Turning to the charts…
No it’s not going to be pleasant, we can see that BTC is bleeding hard and that’s because it finally broke a massive bear flag that had been forming on the monthly.
Previous zones of support and resistance suggest we could drop to 14K or 15K in the coming weeks before falling to the final destination 10K to 12K so buckle up.
Last week’s top performing cryptos were Trust Wallets (TWT) token, Pax Gold, GMX, Dex’s GMX token, Gemini’s GUSD stablecoin and Fey protocol’s Fey USD stablecoin.
Starting with Trust Wallet it’s TWT token seems to have pumped because of the sudden shift towards self-custody in the crypto community caused of course by all the FTX Alameda situation.
On-chain data confirms that large amounts of BTC and ETH have left exchanges over the last week.
Now I must admit that I don’t really trust the TWT tokens price action because it’s been up only since the start of 2020.
Almost all its trading volume is happening on Binance which makes sense since the exchange bought the wallet and made it its native wallet.
So I’d be careful with this one.
Next up we have Pax Gold or PAXG which is a gold back token issued by Paxos the same company that issues Binance’s BUSD stablecoin.
As expected Pax cheese rally is due to a rally in the price of gold plus a bit of extra volatility from crypto holders fleeing to safety in times of crypto market chaos.
Because I’m not all that familiar with the gold market it would be unwise for me to do any kind of analysis on the price of PAXG, all I will say is that gold tends to rally during times of general economic stress and you’ll recall that we are on the brink of a global recession.
Then there’s the Gmxdex’s GMX token which is probably rallying because crypto holders have switched from using centralized exchanges to decentralized exchanges as a result of last week’s events.
To clarify GMX is a decentralized exchange on arbitrim one of Ethereum’s many layer twos.
Funnily enough gmx’s limited price history again makes it hard to assess where the token will go next.
The longer term charts suggest it is in a slow but steady uptrend, note that this could change on a dime if DeFy related regulations are introduced in the United States and this is a very real possibility.
The same applies to stable coins and this is one of the reasons I’ve been watching them very closely.
Lately the slight increase in the price of Gemini’s GUSD stablecoin seems to be because of the billions of dollars that are being rotated out of Tether’s USDT and into other stable coins namely Circle’s USDC.
And finally we have Fey protocol’s Faye USD stablecoin which is a decentralized stable coin.
I must say that it’s done a good job of maintaining its Peg so far.
This could change as the bear market gets worse but I reckon there’s a bullish case to be made for the decentralized stable coins that survive the purge.
One thing’s for sure and that’s that centralized stable coins will come out the other side of the bear market more powerful than ever.