Weekly Crypto Analysis: Fear and Greed Index Signals Extreme Fear, Bulls Brace to Buy Cheaper Coins

2022/04/18 13:14:00

The global cryptocurrency market capitalization slipped by 0.70% in the past 24 hours to $1.87 trillion, while trading volumes decreased 19.75% to $64.53 billion. The overall volume in DeFi is currently $5.26 billion, accounting for 10.60% of the entire 24-hour volume in the crypto market.

The overall volume of all stable coins is now $39.87 billion, accounting for 80.36% of the total 24-hour volume of the crypto market.

Decred (DCR) and Audius (AUDIO), which increased by more than 20%, were two major contributors to the gains. So let's take a quick look at the latest crypto market news and the technical outlook of Decred and Audius.

Crypto Market Overview

Bitcoin dominance is now 40.95%, down from 42.5% last week. The largest cryptocurrency in the market was trading at $38,955.59, while Ethereum, the second-largest cryptocurrency by market capitalization, has plunged by 11.7% in the last seven days. On Monday, it was trading at $2,919.17, a 4.05% decrease in 24 hours.

Decred (DCR), Audius (AUDIO), and Compound (COMP), on the other hand, remained the top performers from the previous week. DCR increased by more than 27% to trade at $73.72, while AUDIO increased by 22.78% in the last seven days to $1.35. COMP, on the other hand, rose 6.90% to $138.80.

Cryptocurrency Market Heatmap | Source: Coin360

While Convex Finance (CVX) maintained its bearish momentum, losing 25.19% to $25.55 in the last seven days. The trading sentiment in the crypto market is slightly negative, and digital assets struggle to rise. As a result, we have a decent chance to take our positions, especially since the markets are in the oversold zone.

Top Altcoin Gainers and Losers

Top Altcoin Gainers:

➢ Decred (DCR) ➠ 27.05%

➢ Audius (AUDIO) ➠ 22.78%

➢ Compound (COMP) ➠ 6.90%

Top Altcoin Losers:

➢ Convex Finance (CVX) ➠ 25.19%

➢ Mina (MINA) ➠ 22.49%

➢ Anchor Protocol (ANC) ➠ 19.74%

News Highlights

Here are some of the events that made the previous week's crypto news section stand out:

Elon Musk No Longer Twitter’s Largest Shareholder

Elon Musk has been in the news again, this time for his proposal to buy Twitter. Considering the recent publicly available filings with the US SEC, American registered investment advisor Vanguard Group disclosed on April 8 that it now owns 82.4 million shares of Twitter, or 10.3% of the company. This means that Tesla CEO Elon Musk, who offered to buy Twitter for $43 billion in cash at $54.20 per share, is no longer the company's largest shareholder.

Musk stated in his proposal filing to US authorities, "My offer is my best and final offer, and if it is not accepted, I would need to reconsider my position as a shareholder."

Last week, he disclosed the purchase of 73.5 million shares — or 9.2% — of Twitter's common stock, triggering a chain of events that included his refusal to join the company's board. Musk reiterated his previous statements that the goal of his bid was to promote free speech on Twitter in his remarks on Thursday.

"This is not a way to make money," he stated emphatically.

The news event has remained in the spotlight as Elon Musk's Twitter play is expected to be a way to make the platform more crypto and Web3 friendly.

Crypto and Blockchain Firms Constitute 16% of UAE Q1 Company Registrations

According to the Dubai Multi Commodities Centre (DMCC), crypto and blockchain firms accounted for 16% of the 655 new company registrations recorded in the first quarter of 2022. The increase in crypto-related registrations also coincided with a quarterly period in which the DMCC is said to have achieved its "best Q1 performance" since its inception.

The presence of the DMCC Crypto Centre, which was launched in May 2021, has been attributed by the DMCC to the increase in crypto and blockchain companies joining the free zone.

According to the statement from DMCC CEO, Chinese company formations in Dubai increased by 34%. The DMCC attributes this expansion to its "significant Mandarin engagement programs that run across the country throughout the year and its representative office in Shenzhen."

Because of DMCC's targeted outreach programs in markets such as Israel and Turkey, quarterly company registrations from these countries increased by 350% and 100%. In addition, DMCC has received increased interest from trading hubs such as Indonesia and Vietnam. As a result, increased interest in Crypto and Blockchain drives optimism in the cryptocurrency industry and may support crypto prices.

SEC Lawsuit Over XRP “Has Gone Exceedingly Well,” XRP Supported

During a fireside discussion at the Paris Blockchain Week Summit on Thursday, Ripple CEO Brad Garlinghouse debated the SEC lawsuit over the sale of XRP.

In December 2020, the Securities and Exchange Commission filed a lawsuit against Ripple, Garlinghouse, and co-founder Chris Larsen for selling XRP in an unregistered security offering, according to the securities watchdog. Ripple has argued that XRP is not a security and has challenged the SEC's findings.

Garlinghouse revealed: The lawsuit had gone extremely well, far better than I could have hoped for when it first began about 15 months ago. However, he observed that "the wheels of justice turn slowly." Garlinghouse stated in November of last year that he expects the lawsuit to be resolved this year. "Despite a slow-moving judicial process," he said, "we're seeing pretty good progress."

As a result, XRP/USDT gained some support; however, the cryptomarket's selling bias weighs on Ripple.

Three African Prepares to Adopt Cryptocurrency

Three African countries, namely Cameroon, the Democratic Republic of the Congo (DRC), and the Republic of the Congo, are considering implementing cryptocurrency and blockchain solutions powered by The Open Network (TON). Cameroon is also considering issuing a stable national coin based on the same blockchain network.

According to a statement released by The Open Network (TON), the Democratic Republic of the Congo (DRC) is considering issuing a stable national coin built on blockchain. Furthermore, the DRC, Cameroon, and the Republic of Congo intend to use the TON to power cryptocurrency and blockchain-based solutions.

According to TON's statement, the announcement of the blockchain entity's plan to deliver these solutions follows successful engagements with each of the three countries. According to the statement, the three countries' adoption of TON's crypto and blockchain solutions will be phased. The increased adoption of cryptocurrencies on the governmental level underpins the cryptocurrencies and drives positive sentiment in the crypto market.

Cryptocurrencies Under Pressure - Fear and Greed Index Signals Extreme Fear

The Crypto fear and greed index analyzes emotions and sentiments from various sources and condense them into a single number. The Fear & Greed Index for Bitcoin and other major cryptocurrencies is calculated daily. The crypto market sentiment shows a score of 24, indicating a bearish sentiment across the investors.

Fear & Greed Index | Source: Alternative

On Monday, the fear and greed index shifted from Fear to Extreme Fear, indicating a bearish bias among cryptocurrency traders. According to the index, extreme fear can indicate that investors are overly concerned. Buyers typically wait for the market to signal extreme fear, as this is when they can go long on cheaper coins. That could be an excellent time to buy.

Decred (DCR/USDT) Analysis on KuCoin Chart

Decred's current price is $68.10, with a 24-hour trading volume of $68,275,430. Decred has increased by over 20% in the last 24 hours. On the daily timeframe, the DCR/USDT surged sharply to break above the downward trendline resistance area of $67.

The spike in Decred coin led its price towards the $85.50 level; however, the gain in DCR was short-lived. However, the RSI and MACD are both in the buying zone, confirming the upward correction.

DCR/USDT Chart on the Daily Timeframe | Source: KuCoin

The DCR/USDT is likely to face resistance at $72.44 and $85.58. On the other hand, support is found between $56 and $49.30.

Audius (AUDIO/USDT) Analysis on KuCoin Chart

The current price of Audius is $1.30, with a 24-hour trading volume of $145,238,831. Audius has increased by 2.61% in the last 24 hours. CoinMarketCap currently ranks #93, with a live market cap of $807,166,382.

On the technical front, the AUDIO/USDT faces strong resistance near the $1.45 level. The formation of the "Three White Soldiers" pattern indicates an uptrend. The surge in the buying trend has the potential to cut through the significant resistance level of $1.45. On the upside, the coin's next resistance level remains at $1.79.

AUDIO/USDT Chart on the Daily Timeframe | Source: KuCoin

On the downside, the upward trendline provides support at $1.10, and the next support level remains at $0.9900. Because the RSI value is greater than 50 and the MACD histogram is less than 0, the RSI and MACD are neutral. Thus, choppy sessions can be seen in the AUDIO. Good luck, fellas. Stay tuned for exciting updates!

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