However, it will be too early to conclude if the downtrend in the digital token market is over.
Barring Tron, a decentralized blockchain, all crypto tokens were trading sharply higher on Tuesday. Cardano zoomed more than 14 per cent, whereas Ethereum rose 6 per cent. Bitcoin, Avalanche and XRP gained 5 per cent each.
The global cryptocurrency market cap was trading higher at the $1.32 trillion mark, jumping as much as 5 per cent in the last 24 hours. However, the total cryptocurrency trading volume zoomed over 65 per cent to $91.07 billion.
What’s cooking in India
The Centre is planning a fresh consultation paper on cryptocurrency soon, though a law on the digital assets is likely to take more time, secretary of economic affairs Ajay Seth has said.
Speaking about cryptocurrency, Seth on Monday told reporters, “Our consultation paper is fairly ready. We have gone into a deep dive into this.” He did not mention when it is likely to be put out. Sources said that it can be expected in August.
Expert’s take
Bitcoin broke its consolidation by trading above $31,000 in the past 24 hours. Bitcoin revived a bit after a long bearish trend, said Edul Patel, CEO and Co-founder of Mudrex.
“On the other hand, Ethereum’s transaction fees are at one-year low, which might help regain its price. The selling price decreases a bit as buyers return to the market,” he added.
The recent selling pressure has eased up and Bitcoin has topped the $31,000 mark with volume almost doubling in the last 24 hours. This shows the renewed interest in the digital asset market, said Kunal Jagdale, Founder, BitsAir Exchange.
“The token was merely short of $32,000 levels and if this level is sustained, $35,000 is the next major resistance for the largest token. Apparently, we have bottomed out for the time being and may make a short recovery in the meantime.”
Global updates
- As motorists complain about gas fees being too (expletive deleted) high, crypto traders are dealing with the opposite: Ethereum’s gas fees are at a record low, Sam Reynolds reports.
- DeFi application Mirror Protocol, which is built on Terra, is allegedly suffering another exploit, according to pseudonymous ‘Mirroruser’ who posted on the Terra Research Forum May 28, 2022.
Tech View by Giottus Crypto Exchange
AAVE is the native and governance token of the Aave platform. It is a decentralized protocol used for lending and borrowing cryptocurrencies. Lenders can earn interest on their crypto holdings by depositing them in specially created liquidity pools while borrowers can use their crypto as collateral to get a flash loan from these liquidity pools. AAVE is currently trading at $118 with an 18% daily gain though it is still 60% down from its 2022 high.
ET CONTRIBUTORSAAVE has been forming a falling wedge pattern lately, signaling an impending bullish momentum. The beginning of April saw AAVE reaching its April high of $259 and facing rejection simultaneously at a long-term trendline resistance to create lower lows through April and early May.
By mid-May, AAVE had lost 72% of its April high. However, AAVE successfully tested its long-term trendline support at $70. It has now broken above the trendline resistance and the falling wedge pattern to register an upward momentum overcoming the .236 Fibonacci retracement level of $110.
For AAVE to sustain its upward momentum, it would have to overcome the psychological resistance level of $120. The next key resistance will then be $140. In case of a possible downturn, AAVE will be testing support at $85 and $68.
Major Levels
Resistance: $120, $140
Support: $110, $85, $68
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
