According to a Coinshares report, as of March 20, weekly entries into institutional crypto products have declined by about 59% from the previous week. This suggests that institutional investors are taking a cautious stance after the recent bull run.
However, this does not mean that institutional investors are giving up their holdings just yet. The report points out that the total assets under management of crypto investment products hit a new high of $ 57 billion.
While the crypto bull market is still intact, a report from Glassnode suggests it may be entering its final stages. The on-chain analytics provider believes that Bitcoin’s (BTC) ‘wealth transfer’ from long-term investors to new entrants is underway.
Glassnode isn’t the only one sounding a warning in the maturing bull market. Jiang Zhuoer, CEO of Chinese mining pool BTC.top, predicts that the bull market will end by September.
However, until then, several tokens could offer attractive returns to investors. Let’s take a look at the basics and graphics of three of these tokens.
DENT / USD
Dent Wireless qualifies as the leading digital and mobile operator. It aims to help users take control of their mobile data and allow them to share unused data with other users instead of letting it lapse. According to a company’s YouTube video, the company claims to have more than 26 million users in more than 80 countries providing data for eSIM-enabled devices.
On January 14, the company announced the launch of a reseller portal with a developer API during the first quarter of 2021. In another post on its website, the company outlined expected milestones for this year, which includes a new mobile app, reward system and network connectivity optimized for the Tokyo Summer Olympics. However, regular updates about it seem to be missing from its official Twitter account.
Another rumor that is making the rounds in the Reddit community is the possible partnership between Dent and Starlink of Elon Musk; but again, there is no official confirmation of any agreement.
During bull markets, several tokens left for dead tend to pop out of their graves as market speculators pump them out. However, when the bull market hits an obstacle, investors who buy only the rumor or invest with the hope of making huge profits are left with worthless coins in their hands.
Therefore, investors should do thorough research, adhere to transparent projects, and stay away from those that only give hope year after year without sharing any details with their community.
Dent Wireless’s DENT token has seen a strong bull run in recent days. It went from an intraday low of $ 0.0048 on March 19 to an intraday high of $ 0.0149 on March 24, a gain of 206% in five days. The rally pushed the Relative Strength Index (RSI) above 94, suggesting the token is extremely overbought in the near term.
The long wick on the candlestick today suggests that traders are registering profits at higher levels. This means that the DENT / USD pair could be ripe for a correction or a consolidation. The first support on the downside is the 38.2% Fibonacci retracement level at $ 0.0104.
If the bulls can defend this level, it will suggest that traders are not rushing to the exit which will increase the possibility of a resumption of the bullish movement. If the bulls can push the price above $ 0.0149, the rally could extend to $ 0.0223.
Conversely, if bears cause the price to drop below $ 0.0104, the sell may intensify and the pair may drop to the 50% retracement level at $ 0.0089, then to the retracement level of. 61.8% to $ 0.0075. Typically, these deep drops delay the onset of the next stage in the uptrend.
AR / USD
Data storage is a lucrative business, which is why most of the big companies such as Amazon, Alibaba, and Microsoft are involved in it. However, with centralized businesses, users have to blindly accept their policies and hope that the business does not go out of business and that they also use appropriate security measures to protect data.
This is where Arweave comes in, as it stores data in a decentralized fashion and claims that it will be stored forever. This is gaining importance during the current non-fungible token (NFT) craze where buyers pay the best dollars to buy the NFTs of their choice. If the NFT is lost for any reason, it will result in huge loss for the buyer. Therefore, Arweave’s claim about permanent storage may sound appealing to NFT owners.
Arweave’s permaweb contains over a million data stored permanently, and around 200 applications have been built on it. To further stimulate growth, on March 5, the protocol announced that it had secured additional funding of $ 8.4 million from Andreessen Horowitz, Union Square Ventures and Coinbase Ventures.
The Arweave network transitioned to a new type of consensus mechanism on Feb. 24 called “random access shortcuts,” which the company says is more decentralized and less power consuming than traditional proof-of-work networks.
The network’s AR token went from an intraday low of $ 8.60 on March 1 to an intraday high of $ 25.06, a rally of 191% in 22 days. However, the bulls are struggling to keep the price above $ 22 as evidenced by the long wicks on the candlesticks in recent days.
On the downside, the bulls are trying to keep the price above $ 19.50. But if that support cracks, the AR / USD pair could drop to the 20-day exponential moving average (EMA) of $ 16.62. This is an important support to watch as the price has not stayed below the 20-day EMA for more than two consecutive days since January 1.
If the pair bounces off the 20-day EMA again, it will suggest sentiment remains bullish and traders pile up if there is a dip. If the bulls can push the price above $ 25.06, the pair could move up to $ 30.
Contrary to this assumption, if bears move down and hold the price below the 20-day EMA, then the pair could extend its fall to the 50-day simple moving average ($ 11.21). Such a move could signal a possible change in trend.
MLN / USD
Decentralized Finance (DeFi) has been at the forefront of crypto adoption in recent months, and several protocols have emerged that claim to provide investors with the best features. For a trader with limited experience, it is difficult to keep up with the large number of protocols and use them based on their benefits.
Enzyme offers users access to multiple assets to manage their portfolios. Fund managers can build Enzyme vaults to attract investors and charge a fee for managing these assets. The protocol also allows users to create trading robots.
The Enzyme team has announced its intention to add new features in its next release, named Sulu. The new upgrade is expected to make borrowing easier, portability, and several other features.
As part of the upgrade, Enzyme announced on March 18 that it will support deposits to Aave, providing access to attractive returns for users. Enzyme also launched a gas subsidy program throughout March to reduce the burden caused by high fees on the Ethereum network.
Enzyme (MLN) went from an intraday low of $ 47.30 on March 15 to an intraday high of $ 111.11 on March 23, a rally of 134% in about 12 days. The sharp rise on March 22 surpassed the strong resistance in overheads at $ 83.
However, the bulls are struggling to maintain higher levels, as shown by Wednesday’s candlestick long wick. This shows that traders are making profits on rallies. MLN / USD pair will now retest the breakout level at $ 83.
If the bulls can reverse this level to support it will act as a new low. Buyers will then try to push the price above $ 111.11. If they are successful, the pair could climb back to $ 128.67.
Alternatively, if the bears move down and hold the price below $ 83, it will suggest that the markets have rejected the higher levels. This could trap several aggressive bulls that could rush to the exit and extend the decline to $ 65.44.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move comes with risk, you should do your own research when making a decision.