In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet .…
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.
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.
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.
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.
Things look suitable for the crypto industry right now. It might not yet be at pre-May levels, but the market is strong.
A potential rally in Bitcoin’s price will push even other coins higher. But, right now, participants in the industry need to sit tight.