Bitazza Crypto Weekly: Twitter: The Dominant Social Media Force In The Crypto World -

Crypto Weekly: 18 – 24 April 2022

Tesla and SpaceX CEO Elon Musk is offering to increase his share of Twitter from slightly more than 9% to 100%. Just days after announcing that he would no longer be joining the social media company’s board of directors, Musk proposed that he buy the remaining shares of Twitter not under his ownership at $54.20 per share. The buyout offer from Musk is reportedly due to his belief in Twitter’s potential as a platform for free speech around the world, with the Tesla CEO claiming that he would make Twitter more decentralized and integrate aspects of crypto into the platform’s operations.

Twitter is a prominent social media platform for the crypto community, with many projects, developers, and retail investors using it as a means of communication. Twitter’s impact on the crypto community is undeniable, with some obvious examples being whenever Elon Musk tweets about Bitcoin, Dogecoin, or Shiba Inu, invariably, market prices will be affected.

Ripples from Musk’s public interest in acquiring Twitter have been felt, with DOGE rising noticeably despite a sideways down market following both the announcement of Musk’s initial 9% investment and the subsequent buyout offer. The Tesla CEO is not the only crypto celebrity able to affect the market with his Twitter account, Binance founder and CEO CZ has also managed to sway the market with his Tweets.

Regardless, Elon Musk’s Tweets do not constitute a legally binding agreement, with many notable names in the crypto community weighing in on Musk’s purported attempt to make Twitter more decentralized. Charles Hoskinson, Sam Bankman-Fried, and Justin Sun, the founders of Cardano, FTX, and Tron, respectively, tweeted their support for Musk, with Hoskinson even offering to build a decentralized social media platform with Musk if Twitter rejects the buyout offer. In contrast, Vitalik Buterin, Ethereum co-founder, raised concerns regarding wealthy individuals or organizations forcing a hostile takeover of social media platforms, with Buterin saying that setting such a precedent “could easily go *very* wrong.”

After much lobbying from the community, popular meme coin SHIB is finally listed on Robinhood for trading. The Robinhood platform has added four new tokens for trading, with the other three being Solana, Compound, and Polygon. Within less than 24 hours following the listing, Shiba Inu was able to rally by more than +35%.

Popular Japan-based communications platform LINE has officially launched LINE NFT, their NFT marketplace in Japan. Through LINE NFT, users can easily buy and trade NFTs, which can be stored in their LINE BITMAX Wallet. From today, LINE NFT will offer around 40,000 NFT products for sale, including exclusive NFT videos by Yoshimoto Kogyo Holdings Co. Ltd.

Interestingly, multinational financial services giant Mastercard has filed for more than a dozen metaverse and crypto trademarks. These filings range from NFT-backed multimedia, marketplaces for digital goods, and payment transaction processing and e-commerce software business transactions in the metaverse. The 15 applications from Mastercard were filed on a 1b basis, meaning there is an intent to use them in the future, with no specified timeline or plan. Critically, 1b filings do not require evidence that the trademark is already in use by Mastercard; instead, Mastercard only needs to show “bonafide intent” to use the trademark at a future date.

The Luna Foundation Guard (LFG) has added an additional $100 million in BTC to its UST reserves. LFG’s balance now sits at $2.26 billion, of which 75% is Bitcoin. According to their dashboard, LFG’s wallet now contains $1.7 billion in BTC, or 42,410 BTC, making its wallet the 19th largest in total Bitcoin holdings.

Additionally, Terraform Labs has partnered with JUMP Crypto, Delphi Digital, Outlier Ventures, Long Hash Ventures, SCB10X, Alpha Finance Lab, Ship Capital, Basis Set Ventures, Insignia Ventures, among others, to launch its Global Founder Fellowship program with the aim of supporting projects building on Terra to further the expansion and growth of the Terra Ecosystem. . The fellowship will work with top-tier early-stage VC firms, accelerator programs, and large tech companies to identify and support project founders with the resources they need to build DApps on the Terra blockchain.

Bank of America’s investment division is warning its clients that high inflation and “interest rate shock” are sending signals of a potential upcoming economic recession. Wise investments in commodity markets and cryptocurrencies could prove effective hedges against inflation, which is surging to a 40-year high at the moment.

Finally, Gulf Energy makes investments in Binance.US and BNB. These moves are ostensibly part of Gulf Energy’s efforts to expand into other digital asset-related initiatives. This includes their joint venture with the Binance group to set up a licensed crypto exchange in Thailand.

Weekly Technical Analysis: 18 – 24 April 2022

Bitcoin (BTC)

BTC’s correction continues; however, prices have not been making lower lows meaning that the trend continues to be sideways up. Prices appear to be remaining below the 200-day moving average; however, RSI is nearing the Oversold level. In the short term, if BTC can remain above $39,000, we could see a bullish reversal; however, if prices fall through this level, keep an eye on the support at $37,000 and plan trades accordingly.

Ethereum (ETH)

ETH faced a similar correction to BTC; however, ETH’s trend looks like it’s beginning to build more momentum than BTC. ETH should continue trending sideways up as long as the support level at $3,000 remains intact. If ETH can break through the $3,600 resistance level, we could see prices return to an uptrend once more.

Velo (VELO)

VELO is up by 53% from last week. Its overall price trend remains bearish, and there is a risk of further decline. VELO will have to break through the resistance at 3.40 baht to confirm an uptrend. However, VELO’s downtrend will continue if prices fall through the support at 1.20 baht. Traders should be prepared to cut losses immediately if this support cannot remain intact.

Compound (COMP)

COMP is up by 9.2% from last week. However, if the price cannot remain above the resistance at 5,800 baht, the trend is still not a real uptrend. Keep an eye on the 4,000 baht support level; if the support doesn’t break, a recovery into an uptrend is still possible.

Trading and Investment Considerations For The Week

Despite the annual rise in inflation of 8.5% representing a 40-year high, the increase from February to March was not much higher than market expectations. As a result, the market wasn’t impacted significantly negatively by the release of the CPI figures, with the market currently trending sideways down.

Investors are advised to keep an eye on the upcoming Federal Open Market Committee (FOMC) meeting from 3-4 May. The FOMC meeting may provide greater clarity regarding the monetary policy moving forwards, such as whether interest rates will be raised by 0.5% as rumored, the status of QE tapering, etc. It is possible that market activity will continue to slow, with traders waiting to see what the FED will decide upon before making their moves.

Meme Coins like DOGE and SHIB have seen some trading activity and intense speculation following Musk’s attempted acquisition of Twitter. It is important to note that this rally is likely a byproduct of social media speculation rather than being indicative of a sustained rally or recovery. XRP has seen a similar rally following generally positive development in its ongoing lawsuit with the US SEC; however, traders are advised to focus on locking in short-term profits and avoid chasing the market as the overall market outlook still remains uncertain.

If Bitcoin can remain above its $37,000 support level, consider entering a position on BTC while aiming for medium-term returns. However, if support cannot remain intact this week, slow down your investment and keep an eye on the $33,000 level as the next potential entry point.

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