Cryptos Today: Dogecoin Pulls Crypto Rise, Soars 15% on Expectation of Musk to Close Twitter Purchase; Bitcoin could go to $21,400

Even with a more than 2% drop on Nasdaq yesterday, Bitcoin (BTC) and Ethereum (ETH) support the gains of the last two days, trading at $20,615 and $1,549 at 7:00 a.m. today, and open the way for a rally in smaller cryptocurrencies.

The sector advances this Thursday (27) driven mainly by Dogecoin (DOGE), which shoots up 15% amid expectations that Elon Musk will soon finalize the purchase of Twitter.

The billionaire made the first offer to buy the social network in April, and he took back the proposal after months of trying to cancel the buyout process. According to analysts, the CEO of Tesla (TSLA) went back and decided to proceed with the deal just to avoid a court decision that would force him to do so.

Soon after, a judge at the Court of Delaware, in the United States, handed down a decision giving until this Friday (28) for Musk to complete the acquisition. On Wednesday (26), he visited Twitter’s headquarters in San Francisco and, according to Bloomberg, said he would not lay off 75% of employees, as he had previously stated.

The businessman, it is worth remembering, is a well-known supporter of Dogecoin, a cryptocurrency originally created from a meme, but which gained strength from the end of 2020, especially after the billionaire began to tweet about the currency – he has already stated, for example, which has “some Doges”. In the community, expectations are growing that the digital asset may play a role in the platform.

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The cryptocurrency’s performance is second only to that of Klaytn (KLAY), which powers a blockchain focused on entertainment such as games and the metaverse, which recently announced the cut of rewards for validators, something seen as indicative of a lower supply of the token in the market. In two days, the asset’s price has already doubled in price – in the last 24 hours alone, it has risen by almost 27%.

Cryptocurrency analysts, however, are still cautious and not betting on a sustained recovery in the sector, even with this week’s show of strength when compared to Wall Street’s performance.

The attention falls mainly on Bitcoin, which is gradually being analyzed again from the perspective of the technological proposal, of programmed scarcity, but still presents risks to the less careful investor, says Israel Buzaym, executive of the Brazilian brokerage Bitpreço.

“Overall, we remain bullish for the short to medium term, but are tracking the Bitcoin price cautiously. The crypto market works 24/7 and there is a high level of leverage, which can generate sudden drops”, points out Buzaym.

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Technical indicators are also starting to sound the alarm for the possible unsustainability of the crypto boom.

“Technically, both BTC and ETH have outperformed traditional “overbought” metrics on their 1-hour charts – and have since retreated,” says crypto analyst Glenn Williams, noting that the relative strength levels of both cryptocurrencies “are well outside the normal movement range”, and that, therefore, the rally tends to cool down at this time.

“Current daily RSI levels for BTC and ETH are approximately 71. Traditionally, 70 is used as a benchmark for overbought conditions, so both are close to hitting these levels. However, an ‘overbought’ asset can remain that way for long periods under the right conditions”, he explains.

According to Williams, the volume of negotiations should play a decisive role in the continuation of the rise that has been going on since Tuesday. If the rally continues, the analyst bets Bitcoin has more room to rise, with a short-term target of $21,400. Ethereum, on the other hand, would have the strength to go only up to the $1,600 region.

Check out the performance of the main cryptocurrencies at 7 am:

cryptocurrency Price Change in the last 24 hours
Bitcoin (BTC) US$ 20,615.39 0.00%
Ethereum (ETH) US$ 1,549.28 +1.00%
Binance Coin (BNB) US$ 288.09 -0.30%
XRP (XRP) US$ 0.470841 +1.00%
Cardano (ADA) US$ 0.406504 +0.20%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Klaytn (KLAY) US$ 0.253314 +26.10%
Dogecoin (DOGE) US$ 0.076232 +15.20%
WhiteBIT Token (WBT) $13.28 +9.30%
Mine Protocol (MINA) US$ 0.614709 +7.50%
Ethereum PoW (ETHW) $7.16 +6.10%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Evmos (EVMOS) $2.19 -8.70%
Chain (XCN) US$ 0.052462 -8.10%
Tokenize Xchange (TKX) $17.95 -7.90%
Casper Network (CSPR) $0.04542786 -6.70%
Polygon (MATIC) US$ 0.928031 -3.20%

Check out how cryptocurrency ETFs closed in the last trading session:

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ETF Price Variation
Hashdex NCI (HASH11) BRL 19.94 +6.63%
Hashdex BTCN (BITH11) BRL 26.21 +3.39%
Hashdex Ethereum (ETHE11) BRL 24.80 +8.58%
Hashdex DeFi (DEFI11) BRL 22.30 +2.95%
Hashdex Smart Contract Platform FI (WEB311) BRL 17.80 +3.48%
Hasdex Crypto Metaverse (META11) BRL 40.95 +5.67%
QR Bitcoin (QBTC11) BRL 7.00 +6.06%
QR Ether (QETH11) BRL 6.15 +10.21%
QR DeFi (QDFI11) BRL 4.10 +1.99%
Crypto20 EMPCI ,(CRPT11) BRL 5.50 +2.23%
Invest NFTSCI (NFTS11) BRL 23.94 +0.16%
Investo Blocki (BLOK11) BRL 102.07 0.00%

See the main news from the crypto market this Thursday (27):

Blockchain.com Is Ready to Overturn Valuation

Blockchain.com, the cryptocurrency financial services company that was valued at $14 billion when raising capital earlier this year, may seek valuation from just $3 billion to $4 billion in a new round of investment.

The information is from Bloomberg, which cited sources who preferred not to be identified.

According to the publication, nothing has yet been closed and negotiations for the new capture are still preliminary.

FTX develops its own stablecoin

Cryptocurrency exchange FTX is working on creating a stablecoin, CEO Sam Bankman-Fried told The Big Whale in an interview. More details about the project were not revealed.

A stablecoin is a token whose value is tied to that of another asset, usually a national currency.

FTX currently offers margin trading that allows customers to use a basket of US dollar stablecoins as collateral. The basket includes TrueUSD (TUSD), USD Coin (USDC), Pax Dollar (USDP), Binance USD (BUSD) and HUSD.

Hong Kong wants to legalize cryptocurrency trading

Hong Kong plans to legalize retail cryptocurrency trading in a plan to become an industry hub, Bloomberg said on Thursday.

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Crypto platforms will be required to apply for a license to offer retail trading, according to people familiar with the matter.

The city wants to re-establish its reputation as a global financial center. The move goes against China, where cryptocurrencies are banned.

Hong Kong has its own financial and judicial systems, separate from the Chinese mainland, as part of the “One Country, Two Systems” framework under which it is governed.

World’s Largest Bitcoin Miner Announces Default

Core Scientific, the world’s largest Bitcoin miner, will not repay loans, including those intended to purchase equipment, due in late October and early November 2022.

In a statement released on Thursday, the company said it projected that existing cash resources will be exhausted by the end of the year, or even before that, hence the need to delay commitments to creditors.

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