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The market data is provided by the HitBTC exchange.
On Oct. 15, some market participants dumped stablecoin Tether as its CEO, who is also the CEO of Bitfinex, faced rumors of insolvency of both companies. Tether briefly lost its peg to the U.S. dollar as the traders sold it and lapped up other cryptocurrencies, providing a temporary boost in the total crypto market capitalization to about $220 billion.
However, after the initial frenzy, most digital currencies gave up their intraday gains and stabilized at lower levels.
Though most of the top cryptocurrencies are stuck in a range, there are a few that are showing signs of bottoming out. Let’s look at the top five digital currencies with a market capitalization of $1 billion or more, which have risen the most in the past seven days.
XLM/USD
Stellar bagged the pole position by gaining about 15 percent in the past seven days. There were a couple of events that have helped it rise in a dull market.
Rumors were making rounds that the new platform for institutional investors launched by the multinational financial industry heavyweight Fidelity will use XLM blockchain for moving digital assets.
The listing of XLM on the Coinsuper crypto exchange has also been well-received by the investors. Another positive news was the announcement of a partnership between Stellar and cryptocurrency exchange Hyperion, a subsidiary of a Canadian firm Global Blockchain Technologies.
Can Stellar maintain its momentum or is it nearing critical overhead resistances? Let’s find out.
The XLM/USD pair topped out in the first week of this year at $0.98239146, and since then it has been in a downtrend. It is currently trading inside a descending triangle, which will complete on a breakdown and close (UTC time frame) below the support.
However, on the downside, the bears haven’t been able to sustain below $0.184 in 2018. The digital currency has bounced off this critical support three times already. Repeated failure of the bears to break down of a level is a positive sign. It shows accumulation by strong hands when price corrects to this level.
Now, if the bulls continue their purchases at higher levels and break out of the downtrend line of the triangle, it will invalidate the bearish pattern. A failure of a bearish pattern is a bullish sign.
Therefore, a close (UTC time frame) above the triangle is likely to attract buying and start a new uptrend that can carry XLM to $0.47, and above that to $0.63.
Our bullish view will be negated if the bears break down and sustain the price below $0.184.
XRP/USD
The second best-performing cryptocurrency that is showing almost double-digit growth is Ripple, which has been in the news this whole month. Cory Johnson, chief market strategist at Ripple Labs has suggested that the White House might be interested in pushing XRP adoption, to counter China’s dominant position in the Bitcoin mining industry.
On Oct. 17, the Bill and Melinda Gates Foundation Deputy Director and Principal Technologist Miller Abel announced a partnership with Ripple Labs Inc. and digital payments firm Coil. With several positive news to help the price action, Ripple has made a small comeback this week. Can this continue or will the coin give up its recent gains?
The XRP/USD pair has been in a downtrend in 2018. It has repeatedly failed to hold on to the support levels and has been making new lows at regular intervals.
Currently, it is trading below both the 20-week EMA and the 50-week SMA, but is trying to form a higher low at $0.37185. The previous low was $0.25300. If the bulls succeed in pushing the price above $0.76440, it will indicate a probable bottom and might signal the start of a new uptrend. The higher levels to watch on the upside are $0.96 and $1.22.
On the downside, if the cryptocurrency breaks down of $0.25, it can sink to a new low. We believe that traders should wait for buying to emerge before initiating any long positions.
NEO/USD
NEO celebrated the second anniversary of their mainnet launch and the market cheered the event by pushing the price higher by 5 percent in the past seven days.
The NEO/USD pair is looking weak as it is trading close to its year-to-date low of $13.60337627. There has been no visible bounce since early August, which shows a lack of buying interest. A break of the support levels will be very negative and can result in a drop to the next support at $6.47815308.
On the upside, NEO will face a stiff resistance at the 20-week EMA that is close to the horizontal resistance at $28.49944165. A break out of this level might start a new rally to $43, and above that to $60, where it might face resistance from the 50-week SMA. Above this level, the move can extend to $100.
We believe that the traders should wait for a new buy setup to form before establishing any new positions in it.
ADA/USD
Input-Output Hong Kong (IOHK) announced that its Icarus project was audited by a third-party independent security auditor Kudelski Security. This will purportedly ensure that Cardano’s wallet is secure for customers.
Cardano has shrugged off the infighting as the price went up by about 5 percent in the past seven days. Let’s see if the coin is showing signs of a turnaround.
At the current levels, the ADA/USD pair has fallen about 94 percent from its all-time highs. For about a month and a half, the digital currency has been trading in a tight range of $0.060105–$0.094256. A break out of this range might attract buyers, pushing the price towards the 20-week EMA, followed by a move to $0.2.
On the other hand, a break down of the range can result in a drop to $0.033677. Therefore, traders should wait for a new buy setup to form before attempting a long position on Cardano.
EOS/USD
Hackers have siphoned off 65,000 EOS from the operational wallet of EOSBet, a gambling dApp. This is the second attack within 60 days but the traders have shrugged off this news and the digital currency is up 3 percent in the past seven days.
The EOS/USD pair has been trading in the range $4.4930–$6.8299 for more than two months. The positive thing is that the bulls haven’t allowed the price to slip to the critical support at $3.8723. Instead, they are attempting to form a higher low at $4.4930.
However, they haven’t been able to break out of the overhead resistance, which shows profit booking at higher levels.
The 20-week EMA and the horizontal resistance are both at $6.8299, which makes this an important level to watch on the upside. If this level is crossed, the digital currency can move up to $9.4456, followed by a sharp rally to $15.
On the other hand, if the bears succeed in breaking down of $3.8723, the virtual currency can plunge to $2.4, followed by a drop to $1.7. The traders should wait for the overhead resistance to be scaled before buying.
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