At the time of writing, it seems the overall cryptocurrency market is maintaining its recent bullish momentum, and most of the top 20 coins are making quite interesting gains.
Altcoins like BAT and ADA have been pushing through key resistance levels, much like EOS and LTC have been doing for the past few weeks.
I personally believe we’ll see a correction at some point, but as long as the overall trend remains positive, I don’t see a reason for the bullish momentum to break just yet.
Let’s delve deeper into what’s been going on.
Looking at the chart above, we can clearly see it’s on a positive trend, trading above both the 20-day and the 50-day moving averages. As long as price holds above $4,000, I don’t expect this trend to change.
Volume-wise, lately we’ve seen buyers holding the fort, as volume is getting greener and greener.
My next bullish target is, of course, the 200-day EMA. However, I think we’ll need a few weeks to get there.
The second-largest cryptocurrency led by the wonderkid Vitalik Buterin has been making quite positive strides towards higher prices. At the moment, it is sitting just above $140, near its 50-day EMA. Volume has been increasing positively as well.
In other news (which I will discuss in depth in an article later this week), some experts have been saying Binance is now overtaking Ethereum in terms of fundamentals.
I beg to differ. While Ethereum’s goal is to be an open source supercomputer, Binance is a closed top-bottom company. Innovation happens at a much slower pace because it is decided within the company and not by the community. If you study organisational theory, you will understand that open source is considerably more beneficial, especially when there is a token associated with your network.
My point is that Binance is not replacing Ethereum as a platform for ICOs to launch. Look at the key dimensions that influence a cryptocurrency: security, decentralisation, and scalability. Ethereum has considerably higher standards in all, so why would any coin bother launching on Binance Launchpad? Apart from pump-and-dump and market-making schemes, I personally don’t understand why any coin would.
(Sorry for the rant!)
LTC has already crossed all its EMAs and now we’re witnessing the true signal of a proper bull: the 20-day EMA has crossed the 200-day EMA, and the 50-day EMA will soon follow. As the price is sitting around $60, I expect new support levels to appear around $58, where the price is gaining some support from buyers.
Volume has increased over the weekend, so we might see LTC continuing to move upwards.
EOS is finding support above the 200-day EMA at around $4.20, and I expect its price to continue moving upwards if nothing changes with the market. However, in terms of volume, EOS hasn’t been showing promising signs, so traders should remain cautious.
With thin volumes, pumps and dumps are likely to take place.
Although sellers have been in control for the last few days, price hasn’t dropped. On the contrary, price has in fact been moving upwards. I therefore expect buyers to regain control soon and push XLM upwards past the 50-day EMA.
If XLM is able to find new support around $0.12, we could soon see a run towards the 200-day EMA.