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The rise of Bitcoin over its previous all-time high has a significant impact on the rest of the cryptocurrency sector. However, the depreciation below $60,000 followed suit, with Ethereum, Chainlink, VeChain, and Stellar Lumens all following suit to slip down the market lists.
Ethereum’s ascension up the stock charts to an all-time high of $2,544 may have caused the market-wide rally in altcoins. However, Bitcoin’s status as the world’s biggest cryptocurrency continues to have a dominating influence on the rest of the crypto-market. When BTC fell, so did ETH, which was trading at $2,137 at the time of publishing. In reality, the altcoin had lost over 15 percent of its value in just 5 days.
As Parabolic SAR’s dotted markers were set over the price candles, the altcoin’s technical indicators highlighted the ETH market’s pervasive bearishness. Following a fall from the above, the Relative Strength Index was between the oversold and overbought areas.
Above $2,000, ETH has strong support. As a result, the altcoin is unlikely to fall below the previously stated amount.
It is worth remembering that short-term pricing patterns have recently dominated ETH’s valuation. As a result, while a sustained trend reversal was uncertain, a short-term recovery appeared very likely.
Chainlink, the altcoin ranked 12th on CoinMarketCap’s rankings, rose nearly 30% in a matter of days before the aforementioned corrections took effect. Following the same, Connection dropped by more than 16%, with the cryptocurrency trading at a pace that was 20% below its all-time high at the time of publication.
LINK, on the other hand, has made some progress in the last 24 hours, with the final price candle flickering bullish signals. In reality, this was followed by an increase in trade volumes.
Bollinger Bands remained wide apart, indicating near-term price volatility; Awesome Oscillator’s histogram blinked bearish signals, and market momentum fell gradually.
Despite the aforementioned corrections, it is worth noting that there are still reasons why LINK’s rally, when it resumes, could be lengthy.
VeChain is ranked 13th on CoinMarketCap’s indexes, and its recent price action has been somewhat different from that of the rest of the market’s altcoins. Though the latter has been dramatically depreciating in recent days, VET has recently hiked to a new ATH. In reality, after a few corrections, VET was keeping steady on the charts at press time, planning for another step up as soon as the general market turns bullish.
The results of VeChain’s indicators emphasised the bullish strength of the sector, as the MACD line continued to rise over the Signal line. Chaikin Money Flow was held steady near 0.20, indicating high capital inflows.
The surprising hike in VET’s value may have been motivated by the revelation that VeChain is now an “exclusive partner” for PricewaterhouseCoopers.
Stellar Lumens [XLM]
On the daily charts, XLM’s most recent swings have been somewhat similar to those of Chainlink and Ethereum, with the alt falling by more than 25% following a run that saw the crypto rise by nearly 36%. The aforementioned uptick was vital for XLM, as it restored the alt’s value to its February 2020 level.
However, at the time of publication, XLM had returned to the price channel it had been in since March. Indeed, the alt was already nearly 45 percent lower than its 2018 peak.
Despite the fact that the Bollinger Bands mouth was wide open to indicate incoming volatility, the Relative Strength Index was nearing oversold territory as a result of ongoing corrections.