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The whales are abandoning this Altcoin! What awaits cryptocurrencies? ›CoinTurk

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Cryptocurrencies turned red again today after the rejection of the Spot Bitcoin ETF which arrived overnight. However, some altcoins are going through a more difficult time. In the warning we made earlier this week, we hinted that Powell’s speech, core inflation data, and ETF decisions could lead to sharp declines in cryptocurrencies.

What awaits cryptocurrencies?

In fact, it happened. Last night we announced that 2 ETFs will be rejected by the SEC with a report based on Bloomberg sources. Just 6 hours after this early announcement, the SEC delayed decisions and announced that it did not approve the applications. Again, as expected, Grayscale preferred the court case over the SEC decision. But this can in itself be a problem for cryptocurrencies.

Grayscale’s lawsuit is expected to close within 12-18 months (12 months optimistic estimate). But the SEC likely won’t approve any more ETF applications while the case is pending. In other words, it should act as a major catalyst for Bitcoin’s rise. Spot Bitcoin ETF approval will be at the latest after 12 months. During this time, we are likely to see further drops in Bitcoin and altcoins. We have shared some details on cryptocurrencies that can survive bear markets for a long time. These days, investors need to reconsider this information and choose the right altcoins to invest in for a long time. Because many altcoins will not survive the next bullish season.

vomiting (KSM)

The native cryptocurrency of the Kusama network KSMhas been trading in a descending wedge pattern since the second half of 2021. KSM has been in a general downtrend since November 2021. It began its biggest sell by jumping off the descending resistance line on November 8th. The price tested the same resistance line again on April 20 before the bears could resume their dominance. After remaining just above the support line between May 11 and June 10, it expressed weakness in support before collapsing. The relatively stable performance of KSM was realized despite the significant backlog reported by MFI. The RSI also failed to break above the 50 level. The limited price action reflects the lack of investor confidence and the prevailing market uncertainty.

Despite KSM’s current stalemate, a recent update from Kusama’s team has provided some insight into what they are working on. Update, by Kusama Kusamaversea place where developers can freely interact and build with each other. metaverse developed as an infrastructure. While this is good news for Kusama’s future, the developer activity metric shows that activity has declined since mid-June.

Declining developer activity metrics may have contributed to investor distrust and thus reduced trading volume. This observation is also supported by the fact that whales are reducing their KSM presence. The supply held by whales fell 44.16% to its lowest monthly level through June 29.

There is significant potential for Kusamaverse to contribute to increasing demand for KSM in the future. However, the cryptocurrency’s price action is still heavily impacted by the overall market sentiment. This means that the likelihood of KSM taking a significant upside currently depends on the overall recovery in the cryptocurrency market.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk and should execute their transactions in line with their own research.

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