🧘‍♂️ALERT: Next Altcoin to Breakout?

Market Meditations | March 14, 2022

Dear Meditators

A busy start to the week. Elon Musk has been busy talking about inflation, all eyes are set on the FOMC meeting later this week (where a 25 basis point hike is priced in) and of course, crypto twitter has been full of rumblings to do with the EU’s wanting to limit Proof-of-Work Crypto. 

Today’s Meditations: 

  • ETH and LUNA Technical Analysis
    • We discuss breakout levels with regards to LUNA
  • Latest on Loot Project
  • EU Potentially Limiting Proof-of-Work Crypto
  • Our Crypto Calendar of the Week

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⏰ Top Headlines


? A Lunar ETHClipse?

ETH/USD

Macro Structure: Downtrend continues with weak, choppy price action. Bad trading conditions.

Key Support: $2.4k. Key level to hold. Should we lose this, expect further downside to $2k.

Key Resistance: $3k. Suspect this will be difficult to overcome.

LUNA/USD

Macro Structure: Looks bullish, key breakout level at $100.

Key Support: Key structural level at $76.

Key Resistance: Key psychological level at $100. Potential breakout play above there.

Looking Forward: Have experienced a weakening in the move. Notice how the first big rise only retraced to the 0.382 level whereas the second move up retraced to the 0.618 level. This decreases the probability of a breakout above $100. It therefore seems sensible to wait for the $100 level to be claimed rather than accumulating here.


? We Are the Knights Who Say NFT!

The Loot project’s old-school RPG appeal coupled with NFT speculation landed it headlines in late 2021. Now it seems we have reason to revisit the text-based collection as it finds an unexpected new home.

  • The Loot project minted NFTs attached to images featuring only white text with a black background listing a collection of items such as “Sword”, “Chain Gloves”, “Gold Ring”, etc.
  • These NFTs were essentially placeholders to be used in a yet-to-be-determined game which would implement them into its development.

➡️ Enter LootLARP, a project putting Loot NFTs to use. 

  • LootLARP combines Live-Action Role Playing with NFTs using a (Silicon-Locked Contract) SiLo chip embedded into foam weapons.
  • These chips, roughly the size of a coin, can be scanned using an app to unlock access to the tokenized assets stored in the smart contract, prove authenticity, or trigger real-world actions.
  • When these items are activated with a Loot NFT, smart contract games that play out simultaneously in the physical world and on the blockchain become available.

Loot NFTs may have been criticized as pure speculation in the cooldown period following their surge in popularity, but an interesting use-case has given them a home.Want to learn more? Check out LootLARP’s FAQ here.


EU Potentially Limiting Proof-of-Work Crypto

Today, the European Union’s (EU) parliament is set to vote on a proposed piece of legislation that could have a very big impact on crypto as a whole. The EU is voting on a provision that would look to force proof-of-work cryptocurrencies (e.g., bitcoin) to switch to the more environmentally friendly proof-of-stake mechanism.

  • This provision comes after heavy scrutiny from lawmakers in the EU over energy concerns.
  • The current draft says that crypto assets “shall be subject to minimum environmental sustainability standards… before being issued, offered or admitted to trading in the Union.”
  • Before the legislation would come into effect, current crypto assets would need to “set up and maintain a phased rollout plan to ensure compliance with such requirements.”
  • The first draft of this legislation was already scrapped because of industry backlash. Industry voices are thus affecting the parliament’s decision-making.

Ethereum already has plans to transition from proof-of-work to proof-of-stake later this year. If this legislation is passed, it remains unseen how that would influence Bitcoin in the long run. While there has been a huge push for renewable energy within bitcoin mining, that is much different from changing the consensus mechanism. Whether or not bitcoin could transition to proof-of-stake remains to be seen.


Monday, 14 March

  • ?Theta Hard Fork

    Theta Network’s v3.3 hard force set for block height 14526120 expected to occur around 12pm PT on Monday, 14 March. This lowers validator node staking threshold from 2 million to 200,000 THETA, allowing more users to participate in the decentralization of the network.

Tuesday, 15 March

  • Elrond Metabonding 

    EGLD staking and LKMEX Metabonding snapshots will begin. Metabonding, introduced by Elrond, is a community bootstrapping product for Web3 startups.

  • Harmony Wallet End-of-Life

    Harmony Protocol will sunset the Harmony wallet Chrome extension this Tuesday. Recommendations from the Harmony team suggest MetaMask as an alternative.

Wednesday, 16 March

  • ?? Federal Reserve Meeting

    It is time again for the 2 day FOMC Meeting. Most investors have priced in a 25 basis point hike for the meeting. That being said, it wouldn’t be out of the question to see some volatility at the time of the Press Conference and Press Release.

  • Crypto Expo Dubai 2022

    Crypto Dubai is an event for investors and crypto industry leaders to network and explore business opportunities in the crypto space.

Thursday, 17 March

  • Dank Bank Debut 

    Invest in internet culture on Dank Bank, the NFT trading platform for memes and viral videos.

  • ⭐ Enter the Metaverse

    Victoria VR presents Enter the Metaverse from 17-18 March. Delivering on-stage talks live, directly to VR headsets.


  1. Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
  2. Read the following Technical Analysis guides for more insight:
    1. Moving Averages 
    2. Fibonacci Retracement  
    3. Volume and Open Interest  

Twitter

  • In L2’22, we predict zero-knowledge technology to move out of the innovation stage and into the Early Adopters/Majority stage as DeFi uses cases expand. Don’t be a late laggard! (Thread) – zkLink
  • Binance announces plan to buy sim;paul brokerage in Brazil – CZ Binance
  • The EU Parliament just voted not to ban proof-of-work infrastructure. #bitcoin is good for business. – Pomp

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??‍♂️✍️ 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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