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Polkadot, Kusama Look Ready To Rally
Polkadot and Kusama appear to be gaining bullish momentum for a rebound after both tokens incurred significant losses over the past 11 days.

Polkadot’s DOT token has recently endured a steep downtrend, losing 28.72% in market value since peaking at $23.85 on Apr. 2. Polkadot appears to have found vital support around the $17 level. Meanwhile, one technical indicator suggests that the asset is trading in oversold territory and could be ready to bounce.

The Tom DeMark (TD) Sequential indicator currently presents a buy signal on DOT’s daily chart. The bullish formation developed as a red nine candlestick, indicative of a one to four daily candlesticks upswing or the beginning of a new uptrend. A spike in buying pressure around the current price levels could help validate the optimistic outlook.

Polkadot must print a daily candlestick close above $18.30 to encourage sidelined investors to re-enter the market. Breaching this resistance level could confirm the buy signal presented by the TD and push Polkadot to $19.50 or even $21.

Decentraland looks bound for significant losses after failing to overcome critical resistance.

The Metaverse game’s MANA token has seen its price drop by more than 23% over the past week. The downswing came after MANA was rejected from the upper boundary of a parallel channel its price has been contained in since early November 2021.

Now that Decentraland has breached the $2.25 support level, a steeper decline is possible.

Price history shows that MANA tends to retrace to the channel’s middle or lower trendline when the pattern’s upper edge rejects it. Similar price action could result in a 19% correction to $1.71. But if this support level fails to hold, MANA could dive further toward $1.21.

Terra’s native token is also sitting at a pivotal point on its trend. The Tom DeMark (TD) Sequential indicator recently presented a buy signal in the form of a red nine candlestick on LUNA’s 12-hour chart. The bullish formation anticipates a one to four candlesticks upswing, but buying pressure has not yet picked up.

The 100-hour exponential moving average at $91 within this time frame is the only level of support preventing LUNA from dropping further. Meanwhile, the 50-hour exponential moving average at $100 is acting as resistance, rejecting any upward price action.

Only a 12-hour candlestick close outside of this price pocket can determine whether the optimistic thesis presented by the TD setup would be validated.

Although Bitcoin does not tend to follow the herd, the bulls could be proven right this time around.

The Tom DeMark (TD) Sequential currently presents a buy signal on Bitcoin’s 12-hour chart. The bullish formation developed in the form of a red nine candlestick, which is indicative of a one to four candlesticks upswing.

A spike in buying pressure could help validate the optimistic outlook and push Bitcoin toward the $44,400 resistance level. A decisive 12-hour candlestick close above this hurdle could result in a more significant upswing to retest the recent high of $48,200.

We recently bought Ethereum when it pulled back to its 10-day MA, then sold for a gain of nearly +8% just a few days later. Here is a simple walk-through of that winning ETH swing trade entry and exit.

Ethereum (ETH), the second largest cryptocurrency behind the King of Crypto, led the crypto market higher with a solid display of relative strength last week.

As Bitcoin (BTC) drifted lower in pullback mode, ETH trended steadily higher and broke out to new short-term highs.

On Mar. 30, we alerted Morpheus Crypto Pro members in the Crypto Trading Room that we were monitoring for a potential pullback buy entry for ETH in the Morpheus Crypto portfolio.

Specifically, we were looking for a precision buy entry on a pullback to the 10-day moving average.

But why?

In a strongly trending crypto (or stock), the first pullback that touches the 10-day moving average since the start of a new rally is often an ideal, lower-risk buy entry point.

The ETH buy signal
We got our exact pullback entry point the next day, and we sent a trade alert that we were buying ETH in the portfolio. The daily chart of ETH below shows our buy entry point from the crypto signal:

Again, this is typically a reliable buy signal—as long as the pullback is not on higher volume.

Shortly after our buy entry, increasing bullish momentum enabled ETH to rally all the way back to its prior high the next day. At the same time, we noticed BTC only recovered a portion of its similar pullback—not all the way back to the highs like ETH!

This is notable because it pointed to clear leadership and relative strength in ETH versus BTC. Leadership in ETH also meant that we were likely to see short-term buying momentum in the overall altcoin market.

Locking in a +7.9% gain on a 4-day hold of ETH
When we bought ETH in the portfolio, our trade plan was a quick momentum swing trade to just above the 3,600 area—a resistance area from earlier this year. At the same time, we also wanted to take profits quickly if the price action started to falter (rather than sit through a pullback).

On Apr. 3, ETH broke out above its short-term highs and made a run for the 3,600 level. However, the price action stalled and ETH drifted right back down to its prior base. This is shown on the hourly chart below:

For comparison, a recently released Bloomberg Intelligence (BI) report estimates that Exchange Traded Products (ETPs) for the crypto sector should grow to over $120 billion by 2028. Likewise, according to the report’s cash-to-flow model, Ethereum’s true value, when the upgrade is accounted for, stands at $6,128, which is 88% higher than its current price of $3,252.

In other words, the post-Merge period is poised to add $343 billion to Ethereum’s market cap. Accordingly, Mark Cuban, the billionaire who is known to get burned on DeFi’s more fringe projects, is very bullish on the upcoming Ethereum milestone.

Why is the Merge So Important For Ethereum?
In March 2021, the Tokenist covered in great detail why Ethereum is the most likely winner of smart contract wars. Such a forecast is not only based on its highest developer count and the number of dApps (nearly 3,000), but also on its abandonment of the proof-of-work consensus.

This is what "The Merge" is all about. On Dec. 1, 2020, Beacon Chain launched as Ethereum’s future proof-of-stake blockchain. Following the Kiln testing stage this March, as the last one before the Merge, the old proof-of-work chain will "dock" with the proof-of-stake (PoS) Beacon Chain.

By becoming fully PoS, Ethereum will no longer use computational mining to process transactions and add new blocks. Instead, economic staking via validators will take over completely. Already, there are 10.69 million ETH staked in the new Ethereum, or $34.3 billion.

Following a significant dip in 2021, the mining difficulty has recovered and rebounded to new all-time highs in 2022. The mining difficulty refers to the number of Bitcoin hashes a miner is expected to generate before finding a winning hash. Using the current value, a miner may create about 28.59 trillion hashes to find the correct hash and mine BTC successfully.

The mining difficulty is necessary as it keeps the entire Bitcoin protocol stable while helping to maintain the 10 minutes block time. This is crucial as it ensures blocks are not created at a faster rate as more miners join the ecosystem. Thus, the difficulty increases and decreases depending on the number of miners, thereby regulating its scarcity.

Following China’s outright ban on Bitcoin mining and the migration of miners to other countries like Kazakhstan, mining difficulty dropped in 2021. But with miners now up and running, the mining difficulty has reached unprecedented highs.

Alongside the increased difficulty in BTC mining, Bitcoin’s illiquid supply has continued to grow due to unprecedented accumulation. In January, Glassnode observed that 76% of Bitcoin’s supply is illiquid, meaning it is held in wallets with no history of spending.

The remainder of the Bitcoin supply is currently being held by wallets actively spending or exchanging their holdings. This continues to contribute to the supply shock, thereby enhancing the chances of further upward price action.

Was Feb. 4, 2022 a watershed event in history?

The handshake between China’s President Xi and Russia’s leader Vladimir Putin was far more than a $117 billion trade agreement. The “no-limits” support pledge formed an alliance that bifurcated the globe. The handshake set the stage for Russia’s invasion of Ukraine and could be a prelude to Chinese reunification with Taiwan.

Over the past years, the world has been moving towards globalism in the financial system. After the Feb. 24 invasion, sanctions on Russia and Chinese support changed the economic landscape. Globalism may have supported cryptocurrencies growth over the past dozen years, but the bifurcation could turbocharge the burgeoning asset class.

Ideologically, globalism made Bitcoin, Ethereum, and other cryptocurrencies potential means of exchange that transcended borders. Bifurcation can increase the demand for currencies that remove the control of the money supply from governments.

Governments can pursue political agendas by increasing or decreasing the money supply by issuing more legal tender or removing it from the financial system to their heart’s content.

Cryptos return the power to a growing audience that rejects government interference as they derive value solely from bids and offers for the digital currencies that have no ties to any government or any political ideology. Cryptos are libertarian forms of money that reject government interference.

Decentraland continues to consolidate within a tight range while attempting to slice through resistance.
The Metaverse game’s MANA token has seen its price action getting narrower over time. In the past week, MANA has mostly traded between $2.60 and $2.76 without providing a clear direction.
From a technical perspective, it appears to be stuck within a symmetrical triangle that has been forming since late January. A descending trendline has developed along with the swing highs, while an ascending trendline formed along with the swing lows. This continuation pattern estimates that a decisive daily close above $2.70 could propel MANA to $3.80.

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