Bitcoin (BTC) extended its rescue rally on Tuesday and recovered a market cap above $ 1 trillion.
While many traders panicked during Bitcoin’s recent plunge below $ 47,000, fund manager Dan Tapiero said he spotted a rare TD sequential buy signal during the trough. The last time this signal was seen was in March 2020, when the price of Bitcoin traded close to $ 3,600. Tapiero believes Bitcoin remains on track to hit $ 100,000 this year.
However, even after the recent surge above $ 55,000, Bitcoin’s market dominance continues to lag at 49.5%, according to data from CoinMarketCap. This shows that crypto investors are focused on altcoins, with several new all-time highs.
The altcoin season is not entirely driven by retail investors. A recent report by crypto investment advisory firm Two Prime Digital Assets points out that the eighty-fold increase in open interest rates on Ether (ETH) options from $ 50 million to $ 4 billion in one year, indicates hedging by institutional fund managers to protect their “net long portfolios against disproportionate volatility events. Even the Ether futures market rose by 20, increasing the involvement of institutional investors.
With a focus on altcoins, let’s take a look at the fundamentals and techniques of three tokens that have worked well in recent days.
WAVES / USDT
Many crypto enthusiasts want to invest in digital assets, but they don’t have the required trading experience. As a result, they miss several opportunities or end up leaving money on the table. Others work full time and therefore cannot devote time to trading. For these investors, a well-designed algorithmic trading product might be suitable, but it comes with its own risk.
Waves launched a new algorithmic trading investment product called “Lambo Investments” on April 15th. The protocol’s exchange platform announced that it would give a Lamborghini Huracan to a random investor in the product, which could have attracted traders.
Besides decentralized finance (DeFi) and algorithmic trading, Waves has also caused a sensation in the non-fungible token (NFT) industry. While the general NFT craze has subsided, some investors continue to focus on them. The first Waves Duck NFT, called ‘Perfection’, was sold for 1 million Neutrino USD (USDN) – an algorithmic stablecoin linked to the US dollar and guaranteed by the native Waves token, WAVES – on Sign Art on April 12.
To further drive growth, Waves Founder and CEO Sasha Ivanov recently laid out ambitious plans to reach $ 10 billion in total locked-in value by October and an average of 10 million daily transactions by February 2022. Traders are expected to monitor developments closely, which could decide the level of investor interest in the project.
WAVES went from an intraday low of $ 11.09 on April 23 to an all-time high of $ 21.09 on April 27, a gain of 90% in five days. However, the long wick of the April 27 candlestick suggests a reservation of profits at higher levels.
The WAVES / USDT pair could give back some of its gains and fall to the $ 16-17 zone. If the bulls can flip this area into support, it will suggest that sentiment remains positive and traders are stacking on the bears.
The 20 day exponential moving average (EMA) of $ 14.64 has started to rise and the Relative Strength Index (RSI) is in the positive zone, indicating that the path of least resistance is on the upside.
A strong rebound in the support area could result in a retest of $ 21.09. If the buyers can push the price above this resistance, the pair could resume its uptrend and hit $ 25.
This bullish view will be invalidated if the bears cause the price to drop below the 20-day EMA. Such a move could push the price down to the 50-day Simple Moving Average (SMA) of $ 12.65.
INJ / USDT
Injective Protocol recently announced that it has secured $ 10 million in funding from several investors, including Pantera Capital and billionaire Mark Cuban, for its DeFi protocol, which is said to have the best of centralized and decentralized exchanges. Injective’s goal is to build a decentralized competitor to Robinhood.
Developmentally, the protocol announced on April 15 that it had reached “Trezor support for the EIP-712 signing standard,” which will allow Trezor users to access Ethereum-based applications.
Injective has partnered with several blockchains to improve the experience of its users. So far in April, it has announced collaborations with API3, Harmony, Staked, Litentry, Persistence, Big Data Protocol and Klaytn.
Additionally, periodic token drops in Equinox Staking may have been an added attraction for investors.
Injective’s native token, INJ, rose from $ 10.91 on April 20 to a record high of $ 21.55 on April 22, registering a 97% increase in three days. The bulls were unable to sustain even higher levels on April 20, as the long wick of the candlestick shows.
This encouraged the bears, who tried to trap the bulls and start a correction. However, the buyers bought the bottom of the 50-day SMA ($ 13.40) on April 23 and defended the 20-day EMA ($ 15.26) on April 23. This suggests sentiment remains positive and bulls are building up on troughs.
The buying momentum picked up on April 26 and the bulls broke through the first hurdle at $ 18.15. If the bulls can keep the price above $ 18.15, the INJ / USDT pair could hit $ 21.55. A break above this resistance could start the next stage of a bullish move that could reach $ 26.44.
Contrary to this assumption, if the bears pull the price below $ 18.15, a drop in the 20-day EMA is likely. A break below this support would indicate that momentum has weakened and the pair could drop towards the 50-day SMA.
CELO / USDT
CELO was previously featured on UKTN on January 26 when it was priced at $ 3.24. From there, the token hit an all-time high of $ 7.23 on April 21, a rally of 123% in just under three months.
Celo announced on April 20 that Deutsche Telekom had made a “major purchase” of CELO tokens through its strategic investment fund, Telekom Innovation Pool. While the size of the investment has not been disclosed, it is likely to be a major sentiment booster for the token.
A new gas-efficient bridging standard, dubbed “Optics,” connecting Celo to Ethereum, was announced on April 21. This is the first step towards building an open and connected blockchain ecosystem, which will eventually include Cosmos, Polkadot and others.
The payment platform announced the launch of Celo Euro (cEUR) stablecoin on the mainnet on April 22. This is the second stablecoin, after Celo Dollar (cUSD) – which was launched on Celo in June 2020. This increases the user base of Celo users who want to send or receive money from relatives and parents. friends.
CELO has consolidated between $ 3.50 and $ 5.76 in the last few days. The bears pushed the price below range support on March 25, but the bulls recovered the level on March 26, indicating buying at lower levels.
The strong rally on April 20-21 propelled the price above the overhead resistance of the range, but the bulls were unable to consolidate their advantage. The bears brought the price back in range on April 22.
Although CELO / USDT broke below the 20-day EMA ($ 5.01) on April 23, the bulls bought lower towards the 50-day SMA ($ 4.39). The buying momentum picked up and the bulls broke through the $ 5.76 hurdle on April 25, but couldn’t support the breakout.
The Doji candlestick pattern on April 26 and the inner day candlestick pattern on April 27 suggest uncertainty among bulls and bears. If the bulls support the price above $ 5.76, a retest of $ 7.23 may be in the charts. A breakout of this resistance could cause a rally to $ 8.02.
Conversely, if the bears push the price below the 20-day EMA, it will suggest that the pair may stay in the range for a few more days.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of UKTN. Every investment and trading move comes with risk and you should do your own research when making a decision.