🌀 We believe in ending the week the same way we start it: with loads of crypto analysis for our readers.
📈 BTC and ETH Technical Analysis
🤲 Crypto Holy Trinity Technical Analysis: SOL, FTT and SRM
🌎 Update on Terra network and its flagship stablecoin, UST
🎧 Our podcast with Kieran Warwick, the co-founder of play to earn game: Illuvium
☀️ An introduction to Energy Web
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Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
🤲 The Crypto Holy Trinity
We don’t believe in making up news. Which is why we are happy to say that not much has changed with regards to BTC since our last update on Monday.
We are still at a very key resistance level at $50k (0.618 retracement level as well as a psychological level) and the analysis from Monday still applies. If you missed the update, you can find it here.
As we predicted on Monday, ETH has outperformed BTC because it faces less resistance above the 0.618 level.
Looking upwards, there is not a lot of resistance left apart from the $4k level which is a key psychological level. If we break that, we enter price discovery mode.
Don’t have an ETH position yet? We prefer using Fibonacci levels to build positions. We draw the levels and look for entries around the 0.236 and 0.382 levels.
If you’re a regular reader of the Market Meditations newsletter and have been part of our community for some time, you’ll know we shared Solana a long time ago. We’ve been sharing technical and fundamental analysis on $SOL since it was below $10…
Where is it today? Over $140.
It’s been a parabolic uptrend. Taking the fibonacci levels, we can see that the 0.382 and 0.5 levels look like interesting areas to buy.
Why? Well, an asset that has as much liquidity and demand as Solana does won’t go down in a straight line which can be used to our advantage.
We’ve been talking about this asset for weeks now. As predicted, we’ve seen it perform very well.
We are now seeing some textbook technical analysis. Price broke and retested the $60 level.
We are bullish FTT. We do tend to see some of the hype with SOL feed to FTT; the narratives and the teams are linked.
That being said, the exchange narrative hasn’t come into full force yet. In bull market 2.0, we expect to see this and prefer to be well positioned for the opportunity.
This asset doesn’t get talked about enough and along with SOL and FTT, forms the holy trinity.
This at the moment is in a similar position that FTT was in a little while ago.
We see opportunity for entry here, assuming the current SOL and FTT trends continue.
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⛵Columbus Off Course?
Despite a three-week delay, Terra’s seigniorage is still set to incinerate all LUNA tokens when minting new UST. Not only that, but the addition of IBC for Cosmos SDK-native blockchains is set to exponentialize the stablecoin’s use case. Make sense?
If not, you’re in the right place! This week, we continue our examination of the Terra network and its flagship stablecoin, UST.
The Columbus-5 deployment has been delayed by approximately 3 weeks. This was deemed prudent by the Terra team to implement extra precautionary measures for the rollout. The total locked value of the network now sits at $7.3 billion. Tens of thousands of new stakers, community members and builders continue to onboard into the ecosystem.
If you remember from our crash course, minting stablecoins on Terra burns LUNA. The result of this is called seigniorage.
Currently, this process only burns a portion of the “converted” LUNA. The remaining portion of seigniorage goes to Terra’s treasury to fund fiscal stimuli.
The Columbus-5 upgrade will increase the amount of LUNA burned to 100%. This is a result of a governance proposal, voted on by the Terra community. As a result, LUNA will become scarcer as demand for UST increases.
Multiple Solana projects, like Saber and Mercurial, have already adopted UST with more projects to follow. Terra’s Inter-Blockchain Communication (IBC) enablement serves one function: to expand UST’s use to other Cosmos SDK-based sovereign blockchains.
Better late than never. Even with the modest set-back in Terra’s Columbus-5 upgrade, LUNA continues to maintain price action near its most recent all-time high set just last Sunday. With reduction in supply, added interoperability and red-hot Solana on its team, LUNA is certainly worth the research.
Late to the party? Don’t worry. You can catch last week’s coverage here.
🎧 Illuvium, NFT Gaming and The Perfect Burger with Kieran Warwick
Kieran Warwick is the co-founder of play to earn game: Illuvium.
⚡️ It’s Electric!
Renewable energy has been brought to the crypto conversation many times this year, especially with Tesla’s back and for the acceptance of Bitcoin as payment and the development of the Bitcoin Mining Council. Energy Web is a global non-profit focused on developing an open-source enterprise blockchain platform tailored to the energy sector. They use an Energy Web Decentralized Operating System (EW-DOS) to support two primary functions:
Clean energy and carbon emissions traceability
Using distributed energy resources to increase grid flexibility
Their software development kits support renewable energy and carbon markets to simplify and enhance the issuance, tracking, and buying/selling of energy attribute certificates (EACs). Renewable energy buyers can use the app to find and source procurement options for renewable energy certificates (RECs).
Renewable energy certificates are a way to track 1 Megawatt hour of electricity generated from a renewable source. If a company produces more than enough electricity from renewable sources, they can sell their RECs to others, who may purchase them to meet EPA standards or ESG initiatives.
Renewable energy certificates are not a flashy use case for crypto, but the Energy Web Token is delivering hope to the people of sub-Saharan Africa, in the form of energy access. In 2020 more than 580 million people of sub-Saharan Africa were without access to electricity. EWT partnered with Engie Energy Access to provide a Defi crowdfunding platform to support cleanenergy access to the people of this region. You can learn more about their partnership here.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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