Crypto Industry News:

Leading Chinese social media platforms and internet giants have updated their policies to curb or remove NFT token platforms, citing a lack of regulatory clarity and fear of government repression.

Chinese social media giant WeChat reportedly removed several digital collectibles platform accounts for violating the rules. Among the removed platforms was the Xihu No.1 digital collection platform, one of the most touted NFT projects on the market. Another platform called Dongyiyuandian has revealed that its official app has been banned, a local news source said.

WhaleTalk, a digital trading platform launched by technology giant Ant Group, has also updated its policy to increase the penalty for using an over-the-counter (OTC) point of sale to trade NFT. It should be noted that while NFT trading is not necessarily prohibited, any form of speculative trading related to digital collectible tokens is still prohibited.

The rise in illegal trades and bot purchases related to NFT platforms has prompted several tech giants to take precautionary measures. During a general cryptocurrency ban announced in September 2021, any companies that assisted in crypto transactions or foreign crypto companies were held accountable. As such, it appears that the recent actions by these companies and changes to their user contract policy are aimed at avoiding government repression.

While cryptocurrencies are strictly forbidden in mainland China, the Beijing government has shown no intention of banning the NFT. This was one of the main reasons companies like Tencent and Alibaba filed several new NFT patents over the past year. However, the growing popularity of digital collectibles in China has made them also prone to price speculation and fraud.

Technical Market Outlook:

The ETH/USD pair continues to move higher and the technical resistance located at the level of $42,607 is currently being tested. In a case of a breakout higher, the next target for bulls is the supply zone located between the levels of $3,244 - $3,287. As long as the price stays above the technical support seen at $2,831 - $2,778 the outlook is bullish. The strong and positive momentum supports the bullish outlook.

Weekly Pivot Points:

WR3 - $3,607

WR2 - $3,304

WR1 - $3,113

Weekly Pivot - $2,810

WS1 - $2,610

WS2 - $2,316

WS3 - $2,211

Trading Outlook:

The market keeps trying to bounce higher after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,192 is the next key Fibonacci retracement for bulls, but the bulls had failed to break through three times already. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term.