Chainlink flashes signs of weakness as price fluctuates around the $12.5 zone. Will LINK break or make?
Chainlink price action suggests weak bullish momentum in the last 24 hours, as of press time. The altcoin has recently broken below multiple BOS (Break of Structure) and CHoCH ( Change of Character) levels, flashing bearish signals.
According to the analyst, BlockchainBaller on CoinMarketCap, traders are eyeing the $13 EQH (Equal High) as a resistance zone for LINK to break. If the bears pull strongly, Chainlink could retest the $11-$10 support and demand zone.
Source: CoinMarketCap
Following LINK’s technical setup, one should watch for the coin’s open interest, long-short ratio, and trading volume at the $12.5 zone. If Chainlink’s bulls step in with high buying pressure, the coin could see strengthened bullish momentum and break past $13, attempting a rally in the mid-term.
Global Liquidity is surging, and historically, this suggests a potential bullish momentum for Bitcoin and the crypto market as a whole.
BTC price has flashed potential upside momentum in the past 24 hours, hitting $85,154 with a 37% rise in trading volume, at press time. The global liquidity index (GLI) measures the amount of “free-flowing money” existing in the global financial system. It reflects the overall ease of capital movement across markets and economies.
Looking at the charts, global liquidity is projected to rise, signalling that more capital could be available for investment in risky assets, including digital assets. Historical side-by-side comparison reveals that BTC follows the GLI movement.
Source: X
According to Analyst Crypto Rover, global liquidity is projected to rise, potentially fuelled by government policies such as central banks lowering interest rates, balance sheet expansion, and Quantitative Easing(QE).
As more money becomes available, it could divert to the crypto market, starting with Bitcoin, toward altcoins. As a result, a bull rally could be on the cards in the next few months.
The SEC approved options trading on spot Ethereum ETFs in the past week, boosting ETH’s mainstream adoption. Technical analysis suggests a potential 17% price surge.
U.S Securities and Exchange Commission has approved options trading for Ethereum ETFs in the past 5 days. This approval allows exchanges to list and facilitate trading options contracts on Ethereum exchange-traded funds(ETFs). Ethereum was hit hard by the tariff trade war, with its price dipping to a two-year low.
Following this development, Ethereum has gained investment appeal among large investors and has been recording heightened buying pressure. A recent observation by renowned analyst Ali Martinez reveals a potential 17% price surge in the next few days.
Source: X
In the past week, the ETH price has been consolidating inside a symmetrical triangle pattern on the hourly chart. Per the analyst, the technical setup precedes a bullish rally, and Ethereum could surge 17% following a breakout above this triangle.
Cardano (ADA) is trading in a descending channel, suggesting ongoing bearish pressure. What’s next for ADA?
Cardano has faced substantial bearish pressure lately and struggles to recover, as other major altcoins gain bullish momentum. As of writing, Cardano was trading at $0.6521, a 0.79% surge in the past 24 hours. Cardano is struggling to maintain above $0.63 as the price consolidates inside its descending channel pattern.
Traders are closely watching Cardano’s bearish pattern formation, wondering what could be next. According to Ali Martinez on X (formerly Twitter), the $0.63 stands as a critical support for the coin. A break below this level could trigger a downswing toward $0.54.
Source: X
Cardano’s 24-hour RSI stands at 47, at press time, per Cryptowaves data. This is a lower neutral zone, in that ADA is slightly oversold as bears take charge. However, it has risen to 57 on the 4-hour timeframe, indicative of a bullish sentiment.
As the bulls and bears engage in a tug of war, one should watch for ADA’s price action at the $0.63 key support level for further insights.
Trump, through World Liberty Financial, is holding a crypto portfolio consisting of 94% Ethereum blockchain. What does he know?
U.S President Donald Trump is holding a crypto portfolio that is surprisingly going almost fully into Ethereum. Despite recent market volatility and rumoured sell-offs, World Liberty Financial has kept a strong hand on the Ethereum blockchain. With so many projects full of potential in the market, Crypto enthusiasts wonder what could be the reason for this.
Source: X
The possible reasons for such a portfolio
Ethereum is not just an ordinary coin but a bridge connecting a huge DeFi, NFTs, and Smart Contracts ecosystem. World Liberty Financial was established to promote digital freedom, financial independence, and the tokenization of assets.
Ethereum is a suitable and well-established blockchain that supports this agenda. It has notable market dominance as the King of altcoins. Therefore, Trump could be betting on its huge infrastructure with confidence that it will reshape finance and politics in the future.
The total crypto market cap is testing a breakout above its falling wedge pattern. Analyst suggests a major altseason could be on the cards.
The crypto market is on the verge of a breakout, pushing through the 2.7 trillion market cap resistance level. Following weeks of consolidation inside a falling wedge pattern (classic bullish setup), the market appears poised for a breakout. Historically, such pattern formation heightens investor confidence and pulls in more capital into the market.
“#Crypto Approaching Towards Crucial Resistance, Expecting Breakout Too, Successful Breakout Can Lead Massive Altseason.”
With traditional markets stabilizing and many DeFi projects planned for the year, the crypto market anticipates new capital from investors. This bullish signal could trigger faster capital injection, thus sparking the beginning of the altseason.
A bounce-off above the $0.13 support level could see DOGE begin its uptrend momentum, while a breakdown could lead to further downside.
Dogecoin has been trading above a rising trend line on the weekly chart and fully respecting it since Q4, 2023. As of press time, DOGE was trading at $0.1424, a 5.8% dip in the last 24 hours, per CoinMarketCap. According to renowned crypto analyst, Ali Martnez on X (formerly Twitter), the $0.13 key resistance level on Dogecoin’s support line is a key psychological level.
Source: X
Why does the $0.13 zone matter?
At this level, the 61.8% Fibonacci retracement converges with Dogecoin’s support, making $0.13 both a technical and psychological battleground. As the crypto market fluctuates in panic, the meme-coin’s next direction could be defined in this zone.
One should keep an eye on this level, as Dogecoin’s average direction index remains neutral in the short term. Additionally, following smart money and whale activity in this zone could give further insights.
Fartcoin has surged 20% in trading volume as open interest rises.
Fartcoin has faced renewed interest in the market as major cryptocurrencies face high price volatility. Over the last 24 hours, the meme-coin has surged 24% in price and was trading at $0.5722, at press time, per CoinMarketCap. On-chain metrics signal organic price growth based on low whale activity or price manipulation. The Solana meme-coin is showing strength as Wall Street bleeds more.
Open Interest (OI) Funding Rate turns positive
Looking at the current market sentiment, traders have unexpectedly shifted into buying this memecoin promising short-term gains. According to Coinglass, the OI-Funding Rate has turned positive in the past 48 hours, signalling trader optimism in Fartcoin’s bullish momentum.
Source: Coinglass
Looking at the technical indicators, Fartcoin’s moving averages flash a “strong buy” showing substantial buying pressure. With the Relative Strength Index (RSI) at 59, the memecoin is not yet overbought. This indicates more buying potential. However, one should be aware of the volatility in the meme-coin markets before making any moves.
Leverage in crypto trading can be a powerful tool for maximizing profits, but it also comes with significant risks. Many traders are drawn to high leverage for its potential to amplify gains, yet they often overlook the increased chances of liquidation. So, how much leverage is too much? This article explores the pros and cons of leverage, strategies for managing risk, and how to find the right balance for your trading style.
What is Leverage in Crypto Trading?
Leverage allows traders to borrow funds to increase their trading position beyond what their capital would normally allow. For example, using 10x leverage means you can control a position worth $10,000 with only $1,000 of your own money. While this magnifies potential profits, it also means even a small price movement against your position can lead to liquidation.
The Pros and Cons of Leverage
Pros:
Amplified Profits: With a small initial investment, traders can potentially earn larger returns.
Increased Market Exposure: Leverage allows traders to take larger positions than their capital would permit.
Capital Efficiency: Traders can use leverage to make their capital work more efficiently.
Cons:
Higher Risk of Liquidation: If the market moves against a highly leveraged trade, liquidation happens quickly.
Emotional Trading: The pressure of managing leveraged positions can lead to impulsive decisions.
Increased Costs: Higher leverage often comes with increased trading fees and interest on borrowed funds.
How Much Leverage is Too Much?
The right leverage depends on your experience level, risk tolerance, and trading strategy.
Beginners: It is advisable to use low leverage (e.g., 2x-5x) or avoid leverage entirely until gaining sufficient experience.
Experienced Traders: Moderate leverage (5x-10x) can be used with strict risk management.
High-Risk Traders: Some advanced traders use extreme leverage (20x-100x), but this is highly speculative and not recommended for most.
Risk Management Strategies for Leveraged Trading
To use leverage safely, traders must implement proper risk management strategies:
Set Stop-Loss Orders: This prevents excessive losses by automatically closing trades at a predetermined price.
Use Position Sizing: Never risk more than a small percentage (e.g., 1-2%) of your total capital on a single trade.
Monitor Market Conditions: Stay updated on trends, news, and volatility before entering leveraged trades.
Avoid Overleveraging: Even if a platform offers high leverage, it doesn’t mean you should use it.
Diversify Your Portfolio: Don’t put all your capital into a single high-leverage trade.
Final Thoughts
Leverage can be a double-edged sword in crypto trading. While it offers opportunities for amplified gains, it also introduces significant risks. Understanding how much leverage is too much depends on your trading style, experience, and ability to manage risk. By using a disciplined approach and avoiding excessive leverage, traders can enhance their chances of long-term success in the volatile crypto market.
