On-Chain Activity Soaks Up Demand

15.11.22 12:46 AM By Stormrake

With the collapse of FTX now somewhat digested, the crypto markets have continued to chug along and is showing signs of life. On-Chain activity across DefI apps such as Uniswap and GMX have increased substantially as they soak up demand from crypto traders.

The information contained here is for general information only. It should not be taken as constituting financial advice. Stormrake is not a financial adviser. You should consider seeking independent financial advice prior to making any personal investments.

On-Chain Fees Spiking

Although the collapse for FTX has certainly caused plenty of pain for the entire crypto industry, one area where it has proved to show value for is self custody and on-chain trading. With Uniswap taking in over 1.5 Million USD in fees in the last 24 hours, highlighting how crypto traders are now valuing the transparency and finality of the blockchain. We will continue to see an increase in self-custody and on-chain activity as the importance of holding your own private keys becomes imperative to longevity,

DEX Dominance

Interactive chart: click on image for higher resolution

Decentralised exchanges are proving to be far too attractive for crypto traders to pass up on. They are showing incredible resilience and relative strength in light of the wider market conditions. The tokens associated with the most popular spot and derivatives exchanges such as SUSHI, UNI, GMX and DYDX have either traded slightly up over the week or put in double digit % gains. This narrative will have a lot of steam as the FTX saga rages on and traders find a way to trade their tokens, without having to bear counter-party risk.

BTC/USD key levels

Bitcoin managed to just tag our first key overhead resistance level before failing to reclaim and trading back down. For a continued move to the upside, we would like to see a close above $17,189 USD, if we manage this then a sharp move to $18,217 as the next meaningful resistance level can't be ruled out. To the downside, watch for a break of $16,500 before a retest of the 2022 low of $15,588.

ETH/USD key levels

Ethereum continues to show relative strength and is holding up well above the key level of $1,190 USD. If we manage to see a daily close above $1,333 then we can anticipate a move towards $1,472, which is approx. 18% away from current prices. To the downside, the scenario is very simple, if we close below $1,190 then watch for a sharp move down to the $1,000 - $1,071 pocket before finding support.

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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