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Crypto News

VanEck's New Filing Signals Groundbreaking Solana-Based Spot ETF

VanEck, an asset management company, has filed paperwork to establish a Solana (SOL) Spot Exchange Traded Fund (ETF), marking the first such proposal in the United States. This move signifies the potential for multiple Spot altcoin ETFs beyond Bitcoin and Ethereum. Before VanEck’s filing, Canadian company 3iQ made a similar proposal. Following the announcement, Solana's native token price surged nearly 8% within 24 hours. VanEck, known for being the first to file for an Ethereum ETF in 2021, continues to lead in cryptocurrency investment. Although the Solana ETF approval is anticipated in 2025, potential pro-crypto leadership in the White House could expedite this process. With an Ethereum Spot ETF likely to debut soon, this development marks significant progress for cryptocurrency, with rumours suggesting Ripple’s native token, XRP, might also secure its own Spot ETF.

SEC Drops Legal Hammer on ConsenSys Over Metamask Staking

Consensys, the owner of Metamask, faces a lawsuit from the U.S. Securities and Exchange Commission (SEC), alleging operation as an unregistered broker due to selling unregistered securities through Metamask's services. The SEC contends that Consensys acted as an unregistered broker by facilitating staking services via Lido and Rocket Pool, where investors lock cryptocurrency assets for rewards, typically in the form of additional tokens. The lawsuit seeks to halt Consensys' unregistered activities, citing over $250 million in fees, and demands fines. Consensys argues the SEC lacks jurisdiction over software interfaces like Metamask and plans to contest the allegations, with potential implications for the cryptocurrency industry pending the case's outcome.

MiCA Overhaul Launches Hard-Hitting Stablecoin Regulations

New regulations governing the trading of stablecoins, such as Tether (USDT) and Circle’s USDC, within the European Union (EU) were implemented on June 30, 2024. The Markets in Crypto Assets (MiCA) legislation aims to enforce stringent regulations on cryptocurrency firms. Under these provisions, transactions involving fiat-backed stablecoins are capped at €1 million daily and must not exceed €200 million in total daily volume. Fiat-based stablecoins now require a 1:1 reserve of highly liquid assets, primarily in Euros and held by a third-party custodian. Additionally, the issuance of algorithmic stablecoins is prohibited due to concerns over potential manipulation and volatility. All stablecoin firms are mandated to register and adhere to these regulations. Despite concerns within the cryptocurrency community regarding excessive constraints and their potential impact on innovation, MiCA contends that these measures are essential for enhancing regulatory oversight.

Crypto Analysis

Bitcoin (BTC)

Bitcoin (BTC) is currently navigating a bearish short- to medium-term trend within the broader context of a primary monthly uptrend. As of the latest analysis, Bitcoin has been testing a crucial support level at approximately $60,000 for the better part of the week. This level has been tested numerous times and represents a critical juncture for market sentiment.

Bitcoin's price action indicates consolidation near these support levels, suggesting a high probability of continued downward momentum in the medium term. However, Bitcoin is currently finding positive support around this area at the time of writing on Monday morning. The low trading volume during this consolidation and short-term up-move phase reinforces the bearish outlook. After spending most of the week below, Bitcoin is attempting to reclaim the 10-day exponential moving average (EMA).

If Bitcoin breaches the current support zone extending to $56,552, it could trigger further downside movement. The following major support levels to watch are $52,985 and $48,969, marked by previous swing highs. A breach of these levels would pave the way for a deeper retracement towards $42,000, signifying a significant correction from recent highs.

The chart below indicates that the current price is rebounding from the 0.382 Fibonacci retracement level, coinciding with the weekly support established from the significant swing low on January 23rd to the all-time high in March at $60,322. It is essential to highlight that the 0.618 level, prominently marked on the chart, could become significantly more relevant if the price drops below its current position. This area represents a stronger point of interest due to the convergence of support levels, illustrated by four blue arrows on the chart to the left.

Bitcoin: Conclusion

Bitcoin is currently in a phase of low trading volume and testing of weekly support levels, indicating imminent market activity. Persistent sideways movement near these supports suggests a potential downside breakout. A significant breach and daily close below these levels, accompanied by increased trading volume, could trigger a substantial price decline.

Conversely, breaching current support followed by a swift recovery above it could signal bullish momentum, supporting a continuation of the uptrend. Institutional players, often called whales, might strategically trigger sell stops to create liquidity before reversing course to drive prices back above resistance levels.

As previously noted, the long-term bullish trend remains intact unless there's a clear breach of weekly support. Monitoring these developments closely in the days ahead will provide further insights into Bitcoin's price trajectory and potential market dynamics.

Polkadot (DOT)

Polkadot is currently at a critical juncture in the short term, suggesting a potential bearish trend that may revisit the $5.00 mark. The chart indicates strong overhead resistance around $6.39; unless there is a breakthrough above this resistance line, the likelihood of a downward movement remains high. Friday's minor upward movement above this line, followed by an inability to sustain it, underscores Polkadot's challenge in attracting buyers. Moreover, the Stochastic RSI momentum indicator shows overbought conditions at this resistance level, hinting at a possible local peak.

Polkadot's price is also positioned below the 200, 100, and 50-day Exponential Moving Averages (EMA), all trending downward after crossing to the downside. This aligns with another significant bearish signal. The resistance line's numerous swing pivot points further emphasise its formidable nature as a barrier to further upward movement. It must be noted that Polkadot is attempting to reclaim the resistance level at the current time of writing on Monday morning.

On the 4-hour chart, there is a distinct pivotal level to monitor. A drop below the black diagonal trendline, around $6.08, and the horizontal support line, around $5.96, could signify the end of the short-term uptrend and a potential continuation of the downtrend. It's important to note that this observation does not constitute financial advice.

Conversely, a breakout above Friday's high, accompanied by robust trading volume, would likely invalidate the bearish outlook. Such a move would propel the price back above the black resistance line, potentially setting the stage for higher price levels.  

As of Monday morning, the price is attempting to rebound towards its previous high. If the price manages to reclaim the high, the Relative Strength Index (RSI) is likely to form a bearish divergence, requiring close monitoring. As indicated by the upper blue horizontal line, a break above the previous high would be viewed as a positive development.

Polkadot: Conclusion

Polkadot (DOT) is positioned at a crucial resistance level, with significant bearish indicators suggesting a potential decline. However, a break above Friday’s high on solid volume could shift the outlook to bullish, indicating a return to higher prices. Investors should monitor the area around $6.00 and Friday’s high for further price action cues.