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09.01.2025
VeChain Is Suffering on Rising Borrowing Costs

VeChain (VET) has fallen 12.7% this week, trading at $0.0445, underperforming the broader cryptocurrency market. Bitcoin (BTC), the leading cryptocurrency, has declined by 5.6% to $93,220, with bearish momentum building as it approaches key support at $89,000-$91,000. This decline is largely attributed to tightening monetary conditions in the United States, which continue to weigh on risk assets. Investor confidence is further shaken by significant net outflows from spot BTC-ETFs, which lost $583 million on Wednesday, marking the second-largest single-day outflow on record.

If BTC falls below the critical support level of $89,000-$91,000, VeChain is likely to extend its losses, with prices potentially declining another 10% to $0.0400. A sustained drop in BTC could push VET even lower, towards $0.0300. Conversely, a strong rebound in BTC prices to the $100,000 level could drive VET back up to $0.0500, representing a recovery of approximately 12% from current levels.

23.01.2025
Ontology Is Sliding Towards $0.2000

Ontology (ONT) is down 2.3% this week, trading at $0.2176, in line with the broader crypto market where Bitcoin (BTC) has declined 2.0% to $101,632. While the new U.S. administration has made some strides toward fairer crypto regulation, Donald Trump has remained silent on the highly anticipated issue of adding Bitcoin to U.S. federal reserves.

Market speculation is rampant, with figures like BlackRock CEO Larry Fink suggesting Bitcoin could surge to $700,000 per coin if sovereign wealth funds begin accumulating. Other forecasts predict Bitcoin reaching $250,000 by year-end. While such projections could foster optimism, the lack of decisive action or announcements regarding U.S. crypto reserves is weighing heavily on the market.

For Ontology, the situation remains bearish. Having breached the critical support at $0.2500 last week, the token is now approaching the $0.2000 level. A failure to provide clear evidence or statements about U.S. federal crypto reserve plans could see ONT fall even further, breaching the $0.2000 mark and deepening its losses.

16.01.2025
Delta Is Taking Off To Update Its Highs

Delta Air Lines stock rose markedly by low double digits in the first ten days of the new year. The U.S. carrier has served more than 200 million customers in 2024, when it was also recognized by J.D. Power, a leading American data analytics and consumer intelligence company, for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. Travelers became more willing to spend extra money for swanky seats when meeting a high level of service. Delta is just positioning itself as the nation's premium airline. And what's more important, its Christmas quarter's earnings reportedly surpassed average analyst pool projections. Driven by stronger travel demand, smart financial management and capacity discipline, Delta business provided last three-months' profit of $1.85 per share vs $1.28 at the same period one year ago, compared to $1.75 in consensus estimates. On January 10, the airline industry leader put its future profit levels within a range between $0.70 and $1 per share in the current quarter through the end of March, while analyst expectations were focused on $0.77 cents, according to data compiled by LSEG. The starting months of each year always perform worse. It is clear that all carriers made losses in the Covid years of 2020-2022, but Delta profits only recovered into a range from $0.25 to $0.45 in the first quarter of 2023 and 2024, respectively, but Q1 profit numbers varied from $0.75 to $0.96 even in the three blessed years before the pandemic. Delta added that it is forecasting annual earnings in excess of $7.35 a share, which would be the highest in its 100-year history, based on its planned revenue growth of 7% to 9% in the March quarter from a year ago. The announcement could be compared to an adjusted profit of $6.16 a share in 2024. The company happily breaks through ticket prices' rising effects, almost undisturbed by a reduction in airline seats in the domestic market, which was peculiar for most carriers. Thus, new expectations created a fertile ground for setting new price records, even though price movements on Delta charts look most convincing among its other American rivals.

By the way, Citigroup analysts freshly updated their outlook on Delta Air Lines shares to raise their price target to $80 from the previous $77, vs the actual range around $65 per share where the stock just came after a reasonable market correction from last week's and all-time highs. Citigroup said it has included factors like higher revenue per available seat mile, projections of slightly lower fuel prices, increased taxation, a minor rise in share count, and the incorporation of fourth-quarter 2024 results into their financial model, which has projected Delta's profit at $7.49 per share in 2024 and $8.72 in 2025. Delta shares are Buy-rated at Citi, and we agree with their positive estimates in general, while keeping in mind even better price goals somewhere between $82.5 and $85.

14.01.2025
Tezos Is Seen Hodling above $1.200

Tezos (XTZ) has declined slightly by 0.2% this week, trading at $1.249, following Bitcoin’s (BTC) drop to $89,158, which triggered widespread altcoin sell-offs due to concerns of a potential further decline in BTC to $80,000. However, Bitcoin managed to hold above the critical support level at $89,000-$91,000, offering some relief to the broader crypto market.

Speculation about a shift in U.S. trade policy has provided additional support to crypto assets. Reports suggest the new U.S. administration may pursue a gradual increase in tariffs rather than an abrupt hike, which could help alleviate inflationary pressures and lead to a less aggressive monetary stance from the Federal Reserve.

This development is a positive signal for the cryptocurrency market and may help Tezos maintain its position above the key support level of $1.200.

14.01.2025
Merck Becomes Interesting to Be Added to a Portfolio

Merck & Co (MRK) stocks have shown signs of becoming a compelling buy opportunity. Over the past six months, the stock has been in a downtrend, declining 29.8% to $94.50 per share. However, since mid-November, MRK has demonstrated a reversal of momentum, rebounding by 10.0% to reach $104.87 on December 5. Following a brief pullback and consolidation period, the stock has retested the downtrend resistance and appears poised to continue its upward trajectory.

With prices currently positioned to target $110.00, this represents a potential 9-10% upside from the present levels. Setting a stop-loss at $93.50 aligns with a prudent risk management strategy, providing protection against further downside while allowing for upside potential. The recent consolidation phase further supports the case for a breakout, making this an attractive moment to consider initiating or adding to a position in MRK.

Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
EOS is Likely to Continue Down to $0.6000

EOS is dropping by 6.4% to $0.6820 this week. The decline was even bigger on Tuesday when prices dived by 12.1% to $0.6420. Some general stabilization in the crypto market allowed EOS to recover some losses. Prices are likely to retest the support at $0.7000 to continue down towards $0.6000. There are no obvious reasons for an upside scenario. Investors are discussing a steady decline of EOS TVL after it reached a maximum of $108 million in mid-November 2023. The current TVL is at $79.5 million, which points towards a degradation of interest in the altcoin.

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Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Gold Signals Distress

Gold prices are testing the support at $2010 per troy ounce for the second time this month. This signals its weakness. There is also a technical support of the ascending channel established on November 13, 2023. A breakthrough of this support would weaken gold even more. An escalation of the Middle East conflict may push gold prices up, but it would delay a correction of gold prices by 2-3 weeks at most. Otherwise, we may soon see a drop in bullion prices towards $1920. This is my target for short trades. It is difficult to designate an entry point so far. I plan to open a short position on the retest of the $2010 support level. A stop-loss order is set high – above $2100 per ounce.

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Tesla: A nail in the Coffin for Ghosts of the Recent Rally

I was 100% right when making a painful decision to sell all Tesla stocks from my portfolio. Even as I did it at a price around $215 and a little later than it would be perfectly wise to do, the further price movement was only disappointing for shareholders. A plunge below $200 in after-hours this Wednesday night as an immediate response to a very ordinary Q4 report by the global EV leader was like a nail in the temporary coffin for ghosts of the recent past in which Tesla rally got squirrelly. Now, Tesla officially suggested that the growth rate of its vehicle volume in 2024 "may be notably lower" compared to 2023, as its team works on the launch of the next generation EVs at Gigafactory Texas.

Media leaks citing people familiar with the matter say that Tesla has already informed suppliers of launching production of a long-awaited mass-market electric car, codenamed "Redwood," by mid-2025. Still, the news had a little time to lift the market mood just hours before the quarterly reports. Indeed, Elon Musk began feeding investors with endless promises for an affordable $25,000 car in 2020. A great idea that was later postponed several times, has now surfaced. Nevertheless, Elon Musk's favourite number of 420, only with a decimal point, are visible on the print screen snapshot as a decline sign, with worse levels probably still to come.

Certainly, I have no doubt the rally will reincarnate after a while, yet the growth scenario looks unlikely at this point, when any reasons for slowing productions are rather considered as based on demand stagnation and competition pressure from Chinese rivals like BYD. As for the Christmas quarter, Tesla was forced to resort to more discount offers to clearly miss profit projections. Again, the company's statement avoided reiterating its accustomed target to achieve an average annual growth rate of 50% over multiple years. Was this a coincidence? I am afraid it was not. Instead, Tesla said it just came between two growth waves, one driven by the already well-done release of Models 3 and Y, and a second wave that would only start with the next-generation vehicles.

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A Falling Stock To Pick Up At Lower Prices: DuPont

A multinational chemical concern suddenly lost more than 13% of its market value in the week prior reporting earnings on February 1. The share price plunge came following the company's management warning on January 24 that its quarterly balance may be short of $220 million to $370 million "from continuing operations", as per its own preliminary estimates, vs a previous profit of more than $100 million a year ago.

DuPont CEO Ed Breen foresaw Q1 2024 sales below Wall St pool estimates, expecting revenues of only $2.8 billion year-to-date at the end of March against consensus of $3.04 billion on average before the news came, according to LSEG data. In a statement, he cited excessive channel inventory destocking within the company's industrial businesses as well as continued weak demand in China. Ed Breen pointed to the current tendency when more customers are still clearing extra stockpiles built up during the corona pandemic, decreasing the volume of new orders. The company also took a non-cash goodwill impairment charge of between $750 million and $850 million at a unit of its water and protection segment "due to market conditions".

At the moment, DuPont's dip prospect for the nearest months led its share price to the lowest levels since May 2023. Yet, the current price discount doesn't look big enough to buy here and now. Levels that are more attractive could be expected later, after the market crowd eventually digests the signs of weakness. The dips of September 2023 were located slightly above $50 per share, so that a $52-55 area could serve as possible technical support to collect more intensive purchase orders, awaiting lasting stabilization and recovery after difficult times.

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