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The short-lived rally that was kicked off on Wednesday has, once again, failed to sustain itself. As of the time of writing, the broader crypto market has faded back to the same point as it started out with at the beginning of the week. This pattern is becoming a little too familiar — a period of sideways consolidation followed by a brief short-squeeze, leading to an equally short-lived rally that will eventually fade away to cause a full-fledged price retracement back to where it was before the pump. On Friday morning (Asian trading hours), BTC's decline was accelerated after it fell below the $40k psychological level, and the largest crypto by market cap is now (as of the time of writing) trading below the $39k level after plunging by 7% within the last 24 hours. If BTC is unable to clear the overhead resistance zone near the $39.5k level, it will likely move down further to test the major support levels at the $38k and $37.1k marks respectively.
In a similar vein, ETH has dropped by 5% from 24 hours ago, whilst most major altcoins are also now submerged in a sea of red. This is with the exception of LUNA though, as Terra's native token just doesn't seem to want to get off the market-defying ride it has been on for the past two weeks. In fact, it even managed to print a fresh all-time high price on Friday afternoon (Asian trading hours) in spite of all the extant market turmoil. When we view LUNA's breakout in tandem with several other fundamental catalysts, its bullish price movements are likely to be here to stay in the foreseeable future. Finally, and in turning our attentions back to BTC, the BTC accumulation trend score, a new on-chain metric that tracks the movements of the larger players, reveals that BTC HODL-ers who are less sensitive to price swings are actually still accumulating in the current market, and are once again having their conviction in BTC tested amid all the macroeconomic and geopolitical uncertainties.
The parabolic rise of low-cost scalable Layer 1s in 2021 was a great prelude to the rising trend of multi-chain ecosystems that came about at the start of this year, with Avalanche the latest project to hop onto the multi-chain bandwagon. The Avalanche team recently announced a new initiative, aptly dubbed the Avalanche Multiverse, that involves the launch of a $290 million fund that is directed at accelerating the development of "subnets" within the Avalanche network. This move is likely inspired by the successes of Cosmos' IBC ecosystem as well as Polkadot's parachain architecture, and is intended to foster the development of application-specific subnet blockchains within the Avalanche network that will span the decentralized finance (DeFi), game finance (GameFi), and non-fungible token (NFT) sectors.