The Wolf Den #378 - Bitcoin Will Crush Gold
A Deep Dive Into Algorand - IntoTheBlock
In this report, we bring to you the latest in on-chain cryptocurrency analysis. We look at the blockchain directly and analyze balances, transactions, and the overall activity of market participants. This gives us a unique insight into the future of the market.
This section is written in conjunction with IntoTheBlock (ITB). ITB is an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals tailored to crypto-assets. IntoTheBlock tackles one of the hardest problems in crypto: to provide investors with a view of a crypto asset that goes beyond price and volume data.
The Wolf Den research team uses IntoTheBlock to dig deeper and get the most important insights about the crypto market.
A Deep Dive Into Algorand
Algorand is quickly emerging as a contender in the smart contract platform space as crypto shifts towards a multi-chain approach.
Based on the metrics, here are a few key insights.
As of November 24 through IntoTheBlock's ALGO transaction stats
Behind growing transaction activity - ALGO is the native token of the Algorand blockchain, necessary to execute transactions and use applications. As more protocols such as Yieldly and Tiny Man deploy on Algorand, this increases demand for ALGO.
ALGO payment transactions reached a 6 month high of 2.8 million this week
These transactions currently only display transfers from one address to the other with the total amount including smart contract usage being closer to 4 million (IntoTheBlock will soon update the indicator to include these).
USDC transactions on the Algorand blockchain are another major reason for the growing network activity
As of November 24 through IntoTheBlock's ALGO transaction stats
ALGO recently achieved a major milestone - with over 15 million addresses holding Algorand's token, it has one of the largest amount of holders of any coin.
Even though one address does not equal a user, the number of addresses with a balance provides a valuable approximation to monitor the community of holders
The number of ALGO holders has more than doubled year over year from 6.87 million in November 2020
Just the tip of the iceberg - IntoTheBlock's ALGO page offers 150 indicators covering Algorand from various perspectives
Things are looking up for Algorand, which is truly becoming a key player in the layer 1 arena.
Bitcoin Thoughts And Analysis
Bitcoin is doing nothing for the moment, other than chopping sideways and liquidating overleveraged traders who are both long and short.
Bullish divergence was confirmed on the 6, 12 and daily charts, which is compelling, but I still want to see it happen on the 4 hour personally, since that is the one I use the most. Either way, the bottom should either be in or very close (within a few k). Remember, these divergences often build, confirming, then creating larger and larger until the pop.
The charts have not really changed in days.
DAILY CHART
Still trading below the 50 MA, still chopping around support from a previous at $56,425. Not too exciting for the moment.
Worth noting is the descending wedge. This is a confirmed bullish pattern, with 2 alternating touches up and down, and statistically should break up. A bearish pattern in this position would be ascending. There is no bear flag or pennant.
Here is the daily bull div. Still not oversold, so less powerful for me. That said, the 12 hour and 6 hour have the same div and did hit oversold.
Altcoin Charts
FTM/USDT
FTM is setting up for a reversal. We want to see a clear break and close above at 2.45, which also coincides to resistance from the 50 MA. I would want to buy a retest of this level as support, targeting the recent all time high.
Remember, we need a close above resistance.
TLM/USDT
TLM is one of the hottest names in the metaverse space. I have been posting trades here, which are coming to fruition. This coin has more than doubled since the breakout through the blue resistance.
As you can see, TLM is breaking a key resistance at .4145. We want to see the candle close above that, avoiding another wick above and close below. A retest of this level as support should eventually send price back to the highs, but you can use Fibonacci levels as targets and key levels of resistance on the way up.
Remember, we need a close above resistance!
U.S. Regulators To Outline Crypto Rules For Banks
Regulation in the crypto space is a joke, chock-full of uninformed policies from bureaucrats who are unwilling to "do the work." Even worse, there is often no policy at all, offering zero clarity to companies that want to operate in the space. This renders companies helpless, stifling innovation.
Regulation often falls under the purview of multiple agencies, each confused at their own role and limitations.
Hope isn't lost. Agencies are starting to realize that they need to communicate, which is why the FDIC, OCC, and FED are joining forces in 2022 to better define how banks can interact with crypto.
An official joint statement from the agencies read, “the agencies have identified a number of areas where additional public clarity is warranted. Throughout 2022, the agencies plan to provide greater clarity on whether certain activities related to crypto assets conducted by banking organizations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations.”
This should clarify rules surrounding a bank's ability to hold crypto on balance sheets, issue stablecoins, and provide custodial services or crypto trading services on behalf of customers. If this comes to fruition, it will be a huge step in the right direction for legacy finance to confidently engage with our growing sector.
eToro Is Delisting Cardano And Tron
Starting December 26th, eToro users will no longer be able to open new positions in ADA and TRX. Staking options for these assets will end on December 31st. If you hold either of these coins on eToro, you should begin to consider selling or moving your assets, because in Q1 of 2022 the platform will close off sell orders. As far as why the decision has been made, the official statement reads, “these changes are due to business-related considerations in the evolving regulatory environment.”
This isn’t the first-time exchanges have reacted to regulatory uncertainty and jumped the gun on delisting. We can probably expect to see more of this moving forward as exchanges attempt to avoid getting caught in the regulatory crossfire. It should be easy to find an alternative exchange for either of these assets. This should not cause a panic. For now.
India Bans And Unbans Crypto - Again
Indian government is still leaving some room for maneuver after proclaiming a ban on digital assets
I actually laughed out loud when I read this headline, so I thought I would share it. India bans are a FUD narrative almost as old as crypto itself, so there's really nothing to see here. Just another day in crypto.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.