Institutional investments in crypto are looking bullish — we look at how the top five coins will perform short-term.
Argentina has recently settled an export deal with Paraguay in Bitcoin. Although the net value of the deal was only $7,100, it is a welcome step. Gradually, more countries will recognize the advantage of using cryptocurrencies for cross-border deals.
Digital asset management fund Grayscale Investments said that its institutional clients are increasingly using the current low crypto prices to make long-term investments. These inflows are largely being parked in the fund’s Bitcoin Investment Trust.
A survey of 71 global institutional investors, conducted by market research company PollRight for the Global Blockchain Business Council (GBBC), has shown that 19 percent of the respondents believe that cryptocurrencies will be regularly invested in and traded by 2021.
Moreover, 41 percent of the respondents said that institutional investors will enter the ICO market in the next five years.
These developments confirm the growing interest of institutional investors in the crypto space. Are the top performing cryptocurrencies showing signs of bottoming out? Let’s analyze the long-term charts and try to ascertain whether they are a buy or not.
DASH/USD
The expense management app Spend.com added support for Dash, offering the users various new features.
The Dash Core Group has announced the launch of a new Dash Ventures entity, registered in the Cayman Islands. It will invest in various asset classes, reinvesting the profits back into the Dash ecosystem.
So, is it the right time to buy the cryptocurrency? Let’s see what the charts are suggesting.
The DASH/USD pair is attempting to rise from the level of $64. Although the upward move has been sluggish, one positive thing is that the cryptocurrency is consistently gaining ground.
The current recovery will face resistance at $103.261, and above it at the 20-week EMA at $109. Above these levels, the pair won’t meet major resistances until it reaches $175. Therefore, the traders can buy if the price sustains above $110.
Conversely, if the price turns around from the overhead resistance, a few more weeks of consolidation will be probable.
A break of $64 will be a negative development as it can sink the pair to $56.214. If this level breaks, the downtrend will resume. Currently, with both of the moving averages sloping down and the RSI in the negative zone, the bears appear to have an advantage.
NEO/USD
This week, NEO was the second-best performer among the top 15 cryptocurrencies by market capitalization. Although the cryptocurrency did not make any major headlines, the market participants are excited about the possible announcements during the NEO DEVCON 2019 which is taking place on Feb. 16 and 17.
The NEO/USD pair has largely been stuck in a tight range of $5.4808–$10 recently. Previously, the cryptocurrency was stuck in a range for 13 weeks, from mid-August to mid-November 2018, before a breakdown happened.
The current range-bound action is already 12 weeks old. So, if history repeats itself, we are likely to see either a breakout or a breakdown within the next couple of weeks.
The range this time is tight, so we expect the breakout to be strong. On the upside, a breakout and close above $10 will signal strength and can carry the cryptocurrency to $17.7. If that resistance is crossed, the rally can extend to $25.29.
The traders can stay on the long side of the trade, following the break out of the range. There is a minor resistance at the 20-week EMA, but we expect it to be crossed.
Conversely, if the bears sink the price below the support of the range at $5.4808, the downtrend will continue.
BNB/USD
Binance CFO Wei Zhou has said that the exchange remains profitable despite the prolonged bear market. CEO Changpeng Zhao has revealed that Binance is aiming to release a testnet version of its new decentralized exchange on Feb. 20.
Can Binance Coin (BNB) keep outperforming the market, or is it nearing a major supply zone? Let’s find out.
The BNB/USD pair is at the critical overhead resistance zone of $10–$12. This zone has proven to be a major hurdle from mid-August to early November 2018, before a breakdown happened.
Both of the moving averages are flat, and the RSI is just above the midpoint. This points to a probable consolidation. If the price turns down from the current levels, it can find support at $6, and below that at $5.5.
At the current levels, we couldn’t find any trades that would offer us a good risk to reward ratio, so we suggest traders wait for a small dip to enter long positions.
However, if the bulls scale the overhead resistance zone, a rally to $18 will ensue. Short-term traders can buy following a break out of $12 and ride the momentum higher, but should keep a tight stop loss.
EOS/USD
EOS is attempting to make a comeback. However, can the recovery continue or will the bulls take a breather and give up some of the recent gains?
The bulls are attempting to break out of the resistance of the tight range between $2.1733 and $3.2081. If successful, the EOS/USD pair can move up to $3.8723. Although the 20-week EMA is at $3.613, we expect it to be crossed.
The pair will indicate strength after it sustains above $3.8723. That will confirm that the markets have rejected the lower levels. Thereafter, the traders can expect the rally to gradually carry the digital currency to $6.8299 over the medium term.
We suggest the medium term investors wait for the price to scale above $3.8723 before initiating any long positions.
On the other hand, if the bulls fail to break out of the overhead resistance, the price will extend its stay inside the range. A break below the bottom of the range at $2.1733 will indicate weakness and can result in a retest of the yearly low at $1.55. A breakdown to new yearly lows will resume the downtrend.
ETH/USD
The average daily Ethereum (ETH) block rewards have dropped from over 20,000 in December 2018 to 13,370 on Feb. 10. The drop has happened due to the sudden increase in Ethereum’s mining difficulty.
On Feb. 25, Nasdaq will launch its Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) to track the respective cryptocurrencies’ prices. The Enterprise Ethereum Alliance (EEA) will launch a token task force, focusing on “support for fungible ERC-20 and non-fungible, ERC-721 tokens.”
Is the cryptocurrency on a path to recovery?
The ETH/USD pair is attempting to form a higher low at $102.49. If the bulls succeed in keeping the price above this level, an attempt to break out of the overhead resistance at $167.2 will be probable. If the price sustains above $167.2, it will indicate the start of a new uptrend.
Hence, the investors can wait for a close (UTC time frame) above $167.2 to buy. The target levels to watch on the upside are $225, and above it $242.62.
Our bullish view will be invalidated if the bulls fail to break out of the overhead resistance. In such a case, the digital currency will continue to trade between $102.49 and $167.2. Any break below $102.49 will be a negative development that can sink the pair to $83. If this level breaks down, the downtrend will resume.
