SOLANA – THE NEXT TERRA LUNA? (DANGER BEWARE)
Currently, the s p 500 is up. 2.5 percent. Dow jones is up. Two percent of the nasdaq is trading three percent higher now todays market update will be covering everything you need to know about. The recent governance drama with regards to solanas lending platform selend well also review why some crypto exchanges were completely offline this morning and offer some words of encouragement for some big names in the crypto world. If you guys are liking, these daily market updates dont forget to drop a like down below um. Now, with all that being said, lets hop into the computer, see whats going on in the market for today. All right, so bitcoin has pretty much remained unchanged since yesterday, beginning and ending at around twenty thousand of five hundred dollars shown in the daily chart, with the doji candlestick uh, the rsi on the daily sitting at 33, slightly above the oversold levels. Now, in the past 24 hours, bitcoin has had a relief rally and broke back above the 21 000 resistance level, and the price is currently at 21 500. And if bulls are able to sustain this price level, then we could see an improvement in the sentiment and attract even more buyers to start the momentum back up in the past 24 hours, though it is worth noting, bitcoin has been trading about 4.5 percent higher with Ethereum up about 5 and the rsi on the 4 hour charts sitting at a 58, which is showing some neutral levels now, according to glass, note 56 of the bitcoin addresses are currently still profitable.
Raising questions about the severity of the current bear market. Bitcoin price bottoms have tended to coincide with less than half the addresses remaining in profit and, as such, the current downtrend still has a way to go if it is to fit in with historical patterns that weve seen before back in march of 2020, the profitable addresses Dropped to 41 and before that in the 2018 bear market, we also saw a drop below the 50 mark, so even if data suggests there is potentially even more downside for bitcoins price action. Here is what a couple of individuals who are saying to pro: bitcoin investors: el salvadors, president naib bukley, went ahead and assured citizens that the current bear market is not the end for bitcoin and advise bitcoin investors to stop worrying and to be patient. Now i know its real easy to get worried and anxious about the market. You want to consider selling now and then maybe even buying back more if it does go down even lower, and then you hold it back up towards the top as a newer investor. What usually happens is you start thinking about hundreds of different scenarios? Man i knew i should have sold before man. I shouldnt have been holding this much man. I should have done this. I should have done that. I know a lot of people tend to have these thoughts, but i need to give a word of caution if youre overwhelmed with how your portfolio is doing dont look at the lifetime charts dont, look at the graphs and enjoy your light.
If you invested into bitcoin or ethereum or any other altcoin with high conviction just a few months back, because the price was higher, nothing fundamentally with these assets have changed. It is not just crypto that has gone down as an asset. It is almost everything within this market. If you invested into some of your cryptocurrencies, you trust in it and if youve been able to survive all the peaks and the valleys and everything weve had along the way. Patience is the key. If you are using something like a cold storage wallet, you have it locked away, your investment, for the most part is safe and its value will immensely grow after this bear market is over. We even have kevin oleary aka, mr wonderful, coming from the shark tank show, believing that the ongoing decline of the cryptocurrency market is a healthy event that will clear out the insignificant projects and leave only the meaningful ones as well. Kevin oleary vowed to huddle his crypto positions, advising investors to endure the current volatility to win in the long run. If you guys are one of the few people that needed to hear these words of device, let me tell you this: bear markets within this cycle is completely normal. We pulled the charts out from the last one year and we take into consideration that maybe even this bear market started back in november. Its been some time now november december january february, march april may june, thats about seven to eight months, going into eight months and its almost gon na be one year keep in mind from data that weve shown before on this channel bear markets dont often last as Long, nearly to even any level of what bull markets do say, this bear market lasted for over a year say it lasted even up to until two years and after this we get a full refresh within the market and we get an even higher all time.
High, are you gon na regret selling at the bottom? Are you gon na continue to hold and wait to see your returns for being that patient investor? Your fate is entirely up to you, but for me, when i even saw my portfolio hitting that seven figure level it sucked it sucked seeing go down its at a much lower level than it was before, but i know that crypto is here to stay. I know that this current volatility is going to be here and can be an opportunity worthwhile within our favor and that we should be able to exercise these type of moments to win for the long run simply put dont freak out just know. This is part of the cycles and were going to be wiser, stronger, more richer, as the time goes on now before we get into how solana could actually be the next tara luna and just some crazy stuff going on in the market just want to give a Recap on the prices of some of the other all coins ethereum back above a thousand dollars once again sitting at eleven hundred dollars. Solana is actually up 23 in the last seven days is sitting at 37. At the time of filming. This video were seeing random pumps happen, weve seen shiba inu up 25 dogecoin up 11 after elon musks news that we covered yesterday and alongside that, just even like uniswap, its up 31 in the last seven days or up 17 in the last 24 hours.
And what this means is, if youve been too scared to invest into the market, and i dont blame you theres many people who dont want to gamble right now, trying to catch that falling knife. But i will say if you did buy up the dip at all. Within this past weekend, you would be up on your investment. There are still a lot of cryptocurrencies that are up eight to ten percent. You could be leaving your existing bags, just put it on a sideline. Put it within a cold storage wallet. Dont ever touch that maybe throw it away lock it up for a year, just know that you can always get it back. If you have the private key phrases or those seed words. But if you want to start new, have an exchange sign up for one sign up for one, maybe with lower trading fees start from the beginning, and you can find yourself being able to scalp this market or being able to buy some of these lower entries and Still making these daily trades profitable now this is not something i would recommend for anyone, whos a newer investor. I would still consider this more of gambling um literally like going to the casino hoping thats going to go up, but i think in this case, within the markets, your chances of succeeding now is going to be better than 50 50 or, if youre, to put all Of your eggs in one basket or put it on one color at the roulette table, i think right now, because we are entering such consistent, oversold levels going to the crypto fear and greed index or seeing extreme fear happening day in and day out.
I think you have better chances within the crypto market, especially knowing that you can hold for a long time its not like, blackjack or poker, where you know youre playing a game. You have to keep cycling through and the fate is determined by the house or the casino or whoever youre playing against. If you invest now, you dont have to sell it tomorrow. You dont have to sell it within the next few hours. You can still continue holding it, and i believe that is where the advantage of gambling is gon na be more advantageous within these markets, rather than you know, doing traditional forms of gambling. Now i dont recommend gambling to any degree, but this is just the argument between investing and to what other people call trading which is borderline gambling. Now, with that being said, if you guys are looking for a crypto exchange to start buying up this tip and you dont want to get slaughtered with fees, one of our partners for this channel is going to be ftx and you guys can check them out down Below in the description as well, so ftx is still one of the largest cryptocurrency exchanges in the world and, if you guys are afraid of you know another exchange going down, holding all your money and never letting you have it. Ftx.Us is going to be one of the lowest risk exchanges, in my opinion, with up to 85 lower fees than their top competitors with them.
You can also find yourself not ever having to pay any fixed minimum fees. No ach transaction fees – and you can also set up reoccurring, buys directly within the app making dollar cost averaging pretty automatic, and on top of that, you can find yourself earning up to 100 by using my code, jung to sign up and trading down below now believe It or not about three hours ago, we even got some additional news stating that ftx unit went ahead and bought the stock clearing platform in bed to expand its equity trading infrastructure. So ftx is shooting to be just more than crypto theyre trying to go into the stock market platform as well, and we even got even more news that recently blockfi actually had a partnership signing a term sheet with ftx to secure a 250 million dollar revolving credit Facility which is providing them even more capital amongst this time. This is just like one of those things like its an ad read but im, also very proud to be working with these companies. Something ive always focused on is making sure that my audience gets provided with the very best and just seeing these type of collaborations happen very, very happy now going into probably one of the biggest headlines that we have for today were talking about solana here and were Talking more specifically about one of their d5 protocols that allows you to lend money and get access to capital. So whats happened is that within this protocol, solen theres this one whale alright.
So in the main solen pool, the whale has had a 5.7 million solana deposited or 170 million dollars, 108 million usdc and usdt borrowed 88 of the usd supply which is currently being borrowed and then 95 of the solana deposits being taken up at a liquidation price Of 22 dollars and 30 cents, i know i just threw out a lot of random numbers at you guys. So just stick with me here and let me explain exactly what this means and why solana could be facing a catastrophe pretty soon. So if solana reached 22 and 30 cents, this whale would be in a margin call and get 20 of their account liquidated all at once. The reason why this is bad is that weve seen in recent events that liquidation issues have caused insane panic among crypto investors and itd be pretty difficult for this current market to absorb such another impact. This would also put significant pressure on the solana network, and investors could start spam liquidating causing the solana network to crash as a pretty worst case scenario, option that could happen so people within the crypto community, specifically the soled community, noticed that this risk was getting higher And that many users began withdrawing causing the usdc and the usdt utilization in the main pool to spike to a hundred percent. So as a result of this depositors, couldnt withdraw their tokens and positions collateralized by the usdc or usdt token and they werent able to get liquidated.
So, in response to the potential hazard, the team over at soland released their first proposal and if this proposal gets passed, solen would have executive powers to enact a special margin requirement for large whales that represent over 20 percent of the borrowers and the ability to temporarily Take over the whales account, so the margin call liquidation could be executed on on the chain markets. Now this is all unfolding right now. The voting time was set to six hours only and it passed with over a million votes and 97 of those in favor. So the solen team received heavy backlash from crypto, twitter and media on the aggressive authoritarian stance. This is because, when it comes to crypto its all about decentralization, no one should be taking over someones wallet, but at the same time i dont think anyone wants another crash unfolding. We dont want to see another tara luna with a major all coin and if they want to prepare for that, they may have to take stances or initiatives that they may not had to have before. So second proposal was then released. That would invalidate the original proposal and increase its governing voting time to one day, and this would require the team to work on a new proposal that doesnt involve emergency powers to hijack someones account. So this went ahead and passed with a 99 majority, and the third and last proposal right now that were seeing, is to introduce a per account, borrow limit of 50 million dollars and temporarily reduce the maximum liquidation factor, always from 20, because solana goes down to what 22 dollars and 30 cents – and we see 20 of that getting liquidated that would hurt the market they want to reduce it to one percent and top of that temporarily reduce the solana liquidation penalty from five percent to two percent.
Now this proposal is ongoing. Its going to end at 7, 30 p.m. Tonight, and currently the proposal right now is about 99 of votes in their favor. So, according to their tweets, the solent team was able to get in contact with this whale and theyre able to work together to figure out a long term plan. Now on twitter, we actually saw that their usdc utilization has dropped from 100 to 93, meaning that users can withdraw from the fun once again. So here are my thoughts, its so interesting just to see some of these other d5 platforms now taking extra precaution and exercising their due diligence after seeing whats happened with tara luna, their stablecoin and even the celsius exchange earlier in this market update, we talked about how Even kevin oleary discussed many of these crypto projects are gon na get wiped out and were gon na see a lot of better ones come above and i think thats exactly whats going on even today, because of the worst case scenario that weve seen play out with Other top cryptos, i think a lot of people right now are expecting the worst case scenario to also possibly play out with some of these other assets. People right now just want to know that their money is safe, and this is why people want to sell liquidate positions and put them somewhere, thats considered to be more safer. Although inflation is at a rampant high, i think even people are so worried about these markets.
Theyre considering putting their positions back into stable coins or even the u.s dollar, just because they would rather have you know, eight to ten percent of their money from inflation getting eaten away per year, rather than eight to ten percent getting lost or even more, where your Entire moneys locked up and you cant, get it back at all, so the solent team right now has handled this pretty aggressively at first, but i would say they have redeemed themselves going through multiple different community proposals trying to see what people also have to say now. Although the first proposal was a pretty drastic move and even if it was the best available option, it still would have damaged their credibility as state and proposal one. They mentioned theres no perfect solution, and i genuinely believe that they were trying to act in the best interest of the majority of their users, even though its more of a utilitarian approach. Now, regardless of whether the third proposal gets approved and what theyre gon na do in order to make sure we dont have another disaster unfolding, the story did bring up a lot of debate and arguments within the crypto world. Once again, the question you need to ask yourself is: should protocols and projects have the authority to control others for the greater good, although i believe there should be an area of decentralization with a lot of these projects? I do think when the community gets involved and obviously theres an overwhelmingly large majority of people trying to vote for the other way.
This is where people should be able to step in and make those changes. I think when we leave it up to the natural fate of the way things go because crypto is still very early on, there are going to be a lot of unexpected changes and at the end of the day, if we can protect people and their money, then I think, having that greater good, taking a little bit of control is not a bad idea now. Is there always an opportunity or a chance that we could see another altcoin having a collapse like tara luna? The answer is going to be, unfortunately, yes, whether its solana cardano polygon, it could be a cryptocurrency that no one ever expects its really unlikely because they arent set up like a pyramid scheme. They werent set up like a ponzi like tara luna was before it just takes one to go down mass fud, centering it and then a very significant decrease in price. But i think longevity long term, even though solana has had its ups and downs, its had a lot of security, uh, glitches and errors before in the past, especially the bull market. I think right now, with the direction that were headed. They are still going to be one of the cryptocurrencies that stay around long term. The biggest takeaway i would say within this market is just be prepared. You dont know whats going to happen, and last thing you want to do is to be unprepared.
Have your money stuck in an exchange or crypto thats going down, and you never had a chance once to be able to pull your money out now guys if you did enjoy this video dont forget to drop a like down below subscribe to the channel as well Long term cryptos still going to stay even though were having these ups and downs were seeing. I would say you know the harvest, the harvest, the ripening, you know taking away the bad apples, even though thats gon na happen. This is still a long term. Conviction that i know a lot of you guys are holding on to myself included, if you guys have not done so already, dont forget to follow me over on twitter and on instagram im gon na be in new york this week for nft crypto week. Hopefully i get to run into some of yall there. On top of that, we always do a code word for the codeword today, comment down below sun either way the actual sun or the you know the child of a parent that type of sun. If you guys want to comment that down below so i know you guys made it to the end.