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November 11, 2021
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EllioTrades Daily Roundups

November 11, 2021

The Bear Market of November 10 Lies Behind Us

Oliver Grah
Nov 11, 2021
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November 11, 2021
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Introduction

Well, yesterday’s price action was interesting, to say the least. After BTC and ETH rose to new highs after historically high inflation data was released, the crypto markets suddenly plunged… What happened and what’s next?

Twitter avatar for @CryptoHornHairs
HornHairs 🌊,🌊 @CryptoHornHairs
Damn we reached a new all time high AND entered a bear market all in one day
Image
10:21 PM ∙ Nov 10, 2021
757Likes51Retweets

What the H** Happened Yesterday?

  • There are several reasons why the crypto market got slammed down pretty hard after the initial bullish move yesterday:

    • After the inflation data was released and Bitcoin started pumping, funding rates exploded across the board! Thousands of retail traders jumped onto the bullish news by opening up leveraged longs… Which obviously ended badly.

    Twitter avatar for @Blockworks_
    Blockworks @Blockworks_
    $705 million crypto liquidations in the last 24h
    Image
    10:25 AM ∙ Nov 11, 2021
    383Likes65Retweets
    • Just before the stock and crypto markets started crashing, Joe Biden announced that he aims to combat inflation and that he's interviewing possible successors to Jerome Powell as head of the Federal Reserve. This led to a panic reaction in the stock markets, spilling over into crypto.

    • In addition, rumors that Evergrande had defaulted, potentially crashing the global financial system, were spreading like wildfire – before being proven wrong later on. Evergrande managed to fulfill its debt repayments last-minute…

    • As a consequence, the dollar broke out massively, putting pressure on all risk assets, including Bitcoin.

  • So all in all, several factors came together that contributed to the fast sell-off: Some FUD in the financial markets coupled with high leverage in crypto

  • The question is: Where are we heading next? Right now, there are mostly positive catalysts within the crypto ecosystem (such as fundamental developments, growing adoption, and demand) standing against potentially negative factors in the broader financial markets (fear of Fed intervention, out-of-control inflation, Evergrande crisis, etc.). All of these factors together will determine price action going forward…

  • It’s definitely, quite a complex framework for investors that demands a lot of attention and potentially fast pivoting when things change… Let’s take it day by day with our eyes on the data! For now, things don’t look too bad.

Twitter avatar for @gaborgurbacs
Gabor Gurbacs @gaborgurbacs
Spot U.S. Bitcoin ETF decision deadline and Taproot activation date is the same day. Mind blown. 🤯
1:07 PM ∙ Nov 11, 2021
5Likes2Retweets

Keep an Eye Out for Fast-Growing Protocols

  • During the late stage of a bull market, jumping into new projects with tiny market caps is a risky endeavor. What worked out amazingly well a year ago has now become a game of musical chairs. Most new projects will need years to show their full potential. That’s why projects like Aave, Thorchain or Fantom needed a full bear and bull cycle to reach their massive market caps. (Of course, there are a few notable exceptions like Daniele Sesta’s Spell which came out of nowhere and rose to a $2+ billion market cap in a few months… But spotting these is extremely hard.)

  • Now that the crypto markets are getting more saturated and market caps are much higher than a year ago, it is often the best strategy to bet on established but still relatively undervalued projects with room to grow. When identifying these, it is important to look at metrics that show that a protocol’s usage is growing which implies that a token’s price has room to catch up to its fundamentals.

  • As an example, let’s look at Moonriver. The DeFi hub on Kusama has already flipped other L1s like Harmony when it comes to its TVL (Total Value Locked). If Moonriver catches a bid like other hot L1s (Solana, Fantom, Avalanche…) in recent months, MOVR might be a bargain at below $1 billion market cap right now… (Remember though that buying anything right now involves big risks.)

Twitter avatar for @DonnieBigBags
Donnie @DonnieBigBags
Oh what a surprise. Another ATH for $MOVR transactions. Over 314,000 transactions on the network yesterday. And it flipped Harmony and Thorchain on TVL today, making it rank 18 on defillama.com /tik_tok
Image
Twitter avatar for @DonnieBigBags
Donnie @DonnieBigBags
Another ATH. $MOVR had 291,000+ transactions yesterday. Another ATH for On-chain TVL too @ $359.54m, making it a top 20 blockchain on https://t.co/YY1aA6WeLM Less than 3 months old, this is just the beginning. Soon native $KSM assets will be available on-chain. https://t.co/AjSwYqcMi8 https://t.co/rftb6Pc4Gk
1:23 PM ∙ Nov 11, 2021
207Likes53Retweets
Twitter avatar for @johansjosteen
Johan Sjösten @johansjosteen
Still working the ascending triangle $MOVR
Image
8:36 AM ∙ Nov 11, 2021
75Likes13Retweets
  • If you want to take on more risk and bet on emerging DEXes on Moonriver (aka, the “Uniswap or QuickSwap on Moonriver”), then keep an eye on Solarbeam (SOLAR) and Huckleberry (FINN). It might be risky to buy them now but it’s certainly worth monitoring their TVL to see if they gain any traction…

Another Airdrop Is Coming

  • Have you traded on QuickSwap or SushiSwap on the Polygon network before yesterday? If you’re a regular reader of this newsletter or watcher of the EllioTrades channel, probably yes. So, brace yourself for another juicy airdrop!

  • Hybrid liquidity DEX IDEX, which will launch its v3 on Polygon on the first of December, will reward Polygon users with IDEX tokens. To get the airdrop you will have to trade a minimum of $200 USD on IDEX v3 between December 1 and December 10 (similar to the dYdX airdrop a couple of weeks ago).

  • So, be sure to mark your calendars and follow IDEX on Twitter to not miss this airdrop!

Twitter avatar for @idexio
IDEX @idexio
1/ Launch incentive #1 is here! It’s time to suck some traders and volume away from QuickSwap and SushiSwap. 🧛‍♂️ We’re committing 1,000,000 $IDEX to a First Trade Bonus for wallets that have traded on Quick or Sushi on the @0xPolygon Network (before Nov 10). Details below 👇
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4:18 PM ∙ Nov 10, 2021
271Likes94Retweets

Beeple on the Tonight Show

  • It’s crazy to see how far NFTs have come this year… While experimentation and speculation are ongoing in the NFT space, its bright future is written in the stars. Mainstream use cases and adoption keep growing and public recognition will rise with each new innovation brought by ingenious NFT creators.

Twitter avatar for @FallonTonight
The Tonight Show @FallonTonight
“We’ll have pieces in our house that continue to change and not just a static painting.” -@beeple reacts to his recent NFT sale and predicts the future of art. #FallonTonight
5:27 AM ∙ Nov 11, 2021
530Likes102Retweets
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6 Comments
BitBeej
Nov 12, 2021Liked by Oliver Grah

Loving these newsletters Ellio thank you

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Gogs
Nov 11, 2021Liked by Oliver Grah

It says in the post that buying anything right now involves big risks, is it because the market is overheated at the moment or because we are coming towards the end of cycle?

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