, then use the search box at the top of this page. Here’s the latest Cardano article to get you started:

Cardano 1.4 update unveiled By Paul Hindle – September 23, 2021

As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.

Key Support Levels: $2770, $2720, $2600. Key Resistance Levels: $3000, $3200, $3290.

Ethereum is now down a steep 15% on the week as it plummeted beneath $3000. The coin started the week off by falling beneath a rising trend line and the 50-day MA. The trend line also formed the neck of a head and shoulders pattern that could send it as low as $2400.

Since breaking the 50-day MA, ETH continued to decrease until it hit yesterday’s low at $2656. From there, the bulls regrouped to close the candle at $2770, which is support provided by a .786 Fib. It bounced from there today as it battles to stay above $2900.

ETH-USD Short Term Price Prediction

Looking ahead, the first strong support lies at $2770 (.786 Fib). This is followed by $2720 (100-day MA), $2600 (200-day MA), and $2420 (downside 1.618 Fib Extension).

On the other side, the first resistance lies at $3000. This is followed by $3200, $3290 (50-day MA), $3350, and $3400 (20-day MA).

The RSI is beneath the midline, indicating the bears are in control of the market momentum.

ETH/BTC – ETH Falls Into July Highs

Key Support Levels: 0.068 BTC, 0.0667 BTC, 0.066 BTC. Key Resistance Levels: 0.07 BTC, 0.071 BTC, 0.0733 BTC.

ETH also continues to decrease against BTC. On Sunday, the coin fell beneath support at 0.0711 BTC (.382 Fib) to meet 0.07 BTC (50-day MA). It continued below the 50-day MA on Monday to hit 0.0691 BTC.

Yesterday, ETH plummeted beneath 0.069 BTC to reach as low as 0.067 BTC. By the end of the day, the bulls managed to close the daily candle at 0.068 BTC. Today, ETH rebounded and is now above 0.069 BTC.

ETH-BTC Short Term Price Prediction

Moving forward, the first strong resistance lies at 0.07 BTC. This is followed by 0.071 BTC (50-day MA), 0.0733 BTC (August highs), and 0.0765 BTC (bearish .786 Fib).

On the other side, the first support lies at 0.068 BTC (rising trend line). This is followed by 0.0667 BTC (downside 1.272 Fib Extension), 0.066 BTC (.618 Fib), and 0.064 BTC.

The RSI is also beneath the midline here, indicating bearish momentum is control.

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Bitcoin’s (BTC) recovery is facing stiff resistance near $48,500, indicating that bears are active at higher levels. 

By combining the popular stock-to-flow Bitcoin price model and the illiquid supply data, analyst William Clemente projects $39,000 to act as a strong floor on any declines.

On the upside, analysts remain bullish. Bloomberg Intelligence chief analyst Mike McGlone has maintained his target of $100,000 for Bitcoin. McGlone said that a number of different charts underline the bullish potential for Bitcoin.

Along with Bitcoin, Ether (ETH) is also showing signs of accumulation. Crypto analytics provider IntoTheBlock said $1.2 billion worth of Ether was withdrawn within a 24-hour period from centralized exchanges on Sept. 16. After a similar occurrence in April, Ether had rallied about 60% in 30 days.

Could the top two cryptocurrencies live up to their bullish projections or will crypto markets surprise to the downside? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

The bulls are attempting to sustain Bitcoin above the 20-day exponential moving average (EMA) ($47,291) while bears are trying to pull the price below it. The 20-day EMA has flattened out and the relative strength index (RSI) is close to the midpoint, suggesting a range-bound action in the short term.

If bears sink the price below the moving averages, the BTC/USDT pair could drop to the critical support at $42,451.67. A rebound off this level will indicate that bulls are accumulating on dips. That may extend the consolidation between $42,451.67 and $52,920 for a few more days.

On the contrary, if the price rebounds off the current level or the 50-day simple moving average (SMA)  ($46,256), the bulls will try to push the pair to $50,500 and then to $52,920. The bears are likely to defend this resistance zone aggressively.

The next major trending move is likely to begin after bulls drive the price above $52,920 or if bears pull the price below $42,451.67.

ETH/USDT

Ether’s (ETH) recovery is facing stiff resistance at the 61.8% Fibonacci retracement level at $3,637.14, indicating selling at higher levels. The bears are attempting to sink the price back below the support at $3,377.89.

If they succeed, the ETH/USDT could drop to the 50-day SMA ($3,238) and then to the critical support at $3,000. Such a move may result in the formation of a head and shoulder pattern, which will complete on a break and close below $3,000.

This negative view will invalidate if the price rebounds off the support at $3,377.89 or the 50-day SMA and breaks above $3,676.28. The pair could then retest the local high at $4,027.88.

The flattish 20-day EMA and the RSI just above the midpoint do not indicate a clear advantage either to the bulls or the bears.

ADA/USDT

Cardano (ADA) turned down from the 20-day EMA ($2.52) on Sept. 16, suggesting that bears are selling on rallies to this resistance. The bears are currently attempting to pull the price to the 50-day SMA ($2.25).

The downsloping 20-day EMA and the RSI in the negative zone suggest that bears are in command. If the price sustains below the 50-day SMA, the ADA/USDT pair could drop to the next support at $1.94.

Such a deep correction will suggest that a short-term top has been made. If bulls want to salvage the uptrend, they will have to push and sustain the price above the 20-day EMA. If they do that, the pair could once again rally to $2.80 and then to $2.97.

BNB/USDT

The bulls failed to push Binance Coin (BNB) above the 20-day EMA ($432) in the past two days, indicating that buying dries up at higher levels. This may have attracted profit-booking from short-term traders who bought at lower levels, anticipating a resumption of the up-move.

The 20-day EMA is sloping down and the RSI turned down from the midpoint, suggesting advantage to the sellers. If the price sustains below the 50-day SMA, the BNB/USDT pair could drop to the next major support at $340.

This negative view will be invalidated if the bulls push and sustain the price above the 20-day EMA. Such a move will suggest that the bulls have absorbed the supply. The pair could then rise to the overhead resistance at $518.90.

XRP/USDT

Ripple (XRP) turned down from the 20-day EMA ($1.12) on Sept. 16, indicating that bears are defending this level aggressively. The downsloping 20-day EMA and the RSI in the negative zone suggest that the path of least resistance is to the downside.

If bears sustain the price below the 50-day SMA, the XRP/USDT pair could retest the Sept. 7 intraday low at $0.95. A break and close below this support will open the doors for a deeper correction to $0.75.

If the price rebounds off the current level or from $0.95, the bulls will again try to push the price above the 20-day EMA. If they succeed, it will suggest that the correction could be over. The pair may then start its northward march toward $1.35.

SOL/USDT

Solana’s (SOL) bounce off the 20-day EMA ($145) on Sept. 14 fizzled out at $166.50 as bears continued to pounce on relief rallies. The price has slipped below the 20-day EMA today, indicating weakness.

The flattening 20-day EMA and the RSI just above the midpoint suggest that bulls have lost their grip. If bears sustain the price below the 20-day EMA, the SOL/USDT pair could decline to the 61.8% Fibonacci retracement level at $123.42.

This is an important support to watch out for because if it cracks, the pair could plunge to psychological support at $100.

Conversely, if the price turns up from the current level or rebounds off $123.42, the bulls will try to resume the uptrend. The up-move could face stiff resistance near $170 and then at $200.

DOT/USDT

Polkadot (DOT) turned down from the resistance line on Sept. 15 and dropped close to the 20-day EMA ($32.04) on Sept.. This is an important level for the bulls to defend because a break below it could pull the price down to the 50-day SMA ($26.36).

Although the moving averages are sloping up, the negative divergence on the RSI warns that the bullish momentum could be slowing down. A break and close below the 50-day SMA could suggest the start of a deeper correction.

Contrary to this assumption, if the price rebounds off the 20-day EMA, the bulls will again try to propel the DOT/USDT pair above the resistance line. If they manage to do that, the pair could pick up momentum and rally to $41.40 and then retest the all-time high at $49.78.

Related: Next stop $85K for Bitcoin as analysts predict ‘explosive’ Q4 for BTC price action

DOGE/USDT

Although Dogecoin (DOGE) has been trading below the moving averages for the past few days, the bears have not been able to sink the price to the immediate support at $0.21. This suggests a lack of sellers at lower levels.

The bulls attempted to push the price above the moving averages today but the bears are in no mood to relent. The downsloping 20-day EMA ($0.26) and the RSI below 42 indicate that sellers have the upper hand.

If bears sink the price below $0.21, the DOGE/USDT pair could extend the decline to $0.15. Alternatively, if bulls drive the price above the moving averages, the pair could rise to the downtrend line.

A break and close above this resistance will be the first sign that the correction may be over. The pair could then start its journey toward the overhead resistance at $0.45.

UNI/USDT

Uniswap (UNI) surged above the moving averages on Sept. 15 but the bulls could not push the price above the downtrend line, which may have attracted profit-booking by the short-term bulls and shorting by the aggressive bears.

The flat 20-day EMA ($25.72) and the RSI just below 50 indicate a marginal advantage to the bears. If the price sustains below $25, the bears will try to pull the UNI/USDT pair to $23.50 and then to $21. If this support cracks, it will indicate the start of a deeper correction.

On the contrary, if the price rebounds off the current level or $23.50, the bulls will again try to drive the price above the downtrend line. If they succeed, the pair could move up to the overhead resistance at $31.41.

LUNA/USDT

Terra protocol’s LUNA token rose to $39.77 on Sept. 16 but could not sustain the higher levels as seen from the long wick on the day’s candlestick. This suggests that traders may be closing their long positions on rallies.

The bears will now try to seize the opportunity and sink the price below the 20-day exponential moving average ($33.97). If they manage to do that, the LUNA/USDT pair could decline to the 50-day SMA ($26.26).

Alternatively, if the price again rebounds off the 20-day EMA, the pair could rise to $40 and remain range-bound between these two levels for a few more days. A breakout and close above $40 could open the doors for a retest of the all-time high at $45.01.

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.

The crypto markets and the U.S. equity markets sold off on Sept. 20 on fears that the collapse of Chinese property giant Evergrande could not only hurt China but also have wider implications in other markets.

When the sentiment is bearish, traders dump positions that they perceive as risky in favor of safe-haven trades. This could be one of the reasons for the sharp fall in Bitcoin (BTC) and most major altcoins on Sept. 20.

Data from Bybt shows that Bitcoin held in Binance wallets has surged by 29,717 Bitcoin in the past 30 days. History suggests that an increase in the Bitcoin balance on Binance has resulted in a drop in Bitcoin’s price.

The Bitcoin balance on Binance rose from 99,700 BTC on April 20 to 347,590 BTC on June 26. During this period, Bitcoin’s price plunged from about $57,000 to roughly $30,000.

Now the question is, could the sell-off deepen or will lower levels attract aggressive buying from traders? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s selling exacerbated after bears pulled the price below the moving averages. The price action of the past few days has formed a head and shoulders pattern that will complete on a breakdown and close below the neckline.

The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) has dropped below 41, indicating that bears are in control. If the price sustains below the neckline, the BTC/USDT pair could drop to $37,332.70 and then to the pattern target of $32,423.05.

Contrary to this assumption, if the price rebounds off the neckline, the bulls will again try to push the price toward $50,000. However, the bears are likely to defend the 20-day exponential moving average (EMA) ($47,014) aggressively.

If the price turns down from this resistance, it will indicate that sentiment has turned negative and traders are selling on rallies. The first sign of strength will be a break and close above $48,843.20.

ETH/USDT

Ether (ETH) bounced off the support at $3,377.89 on Sept. 18, but the bulls could not sustain the price above the 20-day EMA ($3,402). This indicates that traders closed positions at higher levels.

If the price breaks and closes below $3,000, the ETH/USDT pair will complete a bearish head and shoulders pattern. The target objective of this setup is $1,972.12.

The 20-day EMA has started to turn down and the RSI is below 42, indicating that the path of least resistance is to the downside.

On the contrary, if bulls defend the $3,000 level aggressively, the pair could again rise toward the overhead resistance at $3,377.89. The bears are likely to defend this level but if bulls overcome this resistance, it will signal that the correction may be over.

ADA/USDT

The bulls defended the 50-day simple moving average (SMA) ($2.31) on Sept. 18 but could not build on the rebound. Sustained selling pulled Cardano (ADA) below the 50-day SMA on Sept. 19.

The selling escalated on Sept. 20 and the ADA/USDT pair plunged to critical support at $1.94. The strong rebound off this level suggests that bulls are accumulating on dips.

If buyers sustain the bounce, the pair could gradually move up toward the overhead resistance at $2.47. The bears are likely to sell on relief rallies to the 20-day EMA ($2.45). If the price turns down from this resistance, the pair could again drop to $1.94.

A break and close above the 20-day EMA will be the first sign that the sellers may be losing their grip.

BNB/USDT

Binance Coin (BNB) broke below the 50-day SMA ($422) on Sept. 17 and subsequent attempts by the bulls to reclaim the level failed. This suggests that bears are selling on every minor rally.

The selling picked up momentum on Sept. 20 and the BNB/USDT pair dropped close to the critical support at $340. This is an important level for the bulls to defend because a break below it could open the doors for a decline to $300 and then $250.

The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating that bears have the upper hand.

If the price rebounds off $340, the pair could rise to the 20-day EMA. This level is likely to act as a stiff resistance. The bulls will have to push and sustain the price above $422.80 to indicate that the correction may be over.

XRP/USDT

Ripple (XRP) had been trading near the breakout level at $1.07 for the past few days, but the failure of the bulls to push the price above the 20-day EMA ($1.09) showed that bears were selling on rallies.

The selling intensified after the bears pulled and closed the price below the 50-day SMA ($1.08) on Sept. 19. The moving averages are on the verge of a bearish crossover and the RSI has dropped into the negative zone, indicating that bears are in command.

If the price sustains below $0.95, the XRP/USDT pair could drop to $0.75. Any relief rally from the current level is likely to face stiff resistance at the 20-day EMA. A breakout and close above $1.13 will signal that bulls are attempting a comeback.

SOL/USDT

The long tail on the Sept. 17 candlestick shows that bulls aggressively bought the dip below the 20-day EMA ($148). That was followed by a strong bounce of Sept. 18 but the bulls could not sustain Solana (SOL) above the first resistance at $170.

This may have attracted profit-booking from bulls and shorting from aggressive bears. The 20-day EMA has flattened out and the RSI is close to the midpoint, indicating that bulls are losing their grip.

If the price sustains below the 20-day EMA, the SOL/USDT pair could drop to the 61.8% Fibonacci retracement level at $123.42. A break and close below this support will suggest that the uptrend could be over.

The bulls will have to push and sustain the price above $171.47 to signal the end of the corrective phase.

DOT/USDT

Polkadot’s (DOT) rebound off the 20-day EMA ($32.12) on Sept. 18 was followed by an inside-day candlestick pattern on Sept. 19. This showed indecision among the bulls and the bears.

This uncertainty resolved to the downside on Sept. 20 with a break below the 20-day EMA. The selling picked up momentum and dropped to critical support at the 50-day SMA ($27.29). This is an important support for the bulls because they had successfully defended it on Sept. 7.

If the DOT/USDT pair rebounds off the current level, the bears are likely to sell on rallies to the 20-day EMA. If the price turns down from this level, it will suggest that the sentiment has turned negative and that will increase the prospects of a break below the 50-day SMA. This negative view will invalidate if the price turns up and rises above $34.

Related: Ethereum forming a double top? ETH price loses 12.5% amid Evergrande contagion fears

DOGE/USDT

Dogecoin’s (DOGE) tight range trading of the past few days resolved to the downside on Sept. 20 as bears pulled the price to the strong support at $0.21.

The falling 20-day EMA ($0.25) and the RSI near the oversold territory indicate that bears are in control. If they can sink and sustain the price below the $0.21 support, the DOGE/USDT pair could slide to $0.15.

If the price rebounds off the current level, the bulls will again try to push the pair above the 20-day EMA. If they manage to do that, the pair could rise to the downtrend line. Alternatively, if the price turns down from the 20-day EMA, it will increase the prospects of a break below $0.21.

UNI/USDT

The bulls attempted a recovery on Sept. 18 but could not push Uniswap (UNI) above the 20-day EMA ($25.09). This showed that bears are aggressively defending the 20-day EMA.

The UNI/USDT pair continued lower and the bears pulled the price below the critical support at $21 today. If the price sustains below this support, the pair could witness panic selling and decline to the next support at $18.

The downsloping 20-day EMA and the RSI in the negative zone indicate an advantage to bears. This negative view will invalidate if the price turns up from the current level and rises above the downtrend line. Such a move will indicate strong accumulation at lower levels.

AVAX/USDT

The long wick on the Sept. 18 and 19 candlestick showed that traders were booking profits at higher levels. The selling intensified today and Avalanche (AVAX) dropped to the 20-day EMA ($55.16).

The strong rebound off the 20-day EMA suggests that sentiment remains positive and traders are accumulating on dips. If the price sustains above $60.04, the bulls will again attempt to push the AVAX/USDT pair toward the all-time high at $76.27.

On the contrary, if the price turns down from the current level and breaks below the 20-day EMA, the bearish momentum could pick up as traders may rush to the exit. That could pull the price down to $48 and then to the 50-day SMA ($38.56) where buyers may step in to arrest the decline.

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.

The crypto market’s recovery was rocked on Sept. 24 after news that China's government is adopting a new set of measures that includes stronger inter-departmental coordination to “cut off payment channels, dispose of relevant websites and mobile applications” to crack down on illegal cryptocurrency transactions efficiently.

Although the news has caused a selloff, long-term investors are unlikely to be perturbed because, apart from announcing additional measures to enforce the existing ban effectively, there is nothing else that has changed.

China first announced a ban on cryptocurrencies back in September 2017 and that news had also resulted in a sharp correction in Bitcoin (BTC) price. However, that dip proved to be a good buying opportunity because the price recovered within a few weeks and went on to hit a new all-time high close to $20,000 in less than three months.

Is the current correction in Bitcoin and most major altcoins a good buying opportunity or could the crypto markets tumble further? Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin bounced off the 100-day simple moving average ($40,874) and rose above the neckline of the head and shoulders pattern on Sept. 22. That showed strong demand at lower levels but the recovery could not clear the hurdle at the 20-day exponential moving average ($45,596).

The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone indicate that bears have the upper hand. If bears sink and sustain the price below the 100-day SMA, the BTC/USDT pair could decline to $37,332.70.

This level may act as a strong support but if it cracks, the next stop could be at the pattern target at $32,423.05.

Contrary to this assumption, if the price turns up from the current level or the 100-day SMA, the bulls will again try to drive the pair above the moving averages. A close above the 50-day SMA ($46,816) will suggest that the correction may be over.

ETH/USDT

Ether (ETH) rebounded off the 100-day SMA ($2,734) on Sept. 22 and rose above the breakdown level at $3,000. This shows that bulls bought the dip and tried to trap the aggressive bears.

However, the recovery stalled at $3,174.50 on Sept. 23 and the bears are attempting to establish their supremacy. The downsloping 20-day EMA ($3,255) and the RSI below 41 indicate that bears are in command.

If the index breaks and closes below the 100-day SMA, the ETH/USDT pair could witness aggressive selling. The pair could then drop towards the pattern target at $1,972.12. This negative view will invalidate if bulls drive and sustain the price above the moving averages.

ADA/USDT

Cardano’s (ADA) strong rebound off the $1.94 level hit a roadblock at the 20-day EMA ($2.36). This suggests that sentiment remains negative and traders are selling on rallies to the 20-day EMA.

The bears will now try to sink the price below the critical support zone at $1.94 and the 100-day SMA ($1.83). If they succeed, the ADA/USDT pair could plummet to $1.60 and then to $1.40.

Alternatively, if the price rises from the current level or rebounds off $1.94, the bulls will again attempt to clear the overhead hurdle. A break and close above the 20-day EMA will be the first sign that the correction may be over. The pair could then rally to $2.60 and then $2.80.

BNB/USDT

Binance Coin’s (BNB) rebound off the strong support at $340 turned down from $385.30 today, indicating strong selling by traders at higher levels.

The downsloping 20-day EMA ($402) and the RSI below 37 indicate that bears are in control. If the $340 support cracks, the selling could intensify and the BNB/USDT pair could extend its decline to $300 and then to $250.

Contrary to this assumption, if the price rebounds off the current level, the bulls will make one more attempt to push the price above the moving averages. A break and close above $433 will signal that the correction may have ended.

XRP/USDT

XRP bounced off the 100-day SMA ($0.87) on Sept. 22 but the bulls could not extend the recovery. The altcoin formed a Doji candlestick pattern on Sept. 23, indicating indecision among the bulls and the bears.

The uncertainty resolved to the downside today as bears have pulled the price down to the 100-day SMA. If this support gives way, the selling could pick up momentum and the XRP/USDT pair could slide to $0. 70.

This level may act as a strong support but if bears sink the price below it, the next stop could be $0.50. This negative view will be negated if the price rebounds off the 100-day SMA and rises above the $1.07 to $1.13 resistance zone.

SOL/USDT

Solana (SOL) bounced and rose above the 20-day EMA ($145) on Sept. 22 but the bulls could not push the price above the downtrend line. This suggests that bears are selling on rallies.

The bears have pulled the price back below the 20-day EMA today and the SOL/USDT pair could now drop to the 50-day SMA ($108). This level is likely to act as a strong support.

If the price rebounds off it, the bulls will again try to thrust and sustain the price above the downtrend line. If they can pull it off, the pair could rise to $170 and then to $200.

Conversely, if the 50-day SMA cracks, the pair could witness panic selling and the price could then drop to the 78.6% Fibonacci retracement level at $98.26.

DOT/USDT

Polkadot’s (DOT) rebound off $25.50 stalled at $33.60. This suggests that bears are selling at higher levels. The bears are attempting to pull the price below the breakout level at $28.60. If they manage to do that, a retest of $25.50 is likely.

A break and close below $25.50 will complete a bearish head and shoulders pattern. The DOT/USDT pair could then start its decline to the 100-day SMA ($21.87) and then to the pattern target at $12.23.

Contrary to this assumption, if the price rebounds off the current level or the neckline, the bulls will make one more attempt to resume the up-move. A break and close above $33.60 could open the doors for a retest at $38.77.

Related: Bitcoin hits $45K, TWTR stock price rises 3.8% after BTC tipping comes to Twitter

DOGE/USDT

The bulls pushed Dogecoin (DOGE) above $0.21 on Sept. 22 but the recovery failed to attract buyers at higher levels. After forming an inside-day candlestick pattern on Sept. 23, the price has dropped below $0.21 today.

The downsloping 20-day EMA ($0.23) and the RSI near 36 suggest that sellers have the upper hand. If bears sink the price below the $0.19 support, the DOGE/USDT pair could extend its decline to the critical support at $0.15.

This level has held on three previous occasions, hence the bulls will again try to defend it. On the other hand, if bears sink the price below $0.15, the selling may intensify and the pair could plummet to $0.10.

AVAX/USDT

Avalanche (AVAX) rebounded off the 20-day EMA ($60.15) on Sept. 21 and rose to a new all-time high on Sept. 23. However, the bulls could not thrust the price above the resistance line of the ascending channel, which may have resulted in profit-booking by short-term traders.

The AVAX/USDT pair has turned down today and the first stop could be the support line of the channel. A strong rebound off this support will indicate that the uptrend remains intact and traders are accumulating on dips. The pair could then rise to $94.

On the other hand, a break and close below the channel will be the first sign that the bulls may be losing their grip. If bears pull the price below the 20-day EMA, the pair could plummet to $48 and then to the 50-day SMA ($43.06).

LUNA/USDT

The bulls successfully defended the retest of the breakout level in Terra protocol’s LUNA token on Sept. 21. This suggested that sentiment remained positive and traders viewed the dips as a buying opportunity.

The buyers pushed the price above the 20-day EMA ($33.06) on Sept. 22 and followed that up with another up-move on Sept. 23. Although the 20-day EMA has started to turn up, the RSI is showing a negative divergence, indicating that the bullish momentum may be weakening.

If bears pull and sustain the price below the 20-day EMA, the LUNA/USDT pair could again drop to the critical support at $22.40. This is an important level to watch out for because if it cracks, the selling could intensify and the pair may drop to $18.

On the upside, if bulls drive the price above $40, the pair could retest the all-time high at $45.01. A breakout and close above this level could signal the resumption of the uptrend.

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.

The crypto markets and United States equity markets are attempting recovery on Sept. 22 as fears of a widespread contagion due to Chinese developer Evergrande defaulting on its debt recede. Bridgewater Associates co-chairman and co-chief investment office Ray Dalio said on Sept. 22 that Evergrande’s debt was “manageable.”

Ming Tan, a director at the credit rating agency Standard & Poor’s, said that the Chinese government may step in and restructure Evergrande.

The Crypto Fear & Greed Index had plunged to 21 levels, indicating extreme fear among investors. However, while speaking on CNBC, Galaxy Digital CEO Mike Novogratz said that the crypto markets remain in good shape as long as Bitcoin (BTC) sustains above $40,000 and Ether (ETH) stays above $2,800.

Traders may now shift their focus to the Federal Reserve’s policy statement with economic and interest rate forecasts on Sept. 22, which will be followed by a press conference by Fed Chair Jerome Powell.

Could Bitcoin and altcoins sustain the rebound or will higher levels attract selling by the bears? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin plunged below the neckline on Sept. 21, which completed the bearish head and shoulders pattern. However, a positive was that the bulls have pushed the price back above the neckline on Sept. 22. This suggests strong buying at lower levels.

If buyers sustain the price above the neckline, it could trap several aggressive bears, resulting in a short squeeze. The BTC/USDT pair could then rally to the 20-day exponential moving average (EMA) ($46,038) where bears may pose a stiff challenge.

The moving averages have completed a bearish crossover and the relative strength index (RSI) is in the negative zone, indicating that bears are in command.

If the price fails to sustain above the neckline, the bears will attempt to resume the downtrend. The first support on the downside is $37,332.70 and then the pattern target at $32,423.05.

A break and close above the moving averages will be the first indication that the correction may be over.

ETH/USDT

Ether plummeted and closed below $3,000 on Sept. 20, which completed the bearish head and shoulders pattern. Usually, the breakdown from the neckline is retested and that is what happened on Sept. 22.

The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating advantage to bears. If the price turns down from the current level, the bears will attempt to resume the down move toward the pattern target at $1,972.12.

Conversely, if bulls sustain a price above $3,000, it will indicate an accumulation on dips. The ETH/USDT pair could then rally to the 20-day EMA ($3,303), which may again act as a stiff resistance. A breakout and close above this level could signal that bulls are back in the game.

ADA/USDT

Cardano (ADA) is in a strong corrective phase but the bulls are attempting to arrest the decline at the strong support at $1.94, where they are likely to run into a wall at the 20-day EMA ($2.38).

The moving averages are close to completing a bearish crossover and the RSI is in the negative territory, suggesting that bears have the upper hand. If the price turns down from the 20-day EMA, the bears may again challenge the $1.94 support.

A break and close below this level could open the doors for a further fall to $1.60. The bulls will have to push and sustain the price above the 20-day EMA to indicate the start of a sustained recovery. The ADA/USDT pair could then rise to $2.60 and later to $2.80.

BNB/USDT

Binance Coin (BNB) broke below the Sept. 7 low at $369 on Sept. 20 and reached strong support at $340 on Sept. 21. The bulls are currently attempting to defend this level.

The moving averages have completed a bearish crossover and the RSI is below 41, indicating that bears are at an advantage. Any pullback is likely to be met with strong selling near the 20-day EMA ($410).

If bears sink the price below $340, the BNB/USDT pair could drop to the psychological support at $300 and then to $250. This negative view will be negated if bulls propel and sustain the price above the overhead resistance at $433.

XRP/USDT

Ripple (XRP) plunged and closed below the Sept. 7 intraday low at $0.95 on Sept. 20, suggesting that supply exceeds demand. The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating that bears have the upper hand.

The current relief rally is likely to hit a hurdle at the 20-day EMA ($1.06). If the price turns down from this resistance, it will indicate that traders continue to sell on rallies. The bears will then attempt to resume the down move.

If the price slips below $0.85, the XRP/USDT pair could drop to the next support at $0.75. The bulls will have to push and sustain the price above the overhead resistance zone at $1.07 to $1.13 to indicate strength.

SOL/USDT

Solana (SOL) broke and closed below the 20-day EMA ($144) on Sept. 20, which is the first sign that the bullish momentum may be weakening. The bulls attempted to push the price back above the 20-day EMA on Sept. 21 but failed, indicating that bears are attempting a comeback.

The SOL/USDT pair rebounded off the 61.8% Fibonacci retracement level at $123.42 and has reached the 20-day EMA.

If bulls push the price above the 20-day EMA and the downtrend line, the pair could rise to $171.47. This level may again act as a resistance but a break above it could result in a move to $200 and then to $216.

On the contrary, if the price turns down from the current level or the downtrend line, it will suggest selling at higher levels. The bears will then try to sink the price below $123.42 and extend the decline to the 50-day simple moving average ($104).

DOT/USDT

Polkadot (DOT) broke below the 50-day SMA ($27.71) on Sept. 21 but bulls bought the dip aggressively and reclaimed the level on Sept. 22. That seems to have trapped the bears, resulting in a short squeeze.

The DOT/USDT pair has reached the 20-day EMA ($31.42) which is an important level to watch out for. If buyers drive the price above this resistance, the pair could rise to $35 and then retest $38.77.

Conversely, if the price turns down from the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then make one more attempt to pull the price to the Sept. 7 intraday low at $22.66.

Related: Bitcoin bounces again after briefly losing $40K support — Watch these BTC price levels

DOGE/USDT

Dogecoin (DOGE) broke and closed below the $0.21 support on Sept. 20, but the bears could not crack the next support at $0.19. This suggests demand at lower levels.

The bulls are attempting to sustain the price above $0.21 on Sept. 22. If that happens, the DOGE/USDT pair could rise to the 20-day EMA ($0.24). The bears are likely to defend this level aggressively.

If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the price below the $0.21 to $0.19 support zone. If they manage to do that, the pair could drop to the critical support at $0.15.

The bulls will have to push and sustain the price above the downtrend line to indicate that the correction could be over.

AVAX/USDT

Avalanche (AVAX) bounced back sharply from the 20-day EMA ($56.34) on Sept. 22, suggesting that the sentiment remains positive and traders are buying on dips.

The buyers have pushed the price above the overhead resistance at $66.24, increasing the possibility of a retest of the all-time high at $76.27. A breakout and close above this resistance will signal the resumption of the uptrend.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance, it will indicate that higher levels are attracting profit-booking. The bears will then make one more attempt to sink the price below the 20-day EMA.

If they succeed, the AVAX/USDT pair could start a deeper correction to $48 and then to the 50-day SMA ($40.49).

UNI/USDT

Uniswap (UNI) broke and closed below the Sept. 7 intraday low at $21, suggesting that traders are rushing to the exit. The price is presently correcting inside a descending channel pattern.

The 20-day EMA ($24.10) is sloping down and the RSI is below 41, indicating that bears have the upper hand. Any rebound from the current level is likely to face stiff resistance at the 20-day EMA.

If the price turns down from this resistance, the UNI/USDT pair could drop to the support line of the channel. A break below $18 could open the doors for a possible decline to $13.

This negative view will invalidate if the price breaks and closes above the descending channel. The pair could then gradually move up to $27.62.

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.

Ethereum is down a sharp 21% this week as the coin sits beneath $3000. The sell-off started on Monday when ETH slipped beneath the neckline of a head & shoulders pattern and the 50-day MA. Initially, the market found support at $3000 but would continue to fall beneath it on Tuesday to find support at $2770 (.786 Fib Retracement).

ETH did rebound on Wednesday and Thursday as it climbed back above $3000. However, it lost another sharp 9% today, causing it to break back beneath $3000 and reach the support at the 100-day MA at around $2730.

Looking ahead, if the sellers push lower, the first support lies between $2770 (.786 Fib) and $2730 (100-day MA). This is followed by $2600 (200-day MA), $2500, $2420 (downside 1.618 Fib Extension), and $2200 (.786 Fib).

On the other side, the first resistance lies at $2890. This is followed by $3000, $3200, $3350 (50-day MA & 20-day MA), and $3500.

ETH is also struggling against BTC this week as it dropped as low as 0.0667 BTC (downside 1.272 Fib Extension) today. The cryptocurrency fell beneath the 50-day MA and 0.07 BTC on Monday as it continued to slide until support was met at 0.068 BTC. The level there was bolstered by a rising trend line that allowed ETH to rebound on Wednesday.

Unfortunately, ETH was unable to overcome the resistance at the 50-day MA and fell from there today to reach as low as 0.0667 BTC. It has since bounced and is trading above the rising trend line.

Looking ahead, if the sellers break the trend line and fall beneath 0.068 BTC, the first solid support lies at 0.0667 BTC. This is followed by 0.066 BTC (.618 Fib & 100-day MA), 0.065 BTC, 0.064 BTC, and 0.0632 BTC (downside 1.618 Fib Extension).

On the other side, the first resistance lies at 0.0691 BTC. This is followed by 0.07 BTC (50-day MA), 0.0711 BTC, and 0.072 BTC.

Ripple

XRP dropped by a steep 17% this week as it falls back beneath $1. XRP dropped below the 50-day MA on Sunday and continued on Monday as it lost the 200-day MA until it found support at $0.875 (.618 Fib & 100-day MA).

XRP held $0.875 on Tuesday and rebounded from there on Wednesday to return to $1. Unfortunately, the buyers could not break this level and fell from there today to return to the 100-day MA support.

Looking ahead, if the bears push beneath the 100-day MA, the first support lies at $0.8282 (2020 highs). This is followed by $0.8 (downside 1.272 Fib Extension), $0.732 (downside 1.414 Fib Extension), $0.7, and $0.65.

On the other side, the first resistance lies at $0.95 (200-day MA). This is followed by $1, $1.05, and $1.10 (50-day MA).

XRP is also in a bearish battle against BTC as it sits above 2200 SAT. On Monday, XRP fell beneath 2225 SAT (.5 Fib) and spiked as low as 2050 SAT (.618 Fib). More specifically, the coin found support at a rising trend line and rebounded from there on Wednesday.

It managed to reach as high as 2300 SAT and reversed from there yesterday. Today, XRP fell beneath 2200 SAT but found support at the rising trend line. It is still above the weekly low, which is a very promising sign.

Looking ahead, if the bears push beneath the rising trend line, the first support lies at 2100 SAT (200-day MA & 100-day MA). This is followed by 2075 SAT (.618 Fib), 2000 SAT, 1900 SAT (July 2020 low), and 1735 SAT (.886 Fib).

On the other side, resistance is first expected at 2300 SAT. This is followed by 2350 SAT (50-day MA), 2400 SAT, and 2500 SAT.

Cardano

ADA fell by a small 11% this week as the coin currently sits at $2.18. It also dropped beneath the 50-day MA on Monday and continued to slip until support was found at $1.88 (downside 1.414 Fib Extension) on Tuesday.

More specifically, ADA found support at $2.00 (.618 Fib Retracement) and rebounded from there on Wednesday.

Yesterday, ADA briefly crossed a falling trend line to reach the resistance at the 50-day MA. It continued to spike as high as $2.50 earlier today but has since dropped back beneath $2.20.

Looking ahead, the first strong support lies at $2.00 (.618 Fib). This is followed by $1.88 (downside 1.414 Fib Extension), $1.80 (100-day MA), and $1.66 (.786 Fib).

On the other side, the first resistance lies at $2.40 (bearish .382 Fib & 50-day MA). This is followed by $2.53 (bearish .5 Fib), $2.68 (.bearish .618 Fib), and $2.80.

ADA is attempting to recover against BTC as it sits above 5200 SAT. The coin found solid support at 4800 SAT on Monday and managed to hold it during the entire week.

On Wednesday, ADA finally surged back above the 50-day MA and continued higher above 5000 SAT. It broke the 20-day MA at 5200 SAT today and reached above 5500 SAT.

Looking ahead, the first support lies at 5000 SAT (50-day MA). This is followed by 4800 SAT, 4715 SAT (.5 Fib), 4600 SAT, and 4400 SAT (100-day MA).

On the other side, the first resistance lies at 5600 SAT. This is followed by 5800 SAT, 6000 SAT, and 6200 SAT.

Solana

SOL is down a steep 13% this week as the coin currently trades around $135. The cryptocurrency has been trading inside a descending price channel since the first week of September and must break the boundary to end the current negative trend.

SOL dropped beneath $140 on Monday and continued lower until support was found at $123 (downside 1.272 Fib Extension) on Tuesday. It rebounded from there on Wednesday but rolled over today after meeting resistance at the upper angle of the price channel.

Looking ahead, the first support lies at $123 (downside 1.272 Fib Extension). This is followed by $119 (.5 Fib Retracement), $112 (downside 1.414 Fib Extension), $110 (50-day MA), and $100.

On the other side, the first resistance lies at $150 (upper angle of the price channel). This is followed by $160 (20-day MA), $180, and $200.

SOL is currently in a phase of consolidation against BTC as it trades sideways between 0.0035 BTC and 0.003 BTC. The coin found support at 0.003 BTC on Tuesday and bounced higher on Wednesday to meet the resistance at the 20-day MA, beneath 0.0035 BTC.

It ended up rolling over from there yesterday to find the support at 0.00315 BTC (.382 Fib) today.

Looking ahead, the first solid support lies at 0.003 BTC. This is followed by 0.00288 BTC (downside 1.414 Fib Extension), 0.00267 BTC (.5 Fib Retracement), 0.0025 BTC, and 0.00233 BTC (50-day MA).

On the other side, the first resistance lies at 0.0035 BTC (20-day MA). This is followed by 0.00367 BTC (1.272 Fib Extension), 0.004 BTC (1.414 Fib Extension), and 0.0043 BTC (1.618 Fib Extension).

Avalanche

AVAX is up by a small 3% this week as the coin sits around $70. The cryptocurrency actually managed to set a new ATH price at $80 this week after finding support at the 20-day MA (around $55) on Monday.

It held the $55 support on Tuesday and exploded on Wednesday to hit $75. The new ATH was set on Thursday, but AVAX has since rolled over to fall to $70 today.

Looking ahead, the first support lies at $68.55 (.236 Fib). This is followed by $65, $61.67 (.372 Fib), $60 (20-day MA), and $56.10 (.5 Fib).

On the other side, the first resistance lies at $75. This is followed by $80, $85.45 (1.618 Fib Extension), $90 (1.618 Fib Extension – orange), $92.30 (1.414 Fib Extension – blue), and $100.

AVAX is also performing well against BTC after setting a new ATH on Thursday at 0.0018 BTC. The coin fell beneath support at 0.0014 BTC on Monday but managed to hold support at 0.0013 BTC on Tuesday.

It rebounded from there and ended up breaking the previous 0.0016 BTC ATH on Wednesday. Yesterday, it spiked higher to reach the new ATH at 0.0018 BTC but has since dropped back to 0.0017 BTC.

Looking ahead, the first resistance lies at 0.0018 BTC. This is followed by 0.00185 BTC (1.272 Fib Extension), 0.0019 BTC, 0.00197 BTC (1.414 Fib Exnteison), 0.002 BTC, and 0.0021 BTC.

On the other side, the first support lies at 0.0016 BTC. This is followed by 0.00155 BTC (.236 Fib), 0.00138 BTC (.382 Fib), 0.0013 BTC (20-day MA), and 0.00125 BTC (.5 Fib).

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NEO is a blockchain protocol that aims to build an economy that integrates identities, digitized payments, and assets. With a growing community of developers who continue to improve the protocol’s infrastructure, the network seeks to usher in the next generation of the internet.

If you want to know how to invest in NEO, we have prepared this guide to answer all your questions. Here, you’ll learn the steps involved in buying the token and selecting the right NEO broker to use for this purpose.

How To Invest in NEO – Choose a Broker

NEO has been in the cryptocurrency space since 2014. You can expect to come across dozens of brokers that will allow you to invest in the token. Here, we bring you the top brokers to invest in NEO from the comfort of your home.

– Overall Best Place to Invest in NEOBinance – Best Crypto Exchange to Invest in NEO for DiversificationOkex – Invest in NEO through a Crypto-to-Crypto ExchangeCapital.com – Maximize Your NEO Trades with Leverage

You’ll find our review of the above NEO investment platforms further down on this page.

How to Invest in NEO – A Quick Guide For 2021

Learning how to invest in NEO is straightforward if you have prior knowledge about the cryptocurrency industry. You simply have to decide on the best platform to use and then proceed to invest in the token.

Here, we’ll explain to you how you can complete the NEO investment process using eToro – a low-cost broker licensed by the SEC, FCA, and several other financial bodies.

Opening an account with this broker is super easy. You only have to provide eToro with some personal details such as your full name and contact information. Then, choose a username and password with which you’ll access your account moving forward.Step 2: Provide an ID: eToro is a regulated broker, meaning you have to verify your identity before the platform allows you to invest in NEO. For this purpose, you will need a government-issued ID and proof of address – such as a bank statement or utility bill.Step 3: Add Funds: You can make a minimum deposit of $200 into your eToro account ($50 for US clients). To do this, there are various payment options supported by the platform, including debit/credit cards, wire transfers, and e-wallets.Step 4: Invest in NEO: After funding your account, you can now proceed to buy the token. Click on the search tab to look for the coin. Once it appears, click on ‘Trade.’ This will take you to the next and last stage where you’ll decide the amount you want to invest in NEO After inputting the amount, you can then click on ‘Open Trade’ to complete the investment process.

With the steps discussed above, you can invest in NEO via eToro and be done in under five minutes. One of the perks of using eToro is that the broker allows you to store your NEO tokens on the platform until you are ready to sell them.

Where to Buy NEO – Full Broker Reviews

When contemplating where to buy NEO, it’s important to consider some important factors in every platform you assess. These include supported markets, regulation, fee policy, and the suitability of the platform for beginners.

Our research team has evaluated numerous brokers in the market where you can invest in NEO. Based on our assessment, the brokers reviewed below will allow you to purchase NEO in a secure and low-cost manner.

1. eToro – Overall Best Place to Invest in NEO

eToro is an online investment platform that lists numerous cryptocurrency markets. Therefore, investing in NEO using this platform is super easy. We consider eToro the best broker because the platform is beginner-friendly and allows you to start investing from just $25. Meaning, if you’re looking to start your NEO trading journey in a conservative manner, you can do so via eToro.

Regulation is one of the metrics we considered when vetting NEO brokers and eToro ticks this box adequately. The broker is authorized across multiple jurisdictions including the UK, US, and Australia. Some of the leading financial bodies regulating this broker are the SEC, ASIC, the FCA, and more. Essentially, this means that you enjoy regulatory protection when you invest in NEO using this broker. Consequently, as a broker licensed by the relevant financial bodies, eToro allows you to invest in NEO using fiat money.

Once you sign up on the broker and fulfill the KYC requirements, you can proceed to purchase NEO using your debit/credit card. The broker also provides you with other payment options including e-wallets and wire transfers. With the broker’s simple user interface, you can complete the investment process within five minutes. You might want to diversify your NEO investment so you can manage the risks that come with buying the token.

eToro makes this convenient — as you can invest in dozens of other cryptocurrency markets including EOS, Ethereum, Litecoin, Cosmos, Chainlink, and more. When investing in NEO and any of the other supported markets, you do so on a spread-only basis instead of paying variable commissions. In even better news, the spread on eToro is pretty tight, as this starts from 0.75% when buying crypto. This is competitive, as many crypto brokers have spreads that start at 2%.

Finally, the broker provides you user-friendly tools that make it seamless to invest in NEO. The first is the copy trading tool – which is leveraged by millions of traders on eToro. To use this feature, simply identify an experienced trader on eToro and the broker will automatically copy their investments on your behalf. eToro also makes it easy to gain more insights into NEO, as you have charting options and research channels for this purpose. You might also consider the eToro CryptoPortfolio, which gives you access to a basket of different cryptocurrencies through a single investment.

Pros

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2. Binance – Best Crypto Exchange to Invest in NEO for Diversification

If you’re looking to invest in NEO alongside other tokens, Binance is a great option for you. The exchange lists more than 100 cryptocurrency markets, making it convenient for you to diversify your NEO investment. When you use Binance, the cost you incur while investing in NEO depends on your location. For instance, while a US client will pay 0.5% for investing in crypto with a debit or credit card, a UK trader will incur up to 1.8% for buying the same token.

Notably, however, you cannot buy NEO directly from Binance. Instead, you’ll have to perform a crypto-to-crypto exchange. Here, you’ll need to first buy an established token such as Bitcoin or USDT. Following that, you’ll proceed to exchange the coin you purchased for NEO. The process is quite straightforward, but you might find it a bit challenging if you’re a newbie in the cryptocurrency space.

Nonetheless, Binance allows you to store your NEO tokens on the platform until you want to cash out the investment. Additionally, the exchange has some impressive security protocols to keep the platform protected. This includes IP address whitelisting and a two-factor authentication process to ensure the exchange remains secure. If you also have a private wallet and want to move your tokens there, Binance will allow you to do that as soon as your NEO investment is complete.

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3. OKEx – Invest in NEO through a Crypto-to-Crypto exchange

Suppose you already have some popular cryptocurrency tokens — such as Bitcoin or USDT — in another wallet, you can consider exchanging the coins for NEO through OKEx. With this exchange, the swapping process will cost you a low commission of 0.10%, making it a cost-effective means to invest in NEO. Additionally, although this method isn’t the most convenient way to invest in a token, OKEx offers a beginner-friendly interface.

Also, if opting for a crypto deposit, using this platform means you can skip the KYC process (limits apply). If you also have the ambition to engage in advanced trading, OKEx is an exchange that also fits the bill. The platform provides for margin trading, which is a way to borrow money for funding your new crypto purchases. Many traders use this tool to secure larger gains in the market. However, you should note that margin trading is equally a high-risk venture, meaning you can incur huge losses.

To maximize this tool, OKEx provides leverage of up to 1:20, meaning you can multiply your stake by a factor of 20x. Lastly, OKEx makes its crypto deposit process user-friendly. If the token you hold in your private wallet isn’t a popular coin, you can still use it for the exchange. For example, suppose you have Aave in your wallet; you’ll first have to swap it for Bitcoin. Following that, you’ll then proceed to exchange the Bitcoin for NEO. After completing your purchase, you can use the exchange’s custodial wallet to store your tokens.

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4. Capital.com – Maximize Your NEO Trades with Leverage

If your aim is to trade NEO in the short term, you might want to consider Capital.com. When you open a NEO position on the platform, you don’t take ownership of the underlying asset. Instead, you trade based on the value of the token, making it convenient to enter and exit positions. Capital.com also has a user-friendly interface that makes it convenient to trade NEO, even as a beginner in the cryptocurrency scene.

Another feature we consider interesting about this platform is that you can trade NEO with leverage. Essentially, this means you can open positions even when you don’t have all the capital you need for that trade. However, you should note that using leverage can also lead to larger losses. Additionally, Capital.com allows you to open long and short positions, offering you the possibility to secure returns from both a price increase and decrease in the NEO market.

Finally, Capital.com shines in terms of its fee policy. Asides from being a platform where you don’t pay commissions, the spreads charged by Capital.com are super tight. The platform also provides you with over 200 cryptocurrency markets, making it easy to trade other tokens alongside NEO. With a minimum deposit of $20 through your debit/credit card or e-wallet, the platform is suitable for those on a budget. If you deposit funds via a bank wire, the minimum increases to $250.

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How to Invest in NEO – Detailed & Explained in Full

Earlier in this guide, we provided a quick walkthrough of how to invest in NEO. However, if you are a beginner in the digital currency space, the quick walkthrough might be insufficient. As such, below is a more comprehensive guide where we discuss each of the steps outlined above in detail.

Step 1: Create a NEO Investment Account with eToro

After deciding to invest in NEO through a broker, the next thing you have to do is to create an account that allows you to buy, sell and store your coins. eToro is a broker that offers all this, making it highly suitable for you.

To set up your investment account, you have to provide the broker with some personal details such as your full name, home address, contact information, and more. After completing the registration steps, your account will be created.

Step 2: Provide an ID

eToro is a regulated broker, meaning all investors must verify their identity before they can invest in NEO.

Therefore, you’re required to upload a copy of a government-issued ID such as your passport. You also have to submit a document to verify your home address. This can be a bank statement or a utility bill issued within the prior three months.

Step 3: Add Funds to Your Account

To invest in NEO, you have to fund your eToro account. The broker’s minimum deposit requirement is $200, after which you can invest in NEO from $25. US clients, on the other hand, are required to meet a minimum deposit of just $50.

Below are the payment options available for you to deposit funds:

Debit/credit cards (MasterCard, Visa, Maestro)NetellerPaypalApple PayOnline bankingWire transferACH (US clients)

All of the above payment methods, apart from a bank wire or ACH, are processed instantly. If you’re based in the US, you won’t be charged any deposit fees. Other nationalities will pay an FX fee of 0.5% – unless you are making a deposit in US dollars.

Step 4: Search for NEO

Before you can invest in NEO, you must first search for the coin. To complete this step, you should click on the search bar and input ‘NEO.’

When you see NEO appear, click on the ‘Trade’ button.

Step 5: Invest in NEO

You will now be directed to the order page where you will complete your NEO investment. There, you will decide the amount you want to stake.

The minimum stake on eToro is $25, making it possible for you to invest in NEO even if you’re on a budget. Once you’ve entered your stake and confirmed your input, click on “Open Trade.”

Consequently, eToro will execute your order and the NEO tokens will be added to your portfolio. There you have it — you just became an investor in NEO!

How to Sell NEO

A crucial part of learning how to invest in NEO is to understand the process involved in selling the tokens. With a broker like eToro, once you are ready to sell your tokens, you can create the order directly from within your portfolio.

Alternatively, you can sell your tokens by using a limit order. However, this would mean you’re looking to sell NEO at a particular price. In that case, you’d enter the value at which you desire to sell the coin and eToro will execute your order if NEO attains that price point. As you can imagine, the market order is the right option if you want to cash out your investment immediately.

After executing your ‘Sell’ order, eToro will allow you to withdraw the funds back to the same payment method you originally used. For example, if you funded your account using a debit card, you would be able to withdraw your money through the same option.

Ways to Invest in NEO

There are different ways for you to invest in NEO. Each method comes with varying pros and cons, which you have to assess before reaching a final decision.

For instance, unlike cryptocurrency exchanges, brokers are often regulated, making them a credible place to invest in NEO. Therefore, to understand both brokers and cryptocurrency exchanges adequately, we discuss the two options in terms of their features below.

Broker

Brokers are intermediaries that allow you to invest in NEO directly through their platforms. Often, these brokers are regulated by leading financial authorities, making them reliable service providers. For instance, eToro is licensed by the SEC, FCA, and CySEC — and also registered with FINRA.

If you are looking to invest in NEO through a broker, here are some things you should know.

Finally, most brokers offer personal wallet services, meaning you can buy, store, and sell NEO tokens seamlessly. Essentially, you don’t have to deal with searching for a credible external wallet and safekeeping your private keys – which is ideal for beginners.

Exchange

Another way to invest in NEO is to go through a cryptocurrency exchange. However, these exchanges are usually unregulated, meaning there’s no regulatory protection over your funds. Additionally, it might be difficult to ascertain their scope of operations since they are not audited by any regulator.

However, some investors consider these exchanges a viable alternative because a few of them have notably low commissions. But upon careful scrutiny, you’d realize that the low fee structure comes at the expense of security over your funds, which is a risk you shouldn’t take.

Lastly, since these exchanges are unregulated, you cannot invest in NEO through a debit/credit card. As such, you have to purchase NEO with another crypto — and this process might be frustrating if you’re a beginner looking to invest in the token in a burden-free manner.

Should I Invest in NEO?

When you’re learning how to invest in NEO, you’d want to know whether or not the token will be a great addition to your portfolio. You might be tempted to invest based on online predictions. However, most predictions are not backed by tangible data.

Therefore, the best strategy to leverage is to do your own personal research on the project.This will include Neo’s market condition, historical data, and more.  When you do this, you will understand the asset’s growth trajectory and this will inform your NEO investment decisions accordingly.

Notably, a carefully-made NEO investment can yield great returns. In the same manner, if you invest in the token and the market doesn’t move in your favor, you can incur huge losses.  With that said, we have highlighted some of the things to look out for when considering whether to invest in NEO or otherwise.

Regulator-friendly Project

Unlike other cryptocurrency networks originating from China, NEO was established to be regulator-friendly. Although this may seem unusual, the project might easily become the next big protocol from China – since the network enjoys approval from the relevant authorities. NEO designed its Onchain technology in line with the requirements of domestic bodies.

Essentially, the protocol has created a secure network where users can transact safely in a regulated environment. Using what it calls the “digital identity,” NEO requires users to verify their identity before being able to access the platform. Therefore, if you’re interested in a cryptocurrency project free from regulatory challenges, you might want to consider NEO, as the token fits this bill.

Passive Earning

If you are looking to multiply the value of your asset in a passive manner, NEO is a project potentially worthy of consideration. When you purchase NEO, you earn GAS, another native token on the network. The number of GAS tokens you earn depends on the amount of NEO you own. Therefore, many investors consider investing in NEO so they can have more GAS tokens.

This is particularly interesting because GAS provides users with an opportunity to earn rewards.Additionally, developers can leverage GAS for transactions, making the token’s use case pretty important in the NEO ecosystem.The earning options on the NEO network do not end there. The protocol launched its N3 version in August 2021, providing even more opportunities to multiply earnings on NEO holdings.With this launch, users can now create non-fungible tokens (NFTs) on the platform, which is an opportunity to earn more.

Essentially, all these use cases can impact the value of the NEO token in the crypto market. Therefore, this feature might be worthy of consideration while researching the token.

Impressive Upgrades

A notable reason why NEO has survived this long in the competitive cryptocurrency market is due to the protocol’s frequent upgrades. The NEO project started as AntShares in 2014 but rebranded to its current identity in 2017.

In 2021, NEO finally released its latest upgrade, the N3 version.This version has impressive features, such as an upgrade in transaction time from 1,000 per second to 5,000 per second.Moreover, this development comes with a reduction in transaction costs. With this, NEO is challenging the dominance of the Ethereum network, where users pay higher transaction fees and also face slower processing times.The new upgrade also provides an avenue for developers to create decentralized applications on the platform. For non-developers, you can still be part of the network’s governance structure when you hold a certain amount of NEO tokens.

This positions the NEO protocol as a user-dedicated project —a feature that has the potential to impact the coin’s price in the market.

Established Project

In the cryptocurrency industry – where tokens can wither away in no time, NEO has been able to establish its presence. The project has rebranded at different times and is also constantly upgraded to meet market demands. Additionally, CoinMarketCap lists over 11,000 tokens, most of which were founded in the past 24 months.

NEO, on the other hand, has been operative in the industry since 2014. This means that the token has gone through several cryptocurrency bear markets when compared against many other tokens. Essentially, this means that you have sufficient historical data to examine before buying this token. This will offer you different perspectives on the project, from which you can eventually make an informed buying decision.

What are the Risks of Investing in NEO?

In this How to Invest in NEO Guide, we have examined some of the reasons why the project is worthy of consideration. However, this wouldn’t be complete if we did not discuss the risks that come with investing in the asset. This is because, although you can generate returns from investing in NEO, you might also incur losses if things don’t go to plan.

Therefore, it’s essential to understand these risks so you can know the best ways to hedge them.

Unpredictable Government Regulations

Since NEO is compliant with domestic bodies in China, this makes the project easily susceptible to the adverse effects of regulations. Although this feature makes the protocol favored by the regulators, it also makes it vulnerable accordingly. Therefore, if regulators decide to implement an unfavorable policy, the project’s market value might be significantly affected.

Market Volatility

As is the case with other cryptocurrency tokens, NEO’s price might rise or fall abruptly. The forces of demand and supply are mostly triggered by the Fear of Missing Out (FOMO). Therefore, if you invest in NEO, and the token’s price falls, you’d incur a loss in that regard.

As such, you should prepare for wild market alterations when you’re creating your NEO investment plan. This will help you to stay on track all through your investment journey — as market movements won’t meet you unprepared.

Unregulated Exchanges

If you choose to invest in NEO through a cryptocurrency exchange, there are certain risks you need to note. The most significant risk in this instance is that you enjoy no security over your funds.

Additionally, most of these exchanges are not built with secure personal wallets. Meaning, you have to move your tokens to an external wallet — and this might make your coins vulnerable to remote attacks.

Managing Your Risks

Although you cannot completely avoid risks when investing in NEO, you can manage them using the strategies below:

Diversify your NEO investment. Since NEO is vulnerable to regulatory challenges, a smart investor will also buy other tokens. eToro makes this seamless — as you can invest in more than 30 other markets from just $25 per trade.In terms of market volatility, you might want to create an investment plan where you buy the token in small amounts, albeit regularly. This way, you can absorb unpredictable market changes in a more risk-averse manner.Lastly, we would suggest that you consider a regulated broker like eToro to avoid the numerous issues that come with cryptocurrency exchanges. When you invest in NEO via a licensed broker, there’s protection over your funds.

With these strategies, you can hedge the risks that come with a NEO investment.

How Much Does it Cost to Invest in NEO?

One of the frequently asked questions concerning NEO is to do with the cost that will be incurred during the investment process. However, the cost of investing in NEO is mainly determined by the platform you are using for that purpose.

Therefore, a smart investor will choose a trusted and low-cost broker to invest in NEO.

Essentially, consider the fee structure of the broker you’re choosing, as that determines how much you’ll incur while investing in NEO.

How to Invest in NEO – Conclusion

From all we’ve discussed in this guide, you now know that the process of investing in NEO is straightforward and burden-free once you choose the right broker. Of all the brokers we assessed, eToro stands out – not least because the platform is regulated by numerous financial bodies – including the SEC and FCA.

With eToro, you can invest in NEO from just $25 and the broker supports debit/credit cards, e-wallets, and bank wires. We consider this an impressive feature that makes it convenient for beginners to start investing in NEO with minimal risk.

FAQs

I’ve been on the sidelines with cryptocurrencies, but it’s an asset class that is fascinating for many reasons. For many crypto investors, the conversation about best cryptos begins and ends with Bitcoin (CCC:BTC-USD). However, it’s becoming increasingly apparent that Bitcoin does not need to be your digital currency of choice.

That’s because there’s been a massive wave of altcoins that have entered the cryptocurrency market. Altcoins (or alternative coins) are loosely defined as any coin that is not Bitcoin. Based on that definition, Ethereum (CCC:ETH-USD) is the most well-known altcoin. But there are now dozens of other altcoins competing for attention.  And some of these may be considered the best cryptos for speculative investors.

For a long time, the price of altcoins had a strong correlation to the price of Bitcoin. But that has started to change. This may be a sign of a maturing market. Altcoins are typically created to solve specific issues that Bitcoin leaves unresolved. However, in a free market, investors are free to vote with their dollars (in this case their digital dollars). And in that regard some altcoins are looking more useful over time.

With that in mind, here are seven of the best cryptos that you may want to consider.

(CCC:LTC-USD)Binance Coin (CCC:BNB-USD)Stellar Lumens (CCC:XLM-USD)Polkadot ink (CCC:LINK-USD)7 Best Cryptos for a New Season: Cardano (ADA)

I didn’t include Ethereum on this list of best cryptos, but that’s not because it doesn’t belong. However with only room for seven of these, I didn’t want to take up a spot with the altcoin that many investors have already formed a strong opinion about.

And that brings me to Cardano, which many crypto analysts view as a hedge against Ethereum. One thing I liked about Cardano when it first launched was that it’s a proof-of-stake (PoS) coin. This set it apart from almost all other altcoins at this time. While this will not always be an advantage, it did give Cardano a first mover advantage as it tried to separate itself from Ethereum.

Cardano is launching its network in five phases. The network will not officially launch until all five phases are complete. It’s a methodical approach that may frustrate some investors. However, ensuring it can be right and maybe not first, would appear to be a solid approach.

Cardano is a proof of stake (PoS) coin that uses the Ouroboros algorithm.

(NEO)

Speaking of PoS coins that serve as a hedge against Ethereum, we have Neo.

Neo is the native currency of the NEO blockchain. It is frequently referred to as the “Chinese Ethereum.” That’s because the NEO blockchain enables smart contracts. And the sheer size of the Chinese market offers investors a reasonable assurance that Neo will find a space among the best cryptos. However, investors should be looking at Neo as a hedge against Ethereum.

Neo is slightly less decentralized than Ethereum. That’s because the network relies on fewer than 10 nodes to make up its decision making.

The total supply of Neo is limited to 200 million. Approximately 165 million have already been distributed. This means that the value of NEO should rise as demand increases.

A recent catalyst for the cryptocurrency is the blockchain’s launch of the N3 mainnet. Neo’s price shot up over 150% after the launch. And even though there’s been some correction since that time, Neo looks like a solid option for crypto investors.

7 Best Cryptos for a New Season: Litecoin (LTC)

Litecoin has surged in 2021 because it looks like a strong candidate to address one of the strongest obstacles to cryptocurrency adoption. The cryptocurrency offers faster block hashing times and lower transaction fees than Bitcoin. This has many analysts believing Litecoin could be an altcoin that achieves retail adoption.

So you can imagine how excited investors got to hear that Walmart (NYSE:WMT) would begin to accept Litecoin as a method of payment. There was only one problem. The story was falsified. There’s no indication that Litecoin had anything to do with the deception. So I imagine that any selloff in the altcoin will be short lived.

That means investors are likely to focus on the reasons they like Litecoin to begin with. And the company is also giving investors another catalyst with its participation in the growing non-fungible token (NFT) market.

Binance Coin (BNB)

Binance Coin is another Ethereum rival. The company recently launched the Binance Smart Chain (BSC), which is clearly breaking up the monopoly Ethereum enjoyed with the DApp and DeFi communities.

Like Cardano and Neo, Binance is a utility token. So the value of the coin is tied to its utility and how much demand there is for that utility. In fact, part of the bullish case for Binance is that, unlike some utility tokens, there are many use cases for the BNB token with more being developed on a regular basis. In theory this means that there will be increased demand for the altcoin, which will increase its price.

Binance Coin is the fifth largest cryptocurrency with a market capitalization of $73 million. It’s also showing an impressive amount of liquidity, which is being combined with high trade volume.

7 Best Cryptos for a New Season: Stellar Lumens (XLM)

Stellar Lumens strikes me as one of the more compelling altcoins because of its use case in facilitating cross-border transactions. As I wrote in January, “Stellar’s decentralized network allows users to create a digital representation of virtually any currency and then send or trade it across a single network. In theory this will allow coders and web developers to build functions like currency exchanging and trading systems directly into the sites and apps they develop.”

It’s a cousin of sorts to Ripple (CCC:XRP-USD). However, whereas Ripple targets banks, XLM is used primarily (although not exclusively) by individuals and small businesses.

Stellar Lumens illustrates the bullish and bearish case for altcoins. In this case, the coin has a specific use case. But that use case generated 4.3 million accounts the last time I looked. Since the Lumens (which is the altcoin for the Stellar network) has no value in and of itself, the value of the altcoin will come from the value of the Stellar network. The scarcity of the coin will also help add to its value.

Polkadot (DOT)

Earlier this year, I don’t think I would have put Polkadot on this list. But the DOT token has become the ninth largest cryptocurrency by market cap. A key reason for this was the successful launch of the company’s first parachain earlier this year. The polkadot parachain can handle as many as one million transactions per second.

Polkadot is an ecosystem of connected blockchains. The central chain provides security for the entire network, while the side chains (which are called parachains) make the Polkadot network more scalable. Some would even say the network is more scalable than Ethereum.

Parachains will also allow developers to build “bridges” that allow parachains to connect to external networks (think Ethereum or Bitcoin blockchains). A key benefit of parachains will be the ability to create a smart contract on the Ethereum blockchain. But the contract could simultaneously interact with a blockchain that is designed for different information. Both transactions could be managed in parallel.

7 Best Cryptos for a New Season: Chainlink (LINK)

Last on this list of best cryptos is Chainlink, which may seem like a grizzled veteran, having been launched in 2017. Like many altcoins on this list, Chainlink is primarily used for smart contract applications. Chainlink is known as a crypto “oracle” that uses data from the outside world to confirm aspects of a smart contract.

For example, if a contract is supposed to make a payment when certain conditions are met, Chainlink is used to confirm the conditions were met. This may not seem like a big deal, but it is.

This is one aspect of the blockchain that is making it popular in the DeFi sector. As Alex Sirois wrote, blockchains “don’t allow data to be gathered from outside their chain or for data to be sent off their chain.”

Chainlink provides a potential solution for both of those issues, and that will likely by enough to keep interest in LINK strong.

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.

Article printed from InvestorPlace Media, -season/.

©2021 InvestorPlace Media, LLC

Cryptocurrencies are growing to become stronger investment options as months go by. In August, Bitcoin reached closer to its all-time high of US$60,000 by reaching US$50,000. Keeping an eye on the crypto trends and headlines, the bullish run is giving several traders the confidence to buy more cryptocurrencies. For that, Analytics Insight has made this of the best cryptocurrencies to invest in this weekend. 

The first half of 2021 saw the crypto market crash and Bitcoin becoming half of its all-time high to US$30,000. In August, the price bounced back and now Bitcoin is trading at the value of US$47,000. This price drop is a good sign for new crypto investors who want to buy Bitcoins and reap the profits.  

Next to Bitcoin, Ethereum is the second biggest cryptocurrency. Its blockchain network revolutionized the DeFi sector and made way for decentralized apps. Recently, Ethereum launched its much-awaited new update that will improve the transaction fees and reduce Ether’s inflation. This change makes it easy for investors to decipher the value of investing in Ether and give miners a fair fee.

XRP is one of the most popular utility tokens in the market. Created by Ripple, XRP’s blockchain platform aims to set up cross-border currencies without any friction. Since its launch, many banks have realized the capabilities of this token and the volume of transactions on this network has increased since then. One of the top 10 cryptocurrencies to buy, XRP has a bright future in the crypto market.

As a stable coin, Tether is unlike most cryptocurrencies in the market. A stable coin is a digital token that has a fixed value and is pegged to a fiat currency, like the Euro or the Dollar. Similarly, Tether has a fixed value of US$1 or equivalent and maintains US$1 in reserve for each Tether issued.

USD Coin is a more popular stable coin as its value is only pegged to the US dollar. Stable coins withstand market volatility better and offer a more risk-free investment option. This is apt for new investors who want to make their first move in the market. 

Cardano is known for its proof-of-stake network. Its open blockchain platform is open-source and decentralized. It can facilitate peer-to-peer transactions with its native token, Ada. Founded by Ethereum co-founder Charles Hoskinson, Cardano is one of the most reliable cryptocurrencies to invest in.

Dogecoin, originally made as a meme, has become a legit cryptocurrency with high potential. It has made enough headlines, thanks to Elon Musk’s obsession with making cryptocurrencies trending. All the hype played in favor of this coin and its value that grew more than 50% since its inception. It’s also one of the cheapest cryptocurrencies to invest in.

Binance Coin is a token native to the Binance exchange, one of the largest cryptocurrency exchanges in the world. As long as there is activity on the Binance exchange, Binance coin will continue to steadily grow. Ranked among the top six cryptocurrencies in the world, Binance coin can be used to trade other cryptocurrencies as well.

Litecoin is a rival for Bitcoin’s blockchain network. Litecoin aims to pay for everyday goods and services with transactions faster than Bitcoin. Litecoin has been recognized for its practical purpose by market experts and trade merchants. This means Litecoin is a crypto that can suddenly take on a bull run.

Similar to Ethereum, NEO is a platform for smart contracts. Launched in 2014, NEO’s mission is to improve Ethereum’s network by offering the same utility functions via a more sophisticated blockchain. While NEOs network is superior to Ethereum, it will only reach its full potential in a couple of years. The wait will be worth it for investors.

An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.

Interested investors can buy into the offering and receive a new cryptocurrency token issued by the company. This token may have some utility in using the product or service the company is offering, or it may just represent a stake in the company or project.

How an Initial Coin Offering (ICO) Works

When a cryptocurrency startup wants to raise money through ICO, it usually creates a whitepaper that outlines what the project is about, the need the project will fulfill upon completion, how much money is needed, how many of the virtual tokens the founders will keep, what type of money will be accepted, and how long the ICO campaign will run for. 

During the ICO campaign, enthusiasts and supporters of the project buy some of the project’s tokens with fiat or digital currency. These coins are referred to the buyers as tokens and are similar to shares of a company sold to investors during an IPO.

If the money raised does not meet the minimum funds required by the firm, the money may be returned to the backers; at this point, the ICO would be deemed unsuccessful. If the funding requirements are met within the specified timeframe, the money raised is used to pursue the goals of the project.

Special Considerations 

Investors looking to buy into ICOs should first familiarize themselves with the cryptocurrency space more broadly. In the case of most ICOs, investors must purchase tokens with pre-existing cryptocurrencies. This means that an ICO investor will need to already have a cryptocurrency wallet set up for a currency like bitcoin or ethereum, as well as having a wallet capable of holding whichever token or currency they want to purchase. 

How does one go about finding ICOs in which to participate? There is no recipe for staying abreast of the latest ICOs. The best thing that an interested investor can do is read up about new projects online. ICOs generate a substantial amount of hype, and there are numerous places online in which investors gather to discuss new opportunities. There are dedicated sites that aggregate ICOs, allowing investors to discover new ICOs and compare different offerings against one another.

Initial Coin Offering (ICO) vs. Initial Public Offering (IPO)

For traditional companies, there are a few ways of going about raising the funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners. However, this also means they may have to wait a long time for funds to build up. Alternately, companies can look to outside investors for early support, providing them a quick influx of cash—but typically coming with the trade-off of giving away a portion of ownership stake. Another method is to go public, earning funds from individual investors by selling shares through an IPO.

While IPOs deal purely with investors, ICOs may deal with supporters that are keen to invest in a new project, much like a crowdfunding event. But ICOs differ from crowdfunding in that the backers of ICOs are motivated by a prospective return on their investments while the funds raised in crowdfunding campaigns are basically donations. For these reasons, ICOs are referred to as “crowdsales.”

ICOs also retain at least two important structural differences from IPOs. First, ICOs are largely unregulated, meaning that government organizations like the Securities and Exchange Commission (SEC) do not oversee them. Secondly, due to their decentralization and lack of regulation, ICOs are much freer in terms of structure than IPOs.

ICOs can be structured in a variety of ways. In some cases, a company sets a specific goal or limit for its funding, which means that each token sold in the ICO has a pre-set price and that the total token supply is static. In other cases, there is a static supply of ICO tokens but a dynamic funding goal—this means that the distribution of tokens to investors will be dependent upon the funds received (i.e. the more total funds received in the ICO, the higher the overall token price). 

Still, others have a dynamic token supply which is determined according to the amount of funding received. In these cases, the price of a token is static, but there is no limit to the number of total tokens (save for parameters like ICO length). These different types of ICOs are illustrated below.

Advantages and Disadvantages of Initial Coin Offerings

In an IPO, an investor receives shares of stock in a company in exchange for her investment. In the case of an ICO, there are no shares per se. Instead, companies raising funds via ICO provide a blockchain equivalent to a share—a cryptocurrency token. In most cases, investors pay in a popular existing token—like bitcoin or ethereum—and receive a commensurate number of new tokens in exchange.

It's worth noting just how easy it is for a company to launch an ICO to create tokens. There are online services that allow for the generation of cryptocurrency tokens in a matter of seconds. Investors should keep this in mind when considering the differences between shares and tokens—a token does not have any intrinsic value or legal guarantees. ICO managers generate tokens according to the terms of the ICO, receive them, and then distribute them according to their plan by transferring them to individual investors.

Early investors in an ICO operation are usually motivated to buy tokens in the hope that the plan will succeed after it launches. If this actually happens, the value of the tokens they purchased during the ICO will climb above the price set during the ICO itself, and they will achieve overall gains. This is the primary benefit of an ICO: the potential for very high returns.

ICOs have indeed made many investors into millionaires. For example, in 2017, there were 435 successful ICOs, each raising an average of $12.7 million. So, the total amount raised for 2017 was $5.6 billion, with the 10 largest projects raising 25% of this total. Furthermore, tokens purchased in ICOs returned an average of 12.8 times on the initial investment in dollar terms.

As ICOs have come to the forefront in the cryptocurrency and blockchain industries, they’ve also brought along challenges, risks, and unforeseen opportunities. Many investors buy into ICOs in the hopes of quick and powerful returns on their investments. The most successful ICOs over the past several years are the source of this hope, as they have indeed produced tremendous returns. This investor enthusiasm can also lead people astray, however. 

Because they are largely unregulated, ICOs are rife with fraud and scam artists looking to prey on overzealous and poorly informed investors. And since they are not regulated by financial authorities like the SEC, funds that are lost due to fraud or incompetence may never be recovered.

The meteoric rise of ICOs during 2017 drew backlashes from a series of governmental and non-governmental entities in early September 2017. The People's Bank of China officially banned ICOs, slamming them as counterproductive to economic and financial stability. 

The Chinese central bank prohibited using tokens as currency and banned banks from offering services related to ICOs. As a result, both bitcoin and ethereum prices tumbled, in what many regarded as a sign of more cryptocurrency regulation to come. The ban also penalized already completed offerings. In early 2018, Facebook, Twitter, and Google all banned ICO advertisements.

There is no guarantee that an investor won't be on the losing end of a scam when investing in ICOs. To help avoid ICO scams, investors should:

Make sure that project developers can clearly define what their goals are. Successful ICOs typically have straightforward, understandable whitepapers with clear, concise goals.Know the developers. Investors should strive for 100% transparency from a company launching an ICO.Look for legal terms and conditions set for the ICO. Because outside regulators generally do not oversee this space, it is up to an investor to ensure any ICO is legitimate.Make sure that ICO funds are being stored in an escrow wallet. This is a wallet that requires multiple keys in order to be accessed. This is useful protection against scams, particularly when a neutral third party is a holder of one of the keys. SEC Introduces the HoweyCoin

ICO activity began to decrease dramatically in 2019 because of the legal gray area they inhabit.

The U.S. Securities and Exchange Commission introduced a fake coin called the HoweyCoin to demonstrate to small investors the dangers of ICOs. The HoweyCoin is named after the Howey Test, which is a test to determine whether an investment is a security or not. The Howey Test is intended to determine that a transaction represents an investment contract if a person invests their money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.

The SEC used this standard to charge Kik, a messaging service that raised $100 million in an unregistered ICO, with unlawful sale of a security. The SEC has also taken action against Telegram, another messaging app that also ICO'ed.

According to the SEC, an ICO is no different from an IPO if the underlying token raises money for an already existing business and does not operate independently of that business.

Example of an Initial Coin Offering

As the ICO space got bigger and bigger, so too did the sums raised by the largest projects. When evaluating ICOs, one can consider both the amount of money raised in the ICO as well as the return on investment.

Sometimes ICOs with a remarkable return on investment are not the projects that raise the most money and vice versa. Ethereum's ICO in 2014 was an early pioneer, raising $18 million over a period of 42 days. Ethereum has proven to be crucial for the ICO space in general, thanks to its innovations with regard to decentralized apps (dApps). When it debuted, ether was priced at around $0.67, and as of Sept. 24, 2020, it trades at $348.99.

In 2015, a two-phase ICO began for a company called Antshares, which later rebranded as NEO. The first phase of the ICO ended in October 2015, and the second continued until September 2016. During this time, NEO earned about $4.5 million. While it is not one of the largest ICOs in terms of money raised, it has provided exceptional ROI for many early investors. The price of NEO at the time of the ICO was about $0.03, and at its peak, it traded at roughly $187.40. 

More recently, ICOs have generated significantly larger amounts in terms of total funds raised. During a one-month ICO ending in March 2018, Dragon Coin managed to raise about $320 million. More recently, the company behind the EOS platform shattered Dragon Coin’s record by raising a whopping $4 billion during a year-long ICO. 

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

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InvestorPlace - Stock Market News, Stock Advice & Trading ng>) has become a leading crypto name following its explosive growth in 2021. ADA-USD is up nearly 1,200% year-to-date. Put another way, the proverbial $1,000 invested in Cardano in early January would now be worth $12,000.  It is hard to argue with that kind of success, even in the crypto space.

By rong>) and Ethereum (CCC:ETH-USD), the two most important digital currencies, are up 53% and 330%, respectively. While the broader crypto market has been taking a breather in recent months, Cardano has managed to extend an impressive rally until early September.

Now ADA-USD is the world’s third largest cryptocurrency with a market capitalization (cap) of almost $73 billion. While still far lower than second-place holder Ethereum with a market cap of $370 billion, Cardano has emerged as one of the hottest altcoins in the crypto market.

Cardano was launched by Jeremy Wood and Ethereum co-creator Charles Hoskinson. In its manifesto, Cardano seeks to be the go-to blockchain platform for smart contracts, or as the Kent Academic Repository posits, “programs that run in a blockchain environment.” In addition, the Cardano Foundation acts as the custodian of Cardano and promotes, standardizes and protects the platform.

Let’s now take a closer look at what the rest of the year could hold for Cardano.

Ethereum is still the most important platform for building smart contracts. International Business Machines (NYSE:IBM) says, they are “used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.”

7 High-Yield Dividend Stocks That Will Please Any Income Lover

Yet Cardano’s “Alonzo” upgrade has had a considerable impact on investor sentiment. It allows users to develop and execute smart contracts on the Cardano blockchain and build decentralized applications (DApps). Cardano can now offer potentially lucrative decentralized finance (DeFi) services, gradually matching the utility of Ethereum in this booming industry.

DeFi aims to eliminate traditional intermediaries such as banks, allowing users to lend or borrow funds as well as earn interest in a savings-like account. Ethereum currently dominates the DeFi industry, where the total value of cryptocurrencies pledged has surged to over $110 billion in 2021.

While Ethereum is gradually transitioning from a proof-of-work (PoW) network to a proof-of-stake (PoS) network, Cardano already uses a more eco-friendly PoS system. In this consensus protocol, stakeholders must put their crypto holdings at stake to verify transactions.

This results in faster transaction times and significantly less energy usage. The Cardano network is estimated to use less power than a small town, compared to Bitcoin, which consumes energy equivalent to the entire power supply of Austria or Chile.

Fees used to pay for transactions on Ethereum’s blockchain have been increasing steadily in the last few years. However, Cardano currently boasts more stable and lower fees, starting at around 0.17 ADA-USD.

In addition, Cardano also has a limit on how many tokens can be produced, similar to Bitcoin. The limited supply helps boost its value over time and allow users to hedge against inflation. So far, there are 33 billion ADA in circulation, with around 12 billion left to be mined.

Cardano is working hard to catch up with ETH-USD to become the internet’s primary host of DApps. Both blockchains are currently undergoing significant updates. ADA’s dual-layer system, established PoS verification, and more friendly programming language seem to offer a better ecosystem to host tokens and DApps. Users also highlight the importance of lower fees and faster transactions on the Cardano platform.

However, the biggest problem Cardano faces is a lack of adoption. Ethereum enjoys a first-mover advantage and network effects. According to State of the DApps, 2,856 DApps out of 3,645 in the crypto space currently utilize the Ethereum network.

Recent metrics highlight there are currently about 1.2 million transactions per day on the Ethereum platform. Put another way, at the moment, it simply makes more commercial sense to build an app on Ethereum.

In addition, over a dozen other influential DApp tokens, such as EOS (CCC:EOS-USD) strong>), are battling for market share with Ethereum, so there is significant competition in this part of crypto space.

Investing for the long term is potentially a sound move when buying cryptos. ADA-USD has solid potential to eventually become a mainstream form of currency. Yet investors should only invest in Cardano if their time horizon extends to several years.

Cardano remains highly susceptible to the broader crypto market’s tremendous volatility. It is simply not possible to know what might happen in a week or month. Daily moves of around plus or minus 3%-5% are quite common in digital assets.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation

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The post Smart Contracts Will Push Cardano To New Highs appeared first on InvestorPlace.

Cardano (CCC:ADA-USD) has become a leading crypto name following its explosive growth in 2021. ADA-USD is up nearly 1,200% year-to-date. Put another way, the proverbial $1,000 invested in Cardano in early January would now be worth $12,000.  It is hard to argue with that kind of success, even in the crypto space.

© Provided by InvestorPlace Cardano crypto logo

By rong>) and Ethereum (CCC:ETH-USD), the two most important digital currencies, are up 53% and 330%, respectively. While the broader crypto market has been taking a breather in recent months, Cardano has managed to extend an impressive rally until early September.

Now ADA-USD is the world’s third largest cryptocurrency with a market capitalization (cap) of almost $73 billion. While still far lower than second-place holder Ethereum with a market cap of $370 billion, Cardano has emerged as one of the hottest altcoins in the crypto market.

Cardano was launched by Jeremy Wood and Ethereum co-creator Charles Hoskinson. In its manifesto, Cardano seeks to be the go-to blockchain platform for smart contracts, or as the Kent Academic Repository posits, “programs that run in a blockchain environment.” In addition, the Cardano Foundation acts as the custodian of Cardano and promotes, standardizes and protects the platform.

Let’s now take a closer look at what the rest of the year could hold for Cardano.

Ethereum is still the most important platform for building smart contracts. International Business Machines (NYSE:IBM) says, they are “used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.”

7 High-Yield Dividend Stocks That Will Please Any Income Lover

Yet Cardano’s “Alonzo” upgrade has had a considerable impact on investor sentiment. It allows users to develop and execute smart contracts on the Cardano blockchain and build decentralized applications (DApps). Cardano can now offer potentially lucrative decentralized finance (DeFi) services, gradually matching the utility of Ethereum in this booming industry.

DeFi aims to eliminate traditional intermediaries such as banks, allowing users to lend or borrow funds as well as earn interest in a savings-like account. Ethereum currently dominates the DeFi industry, where the total value of cryptocurrencies pledged has surged to over $110 billion in 2021.

While Ethereum is gradually transitioning from a proof-of-work (PoW) network to a proof-of-stake (PoS) network, Cardano already uses a more eco-friendly PoS system. In this consensus protocol, stakeholders must put their crypto holdings at stake to verify transactions.

This results in faster transaction times and significantly less energy usage. The Cardano network is estimated to use less power than a small town, compared to Bitcoin, which consumes energy equivalent to the entire power supply of Austria or Chile.

Fees used to pay for transactions on Ethereum’s blockchain have been increasing steadily in the last few years. However, Cardano currently boasts more stable and lower fees, starting at around 0.17 ADA-USD.

In addition, Cardano also has a limit on how many tokens can be produced, similar to Bitcoin. The limited supply helps boost its value over time and allow users to hedge against inflation. So far, there are 33 billion ADA in circulation, with around 12 billion left to be mined.

Cardano is working hard to catch up with ETH-USD to become the internet’s primary host of DApps. Both blockchains are currently undergoing significant updates. ADA’s dual-layer system, established PoS verification, and more friendly programming language seem to offer a better ecosystem to host tokens and DApps. Users also highlight the importance of lower fees and faster transactions on the Cardano platform.

However, the biggest problem Cardano faces is a lack of adoption. Ethereum enjoys a first-mover advantage and network effects. According to State of the DApps, 2,856 DApps out of 3,645 in the crypto space currently utilize the Ethereum network.

Recent metrics highlight there are currently about 1.2 million transactions per day on the Ethereum platform. Put another way, at the moment, it simply makes more commercial sense to build an app on Ethereum.

In addition, over a dozen other influential DApp tokens, such as EOS (CCC:EOS-USD) strong>), are battling for market share with Ethereum, so there is significant competition in this part of crypto space.

Investing for the long term is potentially a sound move when buying cryptos. ADA-USD has solid potential to eventually become a mainstream form of currency. Yet investors should only invest in Cardano if their time horizon extends to several years.

Cardano remains highly susceptible to the broader crypto market’s tremendous volatility. It is simply not possible to know what might happen in a week or month. Daily moves of around plus or minus 3%-5% are quite common in digital assets.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation

Despite a weakening dollar, the top altcoin was unable to clear above the $3,300 resistance. The price of ether needs to remain above $3,140 in the near future to prevent further downsides.

In response to Jerome Powell’s announcement that the Federal Reserve would hike rates slower than expected, the dollar stagnated around multi-week lows.

There will be U.S. jobs numbers on Friday, which could provide insights as to when the Fed will start tapering. Ethereum faces strong resistance near $3,280 and $3,300. In the hourly simple moving average, the price currently sits below $3,200 at the time of writing this report.

The cryptocurrency once again tried to break above $3,260 and $3,280. In comparison to bitcoin, ether’s price failed to move higher above $3,280 and started declining.

Ether could continue declining if it does not gain traction above $3,220 and $3,200 resistance levels. Immediately below $3,150, there is a support.

In the near future, a major support zone will form around $3,140. Below $3,140, the downside break could accelerate losses. According to the scenario, ether prices might return to $3,060

The network upgrade, which will cause ETH transaction fees to be destroyed instead of being handed to miners, has cost just over $400 million in burned ETH so far. There is a burning of approximately 200 ETH every hour.

By Sunday, over 124k ETH had been drawn from circulation by the Ethereum blockchain.

The EIP-1559 update, which burns ETH, became effective on August 5. Ethereum 2.0 is envisioned as an evolution of Ethereum that stabilizes transaction fees and speeds up the switch to Ethereum 2.0 from Ethereum 1.0.

This article was originally posted on FX Empire

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All eyes should have been on Bitcoin as the king coin leapt past $51,000 and marked its highest price since mid-May. Yet, behavior analysis platform Santiment showed the Bitcoin discussion rate had dropped. The reason? Short-term traders were busy watching the trending alt coins.

— Santiment (@santimentfeed) September 6, 2021

Solana’s dazzling rally as it crossed $100 and kept rising, mesmerized many traders. On the other hand, Bitcoin was struggling to break out and cross the $50,000 resistance.

Santiment also noted that Polygon [MATIC] and Cardano [ADA] were leading in the “rising topics” metric. Matic was the talk of town thanks to its 31% price rally in four days. Meanwhile, Ada was in the news due to the FUD after Cardano’s alleged testnet “failure.”

📌 $MATIC: a major surge in price, up 31% in the last four days 📌 $ADA: crowd #FUD about the capability of its integration with smart contractshttps://t.co/lnloXAkAat pic.twitter.com/rKeMu2zw5J

— Santiment (@santimentfeed) September 5, 2021

Fighting Human Nature

Fear of missing out (FOMO) can provoke investors to make dangerous financial choices or fall prey to pump-and-dump scammers. In this case, FOMO could have prompted traders to watch alt coins emerging in the space, after Santiment’s Bitcoin Weighted Sentiment value dropped below zero.

Another reason for the fresh eyes on alt coins could be influencers like Charles Hoskinson. Cardano’s founder has a strong social media presence and vocally responds to those he calls “FUDsters.” Coming to Matic, the Indian film studio Zee Studios launched its first NFT on Polygon. Such events also could have the potential to trigger crypto FOMO and attract short-term traders.

Seeing Bitcoin in Perspective

On 6 September, on-chain analyst Willy Woo tweeted the growth trajectory of Bitcoin and compared it to the growth of gold and stocks [M2 money]. When graphed on the same scale, the effect was stunning.

— Willy Woo (@woonomic) September 6, 2021

Woo’s analysis helped many put Bitcoin’s seemingly lethargic growth into perspective. Another analysis by him, using the supply shock valuation model, put the current price of Bitcoin above $55,000. Furthermore, Bitcoin stock-to-flow creator Plan B confirmed that his estimate of “$100K by Christmas” was still valid.

At press time, the price of Bitcoin was $51,838.52. The last update from the Bitcoin Fear and Greed Index recorded a value of 73, signaling “Greed.” As Bitcoin hodlers wait out the fall season, Santiment’s metrics suggested that more traders might be focusing on the alt coin market.

The billionaire-backed crypto exchange, Bullish, faces scrutiny after new reports reveal an alleged ‘price pump’ scheme. 

In 2019 Block.one received an SEC fine as a consequence for not registering an ICO for EOS. Initial sales for EOS over the first 11 months raised over $4 billion, which made it one of the largest to date. A sale this large naturally raised many eyebrows in the crypto community.

Block.one is a software developing firm. A slew of billionaires and big names in the industry are the funders of the company. This includes the likes of Peter Thiel, hedge fund moguls Alan Howard and Louis Bacon, and entrepreneur Christian Angermayer.  Its mission as a company was initially for the development of innovative tools for blockchain adoption. 

Block.one reexamined

However, it soon fell into steamy controversy. Following the SEC fine, users sued Block.one, calling the sales a “fraudulent scheme” that didn’t follow through on its mission. 

Now, recently published reports reveal new information on those previously raised concerns regarding the situation. The report comes from Integra FEC, a forensic financial analysis firm, led by the University of Texas at Austin McCombs School of Business finance professor John Griffin.

The paper highlights a series of questionable trades during the EOS ICO. According to Griffin, the patterns between two potentially connected persons appeared to “pump” the price of EOS. 

“The seemingly artificial demand from the suspicious accounts had two effects,” he wrote. “It directly manipulated EOS’s offering price upward through the extra buying and inflated the market value of the token. Second, it created the false impression of the value of the token, which enticed others to want to purchase the ICO token.”

The information comes as Block.one prepares for the launch of its new exchange dubbed Bullish. Allegedly, Bullish will receive funds stemming from the ICO sale, which now is under scrutiny once again. 

Identifying the holes

Griffin’s report targets 21 accounts over the course of the ICO. All the accounts appeared consistent with massive purchases of EOS. Additionally, all of those accounts then sold the currency to exchanges all within an hour. In the crypto industry, the name for this is “recycling.” The total of these trades equaled almost $815 million. 

In defense of his research, Griffin explained how the fixed supply of tokens for purchase “buoyed” the price. “Selling through the exchange could have minimal impact on the price, especially since it can be sold slowly and in a liquid market,” Griffin explained. “Market makers make a spread and make money on the spread,” he said. “These traders consistently lost money on their trades. Why would one engage in a losing strategy unless making money somewhere else?”

In a comment to Bloomberg, Cornell Law School Professor Robert Hockett called the analysis “impeccable.” Hockett specialties in corporate law and financial regulation. 

“There’s enough smoke here to suggest there’s a fire. This is what the SEC would call classic fraud and pump and dump. This is taking advantage of retail investors who don’t know what’s going on underneath and could be easily fooled.” Hockett believes that the SEC should definitely be investigating. 

According to the Cornell professor, if the findings are true this could mean big consequences. It would violate the Securities Act of 1933 and the Exchange Act of 1934.

This comes at a time of heightened attention to the crypto space from the SEC. However, the SEC reportedly had no comment on this case at the moment. 

This story was seen first on BeInCrypto

New research has shed more light on the crypto industry’s largest-ever token sale, alleging that foul play may have been afoot during EOS’ initial coin offering (ICO) four years ago.

Researchers from the University of Texas have raised fresh concerns regarding Block.one’s record $4.362-billion ICO for the EOS blockchain in 2017 and 2018. The highly-anticipated project was backed by industry heavyweights, including PayPal co-founder Peter Thiel, alongside billionaire hedge fund managers Alan Howard and Louis Bacon. The research does not accuse Block.one itself of any wrongdoing, and the company has cited a report stating there was no evidence it was involved.

On Tuesday, professor John Griffin of the Austin McCombs School of Business and financial analysis firm Integra FEC published their findings in a paper titled “Were ETH and EOS Repeatedly Recycled during the EOS Initial Coin Offering?” — alleging that wash-trading played a key role in EOS’ price discovery.

According to the paper and outlined in an investigation by Bloomberg, EOS was allegedly wash-traded on the Binance and Bitfinex cryptocurrency exchanges in an effort to artificially inflate the prices. Wash-trading describes the process where an entity simultaneously acts as the buyer and seller for the same asset to artificially bolster volume or manipulate prices.

Griffin wrote that artificial demand from suspect accounts created the illusion of demand for the token and pushed prices up:

“First, it directly manipulated EOS’s offering price upward through the extra buying and inflated the market value of the token. Second, it created the false impression of value of the token which enticed others to want to purchase the ICO token.”

The research allegedly identified 21 accounts that recycled EOS tokens during the ICO. Funds identified as suspect amounted to 1.2 million Ether (ETH) worth around $815 million at the time. Ether was the sole cryptocurrency used to buy EOS during the year-long ICO.

The analysis claims that Ethereum accounts were created in order to repeatedly purchase EOS over time. It claims that a “significant portion” of the Ether raised during the token sale appears to have been “recycled by transferring the ICO contributions through a series of obfuscating intermediary accounts and finally arriving at Bitfinex.”

“2.895 million Ether ($1.721 billion USD), or 39% of the Ether raised in the crowdsale, are also traced from the ICO crowdsale wallet back to Bitfinex.”

Griffin did not identify the owners of the accounts or point the finger at Block.one regarding the alleged wash-trading but noted, “These suspicious accounts accounted for almost a quarter of EOS purchases by the end of the crowdsale.”

Robert C. Hockett, professor of law at Cornell Law School, said that he worked for more than one month on the story alongside media outlet Bloomberg, which published its findings on Thursday.

According to Bloomberg, Block.one responded to the paper by referencing a July document authored by law firm Clifford Chance LLP that asserted there was “no evidence that Block.one purchased tokens on the primary up Darling EOS Cashes In Millions Of ETH As ICO Scorn Continues

The same John Griffin published a paper in October 2019 titled “Is Bitcoin Really Un-Tethered?” that claimed the leading stablecoin Tether (USDT) was wash-traded to influence Bitcoin (BTC) prices during the 2017 bull market. Speaking to Cointelegraph in February 2020, the firm behind Tether, iFinex, labeled the claims “reckless and false.”

Manipulation or otherwise, EOS has largely fallen out of favor with crypto traders and investors. Since ranking among the top five crypto assets by market capitalization in mid-2018, EOS has since tumbled to rank 35th.

The token is currently trading for $5, down 77% from its April 2018 all-time high of $22.70.

Bitcoin prices have had a tumultuous couple of days, plunging to their lowest in almost a month yesterday before recovering, and then dropping again today.

The cryptocurrency fell to $44,457.11 close to 4 a.m. EST, before bouncing back and approaching $46,800 around 7 a.m. EST, CoinDesk figures show.

The digital asset experienced these price fluctuations after suffering a flash crash yesterday where it declined below $43,000, additional CoinDesk data reveals.

The price of bitcoin experienced the aforementioned crash the same day that El Salvador embraced bitcoin as legal tender.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Following these sharp price movements, several market observers offered technical analysis, shedding some light on the key levels of support and resistance that bitcoin might encounter next.

Jake Wujastyk, chief market analyst of TrendSpider, weighed in.

“The first thing to note is that while price has been very volatile the last few days, the pullback was to a known level - the Anchored VWAP from the All Time High,” he stated.

Wujastyk offered some clarity on the Anchored VWAP, noting that “it shows a Volume Weighted Average Price from a particular starting point (the anchor point.)”

“It is almost uncanny how accurate the Anchored VWAP has been for Bitcoin,” he stated.

“Price pulled back directly to it, and then stopped declining. It may break through it and that would be bearish, but for now, bulls should find this to be encouraging.”

“Note that price also struggled very hard with the $50-52K range. This is resistance (selling pressure).”

“But there is also support in the $40-42K range. It is possible that price will oscillate in this range for some time before really making a move.”

He summarized his input, offering an optimistic take.

“Taking this analysis together, I would say the winds are still at the back of Bitcoin bulls, for now.”

“If price fails to stay above $42K~ (where the All Time High anchored VWAP is located) or Anchored OBV goes red, then I would start to get nervous. Until then, I'm bullish.”

Jon Pearlstone, publisher of the newsletter CryptoPatterns, also chimed in.

“Bitcoin has key support at the $42,500 level, as long as that holds, the bulls have the edge,” he stated.

“If yesterday's drop was the start of a steeper correction, traders should watch for a fast drop down to test support levels of $37,500 and even below $35,000 if $42,500 does not hold.”

“The bullish case here would see consolidation between $42,500 and $47,500 then a convincing break of $50,000 on the way to a retest of all time highs at $65,000.”

Nick Spanos, cofounder of Zap Protocol, offered a more cautious take.

“Bitcoin’s fall to $42,483 on Tuesday and its subsequent bounce to over $47,000 confirmed the $43,900 region as a key support level,” he stated.

“However, despite this bounce and Bitcoin’s longer-term outlook still looking positive, it should be noted that further falls could be on the way, as the RSI has fallen below 50 and the moving average convergence divergence (MACD) is almost negative.”

“The latter indicates that the 12-day EMA is below the 26-day EMA, suggesting that bearish momentum is building.”

“The significance of the RSI falling below 50 cannot be understated, as the RSI’s crossing above 50 in July was the beginning of Bitcoin and the broader crypto market’s recent bull run.”

He added that “near-term BTC resistance lies at $47,000; if this level is breached, Bitcoin will re-test the $50,000 barrier.”

Collin Plume, CEO and founder of My Digital Money, described bitcoin’s recent price movements as being ordinary volatility.

“Bitcoin has a 20-day moving average North of $47K and a 200-day moving average North of $42K. That tells me that Bitcoin breaking the $50K to drop at $43K is still within what I would consider an ‘average price movement’ as it still lands within my tolerance level.”

“A double-digit drop is fatal for many traditional investors but it is important to understand that Bitcoin is not a traditional asset.”

“A $5000 gap between a short-term and long-term is solid proof that Bitcoin's swings, although drastic to many, is the nature of the beast.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

…

The reversal in the market sentiment towards cryptocurrencies has powered a surge in Cardano (ADA), sending it back to the third position based on market capitalization, after it slipped down to the fourth rank earlier this week. At the time of writing, ADA/USD is trading at around $2.23.

Rising Adoption, Upcoming Cardano Summit Support

While the bullish reversal was triggered by an uptick in risk sentiment across global financial markets, Cardano’s surge received enough support from numerous fundamental developments as well. One of the most notable is the blockchain’s SundaeSwap reciving funding from Double Peak Group which joins other players like Alameda Research, cFund.vc and Darrenlautf in raising $1.3 million in seed funding for Cardano’s first decentralized token exchange.

The ADA token turns even more attractive as an investment over news reports about Cardano’s first DeFi ecosystem P2P Finance entering a strategic partnership with Charli3 – the blockchain’s first decentralized oracle network. This agreement will enable P2P Finance to provide data from real world price feeds in a secure and scalable manner without worrying about market volatility affecting data accuracy anymore.

Meanwhile, buzz around the upcoming Cardano Summit could also keep ADA supported in the coming sessions as investors eagerly look forward to announcements about new collaborations and projects the Cardano Foundation could announce at the event. The summit will also serve to heighten engagement among the blockchain’s community of users through various promotional events, news announcements, exclusive content and even limited edition NFTs up for grabs.

Institutional interest in Cardano could also be driven higher by news of 21Shares – a global leader in cryptocurrency ETPs, announcing a new Cardano ETP being listed on Deutsche Bourse XETRA. The Cardano ETP (ADA) is slated to be Europe’s only traded Cardano ETP and should increase investor confidence in the cryptocurrency in the coming sessions.

Key Levels to Watch

Technical analysis of the 4-hour price chart of ADA/USD reveals a bullish bias among the smaller moving averages and leading technical indicators MACD and momentum. However, the larger MAs as well as the Stochastic are showing some interest among sellers at the moment too.

Cardano’s price is sitting above the support at $2.16 but has some catching up to do to get to the pivot point at $2.37. If the buying pressure increases, we could see the price surge past this level, following which the focus will shift to the immediate resistance at $2.49.