Cointime

Download App
iOS & Android

Blessings in Disguise Amid the Crypto Uncertainty & Altcoins Backing Up for Bitcoin

Cointime Official

The fallout of FTX has not been just the inspiration behind the clickbait titles in newspapers. It has generated profound impacts on the crypto market. Crypto traders now have to deal with the uncertainty in price actions, which means that they might face up to potential failures.

Yet, the things we always look at are the core problems and the silver linings in the mess. Don’t get us wrong the facts that we point out are not for toxic positiveness. We still see the challenges, yet the situation is not a dead-end. Instead of drowning our spirits with pessimism, let’s find the bright sides to liven up the mood.

Moreover, we share some great references of altcoins for crypto traders and investors to diversify trading portfolios, instead of heavily depending on bitcoin.

Be Grateful that Bitcoin still Works

Through all the crises in the crypto industry, both Bitcoin and Bitcoiners are still working. There have been many discussions around self-custody and new useful tools in the process. Also, the price of bitcoin is maintained at $16,000 while public bitcoin minders are struggling. The price level that bitcoin is steady around can be seen as a remarkable highlight.

Why is that?

When things are awry, you can see whether crypto has the real intrinsic power, to stand against the storm. The stability in Bitcoin prices calms investors and enthusiasts down with the solid belief in its rally.

The Failure of FTX is not all about DeFi’s Fault

DeFi (decentralized finance) seems now to be the double-edged sword in the crypto market. It is a fact that DeFi enables traders and investors to see the whole transaction with transparency. Yet, it can be easily blamed whenever problems happen as there are no authorities that take responsibility.

However, DeFi is not the reason for the FTX fiasco that has brought the nightmare to daytime for many traders. It is the case where the trust in third parties and the trend of famous personality cults.

What does it imply? It means the protocols didn’t break as FTX collapsed. When the system crypto investors have believed in so far is still fine, the ‘down mood’ now is just a matter of time. If you have strong enough financial backups, it might be a good idea to shift from short-term gains into long-term gains.

The Fallout of FTX Amid a Bear Market

Before the FTX collapse, the crypto market was already in a downtrend. So, when the breakout of FTX took place, crypto traders expect new lows. Why is it good news? As the small crypto market can’t have big tendrils. Or, simply put, the contagion effect cannot reach and break down the non-crypto economy.

Positive Changes in Regulations in the Crypto Industry

The FTX insolvency is now among the most notorious dramas in the crypto market. Yet, instead of gossiping in the dramas of Who’s Who and digging into their personal life, there have been many alerts and discussions about the regulations and changes.

Specifically, customers now can get proof of reserves to be sure that the exchanges are in fact holding their funds. Tough times make things and people stronger as they should learn their lessons. Hence, there will be more changes in the crypto market in the near future.

What are Altcoins for Your Consideration amid the Crypto Crisis?

Dogecoin (DOGE)

Buyers of Dogecoin (DOGE) regrouped and pushed the price to more than the 38.2% Fibonacci retracement level of $0.10 on November 27. If the price is not below $0.09, the DOGE/USDT pair can obtain momentum and rally toward the 61.8% Fibonacci retracement level of $0.12. If this level is enhanced, the pair may be on the uptrend.

Meanwhile, if the price decreases from the current level, it indicates that bears continue to consider the rallies as a selling opportunity. If so, the pair of DOGE/USDT might decline to $0.09. Otherwise, the 50-day SMA of $0.08 could be challenged.

Buyers have pushed the price beyond the range, which might kick off the uptrends. The strong rally causes the RSI to go into deeply overbought levels, indicating a minor correction or consolidation in the near term.

When the price drops from 38.2% Fibonacci retracement of $0.1 but rebounds off the breakout level, it is a signal of positive sentiment and traders buying on dips.

Litecoin (LTC)

The breakout of LTC goes beyond the overhead resistance at $75, indicating a potential trend change. If the bulls succeed in propelling the price above the overhead resistance at $84, an uptrend might take place. The rising 20-day EMA of $67 and the RSI near the overbought zone show the path of least resistance to the upside. Hence, the LTC/USDT pair might reach the target objective of $104.

On the other hand, if the price is lower than $84, the pair could slide to the $75 support zone. And if the zone breaks down, the pair could move to the 20-day EMA. The bears have to pull the price below this support to get the aggressive bulls.

Chainlink (LINK)

Chainlink has been bouncing back and forth between $5.5 and $9.5 for the past many weeks. The strong rebound off the support level at $5.5 on November 21 indicates that the bulls aggressively buy the dips to this level.

The 20-day EMA of $6.74 increases and the RSI has gone into the positive territory, suggesting a minor advantage to the bulls. If the price maintains above the 50-day SMA of $7.15, a rally to $8.5, and then to $9.5, will possibly happen.

Conversely, if the price goes lower than the 20-day EMA, it will indicate that bears are active at higher levels. The pair of LINK/USDT pair could then again decrease to the support at $5.5 and consolidate near it for a few more days.

ApeCoin (APE)

ApeCoin has had a consolidated price range between $3 and $7.8 for the past several months. The bears try to decrease the price below the support zone yet could not maintain the lower levels. It indicates strong demand is at lower levels.

The consistent buying pushed the price higher than the 20-day EMA of $3.47 on November 26, suggesting that the bulls are on a comeback. Minor resistance at the 50-day SMA of $4.06 happened, yet if the bulls cleared the obstacle, the APE/USDT pair could grow to reach the downtrend line.

What do you think about the FTX case and its effects on the crypto market? Have you got any plans for your trades amid the crypto crisis? Do you think the altcoins above are potential for your profits? Tell us in the comments below!

Comments

All Comments

Recommended for you

  • SBF ordered to forfeit more than $11 billion

    SBF has been ordered to confiscate more than 11 billion US dollars. SBF has now been sentenced to 25 years in prison.

  • Former CEO of FTX and Alameda Research Sentenced to 25 Years in Prison for Fraud and Money Laundering

    Sam Bankman-Fried, the co-founder and former CEO of FTX and Alameda Research, has been sentenced to 25 years in prison for fraud and money laundering. The judge criticized Bankman-Fried's behavior during the trial and deemed a 25-year sentence to be sufficient. Bankman-Fried's sentence may send a message to the crypto industry and there is no possibility of parole, but he may earn "good time" credit for good behavior while incarcerated. Bankman-Fried was found to have misused over $8 billion in customer funds and will be serving time in prison for his actions. The trial emphasized the importance of not using customers' funds without their knowledge or approval.

  • Web3 AI training company FLock raises $6 million in seed funding

    Web3 artificial intelligence training company FLock has raised $6 million in seed funding led by Lightspeed Faction and Tagus Capital. FLock will use these funds to develop its team and build a federated learning-driven artificial intelligence training platform.

  • Prisma: Vault owners need to prohibit delegation of contracts related to LST and LRT

    The LSD stablecoin protocol Prisma Finance stated in a post that for vault owners, please prohibit delegating authorization of the LST contract starting with 0xcC72 and the LRT contract starting with 0xC3eA.

  • MAS: Singapore is working on global first-tier fund tokenization regulation

    Chia Der Jiun, Managing Director of the Monetary Authority of Singapore, introduced some fund tokenization pilots at an event for asset managers. These pilots are part of the Project Guardian and MAS Global Layer 1 (GL1) tokenization plans. Chia Der Jiun emphasized the advantages of tokenization in real-time settlement and process automation, which can improve efficiency and achieve greater customization of funds. UK asset management company Schroders and fund distribution platform Calastone are exploring this as part of the Project Guardian public blockchain trial in Singapore. A recent survey by Calastone showed that 96% of asset management companies in the Asia-Pacific region plan to launch tokenized products within three years. Chia stated that as these Project Guardian pilot projects approach commercialization, MAS is working with the pilot project managers to study the legal and regulatory treatment and impact of tokenized investment funds."

  • Indonesia's Financial Services Authority to Regulate Crypto Industry in 2025 with Evaluation in Regulatory Sandbox

    Indonesia's Financial Services Authority (OJK) will take over regulation of the crypto industry from the commodities agency Bappebti. Crypto firms must undergo evaluation in a regulatory sandbox before being licensed to operate in the country. The OJK aims to prioritize consumer protection and education, and firms operating without evaluation in the sandbox will be considered illegal. The sandbox provides a safe and isolated environment for testing and innovation development, helping to enhance security and responsible management in the financial sector. Once under OJK's oversight, crypto assets will likely be reclassified as financial instruments.

  • The Shenzhen Illegal Fund Raising Prevention Office issued a risk warning on the "DDO digital options" business

    The Shenzhen Office for Preventing and Dealing with Illegal Fundraising issued a risk warning regarding the "DDO digital option" business. The activities related to the DDO digital option business conducted in the name of Dingyifeng International are essentially the issuance and trading of virtual currencies. According to the "Notice on Further Preventing and Dealing with Risks of Speculation in Virtual Currency Trading" jointly issued by ten departments including the People's Bank of China in September 2021, it is clear that virtual currency-related business activities are illegal financial activities, and overseas virtual currency exchanges providing services to residents within China are also illegal financial activities. The activities conducted by Dingyifeng International in the name of serving residents within China are suspected of illegal fundraising and other illegal financial activities. Our office has organized relevant departments to carry out work, resolutely deal with illegal fundraising and criminal activities, and seriously investigate the legal responsibilities of relevant personnel. (Shenzhen Local Financial Supervision and Administration Bureau)

  • The Hong Kong Legislative Council plans to review the relevant stable currency consultation and sandbox legislation at the end of this year or next year

    Hong Kong legislator Wu Jiezhuang revealed that Hong Kong will release stablecoin consultation and sandbox (computer security mechanism), which will allow the industry to innovate digital asset projects in the sandbox environment. Relevant legislation will be reviewed in the Legislative Council at the end of this year or next year, which will help the entire digital asset industry ecosystem. Hong Kong has been improving the digital asset (virtual asset) market on different legal levels. Last year, there were regulations on virtual currency trading platforms and issuance systems.

  • Vitalik: Humanity needs to create a world where blockchain and artificial intelligence work together

    Vitalik Buterin, the founder of Ethereum, stated at BiddleAsia 2024 held at Signiel Seoul in the Songpa district on March 28 that artificial intelligence is a huge market and its importance is increasing day by day. We need to create a world where blockchain and artificial intelligence work together. Artificial intelligence can now create applications with 100 to 500 lines of code. Vitalik also stated that the ability to write 10,000 lines of code can eliminate most of the bugs in the Ethereum virtual machine.

  • South Korean RWA blockchain technology development company PARAMETA completed a new round of financing of approximately US$7.5 million

    South Korean RWA blockchain technology development company PARAMETA announced the completion of a new round of financing of KRW 9 billion (approximately $7.5 million), with Shinhan Hyperconnect Investment Fund under Shinhan Venture Investment and Korea Asset Investment & Securities participating. As of now, the company's total financing has reached KRW 25 billion (approximately $20.8 million). PARAMETA plans to use this investment to expand its own blockchain technology research and development capabilities to meet RWA technology needs and expand from core technologies such as engines/chains to service applications. Relevant services are expected to be launched within the year.