Aave

Aave’s proposal to launch on zkEVM passes ‘temperature check’ vote

A proposal to deploy the third version of lending protocol Aave has recently passed a “temperate check” with an overwhelming favorable majority.

A “temperature check” proposal to deploy the decentralized exchange (DEX) Aave on the zkSync Era Mainnet has passed with overwhelming support from the Aave community.

When voting closed on April 16, more than 99% of Aave (AAVE) tokenholders casting ballots had voted in favor of launching the third version of the lending and borrowing protocol on the zero-knowledge Ethereum Virtual Machine (zkEVM).

According to the proposal first pitched on March 26, the launch will be limited to USD Coin (USDC) and Ether (ETH).

A [Temp Check] is currently running to deploy Aave V3 on the @zksync Era Mainnet, expanding Aave’s presence and tapping into the growing zkEVM ecosystem.https://t.co/ps1RMl7Sva

— Aave (@AaveAave) April 14, 2023

Now that the temperature check has indicated a “positive sentiment,” the next steps listed in the proposal will be to proceed to another stage for further discussion, followed by risk parameter evaluation and finalization of the proposal.

If the next stages are successful the proposal will be submitted for voting and on-chain governance approval.

Only around 0.02% voted against the proposal with a further 0.02% abstaining from voting.

According to the proposal, deploying on zkSync can benefit the Aave ecosystem by introducing new users into decentralized finance and cementing Aave as a premier borrowing platform within the zero-knowledge ecosystem.

The Aave community previously voted to deploy the Aave V3 codebase on zkSync’s v2 Testnet, which was approved in another off-chain vote.

Decentralized exchange Uniswap is also set to launch on azkEVM solution from scaling solution provider Polygon after a governance proposal was successfully passed.

In November 2022, Aave changed its governance procedures after it was hit by a $60 million short attack that ultimately failed.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin price sets up for an explosive move as ADA, XLM, AAVE and CFX turn bullish

BTC’s tight trading range hints at an eventual breakout, and ADA, XLM, AAVE and CFX could follow.

The long weekend has not produced any fireworks in Bitcoin (BTC) price, which continues to trade inside an ever-narrowing range. Bitcoin is on track to form a third consecutive Doji candlestick pattern on the weekly chart. This suggests that the Bitcoin bulls and the bears are not clear about the next directional move.

It is not only Bitcoin that is stuck inside a range. On April 7, Jurrien Timmer, director of global macro at asset manager Fidelity Investments, tweeted that the S&P 500 Index had been stuck inside a range for the past nine months and a breakout was due “sooner or later.”

*Crypto market data daily view. Source:* *Coin360*

Bitcoin’s failure to break above the $30,000 level has attracted profit-booking in several altcoins but a few have witnessed shallow pullbacks. This indicates that traders are holding on to their positions expecting a move higher.

Let’s study the charts of select altcoins that may turn up and start an uptrend if Bitcoin breaks out to the upside. What are the resistance levels above which these five cryptocurrencies turn bullish?

Bitcoin price analysis

Bitcoin has been trading inside a tight range for the past two days, indicating indecision among the bulls and the bears. Usually, tight ranges are followed by an expansion in volatility.

*BTC/USDT daily chart. Source: TradingView*

The 20-day exponential moving average ($27,500) is flattening out and the relative strength index (RSI) has gradually been slipping toward the center. This suggests a balance between supply and demand.

If the price tumbles below the 20-day EMA, several short-term stop losses may be triggered and the BTC/USDT pair may dive to the breakout level of $25,250.

Conversely, if the price rebounds off the 20-day EMA with strength, it will suggest that the sentiment remains positive and traders are buying the dips. A rally above $29,200 could enhance the prospects of a rally to $30,000 and subsequently to $32,500.

*BTC/USDT 4-hour chart. Source: TradingView*

The 20-EMA is flattening out on the four-hour chart and the RSI is just below the midpoint. This does not give a clear advantage either to the bulls or the bears. This uncertainty is unlikely to continue for long, and a directional move could soon start. However, it is difficult to predict the direction of the breakout.

Therefore, it is better to wait for the breakout to happen before establishing directional bets. The important level to watch on the upside is $29,200 and on the downside is $26,500. A breach of either level could start a short-term trending move.

Cardano price analysis

The bulls are not allowing Cardano (ADA) to dip below the 20-day EMA ($0.37), indicating demand at lower levels.

*ADA/USDT daily chart. Source: TradingView*

The upsloping 20-day EMA and the RSI in the positive area suggest that the path of least resistance is to the upside. The ADA/USDT pair could first rise to the neckline of the inverse head-and-shoulders pattern. A break and close above this resistance will signal a potential trend change. The pair could then rally toward the pattern target of $0.60.

If bears want to prevent the up-move, they will have to quickly yank the price back below the 20-day EMA. The pair may then drop to the 200-day simple moving average ($0.35) and later to $0.30.

*ADA/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bulls have pushed the price above the 20-EMA and will next try to overcome the barrier at the downtrend line. If they do that, it will suggest that the pullback may be over. The pair may then climb to the neckline where the bears are expected to mount a strong defense.

Contrarily, if the price faces rejection at the downtrend line, it will suggest that bears are active at higher levels. The selling could accelerate below $0.37 and the pair may plunge to the 200-SMA.

Stellar price analysis

Stellar (XLM) turned down from the overhead resistance of $0.12 and the price is nearing the 20-day EMA ($0.10). The bulls are likely to buy the dips to the 20-day EMA.

*XLM/USDT daily chart. Source: TradingView*

If the price rebounds off the 20-day EMA, the bulls will again try to clear the overhead hurdle. If they succeed, the XLM/USDT pair will complete a bullish rounding bottom pattern. That could signal the start of a new up-move. The pair may first rally to $0.15 and thereafter march toward the pattern target of $0.17.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that bulls are losing their grip. The pair may then drop to the 200-day SMA ($0.09). This is a make-or-break level for the bulls because if it cracks, the pair may plummet to $0.07.

*XLM/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is correcting inside a falling wedge pattern. The price has bounced off the support line and the bulls will next attempt to propel the pair above the wedge. If they manage to do that, the pair could rally to $0.11 and subsequently to $0.12.

On the other hand, if the price turns down and plummets below the support line, it will suggest that the selling has intensified. There is a small support at $0.10 but if that cracks, the decline could extend to the 200-SMA.

Aave price analysis

Aave (AAVE) has turned down from the overhead resistance of $82, indicating that the bears are fiercely protecting this level. They have pulled the price below the immediate support at the 20-day EMA ($75).

*AAVE/USDT daily chart. Source: TradingView*

The AAVE/USDT pair could next slip to the 200-day SMA ($73), which is close to the uptrend line. Buyers are likely to defend this level with vigor. If the price rebounds off the uptrend line and breaks above the 20-day EMA, the pair could reach $82.

If bulls overcome this barrier, the pair will complete an ascending triangle pattern. This setup has a target objective of $100. This bullish view will invalidate if the price continues lower and breaks below the uptrend line. The pair may then slide to $68 and later to $64.

*AAVE/USDT 4-hour chart. Source: TradingView*

The bears have pulled the price to the 200-SMA on the four-hour chart. The 20-EMA has started to turn down and the RSI is in the negative territory, indicating that bears have the upper hand.

If the 200-SMA gives way, the pair could decline further to the uptrend line. This is an important level for the bulls to defend because a break below it will further strengthen the bears.

On the upside, a break above the 20-EMA will be the first sign that the bulls are making a comeback. The pair may then rise to the overhead resistance at $82.

CFX price analysis

Conflux (CFX) has been in a corrective phase for the past few days but a minor positive is that the bulls are trying to defend the 20-day EMA ($0.36).

*CFX/USDT daily chart. Source: TradingView*

If the price rebounds off the current level, the CFX/USDT pair could reach the downtrend line. This is an important level for the bears to guard because a break above it could open the doors for a possible rally to $0.44 and then $0.49.

Conversely, if the price plunges and sustains below the 20-day EMA, it will suggest that the bulls may be rushing to the exit. That could attract further selling, pulling the price toward the next support at $0.30. The bulls are expected to buy the dips to this level.

*CFX/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are trying to keep the price below the 20-EMA. That could pull the pair to the 200-SMA, which is likely to act as a major support.

If the price rebounds off this level, the bulls will again try to drive the price to the downtrend line. This is the key level to keep an eye on because a break above it will signal that bulls are back in the game.

On the downside, a break and close below the $0.30 support could attract further selling, sinking the price to $0.25.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Debtors saved over $100M using de-pegged stablecoins to repay loans

Debtors jumped on the opportunity to grab a discount on their loan repayments when USDC and DAI de-pegged from the dollar.

The depegging of USD Coin (USDC) and Dai (DAI) from the United States dollar prompted a frenzy of loan repayments over the weekend, allowing debtors to save a total of more than $100 million on their loans.

Following the collapse of Silicon Valley Bank on March 10, the USDC price dropped to lows of $0.87 on March 11 amid concerns about its reserves being locked at SVB.

MakerDAO’s stablecoin DAI also de-pegged briefly, going as low as $0.88 on March 11, according to CoinGecko.

*The USDC price briefly dropped to lows of $0.87 on March. 11. Source: Cointelegraph*

The depegging, in the backdrop of broader crypto turmoil, led to more than $2 billion in loan repayments on March 11 on decentralized lending protocols Aave and Compound — with more than half made in USDC, according to a report by digital assets data provider Kaiko.

Another $500 million in debts were paid in DAI on the same day, it noted.

*Digital assets data provider Kaiko found over $1 billion in USDC loan repayments on March. 11. Source: Kaiko*

This tapered off as both USDC and DAI started heading back toward their peg. The following days did not have anywhere near as many repayments, with a rough total of only $500 million in loan repayments across Tether (USDT), USDC, DAI and other coins on March 12, and roughly half of that on March 13.

Blockchain analytics firm Flipside Crypto estimates that USDC debtors saved $84 million as a result of paying back loans while the stablecoin was de-pegged, while those using DAI saved $20.8 million.

*Debtors used de-pegged stablecoins to save millions in loan repayments. Source: Flipside Crypto*

“Overall, DeFi markets experienced two days of huge price dislocations that generated countless arbitrage opportunities across the ecosystem, and highlighted the importance of USDC,” the Kaiko report said.

The depegging of USDC also led MakerDAO to reconsider its exposure to USDC, as crypto projects incorporating DAI in their tokenomics suffered losses due to a chain reaction.

Circle’s USDC began its climb back to $1 following confirmation from CEO Jeremy Allaire that its reserves were safe and the firm had new banking partners lined up, along with government assurances that depositors of SVB would be made whole.

According to CoinGecko data, USDC was sitting at $0.99 at the time of writing.

Aave freezes stablecoin trading on Avalanche V3 as activity surges on CEXs

The trading freeze follows an analysis from DeFi’s risk manager firm Gauntlet Network considering different scenarios for the USD Coin price.

Lending protocol Aave has frozen stablecoins trading and set Loan-to-Value (LTV) ratio to zero in response to recent price volatility on stablecoins after the USD Coin (USDC) depegged on March 11.

According to the Aave’s governance forum, the trading freeze follows an analysis from DeFi’s risk manager company Gauntlet, recommending that all V2 and V3 markets should be temporarily paused.

“Setting LTV to 0 definitely helps everywhere, but on the Avalanche v3 Pool, given that cross-chain infrastructure doesn’t cover Avalanche, the Aave Guardian can act immediately. Setting LTV to 0 in practise discounts the “borrowing power” of the asset, without affecting the HF of any user position,” noted one participant in the forum discussion.

LTV is an important metric that determines how much credit you can secure using crypto as collateral. Expressed as a percentage, the ratio is calculated by dividing the amount of credit borrowed by the value of collateral.

Gauntlet’s risk analysis examined the amount of insolvencies that might occur under different scenarios, considering that the price of USDC stabilizes, recovers, or declines significantly:

“V3 emode assumes correlation of stablecoin assets, but at this time, those correlations have diverged. The risk has increased given that the liquidation bonus is only 1% for USDC on emode. To account for these assumptions that no longer remain true, we recommend pausing the markets. […] At current prices, insolvencies are ~550k. These can change depending on the price trajectory and further depegs.”

*Screenshot – USD balances by protocol and Assets by symbol and protocol. Source Gauntlet Network*

Centralized crypto exchanges have seen a surge in trading volume in the past hours following the Silicon Valley Bank (SVB) collapse on March 10, according to digital assets data provider Kaiko.

Two big $USDC markets on exchanges seeing heavy sell pressure and huge volumes in last 24 hours

Despite plenty of reassurance on crypto twitter, most investors still selling USDC at a big discount pic.twitter.com/W9uy2HHax4

— Conor Ryder (@ConorRyder) March 11, 2023

Silicon Valley Bank was shut down by the California Department of Financial Protection and Innovation on March 11 after bank run triggered by the banks latest financial reports showing it had sold a large chunk of securities worth $21 billion at the time of sale, at a loss of about $1.8 billion. The California watchdog also appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits.

Circle, the company behind the USDC, disclosed on March 11 that $3.3 billion of its $40 billion reserves were stuck at SBV, leading the major stablecoin price to fall below its $1 peg and affecting many stablecoin ecosystems as a result.

Aave freezes stablecoin trading on v3 Avalanche as activity surges on CEXs

The trading freeze follows an analysis from DeFi’s risk manager firm Gauntlet Network considering different scenarios for the USD Coin price.

Lending protocol Aave has frozen stablecoin trading and set the loan-to-value (LTV) ratio to zero in response to recent price volatility on stablecoins after USD Coin (USDC) depegged on March 11.

According to Aave’s governance forum, the trading freeze follows an analysis from decentralized finance risk management company Gauntlet Network, recommending that all v2 and v3 markets should be temporarily paused.

LTV is an important metric determining how much credit you can secure using crypto as collateral. Expressed as a percentage, the ratio is calculated by dividing the amount of credit borrowed by the value of the collateral.

Gauntlet’s risk analysis examined the number of insolvencies that might occur under different scenarios, considering that the price of USDC stabilizes, recovers or declines significantly:

“V3 emode assumes correlation of stablecoin assets, but at this time, those correlations have diverged. The risk has increased given that the liquidation bonus is only 1% for USDC on emode. To account for these assumptions that no longer remain true, we recommend pausing the markets. […] At current prices, insolvencies are ~550k. These can change depending on the price trajectory and further depegs.“

*USD balances by protocol, and assets by symbol and protocol. Source: Gauntlet Network*

Centralized crypto exchanges have seen a surge in trading volume in the past hours following the Silicon Valley Bank (SVB) collapse on March 10, according to digital assets data provider Kaiko.

Two big $USDC markets on exchanges seeing heavy sell pressure and huge volumes in last 24 hours

Despite plenty of reassurance on crypto twitter, most investors still selling USDC at a big discount pic.twitter.com/W9uy2HHax4

— Conor Ryder (@ConorRyder) March 11, 2023

SVB was shut down by the California Department of Financial Protection and Innovation on March 11 after a bank run triggered by the bank’s latest financial reports, which showed it had sold a large chunk of securities worth $21 billion — at a loss of about $1.8 billion. The California watchdog also appointed the Federal Deposit Insurance Corporation as the receiver to protect insured deposits.

Circle, the company behind the USDC, disclosed on March 11 that $3.3 billion of its $40 billion reserves were stuck at SBV, resulting in its price falling below its $1 peg and impacting other stablecoins.

Aave DAO votes for ‘rescue plan’ to save lost tokens

The plan intends to allow developers to recover tokens from certain Aave contracts and send them to owners who transferred them by mistake.

Some Aave users who accidentally sent tokens to the wrong address may soon be able to recover them, according to the text of a proposal passed by the Aave decentralized autonomous organization (DAO) on March 10. The proposal, called “Rescue Mission Phase 1 Long Executor,” authorizes Aave developers to upgrade smart contracts that have been mistakenly sent tokens in the past, causing the contracts to send the lost tokens back to their original owners automatically.

Here’s your chance to join the rescue mission. Vote now https://t.co/JJr6qhTKAv

— Aave (@AaveAave) March 7, 2023

The confirmed proposal only affects lost AAVE (AAVE), LEND, Tether (USDT), UNI (UNI) and staked AAVE (stkAAVE) tokens that were mistakenly sent to the AAVE token contract, the LEND token contract, the LendtoAaveMigrator or the stAAVE token contract.

It further authorizes the team to initialize a new implementation for these contracts. The Aave DAO said that during the initialization, the lost tokens will be sent automatically to a separate AaveMerkleDistributor contract, where they will then be sent to the owners.

The proposal’s text emphasizes that these tokens will only be transferred during the contracts’ initialization phase, stating: “To be as less invasive as possible, these new implementations only include that extra logic on their initialize() function, with everything else remaining the same.” This seems to imply that only tokens lost in the past will be recoverable. Future tokens mistakenly sent to these addresses may be permanently lost unless a new proposal is passed in the future.

Losing tokens by mistakenly transferring them to a token contract is a common problem in the crypto community. ChainSafe developer Muhammad Altabba has estimated that hundreds of millions of dollars worth of tokens and Ether (ETH) are locked in the Ethereum null address (0x0) and token contracts. One Ethereum user lost over $500,000 worth of wrapped Ether (wETH) by transferring it to the wETH token contract instead of calling its “unwrap” function as they intended.

If a contract cannot be upgraded, tokens lost in this way are usually impossible to recover.

By their nature, crypto transfers are supposed to be immutable. So, even if mistaken transfers can be reversed, attempts to do so are sometimes controversial. In 2016, The DAO, an early version of today’s DAOs, was exploited for $60 million worth of ETH, which the investors in The DAO presumably did not intend to happen. The majority of Ethereum validators implemented a hard fork to reverse the exploit transaction, but some validators rejected this move, creating Ethereum Classic in the process.

The Aave DAO vote to rescue the lost tokens was not nearly as controversial. The proposal passed with more than 99.9% of the vote. Only one user voted against the proposal, using a single AAVE token to do so.

DeFi protocols unite to promote permissionless Web3 experiences

The collaboration of over 30 DeFi projects is an effort to counteract the negative sentiments built in 2022 due to numerous CeFi ecosystem crashes.

The damage caused by the fall of major crypto ecosystems last year is on a path of steady recovery as good actors take proactive measures to rebuild trust among investors. Major players from the decentralized finance (DeFi) ecosystem came together to showcase the incentive behind operating trustless, interoperable and permissionless platforms.

For 24 hours, from Feb. 6 to 7, over 30 DeFi protocols joined in an initiative to “permissionlessly” share tweets from other protocols — thus highlighting the permissionless and interoperable nature of Web3 . Projects participating in this campaign include Yearn.finance, MakerDAO, SushiSwap and Aave, among others.

An experiment in social coordination with @MakerDAO pic.twitter.com/lXOFPeqToS

— Element Finance (@element_fi) February 6, 2023

DeFi has amassed mainstream acceptance with significant institutions making their entrance into the space, but it still has a shaky reputation due to its many exploits.

Mamun Rashid, the chief marketing officer at MakerDAO, said that to realize the “full potential” of DeFi, there needs to be a collaboration between the ideas and expertise in the space.

“Together, we can push the boundaries of traditional finance and build a more inclusive and accessible financial system through DeFi.”

The projects collaborating in the campaign defined the “spirit” of DeFi as a more collaborative ecosystem, rather than a competitive one.

Jared Grey, the CEO of SushiSwap, said DeFi is being built to challenge the current status quo of known financial frameworks, which historically create barriers and reduce economic freedom.

“Leveraging the composability of this new technology, we can democratize and provide more equitable, safer, and transparent financial tools and products to reach a global audience.”

Grey said the responsibility to portray the true message of DeFi comes first from within the space. Therefore, the initiative and solidarity of more than 30 builders within the space come at a critical time.

Over the last year, the DeFi space was a major target for exploits. According to a report from Beosin, DeFi-based projects experienced the highest number of attacks in 2022.

This vulnerability led to a 47.4% rise in security losses in 2022 compared with the previous year, which totaled $3.64 billion in losses.

Additional industry insights revealed that the trend of DeFi exploits should be expected to continue into this year due to new projects entering the market and more sophisticated hackers.

Nonetheless, the space started the year with significant growth , according to a DappRadar report. In January, a new $150 million ecosystem fund was created by Injective to boost DeFi and Cosmos adoption.

Aave purchases 2.7M CRV to clear bad debt following failed Eisenberg attack

Following a failed short attack, DeFi exploiter Avraham Eisenberg was liquidated from Aave at a loss of $10 million.

According to a new post on Jan. 26, Marc Zeller, integrations lead at decentralized finance (DeFi) lending protocol Aave, stated that the firm purchased 2.7 million Curve (CRV) tokens, which would clear “excessive remaining bad debt” within the next 15 hours over a dozen transactions. The move follows the community approval of Aave Improvement Protocol (AIP) 144, which deployed a swap contract that acquires 2.7 million units of CRV, with a USD Coin (USDC) spend limit of $3,105,000 and a maximum unit value of $1.15 per CRV.

The bad debt on the Aave protocol resulted from a sophisticated exploit that took place on Nov. 23. Avaraham Eisenberg, who previously drained DeFi protocol Mango Markets and caused $47 million in net damages, took on a series of heavy volume short CRV positions on Aave in an attempt to orchestrate a short squeeze and force developers to buyback his positions at upward of 100% slippage due to lack of liquidity.

However, it turned out Aave had much more liquidity than anticipated, and Eisenberg reportedly lost $10 million on the trade. Nevertheless, some slippage occurred as a result of the incident, and Aave was left with a total of 2.656 million CRV in bad debt while liquidating Eisenberg’s positions.

The same day, Mango Markets filed a lawsuit against Eisenberg, asking the court to rescind its $47-million bounty agreement with the hacker for his role in the $117-million exploit on Oct. 12, 2022. The United States Securities and Exchange Commission has charged Eisenberg with stealing $117 million in digital assets. Eisenberg was arrested in Puerto Rico by the Federal Bureau of Investigation on Dec. 27, 2022, on charges of commodities manipulation and commodities fraud.

*Avraham Eisenberg (right) during an interview. Source: YouYube, “Unchained” podcast*

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

Bitcoin could take a break from its sharp rally and if its price bounces off underlying support, APE, MANA, AAVE and FIL could break out.

After nearly a 20% rally last week, Bitcoin (BTC) is on track to end this week with gains of roughly 10%. Bitcoin’s rally has improved sentiment and attracted buying in several altcoins. This sent the total crypto market capitalization firmly above the $1 trillion mark.

The strong recovery in Bitcoin has startled several analysts who remain skeptical about the rally. Some believe that the current rise is a dead cat bounce that will reverse direction sharply, while others see similarities between the current rally and the 2018 bear market recovery.

Although traders should be ready for any eventuality, the pace of the rise in Bitcoin does point to a possible major bottom. There are likely to be bumps down the road but the dips are likely to be aggressively purchased by traders.

Bitcoin’s sustained recovery may encourage buying in select altcoins.

Let’s study the charts of Bitcoin and select altcoins that are showing strength in the near term.

BTC/USDT

Bitcoin climbed above the $21,650 overhead resistance on Jan. 20, indicating the resumption of the up-move. This shows that demand remains strong at higher levels.

The bulls pushed the price above the $22,800 resistance on Jan. 21 but failed to build upon the breakout as seen from the long wick on the day’s candlestick.

While the upsloping moving averages indicate that bulls are in command, the relative strength index (RSI) in the overbought territory warrants caution. It suggests that a few days of consolidation or minor correction is possible.

However, when a new uptrend starts, the RSI sometimes tends to remain in the overbought zone and frustrates the bears. If that happens, the uptrend may continue without a major pullback and the pair could reach $25,211.

On the downside, the first support is at $21,480. If the price rebounds off this level, it will suggest that the bulls are buying on every minor dip. That could increase the likelihood of a rally to $25,211.

The four-hour chart shows that the bulls are trying to flip the $22,800 level into support. If the price continues higher and soars above $23,271, the bullish momentum could pick up and the pair may rush toward $25,211.

If the price turns down and breaks below $22,600, the pair could slide to the 20- day exponential moving average (EMA). This level may act as a support but if bears manage to pull the price below it, the next stop could be $21,480.

APE/USDT

ApeCoin (APE) has been range-bound between $7.80 and $3 for the past several months. After the bears failed to sink the price below the range, the bulls are attempting a comeback. They will try to propel the price to the resistance of the range.

The upsloping moving averages and the RSI in the overbought area suggest that buyers have the upper hand. There is a minor resistance near $6.40 but if buyers bulldoze their way through it, the APE/USDT pair could surge to $7.80. This level may witness aggressive selling by the bears.

The positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA ($4.80). That could sink the price to the 50-day simple moving average ($4.17).

*APE/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is in a strong uptrend. The bears are trying to stall the up-move at $6 but a positive sign is that the bulls have not given up much ground. This indicates that every minor dip is being purchased. The bulls will now try to propel the price above $6 and resume the uptrend.

On the contrary, the bears will try to pull the price below the 20-EMA. If they succeed, the pair could attract profit-booking from the short-term bulls. The pair could then tumble to $5.

MANA/USDT

Decentraland (MANA) rallied sharply from $0.28 on Dec. 30 to $0.78 on Jan. 21, which shows strong momentum in favor of the bulls.

The bears sold the break above $0.74 on Jan. 17 but the bulls stepped in and bought the dip at $0.61. This shows that the sentiment remains positive and traders are viewing the dips as a buying opportunity.

The bulls will have to sustain the price above $0.74 to signal the start of the next leg of the recovery. The MANA/USDT pair could surge to $0.87 and thereafter to the psychological barrier at $1.

If bears want to gain the upper hand, they will have to sink the price below $0.61. If they do that, the pair could start a deeper correction to $0.53.

*MANA/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows the formation of an inverse head and shoulders pattern. If buyers thrust the price above the neckline of the pattern, the setup will complete and the pair could spurt toward the target objective at $0.93.

Contrarily, if the price turns down from the current level and breaks below the moving averages, it will suggest that the bears are fiercely guarding the $0.74 resistance. The pair could then plunge to the $0.61 to $0.55 support zone.

AAVE/USDT

Aave (AAVE) broke and closed above the downtrend line on Jan. 17 signaling a potential trend change. The bears tried to yank the price back below the downtrend line on Jan. 18 but the bulls held their ground.

The upsloping 20-day EMA ($74) and the RSI in the overbought region suggest that bulls have the edge. This advantage could strengthen further with a break above $92. The AAVE/USDT pair could then rally to the psychologically crucial level of $100.

This level may again pose a strong challenge to buyers but if they overcome this obstacle, the pair could skyrocket toward $115.

Contrary to this assumption, if the price turns down and dives below the downtrend line, it will signal that bears are active at higher levels. The advantage may tilt in favor of the bears on a slide below the 20-day EMA.

The four-hour chart shows that the bears are defending the zone between $88 and $91 but they haven’t been able to pull the price below the moving averages. This indicates a bullish sentiment where traders are buying the dips.

The bulls will make one more attempt to clear the overhead zone. If they can pull it off, the pair could resume the uptrend.

Instead, if the bulls fail to push the price above $91, the bears will try to tug the pair below the moving averages. The pair could then fall to $78 and later to $73.

FIL/USDT

Filecoin (FIL) broke above the downtrend line on Jan. 14 and held the retest of the breakout level on Jan. 18. This suggests that the bulls have flipped the downtrend line into support.

The moving averages have completed a bullish crossover and the RSI is in the overbought space, signaling that bulls are in control. The FIL/USDT pair could rally to $6.50 where the bears may again mount a strong defense. If bulls kick the price above this level, the up-move could reach $9 with a brief halt near $7.

The 20-day EMA ($4.24) is the important support to watch out for on the downside because a drop below it could tilt the advantage in favor of the bears.

*FIL/USDT 4-hour chart. Source: TradingView*

The bears tried to stall the relief rally at $5 but the bulls pierced this resistance and started the next leg of the recovery. The upsloping moving averages and the RSI in the overbought zone indicate that bulls are firmly in the driver’s seat. Buyers will try to nudge the pair toward $6.50 and then $7.

On the downside, the 20-EMA is the critical support to pay attention to. If the price rebounds off this level, it will indicate that the uptrend remains intact. On the other hand, if bears drag the price below the moving averages, the pair could collapse to $4.20.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

5 cryptocurrencies that could benefit from a positive CPI report

Crypto markets flip green following the continuation of last week’s rally in equities, and SOL, XMR, LDO and AAVE could be ready to move higher.

Bitcoin (BTC) has finally pushed above the $17,000 mark after rallying to $17,375 on Jan. 12, with both the bulls and the bears eyeing the Consumer Price Index (CPI) readout due on Jan. 12. If the print shows that inflation is cooling off, risk assets may rally, but a negative surprise could attract strong selling.

While some believe that a macro bottom could be forming in Bitcoin, others remain skeptical. They draw a parallel between the current bear market and the dot-com bubble burst. The United States Federal Reserve stopped raising rates in May 2000 but the Nasdaq did not bottom out for two more years. If the same scenario plays out with cryptocurrencies, then the next bull run may not start in a hurry.

However, one positive for the future of the crypto industry is that legacy finance companies continue to show interest in the space. Laser Digital co-founder and CEO Jez Mohideen believes that the arrival of traditional companies could help regulate the cryptocurrency sector.

Do the charts signal a rally in Bitcoin? What are the other altcoins that are showing a positive chart structure? Let’s find out.

BTC/USDT

Bitcoin has been trading above the moving averages since Jan. 4. This is the first indication that the selling pressure could be reducing. The price reached the overhead resistance at $17,061 on Jan. 6 but the bulls could not ascend this level. This indicates that the bears have not given up yet.

A minor positive in favor of the bulls is that they have not allowed the BTC/USDT pair to tumble below the moving averages. If the price consolidates between the moving averages and $17,061 for some time, the prospects of a break above the overhead resistance could improve. If bulls kick the price above $17,061, the pair could surge toward $18,388.

Alternatively, if the price turns down and slumps below the moving averages, it will indicate that the pair could remain stuck between $17,061 and $16,256 for a few more days.

The four-hour chart shows that bears are guarding the $17,061 level but they have not been successful in pulling the price below the 20-day exponential moving average (EMA). This suggests that buyers are not rushing to the exit as they expect a break above the overhead resistance.

The gradually upsloping 20-EMA and the relative strength index (RSI) in the positive territory indicate that buyers have a slight edge. A break above $17,061 could signal the start of a new up-move in the near term.

If bears want to regain control, they will have to sink the price below the 50-day simple moving average (SM. The pair could then decline to $16,600 and stay inside the range for a while longer.

SOL/USDT

Solana (SOL) has been a huge underperformer in the past several months but the price action of the past few days increases the likelihood of a possible relief rally. It is too early to predict whether the expected move is a dead cat bounce or the start of a sustained recovery. However, the setup could be of interest to short-term traders.

The SOL/USDT pair has rallied sharply from the Dec. 29 low of $8. Buyers propelled the price above the 50-day SMA ($12.75) on Jan. 3 and have managed to sustain the pair above this level since then. This suggests that the bulls are trying to flip the moving averages into support.

If the price breaks above the overhead resistance at $15, the pair could accelerate toward $19. This level may again act as a barrier but if crossed, the rally could extend to the 50% Fibonacci retracement level of $23.40.

The bulls may lose their grip if the price turns down and slides below the moving averages. Such a move will indicate that bears are active at higher levels.

*SOL/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price pulled back to the 20-EMA but the bulls purchased this dip. This indicates a change in sentiment from selling on rallies to buying on dips. The bulls will try to extend the up-move by driving the price above the $14.24 to $15 resistance zone.

On the other hand, the bears will try to pull the price below the 20-EMA. If they can pull it off, the pair could slump to the 50-SMA. This level may behave as a support but if bears sink the price below it, the decline could extend to $11.

XMR/USDT

Monero (XMR) broke out of the falling wedge pattern on Jan. 5 and buyers have managed to sustain the price above the breakout level for three days. This indicates a potential trend change.

The moving averages have turned up and the RSI is in the positive territory, signaling that buyers have the upper hand. There is a minor resistance at $162 and then again at $167 but both these levels are likely to be crossed.

The XMR/USDT pair could thereafter reach the overhead resistance at $174. This level may act as a major obstacle but if bulls manage to overcome it, the pair could soar to $200.

Contrary to this assumption, if the price turns down and plummets below the moving averages, it will suggest that the breakout from the wedge may have been a bull trap. The downward momentum could pick up on a break below $138.

*XMR/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are trying to form a short-term double-top pattern near $160. Sellers have pulled the price below the 20-EMA, which opens the doors for a possible drop to the 50-SMA. The bulls may fiercely protect the moving averages because a break below it could tilt the advantage in favor of the bears.

If the price turns up from the current level, it will suggest that lower levels are attracting buyers. The pair could then once again rise to the overhead resistance at $160. If this resistance is scaled, the up-move could resume.

LDO/USDT

Lido DAO (LDO) broke out of the downtrend line on Jan. 1 and made a sharp move higher. This suggests the downtrend may have ended.

The moving averages have completed a bullish crossover, indicating that buyers have the upper hand but the overbought levels on the RSI point to a short-term correction or consolidation.

If buyers do not give up much ground from the current level, the LDO/USDT pair could reach the overhead resistance at $1.85. This level may again act as a strong barrier but if bulls overcome it, the pair could reach $2.30.

The first sign of weakness will be a break below the 20-day EMA ($1.21). Such a move will suggest that bears are selling on rallies.

*LDO/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair has started an uptrend. The upsloping moving averages and the RSI in the overbought zone suggest that bulls remain in control. There is a minor resistance at $1.71 but if that is crossed, the rally could reach $1.85.

The 20-EMA has acted as a strong support during pullbacks, hence this remains an important level to keep an eye on in the near term. If this support cracks, the pair could slide to the 50-SMA.

AAVE/USDT

Buyers successfully defended the psychological support near $50 and are trying to form a double bottom pattern. This is the reason for selecting Aave (AAVE).

The bounce off the strong support at $50 has reached the 50-day SMA ($58). Both moving averages have flattened out and the RSI has jumped into the positive territory, indicating advantage to buyers.

If bulls thrust the price above the 50-day SMA, the AAVE/USDT pair could rally to the downtrend line and thereafter to $67. A break and close above this level will complete a double bottom which has a pattern target of $84.

This bullish view will be invalidated if the price turns down and plummets below the vital support at $50.

The bulls are trying to push and sustain the price above the immediate overhead resistance near $58. If they manage to do that, the pair could rally to the downtrend line. This level may act as a strong hurdle but on the way down, if bulls flip the $58 level into support, it could increase the likelihood of a break above the downtrend line.

The first support to watch on the downside is the 20-EMA. If this level gives way, the pair could slide to $54. This is an important level for the bulls to defend if they want to keep the short-term momentum in their favor.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.