Most high performers of the previous week have bounced sharply from their lows, whic
Most high performers of the previous week have bounced sharply from their lows, which is a constructive signal because it signifies shopping for at decrease ranges.
This week noticed large selling in virtually each asset class as panic gripped merchants on the ever-spreading coronavirus circumstances. Cryptocurrencies have been additionally not spared as they got here below large promoting stress on March 12 and 13, which wiped off about $92.5 billion in whole market capitalization. Now, the bulls try to stage a restoration.
The autumn of the previous few days has shaken the assumption that Bitcoin is a protected haven just like gold and is a most popular place to cover throughout promoting in fairness markets. Nonetheless, co-founder and accomplice at Morgan Creek Digital Anthony Pompliano mentioned that the shutdown of financial exercise attributable to coronavirus outbreak has led to a liquidity crisis attributable to which all asset lessons, together with protected havens, are being offered.
Crypto market knowledge weekly view. Supply: Coin360
In the course of the earlier monetary disaster, gold had additionally witnessed sharp promoting initially as buyers most popular money over holding any asset. Nonetheless, later, gold launched into a multi-year bull market. Traders who purchased the dip or held on to their gold have been rewarded handsomely. Pomp believes that buyers who maintain on to their Bitcoin will reap the advantages as central banks resort to further charge cuts and quantitative easing to tide over the present slowdown.
Within the short-term, volatility is more likely to stay excessive because the world tries to come back to phrases with the uncertainty concerning the coronavirus pandemic. Nonetheless, we imagine that the present dip may supply among the best shopping for alternatives for long-term buyers after a backside is confirmed. Let’s analyze the highest performers of the previous seven days to see how their charts are shaping up.
LEO/USD
UNUS SED LEO (LEO) was one of the best performer of the previous seven days because it managed to buck the carnage in cryptocurrencies with solely a 3% fall. This propelled it into the highest 10 listing by way of market capitalization.
In the course of the week, the entire LEO tokens burned crossed the 15 million mark. Whereas Elevated volatility had put different cryptocurrencies below stress, it turned out to be a boon for LEO as numerous tokens have been burned on March 12 and 13.
LEO USD every day chart. Supply: Tradingview
The LEO/USD pair has been buying and selling in a good vary of $0.9081-$1.04 for the previous few weeks. This exhibits that the pair has been steady and has not participated within the current selloff.
If the bears can sink the worth beneath the vary, a drop to the lows at $0.80512 is feasible. We anticipate the bulls to defend this assist aggressively. Nonetheless, if the promoting picks up momentum and the pair breaks all the way down to new lows, a drop to $0.70 is feasible.
Conversely, if the bulls can push the worth above $1.04, a transfer to $1.1719 is feasible. If this stage is crossed, the up transfer can retest the stiff resistance at $1.36. We count on the bears to defend this stage aggressively. Nonetheless, if the bulls can scale the worth above $1.36, the pair is more likely to decide up momentum.
XLM/USD
Stellar Lumens (XLM) was the second-best performer regardless that it slumped about 31% prior to now seven days. This exhibits the extent of promoting seen within the main cryptocurrencies.
XLM USD weekly chart. Supply: Tradingview
The XLM/USD pair had been buying and selling between $0.088708 on the upside and $0.042133 on the draw back for the previous few months. Nonetheless, the sharp promoting this week broke beneath the important assist at $0.042133 and dragged the worth to $0.026063.
Whereas the breakdown to new yearly lows is a damaging signal, we like the best way the pair has bounced off the lows. This exhibits sturdy demand at decrease ranges. If the bulls can push the worth again above $0.042133 and maintain the extent for just a few days, it should point out that the present fall was a bear entice.
We anticipate the bears to mount stiff resistance at $0.042133-$0.051014, above which the pair is more likely to regularly transfer as much as $0.088708.
Nonetheless, if the bulls fail to maintain the worth again above $0.042133, the bears may try and sink the worth beneath $0.026063. If profitable, the downtrend will resume.
ETC/USD
Ethereum Basic (ETC) additionally confronted the brunt of the bears and plunged about 32% prior to now seven days. Nonetheless, that was ok for it to earn the spot because the third-best performer of this week. ETC’s block reward might be reduced by 20% from four ETC to three.2 ETC on March 16. Let’s research the chart to learn the way the market members are positioning themselves for the approaching weeks.
ETC USD every day chart. Supply: Tradingview
The ETC/USD pair has been buying and selling inside a wide range of $14 on the upside and $3.40 on the draw back for about one-and-half years. After failing to interrupt out of the vary between Jan. 29 to Feb. 13, the pair succumbed to promoting stress.
This week, the momentum picked up on the draw back and the worth broke beneath the $3.40 assist to hit a brand new yearly low at…