29 October 2021 | ZebPay Trade-Desk
The market capitalization of the largest asset in the crypto space followed the same trail of volume and moved accordingly. BTC is reigning as the undisputed holder of market rank 1. ETH follows as it continues to see decent inflows. Finally, after months of holding a pessimistic outlook, investors seem bullish on the space. Between ETF approval, ETF launch and now new ATHs, the pace of news is frenetic, but all positive. The market feels firm based on client sentiment and derivative market positioning. This was absolutely a BTC-led rally. When the dust does settle, expect to see renewed interest in ETH and other altcoins and for dispersion to increase.
The total cryptocurrency market cap jumped to $2.75T and currently stands at $2.6T. BTC is holding strong, but pressure from the bears is high, and some consolidation at these levels is on the horizon. The asset now faces a stiff resistance at $65,000, which if it crosses, another rally may set in. BTC dominance currently stands at 46%. ETH is up by approximately 6% over a 24hr period, and ETH dominance too has improved, currently close to 19%, as the second-largest asset currently has a market capitalization of $520 billion. Altcoins too have seen an impressive increase over the past week, most up between 4-9%. This is typical of altcoins, as they tend to follow BTC’s rally, usually with a slight lag, but this time, the rally that has taken place has been pretty instant, signaling a positive sentiment in the marketplace.
October Fundamental Snapshot at ZebPay:
The ZebPay trade desk also conducted research on broader, fundamental investment topics and our weekly technical reports this month. We conducted a market watch of leading assets earlier this week, and also covered all the new coins we launched in October.
AMP Launch
AMP has been created to simplify the process of complication of staking and interacting with collateral on-chain, along with huge extensibility which results in improvement of the token’s utility with DeFi ecosystem growth and development. The very core of the AMP collateral model is the basic concept of partition. This is used to allocate collateral across various applications, use cases, and beneficiaries. Partitions jointly with upgradable AMP collateral managers enable the networks to be used for a wide range of collateral applications today making it a small hurdle for AMP to adopt and develop whenever a new type of contract interacts and transaction paradigms emerge.
AMP’s native token is known as AMP too. Currently, the circulating supply is about $42 Billion of AMP token from which is around 42% of the total supply.
To read our in-depth report on the asset, please click here.
Shiba Inu (SHIB) Launch
Shiba INU has inspired millions of people around the globe to finance and fund a coin with a doggo’s picture on it. Bitcoin is designed to be scarce whereas SHIB is intentionally made in a way that is abundant in nature. The total circulating supply of it is 1 quadrillion. The Shiba Inu token system supports innovative and artistic projects like the NFT art incubator and the development of its own decentralized exchange called the ShibaSwap. The price of SHIB has since gained more than 94,278,239.8%% over the past year to sit at $0.00008326 at the time of writing. The total market cap of SHIB is now worth $40 billion. The asset has surged by a massive 1063% in the past 30 days. SHIB has ousted the beloved Dogecoin (DOGE) it was modeled on as a top ten ranked coin.
To read our in-depth report on the asset, please click here.
New Altcoins Marketwatch
Fantom is known for its direct acyclic graph (DAG) smart contract platform that offers decentralized finance (DeFi) services using its own consensus algorithm for developers. With the help of its native token FTM, Fantom network aims to solve issues related to the smart contract platforms targeting the transaction speed which as per the developers have lower than 2 seconds
Polkadot is an open-source multi-chain protocol of sharding that offers the cross-chain transfer of any type of data or asset, not just tokens, thus making various blockchains interoperable with each other. This interoperability aims to set up a completely decentralized and private Web, controlled by its users, and to simplify the creation of new applications, institutions, and services.
As exciting as blockchain is, it can leave a lot to be desired in terms of transaction speed and throughput. The Celer Network (CELR) is an intelligently designed Layer 2 scaling solution that offers off-chain transaction management. The Celer platform provides simple, swift, and secure off-chain transactions for payments and smart contracts.
To know more about the key fundamental developments for these assets, please click here
Avalanche (AVAX) Launch
Avalanche is known as a layer-one blockchain that works as a platform for decentralized applications and tailored blockchain networks. It is one of Ethereum’s rivals, aiming to oust Ethereum as the most popular blockchain for smart contracts. It aims to do this by having a higher transaction output of up to 6500 transactions per second without compromising scalability.
The total supply of AVAX is 720 million. Staking AVAX currently provides an annual reward of 11.57%, with the minimum time for staking being two weeks with a minimum of 2,000 AVAX.
To read our in-depth report on the asset, please click here.
Weekly Technical Analysis:
The next few days are likely to be quite interesting for the largest asset by market capitalization, Bitcoin (BTC), as it is hovering around the $59,000 mark, and the battle between the bears and bulls intensifies. Ethereum (ETH) , too, is looking promising at current levels and faces strong resistance at $4,500 next. But, if it beats that, it might just witness another rally. The sentiment is fairly bullish even at these levels, which is probably why the market has been able to sustain for an extended period of time. On-chain metrics haven’t been showing any rally-specific trends either. This means that the network is under-utilised, and the on-chain activity would have to catch up with price performance in order to sustain the market. Overall, the market has been largely in the green this month, and while a correction could be in the works, we can’t be sure when that will happen or if it will, as the macroeconomic outlook seems to be gaining positive reinforcement and investor sentiment is largely positive too.
Bitcoin (BTC) Technical Analysis and Chart:
At the time of writing, Bitcoin is trading around $61,575reflecting a gain of about 4% approximately over the period of 24-hours.
BTC currently trades around the $61k mark. The asset witnessed a sight correction after it hit its new ATH of $66,999 last week. Some consolidation is seen, but volumes have continued to hold up well. BTC has a market capitalization of $1.1T and a dominance of 46%. In a nutshell, the past week has been a good one for the market, and largely in the green. Between ETF approval, ETF launch and now new ATHs, the pace of news is frenetic, but all still largely positive.
BITCOIN post making the all-time high of $66,999 faced stiff resistance around the $67k mark and witnessed some profit booking. The asset corrected almost by 14% making the weekly low of $57,653. BTC is taking support around $57,000 (38.2% Fibonacci Retracement Level). If the price holds the support then the bulls may resume the up move, if the price breaks the support then we may expect further downfall and the prices may slide to the next support level of $53,500. To further rally BTC needs to break and close above $67,000.
Ethereum (ETH) Technical Analysis and Chart:
At the time of writing, Ethereum is trading around $4,370 reflecting a gain of about 9% approximately over the period of 24-hours.
Ethereum (ETH) has seen a significant rally over the past 2 weeks, currently trading around $4,300, after it broke through the stiff resistance it faced at $4,000. It also set a new all-time high, pf $4,401. ETH is up by approximately 25% over the past month, and ETH dominance too has improved, currently close to 19%, as the second-largest asset currently has a market capitalization of $520 billion.
The short-lived dip to $3,900 was an opportunity grabbed by bulls as ETH hit an all-time high of $4,405. The asset has surged almost by 59% over a month. ETh is trading in an uptrend and the rising moving averages and the relative strength index (RSI) in the positive territory indicate that buyers have the upper hand. However, to further rally the asset needs to close above $4,400.
Binance Coin (BNB) Technical Analysis and Chart:
At the time of writing, BNB is trading around $496.5 reflecting a gain of about 9.1% approximately over the period of 24-hours.
BNB is a layer 1 token, used to trade and pay fees in the Binance ecosystem. It was first introduced as an ERC20 token and has since evolved to operate on the Binance Smart Chain, with its own standards. BNB is the native token of the largest, and leading exchange globally, Binance. BNB at the time of writing has a market capitalization of $82bn, and has regained its position as the 3rd largest asset. Over the past two weeks or so, the market has been in the green, and BNB is no exception, rising by close to 10% week on week. Volumes too, have held up well, and have seen a boost over the past 2 days, as at current levels, the asset looks rather attractive.
BNB has rallied almost by 53% over a month from $330 to $505. The asset witnessed a sharp correction and the prices made the weekly low of $435 after resisting multiple times around $500. However, the dip was short lived as BNB took support at the crucial level of $450 (Neckline of ‘Double Top’ pattern) and bounced back up. Hence, to further rally the asset needs to break and give a close above $500 with good volumes.
Monthly Trade Summary Sheet:
Monthly Price Analysis:
| September | October | Previous Month | Current Month | ||||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $43,791 | $60,622 | 38.44% | $52,854 | $39,788 | $66,930 | $41,445 |
| ETH | $3,002 | $4,287 | 42.83% | $4,022 | $2,676 | $4,401 | $2,787 |
| BNB | $387.06 | $492.02 | 27.12% | $510.06 | $320.37 | $505.27 | $366.64 |
Monthly Volume Analysis:
| Cryptocurrency | 1m – % Vol. Change (Global) |
| BitCoin (BTC) | 2.77% |
| Ethereum (ETH) | -13.31% |
| Biinance Coin (BNB) | 37.98% |
Support and Resistance Levels:
| Resistance 2 | $75,000 | $4,800 | $575 |
| Resistance 1 | $67,000 | $4,400 | $505 |
| USD | BTC | ETH | BNB |
| Support 1 | $57,500 | $3,900 | $450 |
| Support 2 | $53,500 | $3,650 | $400 |
Market Updates:
- The Ethereum 2.0 Altair Beacon Chain update has gotten off to a successful start, with 98.7% of nodes already upgraded.
- The Tourism Authority of Thailand (TAT) is considering creating its own utility token to capitalize on the growing popularity of cryptocurrencies.
- The New York Stock Exchange (NYSE) continues listing Bitcoin (BTC)-linked exchange-traded funds (ETF), with Volt Equity becoming the latest company to debut such a product on the exchange.
- A group of U.S. banking regulators is working on how banks can be allowed to offer crypto services and hold cryptocurrencies on their balance sheets.
- Retail giant Walmart says that bitcoin can now be purchased at 200 of its stores in the U.S.
November Outlook:
The overall sentiment has been bullish this month, and it seems like this might stick. Markets were volatile, but given that, most of the month has been in the green. In the month of November, we expect our favorite asset BTC to see attractive volumes and growth, as the fundamental outlook is positive. Volumes have started to see a recovery this month, which is necessary for prices to hold. Along with BTC and ETH, the majority of other altcoins also witnessed a similar trend, appreciating through most of the month.
As Banks, FIs, Governments, and MNCs continue to adopt digital assets, coupled with the ever so increasing coverage this asset class has been witnessing among institutions and research papers, the macroeconomic outlook is strong. As mainstream, more credible fund managers and economists start investing and holding BTC as well as ETH, we expect others to follow suit, further instilling belief in the asset class, and pumping up volumes. With countries now starting to consider cryptos as legal tenders, the outlook is even more positive.
Lastly, we expect November to be a positive month and anticipate the upward trend to continue. Though volatility seems to be a given, fundamentally BTC and ETH, the largest assets by market cap, continue to hold a strong footing in the marketplace. Given that, we remain bullish on both BTC as well as ETH and feel positively towards altcoins, especially those operating in the DeFi ecosystem, and also BNB the native token of Binance Exchange.
Conclusion:
This concludes our ZebPay October Monthly Analysis report. The report aims to provide its readers with some insight into what the month has been like for us at ZebPay, and dive into some outcomes as a future approach on what we expect to happen next. The trade-desk has put together a snapshot for our investors to understand both the fundamental and technical analysis for better trading and investment decisions, coupled with some market updates and key events that readers can refer to to get a glimpse of the key developments taking place in the crypto world and how this is shaping markets.
Happy Trading with ZebPay!
References:
*Sources of charts: https://cryptowat.ch
Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.
