Top Ten Crypto Market Capitalizations Shifted a Great Deal Since the Last Time BTC Hit $60K

Top Ten Crypto Market Capitalizations Shifted a Great Deal Since the Last Time BTC Hit $60KThe price of bitcoin recently jumped above the $60,000 per unit mark on October 15, and the leading crypto asset has not seen prices this high since mid-April six months ago. However, as far as the top digital assets are concerned, in terms of market capitalization, things are a whole lot different. For instance, ether […]
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Top 5 cryptocurrencies to watch this week: BTC, DOT, UNI, LINK, XMR

Bitcoin could pick up momentum above $56,100 and that could attract buying in DOT, UNI, LINK, and XMR.

Bitcoin (BTC) has continued to trade near the $55,000 level. The sharp rally in Bitcoin has pushed its market dominance from 40.70% on Sep. 12 to about 45% today. This shows that the strong recovery in cryptocurrencies has largely been led by Bitcoin. 

This sharp run-up in Bitcoin has pushed the Fear and Greed indicator into the Greed zone. Although this indicator suggests that markets may have run up quickly in a short time, it does not necessarily signal a confirmed short-term top.

Crypto market data daily view. Source: Coin360

History suggests that traders who sold their Bitcoin positions on this metric alone could have missed strong gains before the correction set in, as highlighted by Cointelegraph Marke analyst Marcel Pechman.

Could bulls extend the up-move and push the price closer to the all-time high in Bitcoin? If that happens, select altcoins may rally to the upside. Let’s study the charts of the top-five cryptocurrencies that could remain strong in the short term.

BTC/USDT

Bitcoin soared above the stiff overhead resistance at $52,920 on Oct. 6 and the bulls have held the price above the breakout level since then. This is a positive sign as it indicates that buyers may be holding on to their positions expecting higher levels in the short term.

BTC/USDT daily chart. Source: TradingView

The moving averages have completed a bullish crossover and the relative strength index (RSI) is near the overbought zone, suggesting that the path of least resistance is to the upside.

If buyers push the price above $56,100, the uptrend could resume and the BTC/USDT pair may rally to $60,000. Above this level, a retest of the all-time high at $64,854 is possible.

Contrary to this assumption, if bears pull the price below $52,920, the pair could drop to the 20-day exponential moving average ($49,504). This is an important support for the bulls to defend because a break below it could signal a change in the short-term sentiment.

The pair could then drop to the 50-day simple moving average ($47,578) and next to $40,000.

BTC/USDT 4-hour chart. Source: TradingView

The bulls are facing selling in the $55,750 to $56,100 zone but a positive sign is that buyers have not allowed the price to dip below the 20-EMA. This indicates that bulls anticipate a break above the overhead zone.

If that happens, the pair could resume its uptrend. The first sign of weakness will be a break and close below the 20-EMA. The RSI is forming a negative divergence, signaling that the momentum may be weakening.

A break and close below the 20-EMA could pull the price to the 50-SMA. A break below this support could start a deeper correction.

DOT/USDT

Polkadot (DOT) has been gradually moving higher toward the overhead resistance at $38.77. The RSI has broken out of the downtrend line and the 20-day EMA ($32.15) has started to turn up, indicating an advantage to buyers.

DOT/USDT daily chart. Source: TradingView

If bulls thrust the price above $38.77, it will invalidate the head and shoulders pattern. The failure of a bearish setup is a bullish sign as it may trap the aggressive bears who then try to cover their positions, resulting in a short-squeeze.

The DOT/USDT pair could then start its journey toward $49.78. Alternatively, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, the pair could drop to $28.60.

A bounce off this support could keep the pair range-bound for a few days. The bears will have to pull the price below the neckline to signal their supremacy.

DOT/USDT 4-hour chart. Source: TradingView

Both moving averages are sloping up and the RSI is in the positive territory, suggesting that buyers are in control. The pair could drop to the 20-EMA, which is likely to act as a strong support. If the price turns up from this support, the bulls will try to push the pair to $38.77.

This level may again act as a stiff resistance but if bulls do not give up much ground from it, the possibility of a break above it increases.

Conversely, if bears pull the price below the 20-EMA, the pair could drop to the 50-SMA. A break and close below this support could result in a decline to $31 and then $29.

UNI/USDT

Uniswap (UNI) has been holding above the 20-day EMA (24.55) for the past few days, which shows that bulls are trying to defend this support. However, the bears are in no mood to relent as they have not allowed the price to rise above the neckline.

UNI/USDT daily chart. Source: TradingView

The buyers will have to push and close the price above the neckline to complete an inverse H&S pattern. This bullish reversal setup has a pattern target at $36.98 but the rally may not be linear as bears will try to defend the level at $31.41.

The 20-day EMA is gradually rising and the RSI is just above the midpoint, suggesting that bulls have a slight edge. This advantage will be lost if the price breaks and closes below the 20-day EMA.

In such a case, the UNI/USDT pair could drop to $22. This level may act as a support but if bears sink the price below it, the pair could extend the decline to $17.73.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the price has roughly been consolidating in a tight range between $24 and $26 for some time. Usually, such tight ranges result in the start of a directional move.

If buyers drive and sustain the price above $26, the possibility of a break above the neckline increases. That could start the march toward the next overhead resistance at $30 and then to $31.

On the other hand, if the price breaks below $24, the short-term trend may turn in favor of bears. The pair could then drop to $22.

Related: XRP price eyes $1.50 next after bouncing 30% in just 10 days

LINK/USDT

Chainlink (LINK) broke above the downtrend line on Oct. 1, but the bulls have not been able to capitalize on this move. The altcoin has been stuck in a tight range between $25.20 and $26.19 for the past few days.

LINK/USDT daily chart. Source: TradingView

Both moving averages are flat and the RSI has been trading just above the midpoint, suggesting a balance between supply and demand. This equilibrium will tilt in favor of buyers if the price breaks and closes above $28.19.

The LINK/USDT pair could then rally to $32.11 and later challenge the stiff overhead resistance at $35.33.

Alternatively, a break and close below $25.20 could signal that supply exceeds demand. The pair could then drop to the $22 to $20.82 support zone.

LINK/USDT 4-hour chart. Source: TradingView

The price turned down from the overhead resistance and bears have pulled the price below the moving averages. If sellers sustain the lower levels, the pair could drop to the support at $25.20. A break below this level could signal that bears are back in command.

Conversely, if the price turns up from the current level and rises back above the moving averages, it will suggest that traders are buying on dips. The bulls will have to push and sustain the price above $28.19 to signal that they are back in the driver’s seat. Thereafter, the pair could rally to $32.11.

XMR/USDT

Monero (XMR) rose above the 50-day SMA ($271) on Oct. 5 and reached the downtrend line on Oct. 6. The bears are aggressively defending the downtrend line for the past few days but a minor positive is that bulls have not allowed the price to dip back below the 50-day SMA.

XMR/USDT daily chart. Source: TradingView

The 20-day EMA ($263) is sloping up gradually and the RSI is in the positive zone, indicating a minor advantage to buyers. A break and close above the psychological mark at $300 could open the doors for an up-move to $325 and then to $339.70.

On the contrary, if the price turns down and breaks below the 20-day EMA, it will suggest that short-term traders may have dumped their positions. That could pull the price down to $250 and later to $225.

XMR/USDT 4-hour chart. Source: TradingView

The bulls have repeatedly pushed the price above the downtrend line but the bears have not allowed the pair to sustain above it. The 20-EMA has flattened out and the RSI is close to the center, suggesting a balance between supply and demand.

If the price breaks below the 50-SMA, the short-term bulls may rush to the exit. That could pull the price down to $260 and next to $250.

Conversely, if bulls push the price above $286.8, the pair could rise to $296.80. The bullish momentum may pick up if bulls thrust the price above this resistance.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Price analysis 9/3: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, LINK

This week’s sharp rally in Bitcoin and Ether signals that bulls are back in control and altcoins are likely to follow.

Bitcoin (BTC) finally broke above the $50,500 resistance and Ether (ETH) has risen above the $4,000 mark. This suggests that there is growing interest in cryptocurrencies and several legacy finance companies are initiating steps to tap into this increasing demand.

One of the world’s largest independent asset managers, Franklin Templeton, has posted fresh job applications for medium to senior-level positions in crypto trading and research, according to Linkedin job postings.

Meanwhile, in Japan, financial conglomerate SBI Holdings is planning to set up one of the first crypto funds in the country by the end of November. Tomoya Asakura, the director and senior managing executive officer at SBI, said that the launch of a second fund will be explored depending on the success of the first one.

Daily cryptocurrency market performance. Source: Coin360

While crypto traders are cheering the recent run-up in several altcoins, JPMorgan analysts have warned their clients that the altcoin rally and nonfungible tokens (NFT) are getting frothy.

The analysts said that the altcoins share of the crypto market trading surged from 22% at the beginning of August, to 33%, which is high compared to historical standards. They believe the reason is “froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”

Could Bitcoin sustain above $50,500 and resume its uptrend or will altcoins remain in focus? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

The bears successfully defended the $50,500 resistance on Sep. 2 but they could not pull and sustain the price back below the downtrend line. This could have attracted buying from the bulls who have pushed Bitcoin above $50,500 today.

BTC/USDT daily chart. Source: TradingView

If buyers sustain the price above $50,500, the BTC/USDT pair could rally to $60,000. This level may again act as a stiff resistance but if bulls can thrust the price above it, the pair could challenge the all-time high at $64,854.

If bulls drive the relative strength index (RSI) above the downtrend line, it will invalidate the negative divergence. That along with the upsloping 20-day exponential moving average ($47,584) indicate that the path of least resistance is to the upside.

This bullish view will invalidate if the price turns down from the current level and breaks below the 200-day simple moving average ($46,083). That could pull the price down to $42,451.67.

ETH/USDT

Ether picked up momentum after breaking above $3,377.89 and hit the $4,000 mark today. If bulls sustain the price above this psychological level, the biggest altcoin could challenge the all-time high at $4,372.72.

ETH/USDT daily chart. Source: TradingView

The upsloping 20-day EMA ($3,344) and the RSI in the overbought zone suggest that bulls are in control. If buyers push the price above $4,372.72, the ETH/USDT pair could start its journey toward the critical level at $5,000.

This may not be easy as bears are likely to have other plans. They are likely to mount a stiff resistance in the $4,000 to $4,372.72 zone. If the price turns down from this zone and breaks below $3,700, the pair may drop to the 20-day EMA.

A strong rebound off this support will suggest that the sentiment remains bullish. The buyers will then try to resume the up-move. Conversely, a break and close below the 20-day EMA will be the first sign that bulls may be losing their grip.

ADA/USDT

Cardano (ADA) broke above the $3 mark on Sep. 2 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. Although the price dipped back below $2.97 today, the bulls bought the dip and are again trying to drive the price above $3.

ADA/USDT daily chart. Source: TradingView

A breakout and close above $3.10 will signal the resumption of the uptrend. The ADA/USDT pair could then rally to $3.50. The 20-day EMA ($2.58) favors the bulls but the negative divergence on the RSI indicates that the bullish momentum may be weakening.

If bulls fail to drive the price above the overhead resistance, the pair may drop to the 20-day EMA. This is an important level for the bulls to defend. A strong rebound off it will suggest that the sentiment remains positive.

Conversely, a break below the 20-day EMA may pull the price to the breakout level at $2.47. A break below this support could start a deeper correction.

BNB/USDT

Binance Coin (BNB) has been trading between the 20-day EMA ($456) and the overhead resistance at $518.90. The long wick on the Sep. 2 candlestick suggests that bears are selling above $500 but the positive sign is that bulls are not giving up much ground.

BNB/USDT daily chart. Source: TradingView

The buyers will again try to push and sustain the price above $518.90. If they manage to do that, the BNB/USDT pair could pick up momentum and rally to $600. This psychological level may act as a resistance but if bulls clear this hurdle, the rally may extend to $680.

Conversely, if the price turns down from the overhead resistance and dips below the 20-day EMA, the pair may slide to $433. A break below this level will suggest that bears have overpowered the bulls. The pair may then decline to the 200-day SMA ($375).

XRP/USDT

The bulls pushed XRP above the downtrend line on Sep. 2, invalidating the developing bearish descending triangle pattern. The bears tried to pull and sustain the price below the downtrend line today but failed.

XRP/USDT daily chart. Source: TradingView

If bulls sustain the price above the downtrend line, the XRP/USDT pair could rally to $1.35. This level may act as a resistance and if the price turns down from it, the pair may trade between $1.05 and $1.35 for a few days.

The 20-day EMA ($1.15) has turned up and the RSI has risen above 64, indicating that bulls have the upper hand. A breakout and close above $1.35 could clear the path for a rally to $1.66. The bears will have to pull the price below $1.05 to signal a comeback.

SOL/USDT

The bears attempted to stall Solana’s (SOL) uptrend at $130 but the bulls were in no mood to relent. The buyers did not allow the price to break below the psychological support at $100.

SOL/USDT daily chart. Source: TradingView

Buying resumed on Sep. 2 and the bulls have extended the SOL/USDT pair to a new all-time high today. Vertical rallies are rarely sustainable and they usually result in sharp declines. The RSI above 88 also indicates the pair is overextended in the short term.

If the price turns down from the current level or $150, the first support is at the 38.2% Fibonacci retracement level at $115.75.

A strong rebound off this level will suggest strength and increase the possibility of a break above $150. The next target on the upside is $166.97. On the contrary, a break below $115.75 could pull the price down to the 50% retracement level at $106.29.

DOGE/USDT

Dogecoin (DOGE) broke above the 20-day EMA ($0.28) on Sept. 1 and bulls pushed the price above the downtrend line of the falling wedge pattern on Sept. 2. However, the long wick on the day’s candlestick showed that bears were selling at higher levels.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair has bounced off the 20-day EMA and the bulls have pushed the price above the wedge. If buyers sustain the price above $0.31, the pair could rally to $0.35. This level is likely to act as a strong resistance.

If the price turns down from $0.35, the pair may again drop to the 20-day EMA. A strong rebound off it will suggest that the sentiment is positive. A breakout and close above $0.35 could clear the path for an up-move to $0.45.

On the other hand, if the price turns down and breaks below the 20-day EMA, the pair may drop to the support line of the wedge.

DOT/USDT

Polkadot (DOT) has been sustaining above the breakout level at $28.60 for the past three days, indicating the start of a new uptrend. The rising moving averages and the RSI in the overbought territory indicate advantage to buyers.

DOT/USDT daily chart. Source: TradingView

If bulls drive the price above $33.84, the DOT/USDT pair could start its northward journey toward $41.40 and then to the pattern target at $46.83.

On the other hand, if the price turns down from the current level, the price may retest the breakout level at $28.60. If bulls flip this level into support, it may act as a launchpad for the next leg of the up-move.

A break and close below the 20-day EMA ($27.12) will be the first sign that the current breakout may have been a bull trap.

Related: How to prepare for the end of the bull run, Part 1: Timing

UNI/USDT

Uniswap’s (UNI) up-move turned down from $31.41 on Sept. 2, suggesting that the bears have not thrown in the towel yet. The price action of the past few days has formed a negative divergence on the RSI, indicating that the bullish momentum may be weakening.

UNI/USDT daily chart. Source: TradingView

If the price rebounds off the 20-day EMA ($27.91), the bulls will make one more attempt to push the UNI/USDT pair above the overhead resistance at $31.41. If they succeed, the pair may start its journey to $37.52 and then to $42.25.

Alternatively, if bears sink the price below the moving averages, the pair may drop to $25 and remain range-bound for a few more days. A break and close below the $25 to $23.45 support zone will signal that bears are back in the game.

LINK/USDT

Chainlink (LINK) had been range-bound between $24 and $30 for the past few days. The bulls pushed the price above the overhead resistance on Sept. 2 but they could not sustain the higher levels.

LINK/USDT daily chart. Source: TradingView

The bulls again bought the dip today and have propelled the price above the overhead resistance. If buyers sustain the price above $30, the LINK/USDT pair could rally to $36 and if that level is crossed, the up-move may reach $43.50, which is the May 19 intraday high.

The 20-day EMA ($26.99) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. Contrary to this assumption, if the price turns down and breaks below $30, it will suggest that the range-bound action may continue for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

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Time to pump? Data suggests traders intend to push Filecoin (FIL) above $100

Derivatives data and recent protocol developments signal that retail traders have turned bullish on FIL.

Filecoin (FIL) accumulated 65% gains over the past 30 days to reach its highest price since June 8. The recent strength was accelerated after an Aug.6 partnership with Chainlink’s oracle protocol on Aug. 6 allowed the projects to join their grant initiatives to speed up the development of hybrid smart contracts to leverage code running on the blockchain while the managing data computation process off-chain.

Filecoin (FIL) price in USD at Coinbase. Source: TradingView

Numerous events triggered the $235 all-time-high on April 1, but that movement is clearly long gone because the cryptocurrency is 67% below that level. Let’s take a moment to understand what triggered the rally and whether these drivers still exist.

China-based mining activity boosted investors’ expectations

Filecoin is a decentralized cloud-based data storage network that allows its users to gain rewards for selling their excess storage on an open-source platform. The built-in economic incentives ensure files are reliably stored over time.

The network’s storage capacity surpassed 2.5 exabytes in February, which lead to positive remarks from influencers like Cameron Winklevoss, the billionaire investor and co-founder of the Gemini exchange.

On March 17, Grayscale Investments, the digital currency asset manager behind the GBTC Trust, announced the launch of its Filecoin investment vehicle.

On March 25, a $23 million Filecoin Ecosystem Fund was announced, backed by large Chinese investment groups like Fenbushi Capital, SNZ Capital, and Neo’s EcoFund.

New smart contract capabilities are expected and FIL’s daily issuance was cut

On March 31, Qtum founder Patrick Dai said that the protocol was working to enable smart contracts for Filecoin through the Qtum network.

On April 10, Martin Gaspar, a research analyst at CrossTower exchange, told Cointelegraph that solid demand from Chinese miners emerged due to a shortage of proof-of-work rigs. Gaspar added that these miners “are required to pledge the FIL token as collateral, resulting in demand for the token.”

Lastly, on April 15, Filecoin changed its supply economics, reducing its daily issuing from 648,000 FIL per day to 365,000. The drastic cut likely led to a perception of scarcity for the token. In turn, it may have caused retail investors and miners to accelerate their investments ahead of the event.

Data shows retail activity has been picking up

Perpetual futures contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours to ensure no exchange risk imbalances.

Whales, arbitrage desks, and market makers avoid exposure to these instruments due to their variable funding rates. When longs (buyers) demand more leverage, they are the ones paying the fee. The opposite holds when shorts (sellers) use more leverage, thus causing a negative funding rate.

Filecoin (FIL) perpetual futures 8-hour funding rate. Source: Bybt.com

The above data clearly shows the funding rate surging between Aug. 10 and Aug. 17, and it reached a positive 0.08% average. This number translates to 1.7% per week, indicating increased leverage longs activity. After receding for a couple of days, the indicator initiated another hike to a 0.10% fee charged every 8-hour from longs.

The current 2.1% weekly equivalent fee indicates even stronger leverage from retail traders, which means optimism. Of course, there’s no way to know if the recent move will be enough to spark a continuous price improvement, but traders seem to believe $100 is closer than ever.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Data shows traders rushed to buy altcoins during Bitcoin’s dip to $50K

Bitcoin price may be stuck in a rut but this hasn’t stopped traders from loading up on LINK, BAND and Qtum.

Bitcoin’s (BTC) recent downturn temporarily pulled its dominance rate down to 49.5% which is the lowest level since August 2018. This has led a growing number of traders to predict that altcoins will outperform Bitcoin in the short term.

Over the past few months, the price action from altcoins seems to be disengaging from Bitcoin. Take for example, Ether (ETH), which hit a new all-time high today even as Bitcoin price is down 20% from its all-time high.

Crypto market data daily view. Source: Coin360

The major factor that could have tilted the scale in favor of altcoins is the massive rise in the popularity of the decentralized finance space. New York Stock Exchange president Thomas Farley pointed out in an interview with CNBC that “DeFi exchanges are doing as much volume if not more than Coinbase today.”

Let’s look at the fundamentals and technicals of three tokens that have been on the rise in the past few months.

LINK/USDT

Chainlink (LINK) is one of the most popular decentralized oracle solutions. To support the rapid pace of innovation in the crypto industry, Chainlink outlined its vision for the future in its new whitepaper dubbed Chainlink 2.0 on April 15.

The whitepaper presents a new architecture for building hybrid smart contracts where second-layer networks called Decentralized Oracle Networks store and compute the data off-chain before feeding the input on the blockchain. This new concept could empower developers to build hybrid smart contracts quickly, similar to application programming interfaces (APIs) that developers build in the web world.

Another positive for LINK investors came as Grayscale announced the addition of the altcoin to its Digital Large Cap Fund on April 6. Although the allocation is only 0.87%, the inclusion could bring it into the focus of institutional investors.

On April 2 Polkadot and Chainlink announced that Chainlink’s price feeds woul be available as Substrate oracle pallet, enabling projects in the Polkadot ecosystem to integrate Chainlink oracles through a simplified library.

LINK is currently correcting from its sharp rise from $23.61 on March 24 to the all-time high at $44.33 on April 15. Although the price plunged below the moving averages on April 18, the bulls aggressively bought at lower levels as seen from the long tail on the day’s candlestick.

LINK/USDT daily chart. Source: TradingView

Since then, the bears and the bulls have been battling it out at the 20-day exponential moving average ($35.89). The bulls are attempting to defend the 20-day EMA support and launch the next leg of the up-move while the bears are trying to extend the correction by breaking the support.

The marginally rising 20-day EMA and the relative strength index (RSI) above 57 indicate a minor advantage to the buyers. If the bulls can push and sustain the price above $40, the LINK/USDT pair could retest $44.33. A breakout of this resistance could start the next leg of the uptrend, which could reach $50 and then $55.72.

This bullish view will invalidate if the bears sink and sustain the price below the 20-day EMA. Such a move could pull the price down to the 50-day simple moving average ($31.42) and delay the start of the next leg of the uptrend.

BAND/USDT

Band Protocol (BAND) was featured by Cointelegraph on Feb. 2 when its price was at $11.14. Since then the price h rallied to an all-time high at $23.30 on April 15, a gain of 109% in about two and half months.

The protocol announced on April 15 that its oracle data is live on Google Cloud Public Data, which can be used to build traditional, hybrid blockchain and cloud applications. Band said that the integration into Google Cloud Public Data was the first among many use-cases being explored with partners “to bridge traditional enterprises and blockchain applications.”

Band has continued to build partnerships to increase its market share. In the past month, it has announced partnerships with Krystal, Equilibrium, and Polygon. Additionally, one of the biggest financial institutions in Thailand, SCB 10X partnered with Band as a node validator.

BAND is currently trading inside a large range between $11.50 and $20.62. The bulls had pushed the price above the overhead resistance of the range on April 15 and 16 but they could not build up on the breakout.

BAND/USDT daily chart. Source: TradingView

This suggests that bears are active at higher levels. The sellers pulled the price back into the range on April 17, trapping the aggressive bulls. Long liquidations could be one of the reasons for the sharp fall on April 18 that momentarily dropped below the $11.50 support.

However, the positive sign was that the bulls aggressively bought the dips on April 18 as seen from the long tail on the candlestick.

After staying between both moving averages for the past three days, the BAND/USDT pair has broken above the 20-day EMA ($17.04) today. The pair could once again move up to $20.62 where the bears are again likely to mount a stiff resistance.

The flat moving averages and the RSI just above the midpoint suggest that the range-bound action may continue for a few more days. A breakout and close above $21 could open the gates for the resumption of the uptrend. The next target on the upside could be $29.74.

QTUM/USDT

Qtum (QTUM) was covered by Cointelegraph on Feb. 11 when its price was at $7.59. The token took off and made an all-time high at $20.72 on April 19, rallying 173% in just over two months.

The most eagerly awaited development is the transition from 128-second block average to 32-second block average that is expected to take place via a hard fork on April 30.

On March 31 Qtum founder Patrick Dai said that the protocol was working to enable smart contracts for Filecoin through the Qtum network. On the same day, Dai teased that non-fungible tokens are also making their way on Qtum.

QTUM’s Doji candlestick pattern on April 19 indicated that the uptrend could be losing steam. The short-term weakness was confirmed further when the price continued lower on April 20.

QTUM/USDT daily chart. Source: TradingView

The bulls are currently attempting to defend the 20-day EMA ($15.08). A strong bounce off this support will indicate that the sentiment remains positive and the bulls are accumulating on dips.

The buyers will likely try to push the price to $18.63 and then $20.72. A breakout of this resistance will signal the resumption of the uptrend.

However, the negative divergence on the RSI suggests the momentum may be weakening. If the bears sink the price below the 20-day EMA, the QTUM/USDT pair could slump to the 50-day SMA ($10.47) where the buyers may step in to stall the decline.

A strong rebound off the 50-day SMA could keep the pair range-bound for a few days while a break below the support will suggest the bears are back in the game.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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