Today’s outperformer is LSK, which jumped 17.63% after Lisk partners with Velodrome to enhance blockchain access and drive ecosystem growth.

The SPX index is down 0.22% as the market anticipates less Federal Reserve rate cuts, considering the possibility of no cuts this year. The broader cryptocurrency market is up, with Bitcoin and Ether rising by 4.18% and 3.19%, respectively in the past 24 hours.

Lisk (LSK), launched on May 2016, is a cryptocurrency platform that enables developers to build decentralized applications (dapps) using JavaScript and TypeScript. It supports custom "sidechains" within its network, offering tools like a software development kit. Lisk has announced a partnership with Velodrome to support and expand its blockchain ecosystem. Lisk will purchase and lock $VELO tokens for voting, directing VELO emissions to key pairs on Lisk. This collaboration aims to support existing protocols on Lisk, attract new developers, and enhance blockchain accessibility and adoption in emerging markets. Velodrome will back Lisk's Layer 2 initiatives, aligning with the goal of creating a scalable, interoperable Ethereum future.

Check Out the Latest Prices, Charts, and Data of 

The Runes protocol is set to debut alongside Bitcoin's 2024 halving, heralding a new phase in Bitcoin's evolution by enabling the creation of fungible tokens directly on its network. This follows the impactful Ordinals protocol, which significantly expanded Bitcoin's functionalities. The Runes protocol will spark competition among developers to issue and acquire the first tokens, with global exchanges ready to support these tokens from day one. The halving event will also feature a race to mine a highly valuable "Epic" satoshi. As Bitcoin approaches this transformative era, extensive preparations and educational initiatives are underway to equip users for the forthcoming changes, marking a profound shift in Bitcoin's operational and cultural landscape.

Spot Bitcoin ETFs have yet another day of outflow, however, yesterday’s outflow was close to neutral. The market has seen fluctuating flows in these ETFs, with significant activity in some and none in others, reflecting mixed investor reactions. Recent substantial outflows echo trends from March, but analysts regard such fluctuations as typical for ETFs and not indicative of failure. Despite this volatility, the outlook for Bitcoin ETFs remains positive as they continue to draw institutional interest and shape market dynamics.

Avail, a blockchain data-availability protocol developed using Polygon’s SDK, has announced an airdrop of 600 million AVAIL tokens, marking its one-year anniversary since spinning off from Polygon Labs. The "Unification Drop" aims to bring together various blockchain communities by rewarding developers, governance contributors, educators, rollup users, stakers, and others who have significantly contributed to the ecosystem. Avail's infrastructure includes three segments: Nexus for cross-chain transactions, Fusion for liquid staking on chains like Ethereum and Bitcoin, and DA for scaling rollups through technologies like KZG commitments. The airdrop will distribute tokens to 354,605 wallet addresses and includes significant allocations for various roles across multiple blockchains, including Ethereum, Bitcoin, Solana, Cosmos, and more, emphasizing a unified Web3 environment.

Intermediate

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Runes Protocol Revolutionizes Bitcoin with New Token Capabilities Ahead of 2024 Halving

Saga is a Layer 1 blockchain protocol that allows developers to design their own dedicated chains for running applications. Learn more in this article.

 universe right now is the lack of accessible tools for developers. Many people interested in designing new 

 projects struggle to find the right software developer kits (SDKs) for their projects. The Saga ecosystem aims to fix this issue by providing unparalleled support to app and game developers. 

Can the Saga ecosystem really become the premier chain for web3 development? Keep reading to learn how it works and see whether it's likely to attract new developers.

 blockchain protocol. It allows developers to design their own dedicated chains for running applications. People who work on Saga all share the same security, scaling solutions and SDKs, but they each get their own unique chain that they can customize to suit their needs.

 of technology, crypto and finance enthusiasts. CEO Rebecca Liao is a co-founder of the Skuchain project, the designer of the 

 and a former international corporate attorney. Other members of the founding team include former Tendermint executive Jin Kwon, Blocktech Ventures founder Bogdan Alexandrescu and 

. They realized that there was a major need for a development-focused blockchain specifically designed for game project development. Saga's mission has attracted many major investors, 

Saga aims to create a new system for web3 project developers. Currently, most developers have to choose between the ease of working on an established chain like 

 versus the convenience and customization of designing their own chain. The Saga team realized that the most effective option for game developers would actually be a combination of the two types of development environments.

Saga wants to let developers set up their own sovereign blockchain so they can decide how things like 

 and transaction fees work. However, Saga also aims to provide extensive support for developers in its ecosystem. Its underlying framework ensures that people still have excellent security and a reliable validator set, no matter what their gaming project is.

 ecosystem, whose interchain web development standard is a set of protocols that allows a broad variety of blockchains to communicate with each other. The Saga network uses the 

 and the shared security system of the Cosmos ecosystem to manage the network, and has created its own Layer 1 chain that runs the entire Saga ecosystem and can do things like automatically launching 

The Saga Mainnet handles each developer's compiled smart contract binary. However, it also runs parallel dedicated chains that function as virtual machine (VM) modules capable of handling a specific set of smart contracts. End users for blockchain games and other apps interact only with the dedicated blockchain, while the developer's system manages the fees and individual transactions on the Saga Mainnet.

All of the chains on Saga are validated through optimistic coordination, which requires every Saga validator to validate each chain in the Saga ecosystem via 

 validation, verifying transactions by temporarily locking Saga tokens.

The Saga network contains a lot more than just the basic features offered through the Cosmos SDK and ecosystem. In addition to the software development tools and helpful interface for Saga's validators and developers, the ecosystem also contains the following features.

The overall layout of the Saga ecosystem starts with the Saga Mainnet. Built on the Cosmos hub, this framework includes a full validator set and a dedicated blockchain for handling all smart contracts. The basic protocols are passed on to each child chain in the system, and information is relayed back and forth between the main chain and all of the secondary chains. Saga's validators stake tokens, and then check to make sure every element of the topology follows Saga’s regulations.

 are a method for creating a dedicated blockspace that a developer can manage. These chainlets function as virtual machines that can handle smart contracts and automatically launch Celestia rollups. Each chainlet is its own blockchain that handles nothing but a specific gaming project. Developers decide on the gas fees they'll charge users, and can add chainlets as their projects expand and require more throughput from the remaining validators.

Saga's shared security relies on both the Cosmos hub and its own set of validators to secure the network. Validators on Saga’s network are monitored by auditors who can catch potential issues with individual dedicated chains. If anyone in the validator set fails to properly confirm a smart contract, their staked tokens are automatically confiscated.

 is a publishing system for gaming developers who want to create their own blockchains with help from Saga. It offers infinite scalability, seamless 

 and transactions without gas fees. In addition to use of the Cosmos SDK, developers who choose to publish their game through Saga Origins receive access to a variety of helpful marketing and distribution tools.

 is an interconnected blend of all the developers and projects in the Saga system. Though each sovereign blockchain is fully independent of others, they all join together to offer users a variety of exciting web3 projects. People interested in checking out the latest blockchain designs can join the Multiverse and browse all the neat concepts built on Saga.

To help get the Saga validator system started, Saga released 

 to its community members. People were eligible for the 

 if they had participated in the staking program or played in tournaments to promote Saga ecosystem games. The airdrop eligibility period required remaining validators and other participants to be active between January and October of 2023. Once the airdrop began allowing people to claim tokens, it continued to run until Mar 27, 2024.

 consists of four separate phases. The company has already completed the Andromeda and Cassiopeia phases, which focused on designing the Mainnet and setting up the system of Saga validators. Currently, the Saga team is in the Pegasus phase, which is about releasing tokens and opening the Saga Mainnet to the public. Sometime in late 2022, Saga’s team hopes to reach their Mainnet V2 phase, which will prioritize a new version of the Saga Mainnet with more features and options for dedicated blockspace.

SAGA tokens are the primary method for paying fees on the Saga network. These tokens are also used for staking, and function as a method of confirming Saga transactions. There are a total of 

, of which around 90 million have thus far been released. Saga plans to distribute its tokens as follows:

SAGA is still in the early stages of its token launch. However, it’s already surprised investors, having debuted at $4.91 on Apr 9, 2024 before quickly surging to its ATH to date of $7.60. It then steadily declined over the next few days to its current price of $3.06 as of Apr 19, 2024.

 SAGA, with its experts believing SAGA’s price will reach $15.73 by 2025 and decrease in 2027 to $6.27, before rising again to $13.45 by 2030. This bullish sentiment is amplified by analysts at Changelly, 

 SAGA’s price will increase to $6.91 in 2025, $14.21 in 2027 and $44.36 in 2030.

Looking to trade Saga tokens? Bybit now offers SAGAUSDT Perpetual contracts. To get started, you’ll first need to 

, then fund it with cryptocurrency and navigate to the 

SAGA has done an extremely impressive job of attracting users, and seems poised to become the big coin debut of April 2024 with its high price.

However, it's hard to say whether SAGA can maintain its price in the long run. It's quite common for new startups to have a strong start and then drop in price once their project fails to take off. If the Saga ecosystem can’t attract new developers and continue to release impressive projects, investors could see some major SAGA losses in the future.

Since this coin is so volatile right now, investors need to 

. It has the potential for both big profits and big losses, so you’ll want to carefully consider how these price shifts might affect your portfolio. For best results, avoid investing more than you can afford to lose, make sure you diversify your investments — and 

By offering developers the chance to create their own dedicated chains, Saga offers a more convenient and scalable system for blockchain gaming. Its helpful features and low transaction fees have already attracted many people, and it's no surprise that many others are interested in the project. Furthermore, SAGA tokens have had a promising start with extremely impressive growth. If the Saga company can successfully capitalize on its early buzz, it has a bright future.

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Saga (SAGA): Catalyzing the Multiverse With Scalable Chains

Discover how to easily mint and buy Runes tokens with the Xverse Runes wallet and Magic Eden marketplace, unlocking investment opportunities on the Bitcoin blockchain.

) reward halving is a monumental occasion for both the crypto industry and users. Halving is a once-every-four-years event that always draws significant attention. However, the April 2024 event is special on an entirely new level, thanks to the highly anticipated launch of the 

 protocol, schƒeduled to go live right after the halving kicks in.

Runes is a revolutionary standard for creating fungible tokens on the Bitcoin blockchain. The standard is widely anticipated to set a new paradigm on the Bitcoin network, turning it into a thriving multi-asset ecosystem with significant trading and investment opportunities. Most importantly, Runes is vastly more efficient and user-friendly than BRC-20, an earlier Bitcoin fungible token standard.

 is a new token standard and technology for creating fungible cryptocurrencies on Bitcoin’s blockchain. (This new token standard is not to be confused with RUNE, the native token of 

). It allows users to issue and manage fungible tokens using Bitcoin's unspent transaction outputs (

), which represent the outputs of standard Bitcoin transfers. The concept of Bitcoin Runes was introduced in September 2023 by Casey Rodarmor, the enigmatic developer who also created Bitcoin 

Runes is widely expected to go live right after the Bitcoin 

 event (scheduled to occur on Apr 18, 2024, it's estimated to actually occur on April 19 or 20). The first Runes token will most likely be issued by Rodarmor himself. Following that, it's expected that a large number of Runes tokens will appear on Bitcoin, quickly leading to a thriving trade and creating investment opportunities on a scale that Bitcoin has probably never seen before.

Back in 2023, Rodarmor's Ordinals technology opened up a unique way of creating Bitcoin-based 

. Runes will now usher in an era of fungible crypto tokens on the blockchain. While it's not the first fungible token standard for Bitcoin, it's estimated to be the first technology that facilitates an efficient and user-friendly way of creating Bitcoin-based cryptos.

Runes will introduce a lightweight method for creating fungible assets on Bitcoin, thanks to its utilizing the blockchain's native UTXO model. The process of creating and transferring Runes tokens involves attaching messages, called Runestones, to a Bitcoin transaction. As such, there's no need to create any additional UTXOs or other unnecessary elements on the network. By using ordinary UTXOs generated during Bitcoin transfers, Runes avoids placing any significant load on the network.

Which Projects Are Building on the Runes Protocol?

Although the first fungible Runes tokens won't appear on the network until after the halving event, some projects have already begun experimenting with the concept by introducing Runes-themed Bitcoin NFT collections based on the Bitcoin Ordinals protocol. Typically, these projects promise 

 of their future fungible tokens to people who have purchased NFTs from their current collections.

Runestone is one of the earliest and most popular Runes-themed projects. It’s a Bitcoin NFT collection based on Ordinals, with each NFT depicting a 3D stone that has an ancient rune symbol inscribed on it.

There are 112,400 Runestone NFTs in the collection, and many of the items are listed for sale on 

, a popular multi-chain NFT marketplace. As of Apr 17, 2024, the most expensive Runestone NFT is listed for an asking price of 787 BTC. Notably, with a market cap of 9,779 BTC ($606,042,181), Runestone is currently the highest-capped Rune-themed Bitcoin NFT collection and the second highest-capped NFT collection overall, right behind the legendary Ethereum-based 

Rune Pups is another high-profile Runes-themed Bitcoin NFT collection. Each NFT in the collection is a rune-laced drawing of a broadly smiling creature, which does somewhat resemble a pup. There are 10,778 NFTs in the collection.

Pups are among the most popular Runes NFTs, with a highest asking price of 777 BTC (for item #10,733) and a market cap of 1,301 BTC (~$80 million).

 is a collection of 21,000 NFTs, each with a dynamically changing set of ancient rune symbols. Owning an NFT from the collection will automatically open up ways to mine new fungible tokens that the project plans to introduce as soon as Runes is operational. As such, this collection goes beyond simple NFT ownership, turning your non-fungible tokens into yield-generating assets.

Runes isn't the first fungible token standard for Bitcoin. This honor belongs to the 

 standard introduced in March 2023. Unfortunately, BRC-20 is a cumbersome and inefficient way of creating Bitcoin-based fungible cryptos. It relies on inscribing data into tokens using the Ordinals protocol, and generates a lot of "junk" UTXOs on the network.

Due to the novelty of the BRC-20 technology, many Bitcoin users jumped on the idea of using it to issue their tokens, seriously congesting the network and creating a significant "anti-BRC-20" sentiment within the Bitcoin community.

Runes fungible tokens are, however, vastly different from 

. The Runes technology utilizes Bitcoin's native UTXO model, doesn't generate "junk" outputs on the network and places a very modest load on the blockchain. Thanks to all of these advantages, Runes tokens are likely to lead to a much more active and robust trade in fungible assets as compared to BRC-20.

In Runes terminology, issuing a new fungible token is called “etching,” while adding tokens to the existing supply is known as minting. If you prefer to etch and mint Runes tokens on your own, the process is relatively easy for the technically minded.

 software and run your own full network node. Then, install 

 for the Ordinals and Runes protocols. The latter has been implemented under the Ordinals software packages. Ensure that you thoroughly practice etching, minting and transferring on the test network to familiarize yourself with the protocol.

You can also pre-buy Runes on Magic Eden. Probably the best wallet to use for these purposes is Xverse's 

, as it’s specifically designed for user-friendly Runes token management and easy integration with Magic Eden. This marketplace is currently the go-to platform to get early Runes tokens and Runes-themed NFTs.

You can buy any Runes-themed Bitcoin Ordinals NFT on Magic Eden 

 from the Runes protocol directly to your wallet 

once the protocol's operations kick in. Meme tokens minted under the Runes protocol c

ould potentially experience explosive growth similar to the surge o

If you’re not able to buy your NFT in time, it’s still not too late to get your hands on one of the most promising assets in the market. You can still wait for Runes to be listed on 

The arrival of the first Runes tokens is expected to liven up Bitcoin like virtually nothing before. Ordinals were a paradigm-setting innovation, but they were focused on non-fungible assets, which have traditionally lagged behind cryptocurrencies in terms of trading and investment applications. BRC-20 tokens were the first fungible assets on the Bitcoin platform, but their inefficient, network-clogging mode of operation severely limited their adoption and use cases.

Runes are different: For the first time in the history of Bitcoin, there’s an efficient, native way of creating and managing fungible crypto assets on the Bitcoin blockchain. This heralds a plethora of unique 

 for Bitcoin enthusiasts — at the very moment when the much-anticipated halving has arrived!

Advanced

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How to Get Into Bitcoin Runes With the Runes Launch at Halving

Nolus is a decentralized finance lending protocol with cross-chain capabilities. Learn more about how it works in this article.

One of the big advantages of decentralized finance (

) is that it provides more options for users. People who cannot get traditional loans because a typical bank deems them "high-risk" can turn to the DeFi sector to borrow crypto assets. The Nolus Protocol is a new DeFi lender that offers users all sorts of exciting opportunities. To see how this intriguing project works, explore this guide to learn all about Nolus.

 is a DeFi lending protocol. It has cross-chain capabilities that let people choose the most favorable rates possible and avoid the need to save up funds for liquidity.

Nolus was founded by Ivan Kostov and Kamen Trendafilov. Kostov worked in traditional finance, while Trendafilov has a background in marketing and business. During their time in these sectors, Nolus's founders realized that blockchain networks had the potential to revolutionize banking. They decided to join together and create a new leasing system that makes the most of DeFi products instead of just trying to mimic past banking methods.

Nolus started work on its plans in 2022 and officially launched its mainnet in 2023, having successfully completed several investing rounds and receiving 

 Token Metrics, Autonomy Capital, Everstake and more.

Nolus aims to tackle three problems common in crypto lending markets:

 software developer kit (SDK). Its code is entirely open sourced, and is updated and changed only when all stakeholders in the Nolus community vote to do so. According to the Nolus white paper, its ecosystem’s goal is “to build a novel user experience–driven automated money market” that facilitates direct interactions between lenders and borrowers without involving any other users.

The Nolus lending method starts with lenders choosing to supply 

 to the system. Any borrower who submits a down payment can get a loan from this supply of stablecoins. Both the coins and the down payment are 

, and interest is determined based on the value of the items. There’s no fixed repayment schedule, but the smart contracts ensure that interest is automatically removed from the collateral, and then paid to the lender at regular intervals. Once the user decides to repay the lease, the original assets are released from the smart contract.

Nolus's lending protocol includes many ways for customers to profit and enjoy convenient services. Here are the main DeFi products you can access through Nolus.

DeFi leasing on Nolus is designed to be as convenient as possible. Customers don’t have to go through a lengthy application or pay a lot of fees to other users. You just enter your collateral and get a loan of up to three times the value of the initial investment. Interest rates vary between 11% and 18%, based on the market value of the digital assets. The 

 allow the loan to be repaid on your own schedule. However, keep in mind that you pay more interest if you wait a longer amount of time to repay the loan.

If you want to earn money based on your existing crypto, you can join one of the many 

 on Nolus by submitting stablecoins in exchange for interest-bearing Nolus crypto. When you're ready to withdraw your funds and stop participating in DeFi leasing, you can cash out your Nolus tokens to receive your initial asset, plus any additional interest or network fees you’ve earned.

Nolus's system of money markets isn't the only thing they provide. Users who decide to 

 a crypto asset on Nolus can earn more money. The Nolus ecosystem offers the option of staking NLS tokens in exchange for various incentives. Lenders receive higher amounts of rewards for lending stablecoins, and borrowers get a lower interest rate.

Nolus has had some impressive growth since its launch in 2023. In just six months, the lending protocol has assisted with thousands of loans, collectively worth $8.6 million in total. Its team calculates that they've managed to achieve an average 

Nolus hopes to expand on this momentum in 2024. Its main plan is to continue marketing the lending protocol heavily, attracting more users who want to do their own research and find the best possible loans. To further attract users from the DeFi sector, Nolus aims to add more support for other crypto tokens and increase network liquidity. Nolus stands for community-led governance, so they don't have a long-term road map in place. Instead, they plan to evolve and adjust to suit whatever community needs arise in the future.

. It allows users to adjust their interest rates, and it's also a 

. People with NLS tokens can vote on how the platform is run and help implement new changes for the platform. The NLS token has a total supply of 1 billion. Nolus’s plan is to gradually mint tokens over a ten-year period, and implement a token buyback program to help maintain value. NLS token distribution will be as follows:

When the NLS token was released in the summer of 2023, Nolus prices were fairly stable. However, now that investors can sell their NLS tokens, prices have become more volatile. Starting in December 2023, NLS prices 

, and although the token currently seems to be dropping from its all-time high of $0.10, more price increases seem likely in the future.

Not only is the market for the NLS token quite bullish right now, but the Nolus lending protocol is also attracting a lot of positive attention in the crypto space. If the network can maintain its positive attention and attract more users, prices seem likely to rise even further. CoinCodex predicts Nolus prices will stay in the $0.04 to $0.19 range for 2025, and hit 

. This attitude is backed up by crypto influencers such as Crypto Revolution, 

 an underrated crypto with a lot of potential for growth.

The Nolus project is a well-thought-out crypto protocol that offers users significant advantages. Its innovative approach to lending could potentially attract a lot of users from the DeFi space. In addition to having a reliable system backed with effective technology and a detailed white paper, NLS digital assets have also experienced some promising growth patterns. The crypto asset has had a slow yet steady climb in price, and now that it's trending in crypto news, it seems poised to take off.

However, keep in mind that it's still important to 

 on digital assets. Some crypto investors might find it concerning that the Nolus project is mostly backed by marketers, instead of blockchain enthusiasts. There have also been some tech issues, such as the 

 that led to some unnecessary margin calls. Subsequent issues could limit price appreciation of its crypto assets. Therefore, it's necessary to approach Nolus with caution and not overextend your finances.

Nolus's DeFi lease system allows people to obtain easy access to crypto. Its innovative approach provides investors with significant advantages. Unlike traditional finance, there's no lengthy application process, and in contrast to many other blockchain networks Nolus doesn't have frequent margin calls or high network fees. As long as Nolus doesn't run into any technological issues or financial problems, its network is likely to have a lot of success in the DeFi space.

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Nolus (NLS): Crafting Liquidity's Future With Leading DeFi Leases

Candlestick

Trading

A shooting star is a bearish reversal candlestick pattern with an extended upper shadow with a little lower shadow. It appears to signal traders a trend reversal is coming. Learn how it works.

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The shooting star candlestick pattern is a single candle formation used by crypto traders to identify bearish reversals. Crypto traders who long the market use the shooting star pattern to identify when to exit their positions. Other crypto traders may use the pattern to identify short entries into the crypto market.

Crypto traders love this pattern because it’s easy to spot, then trade its signals. When the pattern is used in conjunction with other tools like Fibonacci retracements or other trend line resistance levels, it can create strong signals.

What Is a Shooting Star Candlestick Pattern?

A shooting star candlestick pattern occurs when an appreciating asset abruptly reverses lower, leaving behind a long upward wick. It is viewed as a bearish reversal candlestick pattern. This pattern often appears at the top of uptrends.

The psychology behind the pattern can be a little complex. First, traders see an uptrend with the continued strengthening of prices. Nervous traders on the sidelines watching the price appreciate worry that they might miss out. Due to this “FOMO,” traders then buy into the market, pushing the pricing even higher. This effectively attracts bullish traders into the market, which becomes a strong setup for a reversal.

As the market accelerates higher, the candle starts large and bullish, but a trap is set — and the market begins to decline as fast as it increased that day, closing the candlestick relatively close to where it opened.

Shooting star candlestick patterns are commonly seen in all markets, especially in crypto markets. Crypto traders are used to volatile price movements, and the shooting star candlestick pattern is a volatile bearish reversal after a long uptrend. A bearish shooting star appears and is confirmed when the candlestick’s low and close are equal.

What Does a Shooting Star Pattern Look Like?

There are essentially four parts that make up the perfect shooting star pattern. We’ve illustrated them in the image below.

A shooting star candlestick pattern starts with a large uptrend of the price at point 1. This helps set a trap for the bullish traders, as they may experience FOMO on the trend.

The next candle in the trend is where the traders get trapped. First, the FOMO on the uptrend kicks in as more traders enter the market by the influence of an uptrend. This creates the beginning of what appears to be a large bullish candle (point 2).

Then, the uptrend abruptly reverses and begins to retrace most of the recent price gains at point 3.

The candle formation is confirmed when it closes near the opening price, leaving behind a small body at point 4. The color of the candle body does not matter, as it could be red, green, black or white.

, the most important aspect of the candle pattern is the very long upper shadow, a little to no lower shadow, and a relatively small real body near the day’s low. This wick needs to be very long, generally about two to three times the length of the body of the pattern.

At first glance, the shooting star candlestick pattern looks a lot like the 

. In isolation, they are essentially the same pattern. However, the biggest differences between these patterns are where they appear and what to expect of the outcome.

The shooting star formation appears after an extended uptrend. Once the shooting star forms, then prices correct lower to begin a new downtrend.

On the other hand, an inverted hammer occurs at the end of a downtrend. Once the downtrend exhausts, buyers try to push the market higher but are unsuccessful, and the market retreats lower, creating a large wick to the upside and a small candle body.

Once the single candle inverted hammer pattern is finished, the market will rally, creating a new uptrend. Thus, confirming a reversal pattern.

In essence, these two single candlestick patterns are identical, but their location in response to the previous trend distinguishes the shooting star from the inverted hammer.

The shooting star and the hammer pattern are great 

 that signify the opposites. The significant difference between these two patterns is that the shooting star candlestick appears to have a long upper shadow (wick) to the upside with a small lower body. The shooting star appears at the end of an uptrend, and its presence implies that the market is about to correct lower.

 has a long lower shadow with a small upper body. The hammer pattern appears at the end of a downtrend, and its presence implies that the market is about to rally into a prevailing uptrend.

The essence of the shooting star pattern is a 

 that pulls long traders into a bullish trend as they anticipate more highs, only to see the market abruptly reverse lower. This pattern becomes even more effective when it appears near other important price levels of resistance.

Appearing near resistance applies more fuel to the pattern’s strength, as long breakout traders who are experiencing FOMO anticipate the break.

Near these resistance levels, breakout traders will push the prices higher to create a short squeeze. However, if the breakout doesn’t continue higher, then the sellers step in, forcing the market lower. As the pricing moves down, the stop losses of the breakout traders are hit, triggering additional selling pressure to the price.

This creates a false breakout higher, which leaves behind a long wick to the upside.

Therefore, the key ingredients to look for in the shooting star candlestick pattern include:

As we’ve seen, the shooting star pattern is a single candlestick pattern that signals a potential correction coming in the market. The signals are stronger when the pattern is spotted after an uptrend, as it alerts the trader to the potential of a new downtrend.

It is technically not a shooting star pattern when this pattern occurs in the middle of a trend or after a downtrend. If the shooting star is witnessed in a downtrend, the result of the pattern may not be a continuation of the downtrend. As a result, shooting stars in the middle of a trend or after a downtrend should be ignored.

A shooting star formation does not require other indicators to spot it. However, other indicators can be used to confirm and strengthen the signal the shooting star pattern presents. Two of the most common indicators are Fibonacci retracement levels and other resistance lines, such as horizontal and trend line resistance.

 levels are hidden support and resistance levels, as they may not be obvious to new or intermediate crypto traders. The Fibonacci retracement tool can be applied to a price chart, revealing levels where a market might reverse.

When a shooting star pattern appears near one of the important Fibonacci retracement levels, then the signal of the shooting star is strengthened.

In March 2021, Ethereum rallied about 25% to reach the 50% Fibonacci retracement level. Ethereum then tried to rally above that level, only to be rejected and pushed back down. This price action left behind a long wick to the upside, which was more than three times the length of the candle body, confirming the shooting star pattern. This formation suggested that a correction may be on the horizon.

Sure enough, Ethereum fell about 13% over the next couple of days. If a shooting star pattern appears after an uptrend near a common Fibonacci retracement level, then you have a confirmation signal to the pattern.

Fibonacci retracement levels are simply hidden levels of 

. Therefore, other forms of resistance are more obvious to traders, and they help strengthen the shooting star signals, too.

Horizontal resistance is a previous swing high extrapolated horizontally to the right on the chart. Above, we can see Bitcoin reaching a high in late May 2021, creating a horizontal resistance level. Later on, in June 2021, Bitcoin rallies to meet this horizontal resistance, and a shooting star candle pattern appears.

This pattern is most likely the result of bullish traders getting trapped into buying recent new highs. Bitcoin pushes higher slightly above the resistance level, only to see the bears take back control and push pricing lower.

This is a bearish combination that suggests a downtrend may begin. Once this pattern appears near resistance, Bitcoin prices fall nearly 30% over the next week to reach a new low just below $29K.

Using Shooting Star Candlestick Pattern to Spot a Bearish Reversal

The shooting star candlestick pattern can signal a bearish reversal. There are two ways to trade the signal, depending on whether you’re a more conservative or aggressive trader.

First, if a trader is already positioned to the long side when a shooting star candle pattern appears, then the formation may signal that it’s time to exit the trade or tighten the 

. The candlestick pattern provides a clue about a potential trend change, and the long trader will want to consider locking in profits before the market corrects lower.

Secondly, if the trader is more aggressive, they may want to jump into a short position at the first symptom of a potential turn lower. After the pattern forms, the trader would enter short on the open of the next candle.

The stop loss would be placed just above the candlestick’s wick high. The trader would look to take profit at a distance at least twice the size of the risk.

There’s nothing wrong with identifying with this aggressive trading style, as long as you understand the additional risks. For example, this approach includes a greater chance of getting stopped out of a trade. The market could reverse against your position and rally higher to tag your stop loss, causing you to eat a losing trade.

The benefit of the aggressive style of trading is its entry price. Due to the early entry into the position, the entry would be at a better (higher) price, making it easier to reach a good risk-to-reward ratio trade.

If you want a more conservative approach to trade with the shooting star candlestick, consider using a support trend line as the trigger.

Once the shooting star pattern appears, draw an upward sloping support trend line. Then, as the price crosses below the trend line, enter short into the position. The stop loss would be placed just above the wick’s high, and the target should be at least twice the distance from the stop loss to the entry price. This way, you can maintain a positive risk-to-reward ratio on the trade.

The benefit of using the more conservative approach is that you should receive fewer false signals. The downside is that the width of your stop-loss is much wider than with the aggressive approach. This means that the market needs to travel farther for you to maintain a positive risk-to-reward ratio.

The shooting star candlestick pattern is effective for identifying potential bearish turns in the market. However, the pattern should not be relied upon exclusively for trade signals, as it does come with limitations.

First of all, the shooting star pattern can be applied to any chart time frame — but it’s more effective on daily and weekly charts. If the pattern is spotted on a minute chart, there’s a greater possibility of it being a false signal because less trading information is going into the creation of each candle.

Secondly, the shooting star is a single candlestick pattern that inevitably requires fewer data to create relative to other patterns. For example, the bearish engulfing pattern is a two-candlestick pattern, and the evening star is a three-candlestick pattern. These patterns require more candlesticks and, thus, more data to create them.

Lastly, smaller cryptocurrencies have less trading volume taking place. Therefore, if the shooting star pattern is spotted on smaller-sized cryptocurrency charts, there’s a greater chance that a false signal is forming. Though the shooting star can be used for any cryptocurrency, it’s best used to identify bearish pivots on the larger ones.

The shooting star pattern is a single candle pattern that is effective at identifying tops on large cryptocurrencies. Traders widely use the pattern because it’s easy to spot and can be used on any chart time frame.

Other tools, like the Fibonacci retracement drawing or horizontal and trend line resistance, help confirm the shooting star pattern’s signals. However, the shooting star pattern has its limitations and should focus more on larger cryptocurrencies on hourly, daily, or weekly time frames.

Candlestick Patterns Professional Traders Use

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How to Use Shooting Star Candlestick Pattern to Find Trend Reversals

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