Cardano rises: so many reasons for growth
Cardano rises: so many reasons for growth
Trading

Cardano rises: so many reasons for growth

By Federico Izzi - 2 Jul 2020

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Today, among the big names, stands out the strong rise of Cardano (ADA), which climbs +13%. 

This price increase is due to the Shelley upgrade that was announced at the end of May and is now underway. 

The aim of the project is to make the Cardano network more decentralized and efficient as stated by the CEO of IOHK, Charles Hoskinson.

ADA 20200702

This brings Cardano to rise above $0.095, the highest level since June 2019. 

Cardano climbs even higher in the rankings, gaining two positions in one fell swoop and reaching 9th among the most capitalized. Crypto.com (CRO) gets overtaken and Eos (EOS) drops to 11th position.

ADA is one step away from the 8th position of Binance Coin (BNB), with a difference of just under $30 million, even though BNB is rising by 3%.

The best performances of the day belong to the DeFi universe: Synthetix (SNX), +23% and Kyber Network (KNC), +20%.

Very well also Bancor (BNT) and Aave (LEND), +13% both. 

In the same sector Compound (COMP) today slips by 10% and is among the worst of the day. With today’s decline, COMP moves below the lows of June 24th and continues the phase of extreme volatility. Compound is back below $190, a loss of more than 50% from the June 21st highs.

Compound remains overwhelmed by speculation. Despite the bearish movement, it continues to maintain the leadership of locked assets in DeFi. Its dominance drops below 35%. Nevertheless, DeFi is setting new historical records for locked funds in various projects exceeding $1.7 billion for the first time.

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Source: COIN360.com

Globally, volumes remain low, with volumes trading just over $50 billion in the last 24 hours, up 10% from yesterday’s lows.

Bitcoin’s trading volumes remain just over a billion dollars for the third consecutive day. This is a condition that has not been recorded since last February. 

Overall, the market cap remains above $263 billion with Bitcoin dominance just below 65%. Ethereum is slightly down to 9.7%. Ripple remains below 3%. 

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Bitcoin chart by Tradingview

Bitcoin (BTC)

In the last few hours, Bitcoin recorded a slight increase, bringing the prices back above 9,200 dollars, a step from 9,300, a level that it had abandoned last Friday. 

Bitcoin’s fluctuations continue to decrease monthly volatility on an annual basis, falling below 51%, the lowest level since last March. Intrinsic monthly volatility drops to its lowest level since April 2019. 

This shows that the current situation has been characterized by a lack of direction for more than a month. Bitcoin has been fluctuating within a range between $8,900 and $10,000 since the end of May. 

A context that in recent hours also sees an increase in defensive positions on options, which see an increase in put positions hedging against possible falls, positions open even in the $9,100 area. 

This leads to a slight decrease in call positions, which remain stable with hedges starting from $9,550, although the largest positions are in the $9,700-10,000 area.

These are technical levels to be monitored in case of a break-up both upward and downward, which would lead to increased volatility.

ETH 20200702
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum remains stable at levels above $225. In these last hours, it regained the $230, trying to recover the technical threshold of $235, which coincides with the dynamic bullish trend line abandoned with last Friday’s decline. 

For ETH too, in a phase of uncertainty, the coverage on the $215-220 support increases. 

The analysis of the options on Ethereum shows an increase in the downward hedging and a decrease in the upward hedging that in these hours rise between $245 and $250. 

Even if in strong contraction, the professional investors on Ethereum prefer to protect themselves more against a possible downward movement rather than upwards. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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