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Market Overview & Trending Coin Of The Day | 1st Of August 2022

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Avatar for Ashma
Written by   473
2 months ago

As we discussed in the previous releases of 'Market Overview', the cryptocurrency market was obvious to see some pullback in the crypto market after the hype is over and that is exactly what we witnessed in the last two days. Almost every coin in the market is back where it was before the hype or they are on their way back and Bitcoin is holding around the level of $23K. So in the article, we will go through the stats and compare them on the twenty-four hours scale and see what things have changed during that and yes we will also go through one of the trending coins and discuss it.

Overview Of Crypto Market

As we have been expecting that the market will be pulled back from the hype, it is exactly doing the same as we have discussed. Many of the coins which surged over 100% are now on the list of losers and have lost more than 30% or more. But the thing to notice here is most of the actions going on in the market seem like well-planned market manipulation. I mean there is no way we are having this sudden hype in the market without any meaningful reasons to justify and that day many other small cap altcoins were riding the boat of manipulation of sudden increases in trading volume and growths of more than 100% without any updates regarding their respected projects.

At the time of writing the article, Bitcoin is trading at $23,346 which is down by ~2% in the last twenty-four hours. Bitcoin is really in the hanging stage right now, it's either Bitcoin is going to flip this level or get resisted and get pushed back to the $20K level.

As you can see in the picture below, the dominance of Bitcoin dropped the support level of 40% and tried to bounce back in the range throughout the day but in the last twenty-four hours, it has been below 40% and finally managed to get back in the range of 40%. This support break could be the reason for the previous altcoins rally. And after looking at the Fear and Greed Index of Bitcoin it seems like people are back into the fear zone as the number is standing at 33 down from 39, which was high in the last twenty-four hours.

As you can see in the rightmost part of the picture, the comparison between long and short positions across all major crypto exchanges like Binance and Kraken. As you can see there are 48.08% long positions and 51.92% of short positions. As you notice, traders have managed their positions according to the market conditions and that is why in a previous release the long positions were dominant compared to short positions but now the short positions are dominating.

Related Stats:

Market Cap: $1.12 trillion (-1.62%)

24h Volume: $1.57 Trillion (+1.10%)

Trending Coin Of The Day

In this section, we go through the coin that is one of the trending coins listed on CoinMarketCap. We look into its basics and dig enough into them to get an overall understanding of the project.

Filecoin (FIL)

Filecoin is probably one of the most important projects in the crypto space as it solves the storage problem of the world of cryptocurrency. The project was launched in 2020 but the Initial Coin Offering for the native coin FIL was held in 2017, and it raised over $200 million for the project at the valuation of $5 per coin, which was one of the highest at that time. However, due to some reasons, the pre-determined launch was skipped by the year and Filecoin launched in the mid-bull run of 2020 and that is why initially it became one of the most successful projects in the crypto space but now the FIL coin price is struggling and is near to its ICO price and even it is in loss if someone purchased it against Bitcoin or Ethereum pair.

It was founded by Stanford University graduate computer scientist Juan Benet and the man behind the very popular Interplanetary File System (IPFS), which is also a project related to storage. The Filecoin project represents itself as the storage to 'store humanity's most important information'.

At the time of writing this article, the price of Filecoin is $8.95, which is almost 10% down in the last twenty-four hours. As you can see, the price is barely above its ICO price while the all-time high was at $237.05, a couple of months ago.

Irrespective of the coin price, at the technology level the project is incredibly strong and it is very popular amongst the developer's community that continuously uses Filecoin for their storage problems. But since the price reflects the basis of community and hype in the space, coins like LINK and FIL don't get the required attention that they deserve. But the FIlecoin is backed by some of the best venture capitalists like a16z, Sequoia, Digital Currency Group (DCG), and many more shown in the above picture.

You can read the Filecoin Whitepaper here.

Conclusion

It is clear that the market will be red for a few days as the effect of the hype is passing by and the week's start is bad. But at the same time, I mentioned that the market is looking manipulated so it is good to go with the sure traders that are completely based on your research otherwise trying to get into the hype might lead to losses if you get trapped in tops or bottoms.

And about the coin of the day, Filecoin. It surely is one of the best projects in the crypto space at the technology level but if we look into such projects then most of the non-technical crypto communities ignore such coins which results in not getting appropriate price appreciation, ChainLink (LINK) is the perfect example. But it doesn't mean that Filecoin follows the same pattern but we can't deny that is the fact, so if you find the purpose of Filecoin interesting and see an opportunity then you should definitely go for it with the measurable risks. You can start your research with the whitepaper.


Hope you find this article informative.

Thanks For Your Time!

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Written by   473
2 months ago
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