ICYMI

Here are the top stories for the week

• Bitcoin and Ether Stabilize After Flash Crash

• DeFi TVL Reaches $192 Billion Amid Declining User Activity

• Roaring Kitty's Livestream Spurs GameStop Volatility and Major Losses

⚖️ Bitcoin and Ether Stabilize After Flash Crash

Bitcoin's price stabilized around $69,000 after a sudden sell-off triggered by volatile U.S. employment data and a significant altcoin crash, with analysts suggesting it as a potential buying opportunity amid upcoming Federal Reserve decisions.

• Bitcoin's price experienced significant volatility, dipping to local lows of $68,450, influenced by erratic U.S. employment data and a massive sell-off in altcoins spurred by investor Roaring Kitty's livestream.

• Trading firm QCP Capital described the market's reaction as "doubly strange" due to upcoming inflation data and Federal Reserve meetings. They advised viewing the dip as a buying opportunity in anticipation of favorable future Fed moves.

• Analysts identified critical support levels around $67,500, with further decline potentially jeopardizing the high-time-frame bullish trend. A significant reduction in open interest for Bitcoin and Ether, totaling over $2 billion, was noted as part of the market correction.

🔒️ DeFi TVL Reaches $192 Billion Amid Declining User Activity

DeFi applications reached $192 billion in TVL in May, driven by speculation and rising token prices, despite a 21% decline in unique active wallets, with broader Web3 sectors showing user growth.

• The total value locked (TVL) in DeFi applications reached $192 billion in May, the highest since February 2022, driven by rising Ether and token prices, with Ethereum accounting for 68% of the total TVL.

• Despite the growth in TVL, the number of unique active wallets (UAW) using DeFi decreased by 21%, indicating a shrinking user base even as the remaining users deposited more funds or saw their portfolio values increase.

• The TVL rise was attributed to speculation around an Ethereum ETF, while other Web3 sectors, including gaming and NFT marketplaces, saw user increases, contributing to a total of 10.4 million unique active wallets across all Web3 applications.

😺 Roaring Kitty's Livestream Spurs GameStop Volatility and Major Losses

Roaring Kitty's first livestream in three years caused significant volatility in GameStop shares, revealing a $235 million loss and facing challenges with exercising call options amid institutional scrutiny and trading halts.

• During his first YouTube livestream in three years, Roaring Kitty (Keith Gill) disclosed a $235 million loss as GameStop shares plummeted from $46 to around $26, with current trading around $28.

• Gill revealed holding call options on 12 million GameStop shares, causing a temporary surge in the stock price to $61.27 in aftermarket trading. However, he now faces challenges in exercising these options due to the need for $240 million in cash and potential market backlash.

• Trading of GameStop shares was halted six times due to volatility on June 7, and Gill faces scrutiny from institutional players and platforms like E-Trade, which may remove him due to market manipulation concerns.

Meme of the Day

Potential Trade Opportunities

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Wormhole (W)

EMA and MACD Signal a Bullish Breakout: Is the Wormhole Price About to Soar? Key Levels to Watch Now!

Price Movements: Wormhole is displaying key bullish indicators on the 4-hour chart. The Exponential Moving Averages (EMA) suggest a slight upward momentum, with the 9 EMA crossing above the 20 EMA. This crossover often signals the start of an upward trend, indicating that buyers are gaining strength. The Moving Average Convergence Divergence (MACD) indicator shows bullish momentum as well. The MACD line is above the signal line, with positive histogram values indicating continued upward pressure. This suggests that the upward trend might continue if the momentum is sustained. The Relative Strength Index (RSI) values indicate that Wormhole is not currently in overbought territory, suggesting there may still be room for upward movement. Meanwhile, volume analysis shows fluctuations, with a recent spike potentially indicating the start of significant price movements. Traders should watch for increases in volume as they often precede substantial price changes.

Key Levels to Watch: Support levels are identified at $0.673 and $0.636, with additional support at $0.632. On the upside, resistance levels are identified at $0.711, $0.761, and $0.765. Breaking above the $0.711 resistance level with strong volume could signal a continuation of the bullish trend towards the next resistance levels.

Potential Trade Strategies: For long positions, potential entry points could be considered near the support levels of $0.673 or upon a breakout above $0.711 with significant volume. Exits could be planned near the resistance levels of $0.761 or $0.765. For short positions, entries could be considered near the resistance levels of $0.711, especially if there is a bearish reversal pattern or a drop in volume. Exits for short positions could be targeted near the support levels of $0.673 or $0.636.

Pepe (PEPE)

Bearish Trends and Key Support Levels: Is PEPE Poised for a Rebound or Further Decline?

Price Movements: The recent performance of PEPE shows notable volatility. The 9 EMA and 20 EMA suggest a bearish trend, as the 9 EMA consistently remains below the 20 EMA. The MACD indicator shows a bearish momentum with negative values in both MACD and Signal lines, accompanied by a consistent negative histogram. This indicates a strong bearish sentiment in the market. Additionally, the RSI is hovering around oversold territory, suggesting potential buying opportunities if the price finds support.

Key Levels to Watch: Given the bearish indicators, the PEPE price is likely to test the support levels at $0.00001028, $0.00000974, and $0.00000902. A breakdown below these levels could signal further downside potential. On the upside, resistance levels are marked at $0.00001494 and $0.00001510. For a bullish reversal, the price needs to break and sustain above these resistance levels, which would also require confirmation from the EMAs crossing and the MACD turning positive.

Potential Trade Strategies For long trades, potential entry points could be near the support levels at $0.00001028 or lower, with targets set at the resistance levels of $0.00001494 and $0.00001510. Stop-loss orders should be placed slightly below the support levels to manage downside risk. For short trades, entry points could be considered near the current price levels if bearish momentum continues, with targets at the lower support levels at $0.00001028, $0.00000974, and $0.00000902. Stop-loss orders should be set above the resistance levels to mitigate potential losses in case of a bullish reversal.

Notcoin (NOT)

Notcoin Price on the Brink: Will a Bullish Reversal Break Through Key Resistance Levels?

Price Movements: Notcoin on the 4-hour chart shows a series of fluctuating closing prices, suggesting a period of consolidation. Despite the volatility, there is a notable recovery from the low of $0.018785 to the current level of $0.020333. The 9 and 20 Exponential Moving Averages (EMAs) both indicate a gradual downward trend, but recent price movements hint at a potential stabilization. This suggests that while the overall momentum has been bearish, the immediate downtrend might be losing steam. The MACD indicator shows bearish momentum with the MACD line consistently below the signal line. However, the decreasing magnitude of the negative histogram values indicates a potential slowing in bearish momentum, which could be a precursor to a trend reversal. The Relative Strength Index (RSI) has moved from an oversold condition back to a more neutral state, hovering around the mid-40s. This suggests that the selling pressure has eased, and buyers might be stepping in, adding a slightly bullish sentiment to the mix.

Key Levels to Watch: Given the current technical indicators, Notcoin faces resistance at the levels of $0.021921, $0.022356, and $0.024032. A breakout above these resistance levels, confirmed by strong volume, could signal a bullish reversal. However, failure to overcome these resistances might lead to retesting of support levels at $0.011665, $0.00887, and $0.005454.

Potential Trade Strategies: For bullish traders, an entry point could be considered upon a breakout above the $0.021921 resistance level with strong volume confirmation. Subsequent targets would be the next resistance levels at $0.022356 and $0.024032. Exiting long positions should be considered if the price fails to maintain above these resistance levels or if the RSI moves into overbought territory. Bearish traders might look for entry points near the resistance levels, especially if the price struggles to break through $0.021921 and is accompanied by bearish signals from the MACD and declining volume. Potential exit points for short trades would be near the support levels of $0.011665, $0.00887, and $0.005454.

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