Crypto Market Soars as Ethereum, Cardano Surge

Global crypto market turned euphoric over the last 24 hours, driven by Ethereum’s (ETH) strong rally after the breakout from its critical resistance yesterday. Cardano (ADA) and Bitcoin (BTC) lent support to the momentum. Total market cap climbed by 6.5 per cent to stand at $2.22 trillion as of 9 am IST. Investors were upbeat with sustained momentum in the trade volumes across exchanges.

BTC registered a strong bounce from $47,000 yesterday as bulls have placed call options worth $380 million above the $48,000 region for Friday’s option expiry. BTC trade volumes rose by a moderate 10 per cent signalling a continuation of the uptrend. BTC enjoys support at $47,300 (its 20-day EMA) while short-term resistance is at $49,800. BTC is currently trading at $49,600, up by 6 per cent today.

ETH stole the show today as it strengthened its breakout rally by surging 10 per cent in the last 24 hours to close at $3,750. Its support levels are forming at $3,700 and $3,580 while its critical resistance lingers at $4,000. ADA, the third largest crypto, surged 10 per cent early morning today and broke $3 psychological resistance as its team confirmed the Sep 12 launch date for its smart contracts.

All top 20 altcoins turned bullish over the day as BTC and ETH lent momentum to the broader market. VeChain (VET) rallied by 15 per cent to climb back into the top 20 cryptocurrencies list by market cap. Dogecoin (DOGE) and Polygon (MATIC) had 10 per cent gains.

According to data from Coinbase, a large outflow of BTC has brought the exchange balance to low levels last seen in 2017. These movements indicate bullishness given a reduced possibility of a sell-off.

A daily close of over $50,000 would trigger a run towards $52,000 for BTC while a retest of support at $48,000 is likely. BTC dominance, just below 42 per cent today, is set to drop further.

Top Gainers today:

1. FTX Token (FTT): 42.0%
2. IOTA (MIOTA): 27.2%
3. Fantom (FTM): 19.1%

Top Losers today:

1. Arweave (AR): -9.9%
2. Celo (CELO): -2.8%
3. Algorand (ALGO): -2.4%

The analysis includes the top 100 coins only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

1. Twitter is reportedly working towards adding Bitcoin as a payment option on Tip Jar alongside Cash App, PayPal and Venmo. Tip Jar was launched in May as a way for users to reward content creators.
2. Metamask, an Etheruem wallet and browser extension achieved a major milestone as its monthly active users (MAU) reached 10 million users for the first time signalling growing demand for decentralised finance (DeFi) assets.
3. Larva Labs, the team behind the popular non fungible token (NFT) project CryptoPunks, has signed a deal with Hollywood agents United Talent Agency (UTA) to represent intellectual property (IP) deals in TV, film, video games, licensing and publishing.
4. Genesis Digital Assets, a bitcoin mining company, has purchased 20,000 new bitcoin mining machines from blockchain hardware firm Canaan to scale their operations in North America and the Nordics.

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