EOS and YFI lead altcoins higher as Bitcoin and Ether bounce from swing lows

YFI, EOS and REV notched double-digit rallies as altcoins capitalized on the oversold bounce in Bitcoin and Ethereum price.

The markets were mixed on May 11 as Bitcoin (BTC) recovered from Monday’s drop to $53,000 by bouncing to $56,862 but the digital asset is still finding resistance at the $57,000 level.

Ether (ETH) also worked its way back above $4,100 but according to Cointelegraph analyst Marcel Pechman, the bullish sentiment for Ether seen in recent weeks has begun to fade as traders question whether new all-time highs will be sustainable in the short term.

Data from Cointelegraph Markets and TradingView shows that Bitcoin bulls defended a late-night sell-off on May 10 that briefly dropped the price of BTC below $54,000 before dip buyers gobbled up sell orders and lifted the price back above $56,000.

BTC/USDT 4-hour chart. Source: TradingView

blue-chipWhile the blue chip cryptocurrencies have been stuck in a sideways market, canine-themed meme coins including Shiba Inu (SHIB) and Dogelon Mars (ELON) have followed Dogecoin’s (DOGE) lead and seen their prices explode for triple-digit gains.

Ethereum bulls take a brief breather

Bitcoin’s range-bound trading between $50,000 and $60,000 in recent weeks can partially be attributed to the rising price of Ether, which has caught the attention of institutional investors looking for exposure to more than just BTC. The growing demand for Ether can clearly be seen in the price action of the ETH/BTC pair.

ETH/BTC 4-hour chart. Source: TradingView

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, Ether’s recent all-time high was in part due to a “continued rotation away from Bitcoin” which helped push the price of Ether “as high as $4,214 before suddenly puking down to $3,658 (-13% in an hour).”

The downturn in the crypto market coincided with a selloff in the U.S. equity markets that hit the tech-heavy NASDAQ index especially hard. Lifchitz noted that Bitcoin and the other cryptocurrencies were eventually able to “bounce back half of the loss from the high.”

While the sell-off “could be explained by some correlation trades leading to a quick profit-taking in cryptos”, Lifchitz also pointed to the possibility of a more organized selloff where some traders took advantage of frothy market conditions.

Lifchitz said:

“It could also have been an organized selloff as Ethereum was at its ATH after a torrid ride (i.e. ETH was vulnerable to a quick drop) in order to spook the weak hands and shake them off, triggering a cascading selling effect, before buying back ETH on the cheap as shown by the even higher volume to buy right after the selloff.”

Lifchitz highlighted that just:

“Twenty-four hours later, Bitcoin is back in the middle of its twilight zone ($50,000 to $60,000) and Ether is slowly grinding higher above $4K. So all in all, it was just an ordinary day in crypto land.”

Further insight into the market moves over the past week was offered by Ben Lilly, co-founder and analyst at Jarvis Labs, who highlighted an increase in on-chain profit taking over the last week that had “lots of capital turning over throughout altcoins.”

Lilly said:

“As capital made its way from coin to coin, profits were being realized as Bitcoin traded sideways. What we saw on May 10 was the end of this phase.”

Altcoins lead the market higher

The overall altcoin market shook off the bearish moves seen in the larger-cap cryptocurrencies. EOS led the day with a 50% jump which took the price to $13.92  after Block.one announced that it had secured $10 billion in funding to launch an EOS-based cryptocurrency exchange named Bullish Global.

Daily cryptocurrency market performance. Source: Coin360

Yearn.finance (YFI) managed to break out of the trading range it had been stuck in to put on a 58% rally to a new record high above $80,000, while the price of Revain (REV) exploded 130% to reach a multi-year high at $0.049.

The overall cryptocurrency market cap now stands at $2.474 trillion and Bitcoin’s dominance rate is 42.8%.

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

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Top 5 cryptocurrencies to watch this week: BTC, VET, SOL, EOS, FTT

The bulls are trying to stabilize Bitcoin price and if they succeed, VET, SOL, EOS and FTT could quickly bounce back to their local highs.

Bitcoin (BTC) price witnessed a sharp dump to $50,900 on April 18, which some analysts attribute to a drop in hash rate and rumors of possible action by United States regulators against unnamed “financial institutions” alleging crypto-related money laundering.

While it is difficult to pinpoint a single reason, the sale of roughly $5 billion worth of COIN stock by Coinbase executives could have also played a major role in the fall. Insider selling, especially just a few days after a high-profile listing is considered a bearish sign.

Crypto market data daily view. Source: Coin360

After this most recent pullback, investors will be on the fence on whether they should buy the dips or close their positions in anticipation of further decline? Traders should keep a close watch on the strength in the recovery as that will provide an insight about the next possible move.

Let’s study the technicals of the top-5 cryptocurrencies that could attempt to lead the recovery in the next few days.

BTC/USDT

Bitcoin’s failure to rebound off the 20-day exponential moving average ($59,053) on April 17 showed the lack of buying on dips. The selling picked up pace today after the price slipped below the 50-day simple moving average ($56,264).

BTC/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick suggests that buyers are attempting to stall the decline at $50,460. If the rebound sustains, the bulls will again try to resume the uptrend but they are likely to face stiff resistance between $61,825.84 and $64,849.27. A breakout of this resistance zone will suggest that the current fall was only a pullback to shake out the weak hands.

On the other hand, the failure to sustain the rebound or build upon the bounce in the next few days will indicate that demand dries up at higher levels. That is likely to invigorate the bears who will then try to assert their dominance and break the $50,460 support.

If they manage to do that, selling could intensify as the short-term speculators and traders may also dump their positions. That could pull the price down to $43,006.77. This is an important level to watch out for because a break below it will suggest that the BTC/USDT pair has topped out in the short term.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls purchased the drop to $50,460 aggressively but the recovery is facing resistance at $56,500. This suggests that traders stuck at higher levels are closing their positions on rallies.

However, the positive sign is that the bulls have not given up the fight. They are trying to defend $53,000 support. This could result in a tight consolidation between $53,000 and $56,500 for a few days.

If the price breaks above $56,500, the pair could rally to the 20-EMA, which is again likely to act as a resistance. If the price turns down from this level, the pair could retest $53,000 and then $50,460.

The downsloping moving averages and the relative strength index (RSI) near the overbought territory show the bears have the upper hand.

VET/USDT

VeChain’s (VET) sharp rally on April 16 had pushed the RSI above 87, indicating the rally was getting overheated in the short term. The altcoin tried to extend its up-move on April 17 but the long wick on the day’s candlestick showed that traders booked profits at higher levels.

VET/USDT daily chart. Source: TradingView

The selling continued today and the VET/USDT pair slumped to $0.169, just above the 61.8% Fibonacci retracement level at $0.16. However, the long tail on today’s candlestick shows strong buying at lower levels.

If the bulls can sustain the rebound, the pair will once again attempt to rise to the overhead resistance at $0.279. A breakout of this resistance could resume the uptrend. The next target objective on the upside is $0.362.

On the other hand, if the price turns down from $0.279, the pair could remain stuck in a range for a few days. This positive view will invalidate if the bears sell on rallies and sink the price below the $0.16 support.

VET/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls purchased the drop to the 50-SMA but the recovery hit a wall at $0.227. The bears tried to resume the correction but the bulls again purchased the dip below the 20-EMA. This shows bears are selling on rallies and bulls are buying on dips.

The bulls are currently attempting to sustain the price above the downtrend line but are facing stiff resistance from the bears. If they can overpower the bears and keep the price above the downtrend line, the pair could rally to $0.253 and then to $0.279.

Conversely, if the bears again sink the price below the 20-EMA, the pair could drop to the 50-SMA. A break below this level will tilt the advantage in favor of the bears.

SOL/USDT

Solana (SOL) had been in a corrective phase since hitting an all-time high at $29.92 on April 12. Although the price plunged below the 20-day EMA ($24.49) today, the bears could not capitalize on the advantage. The altcoin has quickly bounced back above the 20-day EMA, indicating strong demand at lower levels.

SOL/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI in the positive territory suggest that bulls have the upper hand. If they can drive the price above $29.92, the SOL/USDT pair could resume the uptrend and rally to $38.72.

Contrary to this assumption, if the price turns down from the overhead resistance and breaks below the 20-day EMA, it will suggest that traders are closing their positions on rallies. The pair could then decline to $21 and later to the 50-day SMA ($18.60).

SOL/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the break below $24.70 attracted sharp selling but the bears could not sustain the lower levels. The pair rebounded strongly and climbed back above the $24.70 level.

If the bulls can propel the price above $28.64, a retest of $29.92 is possible. The 20-EMA is turning up and the RSI has jumped above 55, indicating the bulls have a slight advantage in the short term.

However, if the price turns down from the current level and breaks below $24.70, the next stop could be $21.10. Such a move will suggest that bears have overpowered the bulls, which could result in a deeper correction.

EOS/USDT

EOS turned down from the stiff overhead resistance at $8.69 after the bulls failed to push and sustain the price above it on April 16 and 17. The sharp selling pulled the price down to $5.86, just above the breakout level at $5.60.

EOS/USDT daily chart. Source: TradingView

If the bulls can flip $5.60 into support, the EOS/USDT pair could again try to move up to $8.69. A break above $8.69 may start the next leg of the uptrend that could reach $11. Alternatively, if the price turns down from $8.69, the pair could remain range-bound for a few days.

This positive view will be negated if the bears sell on rallies and sink the price below the breakout level at $5.60. Such a move could pull the price down to the 50-day SMA ($4.98), signaling that bears are back in the driver’s seat.

EOS/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls are trying to start a relief rally. If they can sustain the price above $6.93, the pair could rally to the 20-EMA where the bears are likely to offer a stiff resistance.

If the price turns down from the 20-EMA, the pair may again drop to $6.17 and then to $5.60. Such a move will suggest that sentiment has turned negative and the bears are selling on rallies.

Conversely, if the bulls can push the price above the 20-EMA, the momentum could pick up and the pair could rally to $8.69.

FTT/USDT

FTX Token (FTT) has been in a corrective phase since topping out at $59.57 on April 14. The price plummeted below the 20-day EMA ($48) today but the long tail on the candlestick shows strong buying at lower levels.

FTT/USDT daily chart. Source: TradingView

If the bulls can sustain the price above the 20-day EMA, it will indicate that the uptrend remains intact. The bulls will then try to resume the uptrend by pushing the price above the $59.57 resistance.

If they succeed, the FTT/USDT pair could start its northward march toward the next target objective at $71.89.

Contrary to this assumption, if the bears sustain the price below the 20-day EMA, the selling could intensify, which could pull the price down to the 50-day SMA ($40). A break below this support will suggest that the pair has topped out in the short term.

FTT/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls are trying to stall the correction between the 50% Fibonacci retracement level at $45.62 and the 61.8% retracement level at $42.33. The relief rally is likely to face stiff resistance from the 20-EMA.

If the price turns down from the 20-EMA, it will suggest that traders are selling on rallies. The bears will then try to sink the price below $44. If they succeed, the pair could slump to $40 and then to $37.

On the contrary, if the bulls can push the price above the 20-EMA, the pair may rally to $54.62 and then to $59.57.

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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Top 5 cryptocurrencies to watch this week: BTC, BCH, EOS, XMR, XTZ

Bitcoin is facing minor resistance near $50,000 but if this psychological barrier is crossed, a major breakout could occur in select altcoins.

Demand and supply metrics determine the price of an asset and data from Glassnode, an on-chain data firm, shows that Bitcoin’s (BTC) liquid supply has been decreasing since June 2020. This signals that traders owning Bitcoin are not selling their holdings.

While the supply is shrinking, demand has been going up in the past few months as an increasing number of institutional investors have been buying Bitcoin.

Bloomberg recently reported that Morgan Stanley Investment Management’s subsidiary Cointerpoint Global “is exploring whether the cryptocurrency would be a suitable option for its investors.”

According to Morgan Stanley’s website, Counterpoint Global chooses to invest in assets “whose market value can increase significantly for underlying fundamental reasons.” This suggests that the bank believes Bitcoin may be undervalued compared to its fundamentals.

Crypto market data daily view. Source: Coin360

 JPMorgan Chase also hinted that it might eventually introduce Bitcoin services. JPMorgan’s co-president Daniel Pinto believes that if investors and asset managers start using Bitcoin, the bank “will have to be involved.” Pinto however said that the current demand was not strong enough, but conceded it may grow in the future.

Even though Bitcoin has risen sharply in the past few months, its dominance has fallen from about 69.71% on Jan. 4 to 60.9% currently. This shows that altcoins have outperformed Bitcoin in the past few weeks. With an eye on altcoins, let’s study the charts of the top-5 cryptocurrencies that may trend in the next few days.

BTC/USD

Bitcoin broke above the $41,959.63 resistance on Feb. 8 with a strong up-move, but since then, the momentum has weakened. Although the price has been nudging higher, the leading cryptocurrency is facing profit-booking at intermittent levels.

BTC/USDT daily chart. Source: TradingView

If the price turns down from the current levels and slips below $46,000, the correction could deepen to the strong support at $41,959.63. If the BTC/USD pair rebounds off this support, it will suggest the bulls continue to accumulate on dips, which is a sign that the uptrend is intact.

The bulls will then try to drive the price above the psychological barrier at $50,000 and resume the uptrend with the next target objective at $60,974.43. On the other hand, if the bears sink the price below the 20-day exponential moving average ($41,349), the pair may drop to the 50-day simple moving average ($36,070).

This is an important support to watch out for because the price has not dipped below the 50-day SMA since Oct. 9. Hence, a break below it will indicate a possible change in trend. The next support on the downside is much lower at $28,850.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has formed a rising wedge pattern that will complete on a breakdown and close below the support line. If that happens, the pair may drop to $43,720.85 and then to $41,959.63.

Contrary to this assumption, if the price turns up from the current levels or the 20-EMA and rises above the wedge, it will invalidate the bearish setup. A breakout above $50,000 could attract short-covering from the aggressive bears and may result in a quick up-move to $55,000.

BCH/USD

Bitcoin Cash (BCH) broke above the $539 resistance on Feb. 12 and this attracted buying from the bulls. The altcoin picked up momentum and soared above the $631.71 resistance on Feb. 13

BCH/USD daily chart. Source: TradingView

The long wick on today’s candlestick suggests short-term traders may be booking profits after the recent runup. The BCH/USD pair may now correct to $631.71 and if the bulls can flip this level into support, it will indicate buying on every minor dip.

If the bulls can push the price above $730.02, the uptrend could reach $900. Both moving averages are sloping up and the relative strength index (RSI) is in the overbought zone, suggesting an advantage to the bulls.

Contrary to this assumption, if the price dips and sustains below $631.71, the correction could deepen to $539.

BCH/USD 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are defending the $720 resistance and the bulls are buying on dips to $650. If the buyers can propel the price above $730.02, the uptrend could resume.

On the other hand, if the price again turns down from $720, the bears will try to pull the price down to $631.71. If this support cracks, the decline could extend to the 20-EMA and then to the 50-SMA.

EOS/USD

EOS broke out of the long basing formation and started a new uptrend when it soared above the $3.95 overhead resistance on Feb. 9. The altcoin picked up momentum and the bulls pushed the price above the $5.4861 resistance on Feb. 13.

EOS/USD daily chart. Source: TradingView

However, the failure to sustain the price above $5.4861 may have attracted profit-booking from the short-term traders. This has started a correction that could extend to the 38.2% Fibonacci retracement level at $4.5014.

If the price rebounds off this level, the bulls will again try to push and sustain the price above the $5.4861 to $5.6118 overhead resistance. Contrary to this assumption, if the bears sink the price below $4.5014, the EOS/USD pair could drop to $3.95.

Such a deep correction will suggest that the momentum has weakened and the pair could then consolidate in a wide range between $3.95 and $5.6118 for a few days.

EOS/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls have purchased the dip to the 20-EMA. If the pair sustains the rebound, the bulls will again try to push the price above $5.6118. If they succeed, the uptrend could resume.

The next target objective on the upside is $6 and if that level is also scaled, the uptrend could reach $7.50. On the other hand, a break below the 20-EMA could extend the correction to the 50-SMA.

XMR/USD

Monero (XMR) broke above the $190 resistance on Feb. 12 and resumed the uptrend. The 20-day EMA ($174) has turned up and the RSI has moved into overbought territory, which suggests the bulls are in command.

XMR/USDT daily chart. Source: TradingView

The bears are currently defending the psychological level at $250. The first support on the downside is the 38.2% Fibonacci retracement at 213.6152. If the price rebounds off this level, it will suggest that traders are viewing the dips as a buying opportunity.

A break above $254.45 will open the doors for a rally to $300 where the bears may again mount a stiff resistance.

Contrary to this assumption, if the bears sink the price below $213.6152, the correction may deepen to $190. Such a deep fall may delay the start of the next leg of the uptrend.

XMR/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are defending the $240 to $254.45 resistance zone but the positive sign is that the bulls have not given up much ground. If the price rises from the current level or rebounds off the 20-EMA, it will signal strength.

If the bulls can push the price above the overhead resistance, a rally to $268 and then to $300 is likely. This bullish view will invalidate if the XMR/USD pair dips and closes below the 20-EMA.

XTZ/USD

Tezos (XTZ) broke above the previous all-time high at $4.4936 on Feb. 12 and has made a new high at $5.6471 today. Whenever an asset hits a new high, it indicates that bulls are in control.

XTZ/USDT daily chart. Source: TradingView

Another thing that usually happens when a major resistance is broken is that the price turns down and retests the breakout level. In this case, the price could dip to the breakout level at $4.4936.

If the price rebounds off this level, it will suggest that traders are buying on dips and have flipped the previous resistance to support. The bulls will then attempt to resume the uptrend by pushing the price above $5.6471.

If they succeed, the XTZ/USD pair could rally to $7.1407. This bullish view will invalidate if the pair breaks and sustains below $4.4936.

XTZ/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls could not sustain the price above $5.40, which may have attracted profit-booking from short-term traders. The bulls are currently attempting to defend the 20-EMA.

If the price rebounds off this support, it will signal strength. A break above $5.6471 may resume the up-move. On the other hand, if the price dips below the 20-EMA and the $4.4936 support, the correction could deepen to the 50-SMA.

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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