Top-5 Crypto Performers: ETC, IOTA, ADA, TRX, XLM
Some of the top performers of the past seven days are showing signs of a turnaround. Is it a good time to buy? Let’s look at the charts.
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The market data is provided by the HitBTC exchange.
Facebook’s Libra continues to face resistance as central banks, regulators and governments have not been supportive of the project. Due to this, a few early backers of Libra are considering withdrawing from the project to avoid unwanted scrutiny of their existing businesses.
Bank of England Governor Mark Carney has said that a digital currency similar to Libra could replace the United States dollar as the reserve currency of the world, albeit through a network of central bank digital currencies, rather than a consortium of private companies — as is the case with Libra.
We do not find any sustained trend in most major cryptocurrencies, therefore, investors should reduce their position size until the uptrend resumes. Though short-term trades can be taken, long-term investors will have to be patient with their purchases. Can we spot any buying opportunities in the top five performers of the past week? Let’s find out.
Ethereum Classic (ETC) was the best performer of the past seven days by a huge margin. A bulk of its rally can be attributed to the forthcoming Atlantis hard fork, scheduled for next month, which aims to address security concerns of the community. ETC Labs announced that London-based token investment group North Block Capital has joined its Studio program. Both entities will work together to create comprehensive token sale initiatives for North Block Capital investments, clients and partners. The companies will also endeavor to expand to Asian markets. After the sharp rally, can the momentum continue or will profit-booking drag prices down? Let’s analyze its chart.
After trading in a small range for the past five weeks, the ETC/USD pair made a decisive move this week. It has broken out of both moving averages, which is a positive sign. If bulls can sustain the momentum, a rally to $10 is probable. $10 is likely to act as a stiff resistance because the price had turned down from it on two previous occasions. A breakout of this resistance will start a new uptrend that can carry the price to $15 and above it to $20.
Conversely, if the pair turns down from $10, it might extend its stay inside the wide range. The longer the consolidation, the stronger and more reliable will be the eventual breakout from it. Traders can buy on dips to $6.50 next week and keep a stop loss of $5. If the support at $5 breaks down, the pair can drop to the bottom of the range at $3.40.