Crypto Markets Today: Popsicle Heats Up as Bitcoin Stays Cold
Top crypto assets hold steady as stocks get pre-holiday bounce.
The native token of Popsicle Finance, a decentralized finance (DeFi) market-making and yield-earning protocol, is surging as the controversial yet prolific blockchain developer Daniele Sestagalli said he was returning to the project.
This article originally appeared in Crypto Markets Today, CoinDesk’s daily newsletter diving into what happened in today's crypto markets. Subscribe to get it in your inbox every day.
- Popsicle’s ICE token’s price jumped some 220% in the last 24 hours, according to cryptocurrency price tracker CoinGecko. The token currently is trading at 36 U.S. cents, only two days after hitting an all-time low of 9 cents.
- Popsicle was part of a loose conglomerate of DeFi projects known as "Frog Nation" that were helmed by Sestagalli as recently as January, including Abracadabra.money, whose stablecoin was partly collateralized by the collapsed FTX exchange’s FTT token, and the since-failed Wonderland, a fork of OlympusDAO.
- The sudden surge came after Sestagalli tweeted Wednesday that he was “focusing right now on rebuilding the OG Popsicle Finance,” breaking a four-month-long silence on Twitter.
- Sestagalli, also known as Dani Sesta in crypto circles, garnered a cult following in crypto due to his community-based approach to building projects, CoinDesk wrote in January.
- But his reputation took a hit earlier this year when influential crypto vigilante ZachXBT revealed that Sestagalli was working at Wonderland with an executive of the failed QuadrigaCX exchange, which allegedly defrauded investors of at least $190 million.
Bitcoin (BTC) and ether (ETH): The largest cryptocurrency by market value looked remarkably stable Wednesday, trading around $16,780 and almost flat in the past 24 hours as traders wrestled with the uncertain market outlook for next year. ETH followed BTC’s trajectory, down 0.3% around $1,209. U.S. equities were a bit more buoyant: The Dow Jones Industrial Average closed up 1.6%. The tech-heavy Nasdaq Composite was up 1.5%, while the S&P 500 was up 1.4%.
Waves (WAVES): The native token of decentralized blockchain dropped 5% to $1.51 on Wednesday and plunged by more than 40% over the past two weeks as Waves' founder Sasha Ivanov has asked crypto exchanges to deactivate futures markets tied to the WAVES token. The coin's slump has been attributed to the volatility of USDN, an algorithmic stablecoin that is designed to be pegged 1:1 with the U.S. dollar. The stablecoin is backed by the WAVES token and has de-pegged on multiple occasions this year.
dYdX (DYDX): The token price dropped over 14% to $1.18 as many investors are “front-running a huge supply unlock that begins in February,” Sean Farrell, head of digital asset strategy at Fundstrat, wrote in a Wednesday note.
Crypto Market Analysis: Bitcoin and Ether’s Flat Trajectory to Continue, Technical Indicators Suggest
By Glenn Williams Jr.
Momentum for both BTC and ETH remains in neutral territory, using the Relative Strength Indicator (RSI) as a proxy for momentum. BTC’s current RSI is approximately 49.06 – a very middling level. RSI is a technical indicator that ranges from 1 to 100. Readings over 70 imply that an asset is potentially overbought, while readings under 30 imply that an asset is possibly oversold.
Searching BTC data back to 2015, and filtering for RSI levels between 49 and 50 shows 61 occurrences with an average gain of 2.2%, 30 days after the fact. For ETH, filtering for RSI levels between 47 and 49, showed 43 occurrences since 2017, with an average 30-day gain of 6.7%.
Applying those performance figures to current prices, results in prices of $17,144 for bitcoin and $1,291 for ether. This is far from earth-shattering, given where both have traded in the past. The results should not be viewed as predictive but can provide context as to where investors think prices may wind up.
- Listen 🎧: Today’s "CoinDesk Markets Daily" podcast discusses the latest market movements and a look at ZachXBT and why his crypto vigilante service earned him a slot on CoinDesk’s Most Influential List of 2022.
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