Weekly Crypto Analysis: Top 7 Things to Know, LUNA 2.0, StepN & DOGE in Highlights

2022/05/30 10:27:14

Even as the global stock markets start to rise, the cryptocurrency markets remained flat on Monday, May 30. That's mostly due to the fact that fear among crypto investors did not abate after several days of choppy stock market sessions for a variety of reasons. Major crypto coins such as Bitcoin, Ethereum, and Solana did not see much growth but were mainly in the green at the time of writing this weekly outlook.

Over the past day, the global crypto market cap increased by 0.70% to $1.20 trillion. In contrast, total crypto market volume dropped 43.40% in the past 24 hours to $51.11 billion.

The total volume in DeFi was $4,67 billion, accounting for 9.13% of the total 24-hour volume in the crypto market. The total volume of all stable coins was $43.51 billion, accounting for 85.13% of the total 24-hour volume of the crypto market.

Let's go deeper and take a look at the most recent crypto market news and Bitcoin's technical outlook.

Crypto Market Overview

Bitcoin's dominance showed slight improvement, having surged from 44.5% last week to 45.95% today. The leading cryptocurrency pair, BTC/USDT, is trading at $30,161.48, while Ethereum, the second-largest cryptocurrency by market capitalization, has risen to $1,870.27, up 6.07% in the last 24 hours.

Bitcoin Gold (BTG), Ethereum Classic (ETC), and TRON (TRX) remained the top performers from the previous week. BTG increased by more than19% to trade at $23.35, while ETC increased by 16.72% in the last seven days, holding at $24.30. Finally, the TRON (TRX) increased by 7.86% to trade at $0.0833.

Cryptocurrency Market Heatmap | Source: Coin360

Last week's worst performers were Waves (WAVES), STEPN (GMT), and ApeCoin (APE). WAVES is down more than 21% to $4.58, GMT is down 18.02% to $1.14, and APE is down 17.73% in the last seven days.

The cryptocurrency market remains risk-off due to "extreme risk," as indicated by the Crypto Fear.

Top Altcoin Gainers and Losers

Top Altcoin Gainers:

➢ Bitcoin Gold (BTG) ➠ 19.63%

➢ Ethereum Classic (ETC) ➠ 16.72%

➢ TRON (TRX) ➠ 8.11%

Top Altcoin Losers:

➢ Waves (WAVES) ➠ 21.12%

➢ STEPN (GMT) ➠ 18.02%

➢ ApeCoin (APE) ➠ 17.73%

News Highlights

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

Terra Launches New Chain Airdropping LUNA 2.0 Coins

The new LUNA token is now trading after being airdropped to holders of LUNA classic (LUNC) and UST classic (USTC). There is currently a maximum supply of 1,000,000,000 LUNA coins, but the current number of tokens in circulation is unknown.

Terra 2.0 is an entirely new blockchain, not a fork of Terra 1.0. The Terra Ecosystem Revival Plan 2, based on the revival plan of Terra protocol founder and CEO Do Kwon, aims to create a new Terra chain that will not have an algorithmic stablecoin protocol and will cut ties with the UST stablecoin. Terra 2.0 will be the replacement for Terra 1.0. Nevertheless, the old chain (Terra 1.0) and its token (LUNC) will not simply vanish. They'll coexist.

Check out KuCoin's detailed article on What is Terra 2.0 and differences between LUNA 1.0 and 2.0.

Investors' Initial Response to LUNA 2.0

LUNA Classic(LUNC) and TerraClassicUST(USTC) holders received an airdrop of new LUNA 2.0 tokens based on two blockchain snapshots on Saturday, May 28, 2022. At 5 a.m. (ET), the crypto asset's first recorded value was $14.31 per unit, and it reached an all-time high (ATH) roughly 20 minutes later at $18.87 per LUNC. At 11:00 a.m. on Saturday, LUNA was trading for $4.20 per unit, a drop of more than 70%.

LUNA 2.0 Generates $230m in Trading Volume, Nearly 50% Comes From KuCoin

Shortly after, it began to fall and dropped all the way to around $4 before settling at $5.84, where it is now trading. It's worth noting that the price has varied dramatically across exchanges, which is primarily due to trading volume.

According to CoinMarketCap data, the cryptocurrency generated approximately $230 million in trading volume in the previous 24 hours, with KuCoin accounting for nearly half of that.

DOGE Rockets Amid Elon Musk Tweet, SpaceX Will Accept Doge Payments

Despite the market's risk-off sentiment, Elon Musk's tweet fueled optimism for the meme coin. DOGE rose during the weekend following Elon Musk's tweets confirming that SpaceX may soon accept the meme coin as a payment option for merchandise.

The billionaire tweeted Friday morning ET that SpaceX merchandise, his space exploration startup, will eventually be able to be purchased with dogecoin, just like Tesla merchandise. Musk's announcement in December that Tesla merchandise could be purchased with dogecoin boosted DOGE prices by up to 33%.

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

The DOGE/USD hit an intraday high of $0.08991, pushing prices to an 11-day high. DOGE is currently trading at $0.0853, close to its recent support level of $0.0830. The DOGE/USDT has crossed over the 50 EMA line on the 4-hour timeframe, and the fact that candles have been closing above $0.0830 support suggests a possible uptrend.

Dogecoin's immediate resistance stays at $0.0850, and a break above this exposes the meme coin towards $0.0900.

StepN “Move-to-Earn” to Block China Mainland Users

China's anti-crypto regulations reportedly forced the non-fungible token (NFT) game Stepn to exclude mainland users beginning July 15. Therefore, the "move-to-earn" game Stepn, based in Solana, will block users in mainland China. As a result, Stepn's in-game cryptocurrency GST dropped by 38% shortly after the announcement.

Stepn is an Australian company that provides a blockchain-powered fitness app that works by allowing users to purchase NFTs that are valid for a set period. During this time, the user can work out and get rewards in the form of the platform's own GST tokens.

According to Rong, the game, co-founded by Jerry Huang and Yawn Rong, has major markets in Japan and the United States, and it now employs about 60 people.

The company’s tweeted in English: "We apologise for the inconvenience and thank you for your understanding." STEPN has not engaged in any business in mainland China since its establishment and has not provided download channels. STEPN has always attached great importance to compliance obligations and always strictly abides by the relevant requirements of local regulatory agencies. "

A tweet says the company will start "checking and clearing out" mainland Chinese users on July 15 and will stop offering GPS and IP geolocation services.

Crypto Calendar: Events to Watch This Week

➺ 30/05/2022 - Blockchain Ireland Week

➺ 30/05/2022 - Block Reward Adjustment

➺ 31/05/2022 - RUNE Mainnet Release

➺ 02/06/2022 - Graph Day

Fear and Greed Index Signals “Extreme Fear”, Bears Dominate

The crypto market remains under pressure as the Fear and Greed Index's "extreme fear" signal keeps market sentiment risk-off.

Fear & Greed Index | Source: Alternative

According to the Weekly Crypto Analysis - May 23, extreme fear can indicate overly concerned investors and oversold cryptocurrency markets. Investors typically look for a buy entry at this point because the coins are already cheaper. Look for buying opportunities as the bulls are expected to enter soon.

Despite the fact that risk-off sentiment has subsided and the crypto market is in a bullish correction, the crypto fear and greed index indicates "extreme fear" among crypto traders. But if Bitcoin has a small correction that makes it go up, the "extreme fear" might change to "fear."

eBay Unveils its First NFT Collection

In May of last year, eBay began allowing the sale of NFTs to attract a new wave of creators, buyers, and sellers to its platform. A year later, the company announced that it would launch 13 limited-edition digital collectibles as its first-ever NFT collection in collaboration with Web3 platform OneOf. eBay's first collection features animated 3D renderings of NHL legend Wayne Gretzky as a digital action figure created by Sports Illustrated. The collectibles range from $10 for the essential green rarity to $1,500 for the diamond tier NFTs.

The Non Fungible Token collection was launched on the Ethereum sidechain Polygon, along with the previously mentioned partnership with the sports illustrated NFT platform OneOf.

Polygon networks are frequently the best option for non-fungible token and DeFi projects because Polygon, a layer-2 Ethereum scaling solution, is known for its high frequency and low-value transactions.

Although Polygon has many advantages, OneOf has been chastised for launching non-fungible tokens on the platform. According to reports, the Tezos blockchain was preferred. The entry of such prominent players as eBay into the crypto space boosts investor confidence and may help drive bullish movement in cryptocurrency prices.

LUNA 2.0 (LUNA/USDT) Analysis on KuCoin Chart

LUNA 2.0 is currently trading at $5.9, down from an all-time high of $11.85. LUNA/USDT has already completed a 61.8 percent Fibonacci retracement at $4.8 on the 2-hour timeframe. A drop below the $4.8 level could expose Terra LUNA to support levels of $3.5 and 2.90 (78.6 percent Fibo retracement).

On the 4-hour timeframe, the LUNA/USDT has a series of Doji and Spinning Top candles, indicating investor indecision. As a result, Terra's new coin is consolidating, particularly in a narrow range of $4.8 to $6.1.

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

On the upside, LUNA's immediate resistance remains at $6.15 and $7.50. A surge in LUNA demand has the potential to cut through the $7.5 resistance level, exposing the price to $9.13 and $11.80.

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