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The last 7 days have seen Bitcoin, the world’s biggest cryptocurrency, at its most unpredictable, with BTC slipping down the rankings despite reaching an ATH of over $64,500 on the charts. Much of the market’s alts depreciated as a result of its correlation with the rest of the market, with the latter changing course after surging independently of BTC earlier in the month. Uniswap, XRP, Binance Coin, and THETA are only a few examples.
At press time, UNI, the crypto-largest market’s DeFi token, was on its way to a new ATH before corrections set in due to the Bitcoin-fueled market-wide depreciation on April 16th. Since then, UNI has dropped by more than 27%, with the cryptocurrency slipping to 11th place on CoinMarketCap’s charts.
With the rest of the market still sliding, a pattern turnaround seemed impossible in the short term, particularly given the lack of recent price action followed by high trading volumes.
Although the new dotted markers of the Parabolic SAR had moved to spot themselves above the price candles, the Awesome Oscillator’s histogram had registered a drop in market momentum, with the same blinking bearish signals.
The magnitude of the corrections over the last week was predicted by a previous study. It’s worth remembering, however, that with V3 set to launch on Ethereum in May, some bullish momentum could return shortly.
XRP, one of the market’s most common altcoins, has recovered impressively after falling by half on the price charts in response to the SEC filing a lawsuit against Ripple Labs. Indeed, it can be argued that the aforementioned litigation has galvanised and catalysed interest, causing demand for the altcoin to skyrocket.
While the cryptocurrency recently reached a three-year peak, the last few days have seen the alt right on the charts, with XRP dropping more than 30 percent of its value in the last week alone. Although a pattern turnaround seemed impossible at the time of publication, a significant advancement in the lawsuit might change the story.
The mouth of the Bollinger Bands was big at press time, considering the fact that it was closing in slightly – an indication that market uncertainty could be decreasing soon. The Relative Strength Index, on the other hand, was dipping into the oversold zone after spending some time in the overbought zone.
XRP was in the news recently after a Japanese exchange relisted the altcoin.
Binance Coin [BNB]
Binance Coin, the world’s largest exchange token, has risen exponentially in 2021, with BNB recording YTD gains of 559 percent at the time of publication. In reality, the size of BNB’s development has been so rapid that it is now one of the top five cryptos on CoinMarketCap.
However, despite the aforementioned rise, BNB was not resistant to the corrections that followed BTC’s drop below $60,000. Although the extent of its decline hasn’t been as severe as that of UNI or XRP, the exchange token has dropped by 19% in the last 5-6 days.
The alt’s technical indicators emphasised the prevalent bearishness, as MACD reported a bearish convergence on the charts; Chaikin Money Flow was dipping from over 0.25, indicating that capital outflows were gradually gaining momentum.
The market movement of BNB may be an advantage for short-term sellers, but on-chain measurements show that the token is undervalued.
Although the magnitude of its increase in March, a month when much of the market traded sideways, surprised those in the crypto-market. THETA was heading south at the time of publication, driven by a Bitcoin-caused downtrend. It is worth noting that, prior to the onset of the aforementioned downtrend, THETA was traded within a narrow price range, which was in stark contrast to the action seen last month.
In fact, despite an increase in trading volumes, THETA fell by more than 27% in the last week on the charts.
THETA’s metrics supported the market’s bulls. Although the dotted markers of the Parabolic SAR were over the price candles, the MACD line was diverging away from the Signal line, making a bullish crossover seem impossible.