🧘♂️ALERT: 3 Important Cryptos
Market Meditations | April 4, 2022
It’s been a rollercoaster weekend. With major cryptos going up, down and around. Let’s take a closer look.
- BTC, AAVE and SOL Technical Analysis
- The Latest Crypto Hack
- Mining Updates
- Our Crypto Calendar of the Week
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⏰ Top Headlines
- Twitter shares jump as Elon Musk takes 9.2% stake in social media giant
- Monetized Memes: Dank Bank Raises $4.2M
- Crypto hardware wallet Trezor issues warning about newsletter phishing attack
- Ledger partners with The Sandbox to promote crypto education in metaverse
☀️ AAVing a Good Time
Macro Structure: For our bullish bias we want $45k to hold. Key level. Just claimed 100 Day Moving Average.
Key Support: Back to bearish below $42k or 100 Day Moving Average.
Looking Forward: As long as $45k holds, a $50k test seems likely.
Macro Structure: Previously had a reversal from a low, claiming the key $200 level. Only to fail at $300 resistance. Now, we are seeing the same thing.
Key Support: $200 in line with the 0.382. The key level to hold.
Key Resistance: $300.
Looking Forward: If BTC goes to test $50k, we may see AAVE move to test $300. A reversal here, however, would be just a continuation of the downtrend and a failure to stay about the $200 psychological level.
Macro Structure: Last time we looked at SOL, we highlighted $90 as key support with a test of $70 not being out of the question. $90 has held and we have claimed a key level at $120 which marks a reasonably big structural shift.
Key Support: $120 in line with the 100 Day Moving Average.
Key Resistance: Testing resistance right now at $140. Key resistance at $150.
Looking Forward: If we claim $150, there is not much resistance to $200. A test of $150 does seem likely (invalidation at $120).
❌ $15.6 Million Worth Of Crypto Stolen
You may recall that just last Tuesday the Ronin network announced a loss of more than $125 million last Tuesday. Two days later, Ola Finance said they were exploited for $3.6 million. And less than 2 days later, the Ethereum-based lending protocol Inverse Finance said that they were exploited for $15.6 million.
How did it happen this time?
- According to Inverse, the attacker artificially manipulated token prices to borrow loans against extremely low collateral.
- The attacker used roughly 901 ETH (about $3 million) from Tornado Cash in order to pull off the attack and be able to raise the price of the tokens.
- The attacker tricked the price oracle used to track token prices into thinking the price of Inverse’s tokens was much higher.
- The attacker walked away with 1,588 ETH, 94 WBTC, 39 YFI, and 3,99,669 DOLA. They have also cycled the funds through Tornado Cash making it hard to know where the funds will end up.
- Inverse is temporarily pausing all borrowing on Anchor while they work on a new INV oracle (used to track price).
There are many DeFi protocols that have been getting exploited but this was a different tactic than we have seen. Inverse announced plans to propose a DAO to “ensure all wallets impacted by the price manipulation are repaid 100%.” Remember that we should always take this kind of risk into account when making an investment.
⛏️ A Miner Inconvenience
March was good to miners. With Bitcoin and Ethereum still fuelling proof-of-work processing, mining is still a profitable profession. But with Ethereum’s Beacon Chain merge on the horizon, miners may be looking to prove they’re willing to work in other areas soon enough.
- Ethereum miners generated more revenue than Bitcoin miners last month. March also marked the second month in a row with positive growth since a downtrend which began in November of last year.
- Ethereum’s days as a proof-of-work bockchain are numbered, however. “The Merge” is set to take place in Q2 of this year.
- The Merge will see the current Ethereum Mainnet merge into the Beacon Chain proof-of-stake system. This will mark the end of proof-of-work for Ethereum, leaving miners high and dry.
- Ethereum’s Beacon Chain shipped December 1, 2020, parallel to Mainnet. Mainnet still runs on proof-of-work and continues to be what users access when using the Ethereum network. When the merge takes place, and Mainnet merges into Beacon, all business conducted on Ethereum will be executed on a proof-of-stake consensus algorithm.
Anticipation is high to see how the mining industry handles such a change while investors hold their breath in hopes of cheaper gas and faster transaction times.
Monday, 4 April
- ? Celo Connect
Barcelona will play host to the Celo Foundation 4-5 April with a roster of speakers from a16z, Paradigm, Sommelier Protocol and more. Tackling topics of global finance and web3 are featured events on the agenda.
Tuesday, 5 April
- ? Solana Miami
The Solana Foundation will take over Miami from 5-10 April A community of developers, NFT gallery, and the Miami Hacker house will all be present this week in Florida.
- ? Kava Ethereum Launches
The Kava network will be launching an incentivised public testnet to stress-test the Ethereum Co-Chain. Following this, Kava will release the public beta of the ETH bridge to enable bridging of ERC-20 tokens and ERC-115 assets.
Wednesday, 6 April
- ? Bitcoin 2022
The Bitcoin 2022 conference begins in Miami, Florida. Running from 6-9 April, the most famous crypto conference of the year will feature a large roster of influencers, advisors, entrepreneurs and technologists to discuss emerging topics.
Thursday, 7 April
- ⚡ Subme AMA
Subme’s biweekly AMA series will continue in their Telegram group. Subme is an all-in-one subscription management app focusing on the subscription economy.
Friday, 8 April
- ? Algo Talks
A networking brunch event held in Miami, Algorand ecosystem founders will give quick pitches on their projects. Guests include speakers from Folks Finance, Nimble, Prismatic, Koibanx, and Futbol Eterno.
- Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
- Read the following Technical Analysis guides for more insight:
The end of March marked the end of Q1 2022.
What were the major happenings from January to March that you need to be aware of?
Are there important lessons and tips you should know?
Find out in tomorrow’s newsletter, where we will share our full Q1 review and tips.
??♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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