Investment

3 reasons why Quant Network’s QNT token may have topped after 450% gains since June

QNT whales have started securing profits after the token’s 450%-plus price rally since June 2022.

The price of Quant Network (QNT) eyes a sharp reversal after an impressive 450% rally in the past four months.

QNT’s downside outlook takes cues from a flurry of technical and on-chain indicators, all suggesting that investors who backed its price rally have likely reached the point of exhaustion.

*QNT/USD daily price chart. Source: TradingView*

Here are three reasons why it could be happening.

Quant’s daily active addresses drop

Interestingly, the period of QNT’s massive uptrend coincided with similar upticks in its number of daily active addresses (DAA). This metric represents the number of unique addresses active on the network as a sender or receiver.

As of Oct. 17, the Quant Network’s DAA reached an all-time high of 10,949, up from around 5,850 four months ago, data from Santiment shows. Its upsurge during the QNT price uptrend shows traders were net buyers.

However, the DAA readings dropped sharply in the past two days, reaching nearly 6,800 on Oct. 19. Simultaneously, QNT’s price fell by 25.5% to $171 in the same period, suggesting that many traders have been securing their profits.

*Quant Networks’s price versus daily active addresses. Source: Santiment*

QNT price downside target

The profit-taking in the Quant Network market comes as its daily relative strength index (RSI) crossed above 70 on Oct. 17, hinting that the asset is overbought.

An overbought RSI does not necessarily mean a strong bearish reversal, however. Instead, it shows that the price has moved upward too quickly and, thus, a correction is becoming increasingly likely before the uptrend could resume.

QNT’s daily RSI corrected to 65 on Oct. 17. Simultaneously, the token’s price dropped toward $185, coinciding with its 0.236 Fib line of the Fibonacci retracement graph shown in the chart below.

The $185-level was instrumental as support in August 2021. But, given the existing profit-taking sentiment, the level may not hold for long, which could result in an extended decline toward the $137-$150 support range.

The area falls between QNT’s 0.382 and 0.5 Fib lines and further coincides with its 50-day exponential moving average (50-day EMA; the red wave in the chart above), creating a strong support confluence. Therefore, a break below $185 could have QNT bears eye $137, a 25% drop, as the ultimate downside target by the end of the month.

QNT whales diminish

The period of Quant Network’s 450% price rally heavily coincided with the increase in the number of addresses holding between 100 QNT and 1,000 QNT tokens, dubbed as “whales” by Santiment.

However, the whale count started dropping on Oct. 16, a day before QNT’s price and DAA topped out. Meanwhile, addresses holding between 1,000 QNT and 10,000 QNT tokens also fell, suggesting that the plunge in the 100-1,000 QNT cohort was due to token distribution, not accumulation.

*Quant Network addresses holding 100-1,000 QNT and 1,000-10,000 QNT tokens. Source: Santiment*

In other words, QNT whales have started selling their holdings near the token’s potential price top, raising possibilities that the decline could continue toward the technical targets, as mentioned above.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

$740M in Bitcoin exits exchanges, the biggest outflow since June’s BTC price crash

Bitcoin price technicals, however, remain bearish with the BTC price eyeing a run-down toward $14,000 in Q4.

The amount of Bitcoin (BTC) flowing out of cryptocurrency exchanges picked up momentum on Oct. 18, hinting at weakening sell-pressure, which could help BTC price avoid a deeper correction below $18,000.

Bitcoin forming a “bear market floor”

Over 37,800 BTC left crypto exchanges on Oct. 18, according to data tracked by CryptoQuant. This marks the biggest Bitcoin daily outflow since June 17, wh traders withdrew nearly 68,000 BTC from exchanges.

Moreover, over 121,000 BTC, or nearly $2.4 billion at current prices, has left exchanges in the past 30 days.

*Bitcoin exchange netflow from all exchanges. Source: CryptoQuant*

A spike in Bitcoin outflows from exchanges is typically seen as a bullish signal because traders remove the coins that they wish to hold from platforms. Conversely, a jump in Bitcoin inflows into exchanges is typically considered bearish given that the supply is immediately available for selling increases.

For instance, Bitcoin bottomed out locally at around $18,000 when its outflows from exchanges reached nearly 68,000 BTC on June 17. The cryptocurrency’s price rallied toward $24,500 in the following weeks.

This time, the massive uptick in Bitcoin outflows from exchanges surfaces as the BTC price downtrend pauses inside the $18,000–$20,000 range.

Interestingly, Bitcoin whales, or entities with over 1,000 BTC, have been mainly behind the coin’s strong foothold near the $18,000 level, according to several on-chain metrics.

For instance, the Accumulation Trend Score by Cohort notes that the wallets holding between 1,000 BTC and 10,000 BTC have been accumulating Bitcoin “aggressively” since late September.

*Bitcoin accumulation trend score by cohort. Source: Glassnode*

In addition, whales’ on-chain behavior shows that they have recently withdrawn 15,700 BTC from exchanges, the largest outflow since June 2022.

*Bitcoin whale deposits and withdrawals volumes from exchanges. Source: Glassnode*

“Bitcoin prices have shown remarkable relative strength of late, amidst a highly volatile traditional market backdrop,” noted Glassnode in its weekly review published Oct. 10, adding:

“Several macro metrics indicate that Bitcoin investors are establishing what could be a bear market floor, with numerous similarities to previous cycle lows.”

Positive BTC fund inflows

Meanwhile, Bitcoin-based investment vehicles have also seen the fifth week of consistent inflows, according to CoinShares’ weekly report.

About $8.8 million entered Bitcoin funds in the week ending Oct 14, which pushed the net capital received by these funds to $291 million on a year-to-date timeframe. CoinShares head of research James Butterfill said the inflows imply a “net neutral sentiment amongst investors” toward Bitcoin.

*Capital flows by asset. Source: CoinShares*

On the flip side, Bitcoin’s technical outlook remains in favor of the bears, given the formation of what appears to be an inverted-cup-and-handle pattern on its three-day chart.

An inverted-cup-and-handle pattern forms when the price undergoes a crescent-shaped rally and correction followed by a less extreme, upward retracement. It resolves after the price breaks below its neckline and falls by as much as the distance between the cup’s peak and neckline.

*BTC/USD daily price chart featuring inverted-cup-and-handle pattern. Source: TradingView*

Bitcoin’s price could fall toward $14,000 if the inverted cup and handle play out as mentioned, in accordance with previous reports, or a 30% drop from current price levels.

This Bitcoin long-term holder metric is nearing the BTC price ‘bottom zone’

Bitcoin accumulation is in full swing during the downtrend despite BTC price having more room to drop.

A Bitcoin (BTC) on-chain indicator, which tracks the amount of coin supply held by long-term holders (LTHs) in losses, is signaling that a market bottom could be close.

Eerily accurate Bitcoin bottom pundit

As of Sept. 22, approximately 30% of Bitcoin’s LTHs were facing losses due to BTC’s decline from $69,000 in November 2021 to around $19,000 now. That is about 3%–5% below the level that previously coincided with Bitcoin’s market bottoms.

For instance, in March 2020, Bitcoin price declined below $4,000 amid the COVID-19-led market crash, which happened when the amount of BTC supply held by LTH in loss climbed toward 35%, as shown below.

*Bitcoin long-term holder supply in losses. Source: Glassnode*

Similarly, Bitcoin’s December 2018 bottom of around $3,200 concurred alongside the LTH loss metric rising above 32%. In both cases, BTC/USD followed up by entering a long bullish cycle.

Hence, the number of LTHs in loss during a typical bear market tends to peak in the 30%–40% range. In other words, Bitcoin’s price still has room to drop — likely into the $10,000–$14,000 range —for “LTHs in loss” to reach the historic bottom zone.

Coupled with the LTH supply metric, which tracks the BTC supply held by long-term holders, it appears that these investors accumulate and hold during market downturns and distribute during BTC price uptrends, as illustrated below.

*Bitcoin total supply held by LTH. Source: Glassnode*

Therefore, the next bull market may begin when total supply held by LTHs begins to decline.

Bitcoin accumulation is strong

Meanwhile, the number of accumulation addresses has been increasing consistently during the current bear market, data shows. The metric tracks addresses that have “at least two incoming non-dust transfers and have never spent funds.”

*Bitcoin number of accumulation addresses. Source: Glassnode*

Interestingly, this is different from the previous bear cycles that saw the number of accumulation addresses drop or remain flat, as shown in the chart above, suggesting that “hodlers” are unfazed by current price levels.

In addition, the number of addresses with a non-zero balance stands around 42.7 million versus 39.6 million at the beginning of this year, showing consistent user growth in a bear market.

*Bitcoin number of addresses with a non-zero balance. Source: TradingView*

BTC price technicals hint at more downside

Bitcoin is nevertheless struggling to reclaim $20,000 as support in a higher interest rate environment. Its correlation with U.S. equities also hints at more downside in 2022.

From a technical perspective, Bitcoin could drop further toward $14,000 in 2022 if its cup-and-handle breakdown pans out, as shown below.

*BTC/USD three-day price chart featuring cup-and-handle pattern. Source: TradingView*

Such a move should push the aforementioned “LTH in loss” metric toward the 32%–35% capitulation region, which could ultimately coincide with the bottom in the current bear market.

Central African Republic court says new $60,000 citizenship-by-crypto-investment program is unconstitutional

The move comes one month after the CAR rolled out the new incentive to boost crypto innovation in the country.

According to Reuters, the Constitutional Court of the Central African Republic (CAR) said on Monday that the purchase of citizenship, e-residency and land using its government-backed Sango digital currency is unconstitutional because a nationality has no market value. Earlier in July, the CAR unveiled its Sango crypto hub to attract global crypto talent and enthusiasts, boost Bitcoin (BTC) adoption and implement new crypto regulatory frameworks. The Sango blockchain is built on top of the Bitcoin blockchain, similar to a layer-2 solution.

Part of the program includes a citizenship-by-investment program, where foreign nationals can effectively purchase citizenship in the CAR for $60,000 in crypto, with an equivalent amount of Sango tokens held as collateral and returned after five years. Similarly, e-residency can be purchased for $6,000 with Sango tokens locked for three years. It is also possible to buy a 250-square meter plot of land in the CAR for $10,000 with Sango tokens returned a decade later.

The CAR says that each Sango token will be fractionally backed by Bitcoin, which it adopted as legal tender in April. Each Sango token can be purchased for $0.10 during the first stages of its initial coin offering, with a listing price target of $0.45 by the final round. The total supply of the token is 210 million. So far, less than 20 million Sango tokens have been claimed, and officials have extended the first cycle of the sale by approximately five weeks.

Affluent investors typically enroll in investment-based second citizenship programs for business activities, tax mitigation and ease of travel. The Central African Republic’s gross domestic product has declined steadily since peaking in the mid-1960s. Its current passport allows for visa-free travel in 17 countries.

18 ‘uncomfortable’ truths about nonfungible tokens

NFT analyst OKhotshot warns there are no reliable stable investments in the NFT space and most investors will lose money investing in the market.

Nonfungible token (NFT) analyst and blockchain detective OKHotshot” hahighlighted his picks for 18 of the most “uncomfortable truths” about the NFT industry.

In a lengthy 20-part thread to his 45,000 followers on Twitter on Saturday, OKHotshot laid bare many of the issues currently plaguing the NFT industry, including irresponsible celebrity endorsements, hacking and the kinds of projects that are almost always destined to fail.

The analyst made his name in the industry as a full-time on-chain analyst specializing in NFT audits and Discord security operating under as @NFTheder on Twitter.

Most NFT investors will lose money

One of the most sobering “uncomfortable truths” shared by the NFT analyst is that most people will lose money investing in NFTs.

OKHotshot said there are “no reliable stable investments in NFTs” warning that if an investor hears the term “blue chip NFT” to “run away.” He also warned that “diamond handing” isn’t the best way to make money, instead, investors should be taking profits when they can.

“We are NOT all going to make it. Most NFT traders trade at a loss.”

Previously, Cointelegraph reported on a poll that found that while 64.3% of respondents said they bought NFTs to make money, 58.3% claimed they have lost money in their NFT journey.

The analyst advised anyone interested in NFTs must stay on top of announcements because “by the time you hear about a new project on Twitter spaces, you are late.”

He also warned that volume and liquidity are often more important metrics than floor price, and time is more valuable than any asset, so planning ahead is essential.

“If there are no buyers you can’t take profits,” he explained.

6. You are responsible for your own security. Understand most projects don’t audit their code or have Discord security.

— OKHotshot (@NFTherder) August 27, 2022

Majority of NFT projects fail

The NFT analyst also cautions anyone interested in getting in early in a particular NFT project as tokens often fail to stay above the mint price, adding also that “derivatives rarely outperform the original NFT collections.”

NFT project Pixelmon stirred up controversy in March this year after revealing the finalized art for its much-anticipated project — the quality of which turned out to be far below expectations.

The project raised roughly $70 million, with each NFT minted for 3 Ether (ETH) each. However, the floor price on the OpenSea NFT marketplace has plummeted to only 0.26 ETH, worth roughly $370 at the time of writing.

Phantabear, another NFT project, originally minted for 6.36 ETH and drove record trading volumes on OpenSea when it was first released in January but has also seen a major drop in value since then, with the floor price at only 0.32 ETH, or $463 at the time of writing.

A March study by blockchain analytics firm Nansen found that most NFT collections either make no money or end up netting less than they cost to create.

Celebrities and influencers clueless

Several of the shared “uncomfortable truths” are scathing of celebrities and influencers.

OKHotshot said that despite what famous influencers may claim or imply through social media posts, noting that “celebrity NFT projects are notoriously bad investments.”

He also added that “Web2 marketing is exceedingly ineffective in the NFT market.”

17. Celebrity NFT projects are notoriously bad investments.

— OKHotshot (@NFTherder) August 27, 2022

Recently, Cointelegraph reported on warning letters posted by a consumer watchdog group to nearly 20 celebrities for their role in shilling NFTs.

OKHotshot’s final points revolve around the idea that most NFTs don’t have any intrinsic value. The analyst warned that NFT projects without sale terms aren’t worth anything and that NFT benefits don’t travel to downstream purchasers unless specified in the terms

“NFT projects without sale terms are selling you a token ID with a hyperlink to an off-chain asset. Without terms, nothing is defined. You can’t own a hyperlink so in all likelihood you bought nothing.”

That being said, he believes that the price of NFTs continues to be controlled by hype and market speculation, noting that savvy investors could “use this to your advantage.”

What is a trading journal? And how to use one

Every action you take as a trader is documented in a trading journal, covering risk management, trading strategy assessment, psychology, and more.

Monitoring price changes using charts is one way to stay updated on the market trends. However, technical or fundamental analyses and tracking other market metrics are not the only means of becoming a successful trader. For example, a disciplined approach that includes maintaining a trading journal would protect you from making emotional decisions concerning your financial investments.

In this article, we will discuss the benefits of a trading journal and how to create and use it.

What is a trading journal?

A trading journal records your trades and their outcomes and gives a summary of your trading experience. However, it is not a brokerage account statement as one can find the reasons behind opting for or avoiding a trading strategy.

All successively executed trades are methodically planned, and a trading journal can be a record of the performance of each trading strategy. Regardless of how the market performs, you can adequately assess the potential of a particular trade using a trading journal.

Moreover, you don’t need to spend much to create a trading journal. Spreadsheets or Excel would suffice, and it would help you to become disciplined and follow consistent trading strategies. You should record trading entries in your journal if you can’t always stick to your trading strategy. You can figure out how to avoid responding the same way to comparable situations in future trades by noting when things go wrong and why they did so. Why is keeping a trading journal important? Keep reading to find out!

What are the benefits of a trading journal?

Keeping a trading journal provides many benefits, including helping you to evaluate the strengths and weaknesses of your trading strategy. It helps you make unbiased decisions. For example, one can decide if crypto derivatives best suit their portfolio or if one should start reinvesting crypto profits. The final decision is exclusive of errors in judgment and any irrational beliefs, which helps protect you against an unconscious influence on your investment objectives.

Keeping a trading log helps you stay on track with your trading strategy, whether you are a day trader or a swing trader. Becoming distracted by winnings while trading for real money happens easily. After a run of profitable transactions, you can start to use sloppy entry points or acquire more cryptocurrency than usual. A trading plan helps you stay on target and reduces your tendency to make rash, potentially risky trades.

One can start trading in the productive zone if they keep track of their trading plans and develop confidence in their skills. Consulting a trading journal can be a tremendous motivator for traders to reflect on how well they have done, and having a successful track record is always a terrific confidence booster. On the other hand, unsuccessful traders can learn from their mistakes and transform unproductive trading strategies into profitable ones.

Furthermore, one can also take advantage of what is effective and shift their attention to the current performance by using their journal to track and implement reproducible patterns. This enables traders to generate a steady profit and prevents them from spending time and resources on unsuccessful ideas, eventually helping them to become profitable traders.

How to create a trading journal?

Any spreadsheet application like Microsoft Excel or Google Sheets in which you record your actual trades and a written document like Microsoft Word or Google Docs to add your thoughts can be used to create a trading journal. You can also start using a free trading journal template like the one prepared by Binance to distinguish between an avoidable and a profitable trading strategy.

Regardless of what template you are using, ensure that you have all the necessary columns related to each trade. Additionally, you may take screenshots of the trading charts you have followed and connect them to the appropriate trade on the sheet to make the journal more effective.

Let’s understand what columns you should add to your spreadsheet when creating a trading journal:

Instrument

Add the financial instrument you have traded, including the chosen platform; for instance, Bitcoin (BTC) on Coinbase.

Date and time

Add any time and date-specific factors that enable you to engage in a particular trade. For instance, I purchased Cardano (ADA), worth $1,000, during a midday trading lull when ADA was available at a lower price at 1:00 pm. During the lull, crypto values frequently decline because most prominent news stories have already been reported by noon.

Trade direction (long/short)

Record your short or long positions to reassess your trading strategy. By taking long positions, an investor gets exposure to cryptocurrencies in the hope that prices will climb in the future, allowing them to be sold for a profit.

On the other hand, when investors sell cryptocurrency “short,” they borrow it and sell it at the ongoing market rate. When the asset’s value declines, the investor buys it at a discount, pays back the cryptocurrency borrowed and keeps the difference as profit.

Entry price, exit price and stop loss

The entry price is the price at which you are beginning the trade. The exit price is the value at which you exit that trade. Investors can establish a stop-loss order in trading to automatically place a sell order when and if the lowest price at which they are ready to sell an asset is reached. Record all these metrics in your trading journal.

Trade size

To understand how much risk you are taking concerning a particular trade, please record your “tradable amount” in the journal. For instance, you risk 70% of your tradable amount on a single trade if your tradable amount is $200 and you swing trade on ADA with $170.

Profit and loss

It is crucial to record the outcome of your trade, either profit or loss, to understand what works best for you and what does not.

Notes

As mentioned, add your thoughts/notes in Microsoft Word or Google Docs to reflect on why you chose a particular trading size or strategy. Remember that qualitative factors are as important as quantitative ones.

How to use a trading journal

A flawless trading journal template is a myth. Every trader should review the pertinent metrics they need or should avoid using while adding transactions in their personal trading journals. A trade journal needs to be tailored in light of this.

Use your written document to add reasons behind taking particular positions. It is also essential to write down the indicators you spot during your market watch hours to avoid negatively impacting your trading performance. You’ll also argue whether or not a specific trade concept you implemented is a solid one in your written document. Turning your trade proposals inside out and backward will help you see the advantages and disadvantages of each one.

Then turn to your spreadsheet, where you need to record your daily trading activities. Remember to keep it up-to-date and organized to measure your success or failure accurately. Finally, try to record trade details after executing the trade to avoid missing any crucial descriptions.

Furthermore, checking your trade log spreadsheet daily is a good habit for estimating the level of exposure you currently hold and any possibility of expanding your trading portfolio. But, how to review your trading journal spreadsheet? Read through the documents on the written document and entries in your spreadsheet carefully while assessing your existing trades.

As a result, traders can have their tactics performance-driven rather than influenced by their emotions or conduct by looking back at a trading record and spotting trends they should avoid. Therefore, keeping a trading log enables you to evaluate your trades, spot areas for improvement, and generally become a better trader.

What is dollar-cost averaging (DCA) and how does it work?

To lessen the impact of volatility on the overall purchase, investors use the dollar-cost averaging (DCA) investment technique to spread out the total amount to be invested among multiple purchases of a target asset.

Many crypto enthusiasts just start investing in cryptocurrencies without a strategy behind it. However, they should be aware that an investment plan is essential when you begin investing in crypto. By sticking to a strategy, you will have a clear overview and become less susceptible to the substantial price fluctuations in the crypto market.

For each investor, this investment strategy can be different. After all, you invest in a way that suits your financial goals and that you feel comfortable with. For many people, the dollar cost average method (DCA) is the way to invest their wealth. This is because through this investment method, you make clear agreements that feel manageable for many people.

In addition, you can adapt the DCA method to your needs. DCA has some main features but also has room for your own interpretation. So in this article, we’ll cover the different ways DCA can work for you, what the benefits of this investment strategy are, and you can find out how to get started investing with the DCA strategy.

What is dollar-cost averaging (DCA)?

Dollar-cost averaging is a strategy used for investing in assets. You can use this strategy as a cryptocurrency investment strategy, but also with stocks, commodities or bonds. The investment product doesn’t matter, the strategy is so simple that you can apply it to any market.

In the case of DCA, it’s initially about investing a certain amount of money in a predefined asset and at a fixed time. This immediately gives you more oversight in investing and you know where you stand. This ensures that your emotions will be less influenced, something that can be difficult in the financial markets.

The expectation with the DCA strategy is that the price of an underlying asset will increase over time. By buying periodically, you invest when the price is high or low. All these purchases result in one average purchase price, which should be lower than the value of an asset.

How does dollar-cost average (DCA) work in crypto?

DCA is a very popular strategy for cryptocurrencies. People who have periodically purchased Bitcoin (BTC) in recent years have a very low average purchase price. The crypto market has only been around for a few years, and many people expect a lot from this market in the future. Nevertheless, it is not guaranteed that DCA in Bitcoin will now provide the same return. Therefore, do your own research well before you start investing.

Because blockchain technology and cryptocurrencies are still relatively new innovations, these developments could eventually become worth a lot of money. Here, it is important that the market continues to develop and adoption increases more and more. As an investor, you should therefore have confidence in the investment product you are going to invest in via the DCA method.

How to start with dollar-cost averaging?

Of course, it is really nice to understand how DCA works, but the most important thing is to apply the method. The most common way to apply DCA is to invest a certain amount of money in assets each month. This is because most people invest part of their salary and the salary is deposited on a fixed day.

To make the DCA method a personal plan, you need to determine a few things for yourself, namely:

For the DCA method, it is useful to choose a cryptocurrency that you expect to exist and increase in value in the future. This is why Bitcoin or Ethererum (ETH) are often chosen, as these cryptocurrencies are considered the most stable crypto projects.

Besides how much and how often you are going to invest, it’s also important to decide how you want to do this. You can invest manually or automatically. By choosing a platform where you can invest automatically, you can effortlessly use the DCA method. This way, you can build up your crypto portfolio without looking back. Just realize that earning more crypto does not automatically mean more profit. When prices drop, your cryptocurrencies are worth less.

Can you build crypto wealth using dollar-cost averaging?

Many people think that dollar-cost averaging is not suitable for making large profits, but nothing could be further from the truth. When people think of an average purchase price, they often think of an average exchange rate price, but this doesn’t have to be the case. If you invest at a fixed time and the price corrects around that time, the average purchase price could be very low.

Even experienced investors use the DCA method to get a good entry to the crypto market. This is because they know that it is very difficult to estimate the top or the bottom of the price. Only afterward can you state what the top or the bottom has been. This is precisely why experienced traders use the DCA method.

However, experienced crypto traders do not invest a fixed amount on certain days of the month but use the corrections as a buying signal. This way of dollar-cost averaging is a lot more flexible but also involves more emotions. If you want to use this strategy, for example, it is important that you do not suffer from FOMO, or fear of missing out.

The DCA method gives beginning investors the opportunity to invest in a similar way as experienced investors, as long as the method is executed well. Even for investors who have little knowledge or no time, this method can be very useful. As long as you make a plan in advance and stick to it, you can meet your financial goals.

What are the benefits of dollar-cost averaging for crypto investors?

Using the DCA method has several advantages for crypto investors. For example, you are much less affected by your emotions. Because the crypto market is enormously volatile, euphoric and sad feelings alternate at lightning speed. By not looking at the price and having your eyes on the long term, you put these feelings to rest.

Besides that, it is a very simple method, which can be used by both beginners and advanced investors. You don’t need a lot of knowledge or time to apply DCA. The fact that it is possible to automatically execute the DCA through various exchanges makes this method both technically and mentally easy.

When should you stop dollar-cost averaging?

It may sound strange, but actually, you should never stop dollar-cost averaging. This method is often used when investing in crypto, but you can also use DCA when selling your assets. The strategy remains largely the same only the difference is that you press the sell button instead of the buy button.

If you want to use the DCA method to build up a pension, for example, then you can actually continue using this method until you retire. Whether you’re doing dollar-cost averaging for retirement or for a shorter term, always make sure you have your plan well worked out in advance before you start investing.

Is dollar-cost averaging safe?

Dollar-cost averaging is a relatively safe way to invest, but there are always aspects to watch out for. In any case, this way of investing suits long-term investors. As the market evolves from time to time, however, this strategy may not prove productive in the long run.

Despite the fact that you invest in a relatively safe way with dollar-cost averaging, you still have no guarantee of a positive return. That’s why you should always keep in mind that you can also lose your investment and never invest with money you can’t afford to lose.

Indian blockchain firm 5ire secures $100M to fund sustainability-focused project

An Indian development firm looks to create a bridge between sustainability and blockchain technology with a proprietary layer-1 protocol incentivizing the use of UN sustainable development goals.

An ambitious sustainability-based blockchain project has secured $100 million in a Series A funding round to drive its development.

Indian entrepreneurs Pratik Gauri and Prateek Dwivedi have spearheaded the foundation of a fifth-generation blockchain network known as 5ire, which looks to incentivize the implementation of United Nations’ sustainable development goals (SDGs) for users of its system.

The project has now attracted a total of $121 million in investment. A seed round secured $21 million from notable tech investors including Alphabit, Marshland Capital, Launchpool Labs and Moonrock Capital.

A subsequent Series A fundraising round secured a $100 million investment from United Kingdom-based conglomerate SRAM & MRAM. 5ire intends to expand its business into Asia, North America and Europe in addition to its operations center in India.

5ire presents a novel use case for blockchain technology that looks to promote practices that are aligned with United Nations SDGs. Its 5ireChain network is described as a first-layer, sustainability-driven and fifth-generation blockchain.

5ireChain is operated by a unique “sustainable proof of stake consensus protocol,” which will rank node validators based on the number of sustainable and ESG practices they follow. As its white paper explains, nodes are assigned weights based on metrics which include their stake, reliability, randomized voting, sustainability score and previous nomination.

The firm told Cointelegraph that it will use its sizable capital investment to bankroll an aggressive growth strategy in order to implement its set of use cases and develop services for businesses looking to use 5ireChain-based solutions.

The company claims to employ more than 100 staff and expects to continue to grow rapidly as it scales up its offering in the tech development and venture capital space.

5ire hopes to weather the current slump in the cryptocurrency markets courtesy of its business model being a bridge between blockchain and sustainability. It intends to build use cases with stakeholders from governments, Fortune 500 companies and family offices

Solana price just one breakdown away from a 40% slide in June — here’s why

Network outages and decreasing smart contract reserves add further downside pressure to SOL price.

Solana (SOL) is nearing a decisive breakdown moment as it inches towards the apex of its prevailing “descending triangle” pattern.

SOL’s 40% price decline setup

Notably, SOL’s price has been consolidating inside a range defined by a falling trendline resistance and horizontal trendline support, which appears like a descending triangle—a trend continuation pattern.

Therefore, since SOL has been trending lower, down about 85% from its November 2021 peak of $267, its likelihood of breaking below the triangle range is higher.

As a rule of technical analysis, a breakdown move followed by the formation of a descending triangle could last until the price has fallen by as much as the triangle’s maximum height. This puts SOL’s bearish price target at $22.50 in June, down about 40% from June 10’s price.

*SOL/USD daily price chart featuring “descending triangle” breakdown setup. Source: TradingView*

But not all descending triangles lead to breakdowns, suggests a study conducted by Samurai Trading Academy. Notably, the likelihood of a descending triangle setup reaching its profit target is seven out of 10, based on the pattern’s history.

So that leaves SOL with a roughly 30% chance of avoiding a breakdown and rebounding.

Solana’s rebound scenario

Descending triangles that form during downtrends but still lead to price reversals typically mark the bottom of the asset’s bearish cycle.

Suppose SOL holds strong above the triangle’s horizontal trendline support. Then, the SOL/USD pair could break above the structure’s falling trendline resistance, and rise by as much as its maximum height, which puts its upside target around $65, up about 72% from June 10’s price.

*SOL/USD daily price chart featuring descending triangle reversal setup. Source: TradingView*

The descending triangle’s bullish profit target also coincides with SOL’s 50-day exponential moving average (50-day EMA; the red wave) near $59.

Meanwhile, SOL’s daily relative strength index (RSI), which has been reversing from its oversold threshold of 30 since May 12, also boosts the token’s upside prospects.

$SOL

Could go up, could go down vibes

great analysis bruh pic.twitter.com/q6VCBsTXJL

— Posty (@PostyXBT) June 10, 2022

Solana TVL drops 75% from peak

Meanwhile, Solana’s fundamentals are mixed.

As a blockchain network, it had performed poorly in recent months due to back-to-back outages. The total value locked (TVL) inside Solana’s smart contracts has crashed to $3.69 billion, down 75% from its December 2021’s record high of $14.83 billion, data from Defi Llama shows.

*Solana TVL performance history. Source: Defi Llama*

On the bright side, Solana experienced sustained growth in network usage, developer activity, network infrastructure and overall ecosystem in the first quarter of 2022, according to a study penned by James Trautman, a researcher at U.S.-based crypto analytics firm Messari.

An excerpt reads:

“Several factors contributed to the Q1 results, including the continued growth of new NFTs and NFT markets, diversification of TVL, improvements in UX and new applications across several sectors outside of DeFi.

On June 8, Solana’s venture capital arm launched a $100 million investment and grant fund to support its blockchain-based products in South Korea, a country whose crypto sector stands damaged by the recent collapse of Terra (originally LUNA, now, a $40 billion “algorithmic stablecoin” project.

The decision expects to attract developers that want to migrate their projects from Terra to Solana, which could lead to a higher demand for SOL.

3 reasons Ethereum price risks 25% downside in June

A mix of on-chain, fundamental and technical factors suggests more pain for Ether bulls ahead.

Ethereum’s native token Ether (ETH) has dropped more than half of its value in 2022 in dollar terms, while also losing value against Bitcoin (BTC) and now remains pinned below $2,000 for several reasons.

What’s more, ETH price could face even bigger losses in June due to another slew of factors, which will be discussed below.

Ethereum funds lose capital en masse

Investors have withdrawn $250 million out of Ethereum-based investment funds in 2022, according to CoinShares’ weekly market report published May 31.

The massive outflow appears in contrast to other coins. For instance, investors have poured $369 million into Bitcoin-based investment funds in 2022.

Meanwhile, Solana and Cardano, layer-one blockchain protocols competing with Ethereum, have attracted $104 million and $9 million, respectively.

*Flow into/from crypto funds (by assets). Source: CoinShares/Bloomberg*

The withdrawals from Ethereum funds are a sign of how the recent crash in TerraUSD (UST) and Terra (LUNA) — tokens within Terra’s algorithmic stablecoin ecosystem — has dampened interest in the overall decentralized finance (DeFi) sector.

ETH’s bullish prospects remain glued to anticipations of a boom in the DeFi market, because Ethereum’s blockchain host a majority of financial applications in the sector. As of June 5, the total valued locked (TVL) inside the Ethereum-based apps was $68.71 million, almost 65% of the total DeFi TVL.

*Ethereum TVL as of June 5. Source: DeFi Llama*

But, the TVL still reflects a massive retreat from Ethereum’s DeFi pools, which, before the collapse of Luna Classic (LUNC) and TerraUSD Classic (USTC) on May 9, was hovering around $100 billion.

With macro risks led by the Federal Reserve’s hawkish policies, coupled with a cautious outlook around the DeFi sector, Ether looks poised to continue its decline in June, according to Ilan Solot, a partner at Tagus Capital.

He told the Financial Times:

“If the Federal Reserve is tightening, the world is in recession, and people need to pay $4.5 per gallon of gas, they’ll have less to invest in DeFi or spend on blockchain games.”

Sluggish technicals

Trading behavior witnessed since May also paints a bearish outlook for Ethereum.

In detail, Ether has been fluctuating inside a range defined by a horizontal trendline support and a falling trendline resistance. The pattern looks more or less like a “descending triangle,” a bearish continuation pattern when formed during a downtrend.

As a rule of technical analysis, descending triangles resolve after the price breaks decisively below their support trendline and then falls by as much as the triangle’s maximum height. Ether risks undergoing a similar downside move in June, as shown in the chart below.

*ETH/USD daily price chart featuring ‘descending triangle’ setup. Source: TradingView*

If ETH’s price breaks below the triangle’s lower trendline, it risks falling toward $1,350 in June, down about 25% from today’s price.

ETH reserves on exchanges are increasing

The total number of Ether balances at crypto exchanges globally has increased by 550,459 ETH since May, data from CryptoQuant shows.

That amounts to almost $950 million worth of inflows into the exchanges’ hot wallets since the beginning of the Terra debacle.

*Ethereum exchange reserves. Source: CryptoQuant*

Typically, traders send tokens to exchanges when they want to trade them for other assets. Thus, selling pressure would likely increase if the downtrend in ETH reserves on exchanges begins to reverse.