188
views

TA: What Do the Indicators Say About October’s Market Rally?

October is off to an impressive start for the crypto space. Coin prices are on a significant high, showing possible momentum.

However, this isn’t the first time that the market will start strong. Investors are skeptical about this rise, so they will want to check how the market performs.

The Chinese Saga Continues

The biggest story right now is the Chinese crackdown. This isn’t the first time that China will announce a crackdown on the crypto space, of course. Beijing first banned cryptocurrencies in 2017, causing a massive market downturn.

China’s second crackdown came in 2019. The government ordered that crypto exchanges and trading platforms should leave the country, causing another massive downturn. This year, China has hit crypto twice. The first happened around May when the government banned crypto mining.

But, the second came two weeks ago, when the government banned all crypto transactions. The ban caused another market downturn, especially with companies leaving China. Many expect that the fallout from the ban will last for a few more weeks. So, on the fundamental level, there is still a lot that will happen.

However, technical indicators show that the market looks to be recovering. Bitcoin saw a massive loss, as expected. The leading cryptocurrency dropped from $45,088 to $40,736, marking a drop of 9.6 percent.

Source: Trade View
Source: Trade View

But, the coin is back on the rise. Bitcoin currently trades at $49,920, marking a jump of 18.80 percent in the past week.

Trickling Down from Bitcoin

As expected, Bitcoin will be the one to lead any rally that happens. So, analysts and investors are currently watching its price to see possible gains. There is a lot at stake for the entire market right now, especially with many coins set to surge.

Cardano (ADA) is the first coin on the minds of many. The asset is holding a lot of potentials, with Cardano launching smart contracts in September. Before the intelligent contract launch, ADA had hit a record high. The asset even crossed the $3 mark for the first time, keeping many investors happy. But, nothing has materialized since.

ADA is currently doing pretty well. The coin’s price is $2.21, up 4.56 percent in the past week. Its price is trading over most of its short-term moving average (MA) indicators. But, as expected, its long-term hands are well below its cost.

With a relative strength index (RSI) of 48, ADA is still underbought. This means that there are still several opportunities for the coin to grow. By extension, investors have a lot of options to buy the currency as well.

Source: Trade View
Source: Trade View

Solana Rising

Moving on, investors will also be excited about SOL. Like ADA, SOL’s growth has significant connections to the Solana blockchain. Solana is one of the popular blockchains this year. Also, it owes its success to several services that developers built on it.

FTX, an exchange built on Solana, is one of the most popular in the world. Several projects on the blockchain also raised millions in funding last month. As these projects will be looking to grow, so will Solana. This means SOL itself has significant potential to grow as well.

SOL currently trades at $167.99 – up 24.71 percent in the past week. Unlike ADA, SOL is trading above all of its MA indicators. So, the coin is in a much better position to grow than ADA. Keep in mind that SOL hit $216 last month while other currencies dropped.

Source: Trade View
Source: Trade View

SOL holds an RSI of 62.31. This is much higher than ADA, meaning that SOL is in greater demand. But, of course, this isn’t high enough for a large-cap coin. So, it shouldn’t dissuade you from buying the currency.

The Prospect of Regulation Looms

As the indicator analysis shows, everything seems pretty good for the crypto space at the moment. However, this isn’t to say that problems can’t emerge. For now, the biggest issue that the industry could face is that of regulation.

We already saw the impact of China’s decision. However, cryptocurrency investors are still very picky, and many of them remember the downturn. This means they will turn on the industry as soon as they see or hear any bad news.

So far, things are a bit mixed. Federal Reserve Chairman Jerome Powell said last week that he doesn’t plan to ban crypto. But, a proposal from the Biden administration could be problematic for stablecoin issuers.

The Wall Street Journal reported last week that the Biden administration wants to put stricter controls on stablecoins. One channel will be to introduce a license and charter for stablecoin issuers. If this happens, it could be more difficult for these companies to operate freely. For now, it is unclear if the proposal will pass. So, analysts will continue to watch out for developments.

Another issue is the growing demand for crypto exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) has yet to approve any ETFs for years. But, now, countries like Canada and Germany are approving ETFs. Mike McGlone, a strategist at Bloomberg, reported that ETF approval could come this month. If that happens, it will be a significant boost to the crypto industry.

Drawing Conclusions

Things look suitable for the crypto industry right now. It might not yet be at pre-May levels, but the market is strong.

Bitcoin live price
Btc
Bitcoin
$29.427
price
3.0373%
price change
BUY NOW

A potential rally in Bitcoin’s price will push even other coins higher. But, right now, participants in the industry need to sit tight.

Stay up to date with our latest articles

More posts

Crypto Now a Popular Investment Option for European Families

More than 50% of European families have some investment in digital currency.   The average European family sees crypto as a viable investment and savings option. This was discovered in several recent surveys conducted over different demographic areas. Despite the volatility of the crypto space, as recent events highlight, it has seen a continuous rise in new investors. More people are committing to crypto investments and many of them are taking steps to buy into the growing market.  The flurry…

New MicroStrategy CFO Remains Committed to Bitcoin HODL Plan

MicroStrategy still doesn’t plan to sell its Bitcoin, according to the company’s new Chief Financial Officer Andrew Kang. The recent bear market, which has brought Bitcoin’s value below the company’s average purchase price, hasn’t shaken the organization’s faith. “At this time, we do not have any intention to sell,” said the CFO, after joining the company on May 9th hailing from GreenSky. “There are no scenarios that I’m aware [in which] we would sell.” Shareholders also remain confident and reportedly…

CFTC Chief Backs Regulatory Incentives to Make Bitcoin Proof of Stake

Rostin Behnam – chairman of the Commodities and Futures Trading Commission – is displeased with Bitcoin’s current levels of energy consumption. He believes regulators should establish incentives to push the network towards a proof of stake (POS) consensus model. Not Worth the Energy, says Benham Speaking at POLITICO’s Sustainability Summit, Benham claimed that Bitcoin’s energy consumption doesn’t match its economic output. “That may rebalance over time, but right now it’s clearly skewed,” he said. Most of Bitcoin’s energy consumption is…

Terra Collapse Causes G7 to Hasten Crypto-Centric Regulations

Earlier this week, ministers from the world's top economies, the G7, called for greater speed as financial watchdogs introduce comprehensive crypto regulation. This comes shortly after Terra's demise saw several crypto users suffer considerable losses in the space of a week. G7 Contacts FSB to Hurry Things Up The stablecoin failed to maintain its dollar peg and crashed as low as $0.07, with sister token LUNA not far behind. This created a ripple effect as general market anxiety destabilized even…

Andreessen Horowitz Unveils 2022 State of Crypto Report

The Silicon Valley venture capital firm Andreessen Horowitz (a16z) released a report on Tuesday covering the current state of crypto adoption. It highlights Ethereum as the leading blockchain network for developer support but contains very little mention of Bitcoin’s growth. The Potential of Web 3 The VC firm broke boiled down its report into five key takeaways about the current state of crypto. It began by suggesting that the industry is in the middle of its fourth ‘price innovation’ cycle.…

BinaryX Unveils CyberArena: A New Play-To-Earn (P2E) Experience

BinaryX developed and released CyberArena, a free-to-play, play-to-earn strategic card game. Gamers may compete to earn rewards while enjoying and experiencing a no-cost game in a new decentralized environment. The team has recently shared an AMA recap on its Medium page. The session gave the public the chance to learn more about CyberArena and the team’s plans. Getting to Know CyberArena CyberArena is a key addition to the BinaryX ecosystem. Being a free-to-play game with substantial prizes, it is a…

FBI Warns US Businesses Against Inadvertently Hiring North Korean Hackers

The US Federal Bureau of Investigation (FBI) has cautioned businesses against accidentally hiring IT employees from North Korea. In an advisory note, the state and treasury departments and the FBI warned that North Korean hackers are posing as freelancers. In doing so, they take advantage of remote work opportunities to earn money for Pyongyang. According to the FBI, the country’s hackers have been using this approach to evade US and UN sanctions. Reportedly, North Korea has used the funds from…

Terraform Labs’ Legal Team Steps Down Following LUNA Crisis

The legal department of Terraform Labs is in shambles following the resignation of key team members. While there are no clear reasons yet behind the slew of resignations, this hasn’t stopped speculations that Terra’s lawyers might have ditched the struggling ship because of financial constraints. Legal Team Abandons Ship According to a spokesperson affiliated with the developers, three attorneys have now left Terra's holding firm. This unfolds about one week after the catastrophic collapse of Terra's stablecoin, UST, and its…

Nansen Procures DeFi Tracker Apeboard in Eight-Figure Deal

Nansen will offer Web3's analytics super-app for free.   Nansen has acquired the cross-chain DeFi tracker, Apeboard, at an 8-figure price, according to an announcement this Tuesday.  Alex Svanevik, CEO of Nansen, shared this information in a speech he made at the Permissionless conference held in Palm Beach. According to him, the inspiration behind the move was the inconvenience web3 users face in tracking their investments across multiple chains. As of writing, Nansen is yet to reveal the official takeover…

Bitcoin Fear and Greed Index Hits Lowest Level Since Covid Crash

The Bitcoin/ Crypto Fear and Greed Index today shows the most bearish crypto market sentiment since March 2020. The index started showing “extreme fear” across the market last week. Bitcoin collapsed below $30,000 for the first time since July, while the UST stablecoin fell apart. Today, the index reflects a single-digit score of only 8. That’s the lowest number since March 28th, 2020, when it collapsed to the same level due to covid lockdown fears. By contrast, March 28th, 2022…