The overall crypto market has been in an uptrend over the past week, with the total market cap hovering around $2.88 trillion as of this writing according to CoinMarketCap.com. Multiple layer one blockchains such as Ethereum, Solana, and Polkadot have continued to make new all-time highs while the Metaverse-related cryptocurrencies have finally taken a bit of a breather. The total crypto market cap also reached $3 trillion for the first time ever according to CoinGecko - a major milestone. This past Friday, the U.S. House of Representatives passed the $1.2 trillion bipartisan infrastructure bill with its problematic crypto-tax provisions still included. However, it has not yet been signed into law by President Biden and the provisions wouldn't go into effect for at least a few years. The legislation impacts the crypto players operating in the U.S. in a very major fashion, but the market currently appears to be discounting the news.
Bitcoin (BTC) has started off the week very strong, jumping $5K on significant volume to trade at the current price of $66,000, getting closer and closer to its all-time high. It broke through the crucial $63,500 horizontal resistance area and 0.618 Fib retracement resistance level, very bullish signs. A test of its all-time high appears quite likely at this point. This week the Taproot upgrade is expected to go into effect - Bitcoin's first major upgrade since August 2017. Prices rallied by 50% after the previous upgrade went into effect, but most analysts expect minimal impact on the price this time around. Taproot is said to improve Bitcoin’s privacy, efficiency and smart contract capabilities.
Ethereum (ETH) is also off to a good start, hitting a new all-time high of $4,787 as of this writing. It appears to be benefiting from Bitcoin's forward momentum. $5,000 is the next major barrier on the horizon, while strong support is present at $4,500. The supply squeeze narrative is also getting stronger as there are now 8.2 million ETH staked and 8 million ETH locked in DeFi. According to Kraken exchange, ETH's current dominance of the total crypto market cap is relatively low at 19% compared to the last time ETH made all-time highs in May - implying that ETH may underperform its layer one rivals during this cycle.
Solana (SOL) is one to watch as well. The fourth largest cryptocurrency by market cap has pulled back slightly from its recent all-time high of $259, currently trading at $248, but most analysts expect it to march higher. Today, Solana's three day Solana Breakpoint conference started so investors should pay attention to any new announcements on that end. A state of the network presentation was given by SOL's co-founders at the conference, highlighting the over $15 billion and growing locked funds in Solana-powered DeFi projects. Kraken exchange also noted that Solana looks well-positioned to reach the top of an 18-month ascending wedge pattern. Testing this resistance would imply a SOL price of $400-$500 as early as December and as late as Q1 of next year. Strong support is present at the $215 area
Ripple’s XRP (XRP) has been making moves of late, trading at $1.25 as of press time. XRP yesterday broke above the key $1.20 resistance level and has held it so far, but this also happened early last week with the price eventually falling back to the $1.12 area. However, if XRP consolidates above $1.20, an eventual move to $2 is not out of the question. In additional positive news, Wrapped XRP (wXRP) is expected to come to the Ethereum blockchain next month. The move will enable XRP holders to interact with DeFi applications for the first time.
Polkadot (DOT) has been garnering investor attention as well, recently hitting new all-time highs on the back of the upcoming parachain auctions. The auctions are currently scheduled to start around midday (UTC) on November 11th. There will be five auctions with each one lasting seven days. DOT has rallied significantly over the past month due to anticipation regarding the auctions, but investors should be cautious of a possible sell-off once the auctions actually begin. DOT is currently trading at $53.70, slightly below its all-time high of and current resistance at $55. Further resistance is expected at the $60 and $89 levels, while strong support is present at $41.
Crypto.com Coin (CRO) shouldn’t be slept on either. As we noted in our previous outlook, today, November 8th, it launches the Cronos chain, an EVM chain that will run in parallel to Crypto.com’s existing blockchain. The mainnet beta launch’s purpose is to scale its DeFi ecosystem allowing developers to port DApps from Ethereum and EVM-compatible chains at a low-cost and fast speed due to its Inter-Blockchain Communications (IBC) protocol integration, allowing accessibility to Crypto.com’s ten million customers. It is the first Cosmos EVM chain for DeFi, NFTs, and the Metaverse. CRO has nearly doubled over the past week, but it could still go much higher. It’s currently trading at $0.4041.
Many crypto analysts have recently been singling out layer one altcoin Fantom (FTM). According to Coin Bureau’s Guy, “Fantom’s market cap is medium-sized and its fundamentals are significantly stronger than most of the cryptocurrencies that currently outrank it. FTM’s tokenomics are also seriously robust. All FTM coins allocated to Fantom’s early investors, founders and advisers finished vesting last November.” Moreover, more than half of FTM’s total circulating supply is being staked. Resistance is present between $3.50 and $4.50, while support is present in the $2.30 to $2.50 area. FTM is currently trading at $3.06 as of this writing.
What will happen to canine memecoin favorite Shiba Inu (SHIB) this week? It has fallen to the eleventh spot in the crypto market cap rankings and is currently trading at $0.00005586. Investors should certainly be prepared for continuing volatility as recent on-chain data has suggested that the percentage of short term holders is around 40% meaning price action could again get WILD. Something interesting to be be aware of is that just yesterday, there was a single transaction for 20 TRILLION SHIB tokens equating to $1.13 billion USD. The purchase originated from crypto.com. Whether this is a whale getting in before another pump or something else is unknown, but investors should tread cautiously. In other SHIB news, the petition for Robinhood to list SHIB has now reached 500,000 signatures - half way to its 1 million goal.
Traders should also take note of Secret Network (SCRT) this week as the privacy focused blockchain will launch its most comprehensive mainnet upgrade to date, Supernova, on November 10th. The upgrade will connect Secret Network with blockchains across the Cosmos ecosystem (in addition to bridges to Ethereum, BSC, Monero, Terra, Polkadot, and more). SCRT has been range-bound for the past week between $8.60 and $10 and is currently trading at $9.50.
Furthermore, the Ripple Swell conference is scheduled for November 9-10. The founder of Compound (COMP), Robert Leshner, will be a main speaker. Investors should pay attention.
Lastly, traders should be on the lookout for inflation number this week. Wall Street economists are forecasting the U.S. Consumer Price Index to rise to 5.8% in October ahead of the Bureau of Labor Statistics’ inflation report on Wednesday. If above consensus, the perceived crypto inflation hedges could benefit.
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