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Quant [QNT] ended a streak of three consecutive declines on 21 October, as prices rebounded following recent losses. The flagship crypto remained strong despite rejection from a high of $220 as the price held above the key support area. But despite the ‘glam and glimmer’ could this trending crypto sustain the same? Here’s AMBCrypto’s Price […]
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The hottest altcoins based on trade volume and transaction data from the past 24 hours are HOLO, VET, ADA, ETH in that order. The price gain in the past 24 hours is 30.99% for Holo, double-digit gains below 15% for VeChain, Cardano, and Ethereum.
With increasing conversations on crypto Twitter regarding the lack of practical usage and application for top alts and DeFi tokens, the interest in HOT, VET, and ADA has spiked considerably.
HOT’s trade volume was up over 214% in the past 24 hours, this increased liquidity is being absorbed by demand on Binance, in the USDT market, and on Turkish exchange Paribu’s fiat market. HOT hit its ATH earlier today, at $0.01134 based on price data from coinmarketcap.com.
With a YTD ROI of over 152%, HOT has offered double-digit returns to retail traders in the past month. Similarly, ADA and VET’s price was up 5.71% and 11.82%, respectively. In the case of ADA, a bullish pattern emerges from the repeating ADA-BTC volume trend, the following chart shows ADA-BTC trade volume for the past 6 months.
Source: CryptoCompare
Currently, based on on-chain analysis, intotheblock, data suggests that the sentiment is bearish for ADA, but the volume is of the level before a potential breakthrough. It is likely that the rally slows further over the weekend and resumes from the next week.
In the case of VET, after over two weeks of large volume transactions, the sentiment has dropped to bearish and the concentration by large HODLers is dropping.
Source: CryptoCompare
The 24-hour trade volume has dropped by over 12% and this signals a correction in VET’s price. Based on analysis from Cryptocompare, over 90% of VET’s trade volume is from Binance markets, and currently, the price is up over 10% in the past 24 hours.
VET may still be on a bullish streak, an overextended price rally on Binance. As in the case of ETH, the asset continues to be undervalued even at the current price level. ETH was rangebound below $1738, unless there is enough liquidity it may be challenging for the volatility to increase and cross the $1738 level. The bullish streak for HOT, VET, and ETH may be extended, with a cooling off of ADA.
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Ethereum (Symbol: ETHUSD) snapped its five-day winning streak, falling sharply as on cues from a broader correction sentiment across the cryptocurrency market.
The second-largest crypto by market cap slipped by more than 12 percent from its Wednesday top of $481.20. So it appears, ETH/USD plunged as traders decided to secure their short-term profits from the pair’s 27 percent bull run that started on August 28.
It is because of the cryptocurrencies that too fell in tandem with Ethereum. The benchmark crypto Bitcoin, for instance, slipped by as much as 6.61 percent to an intraday low at $11,160. Other top tokens, including XRP, Chainlink, Bitcoin Cash, and Litecoin, too, plunged similarly.
Indicators pointed to an overbought sentiment. All these assets, including Ethereum, were trading well above their actual valuations, says the readings of their Relative Strength Indicator(s). ETH/USD’s daily RSI, for instance, was at 71, one point above the standard 70, before its downside correction began.
ETHUSD defends its bullish bias following a downside rejection at $420. Source: TradingView.com
Bulls, nevertheless, caught the falling price at $420. That is visible in the chart above: The daily candle is forming a long wick to the downside, illustrating that the ETH/USD dump was brief enough to alert buyers. As a result, the pair quickly rebounded back towards $450.
The same analogy led market analyst Cred to state that the ETH/USD’s downside correction on yesterday did not hurt its medium-term bullish bias.
“I’ve got $430s & $390s as HTF support,” he said. “[They are] the weekly consolidation that preceded the final leg up and monthly breakout. Directional bias is bullish as long as the overall structure is intact.”
Another market analyst, Cole Garner, pitted the Ethereum price correction against a rebound in the US dollar index on Wednesday. He illustrated an inverse correlation.
$ETH is inversely correlated to the $DXY
Wouldn’t be surprised to see this play out pic.twitter.com/AEhWghabj3
— Cole Garner (@ColeGarnerBTC) September 2, 2020
The greenback started recovering from its two-year low on Tuesday, creating some headwinds for safe-haven assets, including Bitcoin and gold. While a rising dollar may have reduced the appeal of the benchmark cryptocurrency, it is its [own] positive correlation with Ethereum that may have triggered the latter down this Tuesday.
That is why Ethereum appeared to have been moving in the opposite direction of the US dollar index.
But, at the same time, the medium-term outlook for the US dollar remained bearish. It is because investors anticipated a long period of higher inflation, lower interest rates, and quantitative easing as global central banks attempt to aid economies through the COVID-19 pandemic.
That further pointed at a potential bullish continuation for both Bitcoin and Ethereum.
“Ethereum’s next levels are $550-600,” said one trader.
Image Credit: Refer to Source
Author: Refer to Source Yashu Gola
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