With the exception of dollar-pegged stablecoins, all major digital tokens were trading higher. Terra gained over 6%, followed by a 3% rise in Bitcoin. Avalanche and Dogecoin added 2% each.
The global cryptocurrency market capitalization fell to $1.73 trillion today, jumping around 2% in the past 24 hours. Total cryptocurrency trading volume soared by 20% to $74.69 billion.
Global investors are taking stakes in cryptocurrency funds and companies as they seek exposure to a sector that many believe could weather the fallout from the Russia-Ukraine conflict.
What’s cooking in India
- The high-value crypto transactions of around 700 investors have come under the scanner of the income tax department, which is now offering to issue notices to them. Such persons or entities may be subject to 30% tax, penalties and interest.
- The crypto industry has approached the Department of Finance, seeking to reduce or eliminate the proposed 1% withholding tax (TDS) on the proceeds of all crypto transactions. The finance bill will be approved during the parliamentary session which started on Monday. Top crypto players are responding to the ministry’s request through the Blockchain and Crypto Assets Council (BACC).
- Cryptocurrency startups have started offering investors an option to earn interest on virtual assets to combat volatility even as the industry waits for regulatory and legal clarity on the matter. Crypto startups offer fixed returns on its holdings.
Bitcoin and Ethereum have gained some trading momentum, said Edul Patel, co-founder and CEO of Mudrex. “If the buyers were able to hold above the support level, there could be a long-term bullish trend. Given that BTC is trading sideways, this could create high volatility in the coming days.”
Following the European Union’s rejection of the proposed Bitcoin ban aimed at limiting energy-intensive proof-of-work cryptos, the crypto market has seen a bullish rally back into the greens, the report said. CoinDCX research team.
“Instead of an outright ban, Members of the European Parliament agreed on a draft set of rules that uphold monitoring, consumer protection and environmental sustainability, establishing more regulations, policies and provisions that will build trust and credibility for the digital asset industry,” he added.
- The Japanese government and financial regulator have set out the penalties that crypto exchanges could face if they fail to comply with the sanctions imposed on Russia following its invasion of Ukraine.
- Dogecoin (DOGE) briefly jumped 10% after Tesla CEO Elon Musk said in a tweet that he was not selling his crypto holdings, which includes DOGE.
- Non-Fungible Token Market (NFT) Magic Eden has raised $27 million in a Series A funding round to expand its suite of products and services.
- The latest draft legislative framework proposed by the European Union (EU) to govern virtual currencies, Markets in Crypto Assets (MiCA), still contains a provision that could limit the use of proof-of-work cryptocurrencies.
Technical view by Giottos Crypto Exchange
Aave is one of the popular Defi protocols. It is an open-source, non-custodial tool built on top of Ethereum to allow users to lend and borrow their cryptocurrencies and earn interest. Its token – AAVE – has taken a lot of beatings lately, but remains a favorite, given its rally from near $100 to over $600 in 2021.
AAVE remains under pressure due to macro market trends and its reliance on Polygon, the Layer 2 network that has been facing technical issues lately. Although it continues to underperform in a resistance trendline at the moment, it is looking to overcome the resistance around the $120 mark.
If this level holds, the bulls will be looking to take this latter $124 and $127 in the near term. Breaking through the $130 level is needed to signal a new rally that could bring $200 back into sight.
The downside remains limited on AAVE given the steep decline, and the coin is already in compelling buy and hold territory for many people.
Support: $124, $127, $130
Resistance: $120, $118