Cryptocurrency market has been less volatile recently, but most of the digital currencies are down up to 50 per cent from their peaks after regulators increased their efforts to limit speculation in the market.
In the latest salvo against cryptocurrencies, Bank of Japan Governor Haruhiko Kuroda said much of the trading was speculative. His remarks followed China’s recent efforts to crack down on mining activities. Two Chinese trading apps have applied for licenses in Singapore and the US that would allow local customers to trade in digital currencies.
Back home, the RBI has asked banks, NBFCs and payment system providers not to refer to its earlier virtual currencies-related circular, issued in April 2018, in their communications to customers as it was set aside by the Supreme Court.
The clarification from the central bank will come as a sign of relief for all investors and crypto exchanges in India. The latest directive from RBI comes against the backdrop of some banks, including HDFC and
, citing the circular and cautioning customers against dealing in virtual currencies.
“We will continue to see this sideways motion over the next few weeks as crypto consolidates to the new normal. From an Indian perspective, crypto holders should be happy with the RBI announcement yesterday that banks should not stop crypto companies. This positive sentiment continues to drive prices up,” said Edul Patel, CEO and co-founder, Mudrex.
Analysts advised investors to remain cautious, despite the belief that the market is likely to ride an upward trend over the next few days, and potentially weeks.
Crypto prices as of 09.50 hours IST (Source:
- Bitcoin: $36,761.62, up 7.03%
- Ethereum: $2,640.96, up 15.33%
- Tether: $1.00, down 0.02%
- Cardano: $1.71, up 11.38%
- Binance Coin: $346.62, up 12.05%
- XRP: $1.03, up 16.63%
- Dogecoin: $0.3279, up 11.26%
- USD Coin: $1, up 0.05%
- Polkadot: $22.55, down 17.75%
- Uniswap: $27.63, up 17.37%
ZebPay Trade Desk’s Tech View
Polygon (MATIC) has been on a roll. Over the past week, the asset has gained 40 per cent, outperforming almost every major asset, except UniSwap. On May 25, billionaire entrepreneur Mark Cuban committed to investing in Polygon, citing the protocol’s ability to facilitate high transactions per second (TPS), and lower cost of usage for users. This fueled the rally exponentially. It is the 15th largest cryptocurrency by size with a marketcap of nearly $12 billion
Moreover, the protocol underwent a few changes in early February as it brought in several promising metaverse projects, and also integrated the Matic plasma chain. Since then, Polygon has operated as a major one-layer blockchain project, supporting multiple metaverse projects, and has seen the numbers of users skyrocketing. This made-in-India crypto has rallied over 8,000 per cent over the past year and was not impacted much by the recent crash crypto markets saw.
Support: $1.5 and $1.75
Resistance: $1.98 and $2.33
Matic is currently trading at $1.936 and every dip is seen as an accumulating opportunity. Technically, the asset is trying to make a ‘Flag’ pattern (bullish continuous pattern) where prices are trading in a narrow range from $1.96 to $1.78 and the breakout will occur once the upper range is broken (in less than 15 trading sessions) and the asset will close above this range with high volumes.
Time is in UTC and the daily time frame is 12:00 AM to 12: 00 PM UTC