Tesla launches Dogecoin payments this week. |
● This is why Solana is trading down – Elliott Wave analysis. |
● Microsoft made a massive Metaverse move. |
● When will Elrond bottom out? |
● CEO Elon Musk recently announced that Tesla will accept DOGE payments for the company’s merchandise. |
Solana (SOL) had a rough start this year, with its value down more than 23% YTD. Based on the Elliott Wave analysis, SOL is trading down due to an incomplete EW sequence from its all-time high of $259.80. The price action is also showing a confluence of different technical factors that point to a potential reversal:
When the price action is too “clogged”, and the swing waves are not that visible to the naked eye, one can use the stochastic indicator to count the waves. Simply count the up and down oscillations in the stochastic indicator to find the appropriate wave count.
The decline from the all-time high of $259.80 is unfolding as a five-wave structure. However, since the waves are overlapping, the sell-off is corrective in nature. There is also no divergence in wave 3 and wave 5, so the entire price structure is not impulsive, but corrective.
Down from the November 7, 2021 high, wave 1 ended at $186.53, and the rally in wave 2 ended at $243. SOL’s price resumed lower in wave 3 towards a $148 low, and the rally in wave 4 ended at $204.78.
A short-term wave 5 is currently developing, which can find support at the $130 level, followed by the significant psychological level of $100.
Microsoft Corp. has made a serious move to strengthen its gaming and Metaverse plans by acquiring gaming giant Activision Blizzard Inc. for a whopping $69 billion. Once the deal is finalized in 2023, the tech giant is set to become the third-largest gaming company in terms of revenue after Riot Games’ owner Tencent, and Playstation developer Sony.
The details According to Microsoft’s announcement on Jan 18, the firm will acquire Activision Blizzard for $95.00 per share at a total valuation of $68.7 billion, including Activision Blizzard’s net cash. This means that various iconic gaming franchises including Call of Duty, Overwatch, Candy Crush, World of Warcraft, and Tony Hawk’s Pro-skater will be added to Microsoft’s Xbox’s Game Pass service, which currently has more than 25 million subscribers.
Microsoft stated that the acquisition will support the growth of its services across mobile, PC, console, and cloud gaming, and commented that it will provide “building blocks for the Metaverse”. Microsoft CEO and Chairman Satya Nadella stated, “Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”
CEO of Activision Blizzard Bobby Kotick revealed that he will continue to focus on strengthening the company’s growth as of now. When the deal becomes finalized in the 2023 financial year, Microsoft Gaming CEO, Phil Spencer will take charge of the company.
Zoom out – The recent acquisition strengthens Microsoft’s commitment towards gaming and metaverse.
Like most other cryptocurrencies, Elrond’s (EGLD) price has been in a downward sloping trajectory since reaching its all-time high on November 23, 2021. There are no signs of downside exhaustion as most technical indicators are bearish. For a reversal to happen, we would need to see three things.
The 200-day moving average, which currently stands at $218.88, has been broken to the downside, signaling a shift in market sentiment. So for a reversal, the bulls would need a break above the 200-day SMA. From the technical perspective, the psychological number of $200 is also a significant hurdle that the bulls will need to overcome.
Secondly, we have persistent bearish momentum readings, with most RSI readings capped below the mid-level 50. Therefore, a break above the mid-level 50 could potentially signal that EGLD’s price has bottomed out.
Lastly, there is a bullish divergence between EGLD’s price and the MACD indicator. While EGLD’s price made a lower low, the MACD indicator made a higher low, calling for a slowdown in the bearish momentum. However, it’s premature to call for a bottom at this stage until we have confirmation from the other technical indicators.
Looking forward: The first level of interest to the downside is the big round number of $150, followed by the $125 support level. On the flip side, a break above the 200-day SMA can open up the door to retest the $300 psychological number.
Tesla CEO Elon Musk recently announced that Tesla will accept DOGE payments for the company’s merchandise. Users can identify the Dogecoin-eligible products by looking for a DOGE symbol next to the “order” button, and can purchase them by sending DOGE to Tesla’s Dogecoin wallet.
The details – While Tesla accepts DOGE, no other crypto is currently accepted by Tesla for purchasing company products. On its official website, Tesla also clarified that “non-Dogecoin digital assets sent to Tesla will not be returned to the buyer”. Additionally, items purchased with DOGE “cannot be returned, exchanged, or canceled.” The firm also considers that all payments made through DOGE are final and cannot be exchanged for cash.
On Friday, just a few hours after Tesla implemented the DOGE payments, the asset’s price had increased by more than 18.63%. Tesla confirmed that it was going to start accepting Dogecoin payments for merchandise around a month ago. The announcement resulted in a 25% raise at the time.
Musk expressed his thoughts about Dogecoin back in December 2021. He commented, “Even though it was created as a silly joke, Dogecoin is better suited for transactions.” He also stated that the slight inflationary behavior of DOGE encourages people to spend it instead of using it as a store of value.
Zoom out: Well, Elon Musk’s actions and tweets continue to make an impact in the crypto sphere.
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Considering the amount of reach the crypto industry has acquired and the number of people entering the space, 2021 will be remembered as a defining year of cryptocurrency. Some of the buzzwords like NFTs, metaverse, scaling solutions, and DeFi were all over the news headlines, raising curiosity from the people around the world.
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