BTC Analysis

The key support level for Bitcoin is still at 18 thousand 5 hundred.

As long as this level holds, Bitcoin has not broken its previous low in June, which means it is currently in a sideways chop period, instead of a downtrend.

The first significant resistance is between 23.5k to 24k.

This is the confluence of the 200 Weekly Moving Average and the previous high in August.

In order for a significant uptrend to come back, Bitcoin needs to break above 24k, which would form a new higher high and complete a double bottom reversal pattern.

Not to get ahead of ourselves, none of this has happened yet.

The most important thing right now is to see a bounce from the 18.5k support level.

ETH Analysis

It’s been two weeks after the merge, and ETH has been moving sideways for the past two weeks.

Ethereum is looking stronger than Bitcoin.

You can see Ethereum is still far away from its key support, while Bitcoin is already flirting with death at the 18.5 thousand dollar level.

Key support level for Ethereum is still at one thousand dollars.

This was the low made in June and it must hold in order for the recent rally to turn into a longer uptrend.

Key resistance level is at 2 thousand dollars. Breaking above 2k would print a higher high and higher low, which signals a new uptrend.

Bitcoin Dominance Analysis

Bitcoin dominance is officially kicking off a risk-off cycle.

Monitoring the long term channel for the past 15 months, whenever Bitcoin dominance touched the bottom of this channel, it had a significant bounce.

This bounce means Altcoins will have a few months of pain as Bitcoin takes spotlight again.

We can see clear risk-on/risk-off cycles from analyzing BTC.D this way.

That’s why I’m not looking for new Altcoin positions right now.

I’m only looking to hold Bitcoin and Ethereum, until Bitcoin dominance visits the top of this channel again.

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Insights

ATOM 2.0 and the future of Cosmos Revealed

The whole vision for ATOM 2.0 has been revealed this week.

Although Cosmos technology is super widely used, ATOM’s poor tokenomics and value accrual and plagued its price performance for years.

ATOM 2.0’s main goal is to align Cosmos adoption with ATOM price appreciation, in other words, ponzinomics.

To summarize there are four new features for ATOM coin.

Liquid Staking

This opens the door to zero inflation by removing the need for security subsidy.

ATOM used to have high inflation in order to incentivize stakers to lock up their ATOM. With the introduction of Liquid Staking, stakers no longer have to lock up their funds, thus the inflation used for subsidy can be reduced.

Interchain Security

This accelerates the Cosmos expansion by facilitating the onboarding of new chains while generating value to ATOM holders.

Interchain security makes it much easier for new chains to launch by borrowing staking power from the Cosmos Hub. In exchange for securing the new chains, ATOM stakers receive the new chain's coins as reward.

Interchain Scheduler

This brings cross-domain MEV on-chain and makes ATOM the settlement asset for the IBC economy. MEV stuff is big brain, I don't fully understand this yet.

Interchain Allocator

This acts as the accelerator for the ATOM economic zone and makes ATOM the index token for the Interchain economy’s growth.

Interchain Allocator makes sure that each Cosmos based chain holds ATOM coins in its treasury, and in exchange Cosmos Hub itself holds the other chain's coin.

This way the entire ecosystem is aligned, and ATOM appreciates in value with each new coin built on Cosmos.

ATOM 2.0 is likely the biggest upgrade for Cosmos in years, and the fact that they’re finally focusing on the ATOM coin itself is super bullish.

Highly encourage you to read more about ATOM 2.0

Axelar launch

Axelar’s token has officially launched today.

Axelar is the one of largest projects doing cross-chain interoperability.

It’s also not just a token bridge, but you can build cross-chain smart contracts on Axelar, with part of running on Ethereum, and another part running on Cosmos.

The main alpha here is they had a private round with big investors like Dragonfly and Polychain, and they got in at a price of $1.

See full tokenomics on ICO Analytics 👇

Axelar Network (AXL) token sale analytics and information, private/seed sale price, tokenomics | ICO Analytics

All information about Axelar Network (AXL) token sale: private/seed sale price, tokenomics, tokens vesting. Axelar is the universal overlay network, securely connecting blockchain ecosystems, applications, assets and users to deliver Web3 interoperability.

ICO Analytics

Because this is the bear market, AXL token is currently trading at 80 cents.

Based on those numbers, this is a good deal. You’re effectively getting cheaper price than large VCs.

AND your tokens are tradeable unlike VCs who are locked for multiple years.

Synapse chain similar to layer 0

Speaking of interoperability, Synapse is another project to watch.

Initially started as only a token bridge between chains, Synapse recently announced they will be implementing a full interoperability protocol called Synapse Chain.

This is Synapse’s own layer-2 protocol that aims to become a single execution layer for different blockchains.

With the launch of synapse chain later this year, they are moving to support general purpose cross-chain dapps.

The interoperability narrative is moving from bridging tokens to more complex applications.

Definitely watch out for the top protocols in this space.

The main players are LayerZero or StarGate, Axelar, Synapse, Wormhole, Multichain, Celer, and Hop.

EOS EVM

The original “Ethereum Killer” EOS is getting a major upgrade.

Funny enough, they are implementing their own EVM, called TrustEVM.

This will let people use MetaMask on top of EOS and deploy Ethereum based smart contracts.

If you’ve ever used the accounts system from EOS you know it’s a huge pain. You an invite to even make an account, and the UX is awful.

This upgrade is lead by EOS Network Foundation, a spinoff entity that has taken over development for EOS.

The original company behind EOS called Block.one has had major backlash as they took the billion dollars of ICO money and stopped developing the EOS network but instead turned into an investment fund.

The EOS ecosystem projects have formed the EOSIO Coalition, lead by EOS Network Foundation, Ultra, Telos, and Wax.

As these teams are genuinely interested to make EOS successful, hopefully it can finally see some traction.

XMON on dip for SUDO airdrop

If you’re into NFTs, you’ve probably heard of SudoSwap over the past couple months.

In a nutshell, SudoSwap lets people deposit their NFTs into a liquidity pool similar to Uniswap.

People can then instantly buy and sell NFTs based at the floor price, without needing to create bids and offers on Opensea.

This is a truly unique project and their token launch plans came out recently.

SudoSwap’s native token is $SUDO, and it has a super fair distribution which we can all participate in.

42% of all the tokens will be given to $XMON token holders.

$XMON is an old NFT project built by the SudoSwap founder, who also goes by the name 0xMons on twitter.

It has been revealed long ago that $SUDO tokens will go to $XMON holders, and now that the official news is out, we can calculate the specifics.

The circulating market cap of XMON will be eligible to claim 42% of SUDO tokens. With the current market cap of XMON at 50 million dollars, that gives SUDO token a fully diluted marketcap of roughly 120 million dollars.

This is pretty decent for an innovative protocol like SUDO, especially given there’s no VCs to dump on you. So if you want to participate, just buy some XMON and wait for the SUDO token release soon.

End

That’s it for this week's newsletter. Thanks for reading!