Steemit Crypto Academy Contest / S1W4 – Reviewing the Instability by @ghulamabbassss
Most of the cryptocurrency market is currently experiencing a sharp decline, especially in recent days. What do you think of this drop? State its causes and how long do you think it will continue in this downtrend?
Why doesn't this drop in the price of a few coins decrease their trading volume (eg: Bitcoin)? How will they deal with this market instability?
What is the relationship between the current instability and the downfall of the Terra ecosystem and its Luna currency? Do you think its price will bounce back? If so, tell us how and when?
Our Steem ecosystem, like most currencies, has been affected by this market downturn, has this caused you as a user some stress? Or are you still confident in this project? Give your opinion, specifying the arguments that support your review
Most of the cryptocurrency market is currently experiencing a sharp decline, especially in recent days. What do you think of this drop? State its causes and how long do you think it will continue in this downtrend?
About this, Professional traders will not be surprised by this bear market, but any new investor will be. In the market, there is a well-known rule that states that every movement, whether bullish or bearish, will change its direction to a large extent at some point. In the year 2021, the price moved in such a way that support and resistance levels were formed, and based on the premise that the price would eventually return to its previous level, I ask you to look at the following image.
The price had not been able to surpass the last level of resistance exercised in daily candles, indicating an impending bear market.
This market, combined with monetary destabilisation and FUD caused by unfavourable news about the crypto industry, signalled the start of the current downturn.
Distinctly marked , regulation of bitcoin by the U-S and the European Union is the crypto ecosystem. These restrictions are centralised and will have a significant impact on huge firms' acquisition of cryptocurrencies, a fact that is causing investors to compare notes. obliged to conduct large-scale currency movements, agitating an entire ocean of investors who would feverishly enter a state of FUD in the future.
Will the downtrend continue?
When we all want to know about the future of cryptocurrencies, the greatest method to do so is to follow the lead of the most valuable cryptocurrency, bitcoin.
There are two possibilities:
- The collateral effects of external news have a more direct impact on the project and the crypto ecosystem, prompting price movements to break through the support level and redirect to higher levels. lower.
- The second, that the price responds to societal pressure and quickly rises, invalidating the current downward trend.
We are in a very "Strong" support, which is highly helpful because it may help to reverse the present trend.
Why doesn't this drop in the price of a few coins decrease their trading volume (eg: Bitcoin)? How will they deal with this market instability?
The reality is that a cryptocurrency's control is based on its capitalization and volume; for example, bitcoin has maintained "stability" despite its steep decline, thanks to the fact that its volume has remained constant. I attain volume levels of roughly 41 million, while the present daily volume level is around 27 million, a reasonable difference given that it remains at the average volume level offered throughout its chart history.
The of volume broad level is achieved by the transactions numbers that are take place between currency (bitcoin) and stable currency such as the USDT; the volume is then the number of daily operations carried out, and when there is such a high volume level, it is very difficult for the token to degrade its price quickly, for the same reason that other crypto projects capable of keeping their volume stable in these moments of chaos.
What is the relationship between the current instability and the downfall of the Terra ecosystem and its Luna currency? Do you think its price will bounce back? If so, tell us how and when?
The demise of the Terra platform and its native luna currency came as no surprise to anyone; like many others, I was one among those who lost money invested in the project due to the platform's demise.
The project of moon had an impact on the current state of the crypto world in the following way: the project worked on creating stablecoins , in the crypto world, a vital currency usdt but due to a transactions on massive increase ,the Terra network's algorithm was unable to cover needs quickly enough to maintain the stability of their cryptocurrencies, causing their stable UST tkoen to fall to a depressing value of approximately $0.01 due to a massive increase in transactions.
With the fall of this token insecurity in the project, investors began to withdraw their moon tokens rapidly due to panic, causing the value of the LUNA coin to plummet quickly, and when UST managed to stabilise again, the value of the LUNA coin plummeted again. Because of the LUNA token, it was too late.
Many theories have been proposed as to why the UST token lost parity with them so rapidly. There are rumours that the Terra network had some suspicious issues with its protocol, which drew the attention of the SEC, and as a result, the Terrelabs company was hit with some lawsuits, which some investors believe were the real reason for Terra's demise, but this will only be discovered over time.
The reality is that the demise of a project as good as LUNA, which is widely supported, will increase investor suspicion in the crypto world, since if we can't see what should be steady, how can we trust anything that isn't for our benefit, especially now that the market is trending downward
Unfortunately, I believe it would be extremely difficult for the LUNA project to return given that it no longer has the same level of user trust as before, but I will wait until I am proven wrong before doing anything with the LUNAS coins that remain in my wallet.
Our Steem ecosystem, like most currencies, has been affected by this market downturn, has this caused you as a user some stress? Or are you still confident in this project? Give your opinion, specifying the arguments that support your review?
Because steem is a social network, the information and knowledge of many users with more knowledge is constantly propagated, users remain much more confident that the value of steem will recover over time.The connection of TRX to steemit is also a very beneficial thing, because TRX managed to control the crash and so retain the existing value of TRX without much effort.
I believe that Steemit has a bright future ahead of it; after all, it is its users who are responsible for its growth, i.e. the publications. Life on Steemit is made possible by its users who remain active participants, and it is thanks to them that we publish. So, on steemit, we all support each other to stay calm so that we can all grow together and reap a far higher reward in the end.
Have a good day.
Hello, @ghulamabbassss. I advised you last week to stay active on Steemit, as a legit user, you should be able to join your country's community and others in the quest to stay active on Steemit.
I checked on your diary post on a community some minutes ago and you have presented pictures from 2021 for a diary on the 18th of May 2022.
These actions of yours look so dubious and can be subjected to further investigation as regards the possibility of this account being a farming account and eventually lead to you being muted in this community.
In conclusion, joining your country's community and others, and the legitimacy of your interactions can earn you a place in the Academy. For now, you are not eligible to participate here. Thank you.
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I understood. Just give a chance . I will do according to rule of the steemit..
Well explained dear 😊