NEW DELHI: Cryptocurrency counters were mixed on Thursday amid a cautious mood given India is moving towards a ban on private cryptocurrencies. However, many traders took it as an opportunity to buy them at low levels.
In dollar terms, Binance Coin was among the biggest gainers, up over 4 per cent. Bitcoin climbed over a per cent and Ethereum was also in the green, data on CoinMarketCap showed. Solana was the top loser, down nearly 5 per cent. Polkadot and Dogecoin lost over 2 per cent.
In rupee terms, Bitcoin was up over 9 per cent, Ethereum 8 per cent and Dogecoin 5 per cent, data available at WazirX showed. The sharp rally comes after a crash in the market last day after the news of ban on tokens.
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Earlier, a government bulletin said the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to prohibit all private cryptocurrencies in India. However, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.
“We’re awaiting further details on the bill that is going to be presented in the winter session of the Parliament. There have been many positive steps taken by the government to learn and understand crypto and its impact on all stakeholders- investors, exchanges, policymakers. So, we’re looking forward to a crypto bill that takes into consideration all the inputs from those discussions,” said Avinash Shekhar, Co-CEO, ZebPay.
The global crypto market cap was up 0.74 per cent to $2.59 trillion mark compared to the last day. The total crypto market volume zoomed about 8 per cent to $103.67 billion.
Tech View by Giottus Cryptocurrency Exchange
Polygon is perhaps the most popular Layer-2 blockchains in the market. Its popularity can be attributed to several factors – a great product that works well, adoption by some of the largest projects in crypto, its Indian origins and backing from big names like Mark Cuban. As a Layer-2 blockchain, it offers efficient and cheap transaction processing on top of the Ethereum chain, helping with crucial scalability and adoption needs.
While the Indian market may be experiencing FUD post speculations of incoming crypto regulations, homegrown projects like Polygon (and its token – MATIC) continue to perform well in the market, being amongst the handful of gainers this week. MATIC is currently forming a large rising parallel channel, and a symmetrical triangle, both of which may continue to push it upwards. A fibonacci pull of its recent dip spawns several resistances that the token needs to flip into support in the short term – with $1.83 and $1.93 being the most immediate. It has already held other crucial levels – $1.64, $1.54 and $1.48 as support on multiple occasions and these are likely to provide fuel for another run towards $2 and eventually $2.2 (from which it rejected strongly last time). For those looking to go long, MATIC is a compelling choice.
Support: $1.64, $1.54, $1.48
Resistance: $1.83, $1.93, $2.0
(Views and recommendations given in this section are the analysts\’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)