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What Is a Mercenary Capital?
Mercenary capital refers to capital provided by investors seeking short-term gains through opportunistic participation in incentive programs offered by platforms. Typically, these investors withdraw their capital once they locate more lucrative programs or when rewards diminish below their expectations.
To attract smaller investors, many Automated Market Maker (AMM) platforms run growth hacking initiatives like liquidity mining and yield farming. These programs offer additional rewards, often in the form of governance or native tokens, to liquidity providers (LPs) who stake or lock in their LP tokens. While historically effective in attracting investors, these programs also expose platforms to mercenary capital risks, especially if they offer excessive short-term rewards that favor opportunists over community members and long-term investors.
Factors like limited time periods or temporary bonuses in these programs can exacerbate the negative impact of mercenary capital. When the program concludes, the withdrawal of capital by mercenary providers leads to increased short-term selling pressure, causing significant price drops in reward tokens and potentially triggering panic selling by other investors.
Although this challenge is inevitable for platforms employing growth hacking programs, it can hinder long-term platform development. Mitigating mercenary capital requires a combination of sound tokenomics, quality products, and robust community trust, along with potential measures like longer lock-in staking periods for enhanced rewards.
#LDO continues it ways and made a high of $3.3 which is 24.6% in profits. Now the Head and Shoulder Patterns becomes invalid and can be expected towards the next Resistance around $3.5 to $3.8 and continuation buys can come from $3.2 and lower.
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Here's the Analysis of #LTC :
#LTC is been ranging between the Major Level of Support around $62.1 - $63.3 and Resistance Zone of $75.5 - $77.3. Also, price is hodling above the trendline and moving with it. Well, its a good enough tradable range, so you can got for it. Strong Buys or Sells will come from the Breakout of the zone either side.
During strong uptrends there are relatively few coins in loss. However this changes rapidly during corrections, as recent buyers panic and spend previously profitable coins in loss. The Profit/Loss Ratio is experiencing rapid acceleration in either direction. This aides in identification of trend inflection points.
Note : As #BTC breaks above the $50,000 mark, so then numbers are more bullish than its shown here.
#BTC made its break of the range and made it retest back to the mentioned area at minor support around $48,500. Price dropped due to #CPI data release, now it made a bounce from the trendline line still maintaining the Bullish Structure. Expected a new high to print as no clear indication for a down-move.
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What Is a Market Taker?
A market taker is a participant in the market who executes orders by taking liquidity from the order book. Market takers place market orders or marketable limit orders that are executed immediately at the best available prices on the order book. They accept the prices offered by market makers or other participants in the market. Market takers pay the spread when they buy or sell assets, and they usually trade with less frequent or larger orders than market makers.
Suppose you're a market taker who wants to buy Bitcoin on an exchange. Here's how you would interact with the market:
1. Placing Orders: Unlike market makers who provide liquidity by placing orders on the order book, market takers execute orders by taking liquidity from the order book. You place market orders or marketable limit orders, which are orders that are immediately executed at the best available prices on the order book.
2. Immediate Execution: When you place a market order or marketable limit order, it's executed immediately at the prevailing market prices. For example, if the best ask price for Bitcoin is $40,050 and you place a market buy order, your order will be filled at $40,050 or a slightly higher price if there's insufficient liquidity at that level.
3. Paying the Spread: As a market taker, you pay the spread—the difference between the bid and ask prices. When you buy Bitcoin, you pay the ask price, and when you sell Bitcoin, you receive the bid price. The spread represents the compensation for the market maker's role in providing liquidity to the market.
4. Trading Strategy: Market takers typically have specific trading strategies and objectives. They may trade with larger order sizes or execute trades more frequently than market makers. Market takers aim to enter or exit positions quickly at the best available prices without waiting for limit orders to be filled.
5. Risk Management: Market takers also need to manage their risk exposure when trading. They may use stop-loss orders or other risk management techniques to limit potential losses if the market moves against their position. Additionally, they may monitor market conditions closely to identify opportunities for profitable trades.
#RNDR made a break down off the flag, and made a quick move up with the market. Price entered into Strong Resistance Area, and now it matter of point to see, if it breaks the zone or reject it. Look for Daily candle closure, so get into the proper setup.
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Here's the Analysis of #GRT :
#GRT is started pushing from the structural support zone of $0.164 - $0.165. Currently, price is approaching towards the Strong Resistance Zone of $0.174 - $0.177. Its a pretty tight range, so expect a break first before entering any setup. Market is bullish so buy will playout best in the scenario .
#MVRV started flipping bullish as #MVRV Ratio flipping above the 1Y MRVR Moving Average. Historically, we've seen this indicating some good mid-term and long-term trends successfully, so this could be another indication to us.
Read About our MVRV Ratio Post Here
#Bitcoin kept pushing higher and made its weekly closing above the Resistance. Price still unable to break its previous High, which means building up liquidity above, to maximize trapping traders. Anticipation would be a correction in the market near $45,000 - $44,000.
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What is #MVRV Ratio ?
The #MVRV (Market Value to Realized Value) score is a metric used to assess the #valuation of a cryptocurrency by comparing its market value to its realized value. The #MVRV score helps to gauge whether a cryptocurrency is overvalued or undervalued based on its #historical price movement.
The market value of a #cryptocurrency refers to its current price multiplied by the total supply of #coins in circulation. On the other hand, the realized value takes into account the price at which each coin last moved on the #blockchain, essentially measuring the average price at which investors acquired their holdings.
So what does that Indicate ?
#MVRV Values > 3.5 has generally served as a strong signal for late stage #bull cycles, and heightened probability of heavy #distribution or simple indicate a potential Market Top.
#MVRV Vales < 1.0: indicates that a large cross-section of the #supply is near break-even, or held at a loss. These low values have typically provided strong signal of market capitulation and late stage #bear accumulations or Simply Indicate the Market Bottom.
#ADA gave a shallow break of the Resistance zone( Blue Box) but on Daily TF, its a shallow break. Well, still we can consider it a break, as we're bullish at this point, the setup will be a retest back to the support area or slightly below of it.
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Here's the Analysis of #INJ :
#INJ is been kept on bouncing from the support zone of $29.8 - $31.1. Currently, price is moving inside the downtrend channel pattern, where could take a breakout from here. In case if it failed to break it, then we can expect it to move lower back to support and that will be a decisional point to take the setup, so until that wait for the clean breakout.
during market uptrends, spot prices consistently exceed the cost basis of increasing coin supply, indicating profitability. To smooth fluctuations, a 90-day EMA is applied to total Supply in Profit [BTC]. Rising 90-day EMA indicates positive momentum, depicted as a 🔵 oscillator. Positive values signal supply in profit growth over 30 days. Advanced analysis focuses on oscillator magnitude and divergences, especially around cycle extremes. It more in profits now as #BTC Moves above $47,000.
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#BITCOIN DAILY TF UPDATE :
#BITCOIN going as expected, as it shifted the market structure from bearish to bullish. Price easily reached the Major Resistance Zone, within a week and kinda getting rejection from it. Weekly candle close will be very important to us. Nothing new, if price comes for a pullback, nearby $44,000, so eyes on Weekly closings.
Leading up to the approval of spot #ETFs in January, speculation surged, leading Long-Term Holders (#LTH) to either cash out for profit or reallocate their holdings into new #ETF products. This resulted in a significant decrease in LTH supply balance by approximately 299.5K #BTC since November, from a peak of 14.996M BTC. Notably, analysis of #GBTC flows, with around 661k BTC inflow and 151.5K #BTC outflows in 2021, suggests that remaining #LTH supply, totaling 148K #BTC, is being spent by investors. This trend aligns with previous research indicating LTHs begin distributing their holdings as the market approaches all-time high prices.
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#BTC made its way to the upside as mentioned, as there's were no signs of bearishness. Now, Price tapped into a key level and expected a retracement back to some sort of structural support or a strong support area. Meanwhile, hodl on the running trade and wait for new entries.
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What Is Marlowe?
Marlowe is a programming language for financial contracts, designed to make it easy for non-programmers to write financial contracts, such as derivatives, loans, and other agreements. It also makes it easier for programmers to formally verify these contracts are correct.
The project was initiated by Input-Output Hong Kong (IOHK), the blockchain research and development company behind Cardano.
Marlowe is part of IOHK's efforts to bring formal methods to smart contract programming, but it differs from previous approaches by being designed specifically for use in financial applications. To achieve this, its designers studied finance theory, particularly the work of Nobel Prize-winning economist, Kenneth Arrow, who pioneered much of the mathematical thinking behind modern finance. This resulted in a set of built-in abstractions based on real-world financial concepts, such as time and money, rather than more generic concepts like lists, functions, and variables found in other programming languages.
Marlowe is based on a theory of financial contracts that have been formalized in the Isabelle theorem prover. This gives it several unique features not found in other contract languages:
-> The ability to reason about the expected value of contracts.
-> The ability to formally verify properties of contracts.
In addition, Marlowe contracts can be executed on the Cardano blockchain. Users can try it live on Playground, which allows users to model and execute contracts without any knowledge of blockchain technology or smart contracts.
Marlowe was designed to be a simple and powerful tool for financial modeling. Its syntax has been kept as simple as possible so that both programmers and non-programmers can use it.
Marlowe can be used for a number of things, but it is particularly suited to the following:
-> Building interactive financial contracts
-> Defining games and protocols for decision-making processes
-> Simulating business processes, such as those involving finance or insurance
-> Modeling financial markets
-> Exploring ideas in game theory
It works in a sandbox environment, allowing all kinds of developers to write smart contracts on Cardano.
Currently, Marlowe will run on Cardano, but it’s not tied to Cardano only. In the future, it can be used to write smart contracts on other blockchains as well.
#BTC.D pushed higher with the market upmove, and few alts played well with that. Market started correcting a bit and still Dominance have room to push higher. So, keep the stop tight as both side probability to play well. A strong correction will come from the resistance at 54.5% - 54.6%.
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Here's the Analysis of #API3 :
#API3 is been on a pretty good series of Higher High and Higher Lows moving with the trend channel pattern. Price flipped above the Major Resistance area turning it into the major support zone around $3.29 - $3.39. A retest is expected back to the level of major support where buys setup can be taken into account. Short will be risky at this point unless price flips below the major level and shift the market structure bearish.
We can use Short-Term Holder MVRV to monitor the unrealized profit or loss of new market participants. Comparing the STH cost-basis to the spot price reveals the pressure they face to sell at a loss or take profit.
#MVRV is already above the 1.0 Mark, which shows strong bullishness in the market and #MVRV tested the Moving Average as Resistance already, and more momentum yet to come if it crosses the 155D Moving Average with MVRV
#BTC started facing resistance near $50,000 physiological level and made a ting range over there. Price is expected a retest back into some sort of support zone $48,500 and lower. Looking into the Daily TF, price already at a resistance point, so wait for the healthy correction.
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#DYDX broke below the support area, turned it into resistance. Price broke the Trendline too, showing some bearishness. Price already did a retest for shorts, i hope you entered it with stops over the previous swing high.
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Here's the Analysis of #DYDX :
#DYDX is been sharping moving up and in a retracement phrase now, hodling above the strong flip level/ support zone of $2.90 - $2.93. Price almost broke the trendline, showing sign of bearishness, but a bounce is expected towards the resistance area of $3.19 - $3.17 as price is sitting on the structural support zone. Take it as medium risk and in case price flips below the zone, its also a shorting setup.
#THETA did gave a shallow break below of the channel pattern and did up an channel/ flag formation. Price action is very choppy at the moment, and a clean break is required either side of the resistance zone or the flag pattern.
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#BITCOIN WEEKLY TF UPDATE :
#BITCOIN on Weekly TF, gave a rejection from the Resistance but Daily market structure is still bullish at that point. Currently, we've a long huge candle which trying to break and close above the zone of resistance around $46,680 - $47,200. This weekly close is important to us, as it may drive through the next resistance zone around towards $52,400 and a close below will lead into a healthy retracement in the market.
What Is a Market Maker ?
A market maker is a participant in the market who provides liquidity by placing limit orders on the order book. They do this by continuously buying and selling assets to maintain an active market. Market makers typically profit from the spread—the difference between the buying price (bid) and the selling price (ask). They usually place orders slightly below the current market price (bid) and slightly above it (ask). Market makers help ensure that there are always buyers and sellers in the market, facilitating smoother trading and tighter bid-ask spreads.
Imagine you're a market maker trading Bitcoin on an exchange. Your goal is to provide liquidity to the market by continuously quoting bid and ask prices for Bitcoin. Here's how it works:
1. Placing Orders: You place limit orders on the order book to buy and sell Bitcoin. For example, you might place a bid to buy Bitcoin at $40,000 and an ask to sell Bitcoin at $40,050. These orders are typically placed slightly above the highest bid and slightly below the lowest ask to capture the spread.
2. Maintaining Liquidity: As the market moves, you adjust your orders to reflect the changing price dynamics. If the price of Bitcoin rises, you might adjust your bid to $40,010 and your ask to $40,060. By continuously updating your orders, you ensure that there are always prices available for traders to buy and sell Bitcoin.
3. Profiting from the Spread: You make money from the spread—the difference between the bid and ask prices. In our example, if a trader buys Bitcoin from you at $40,050 and immediately sells it back to you at $40,010, you earn a profit of $40 per Bitcoin. This profit compensates you for providing liquidity to the market.
4. Managing Risk: As a market maker, you also need to manage your risk exposure. If the price of Bitcoin moves against your position, you may incur losses. To mitigate this risk, you might use hedging strategies or adjust your position size based on market conditions.
Overall, as a market maker, your role is to provide liquidity to the market, maintain tight bid-ask spreads, and facilitate smooth trading for other participants. By doing so, you help ensure that the market functions efficiently and that traders can execute their orders quickly and at fair prices.
#LDO moved from the major support zone as per from our call, and moved 15.8% in profits. Price looks very corrective and might move down back to the support, so it better to Breakeven and even secure something. $3.18 will be stand as resistance area and TP for us,
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#ETH UPDATE :
#ETH goes as said, price made its way through the major resistance zone of with a daily candle closure. We attached a Daily TF SS, price made a retest and strongly jumped. Market structure is moving bullish, and as long as price hodl above $2,400 then we can consider it bullish and next target will be $2,700.