Bitcoin price reached $10K over the weekend but as its dominance rate dropped many altcoins have continued to post triple-digit gains, namely BNB, XTZ and LSK.
Over the weekend Bitcoin (BTC) bulls showed impressive strength as the price punched through $10,000 for the first time in 2020. Interestingly, not only Bitcoin forks have been performing well recently, in fact, many altcoins are actually outperforming Bitcoin. The most recent notable performers are Tezos (XTZ), Lisk (LSK) and Binance Coin (BNB).
Since the start of 2020 Tezos has surged 118% and Binance Coin 120%. Meanwhile, Lisk has kicked its rally into high gear, surging 450% this year. These movements call for analysis.
Crypto market daily performance. Source: Coin360
XTZ/BTC fights against heavy resistance
Tezos has shown tremendous strength through the first weeks of 2020 and is likely to continue over the coming weeks.
XTZ BTC 1-week chart. Source: Cointrader.pro
The XTZ/BTC weekly chart shows a clear double bottom structure at 0.000084 satoshis, which led to the first movements to 0.0001850 satoshis. After that, a confirmation of the breakout led to the support/resistance flip at 0.0001488 satoshis.
This support/resistance flip made the basis for the recent surge, which is currently hovering around a significant resistance at 0.0002600-0.0002700 satoshis.
A significant indicator of strength is the volume indicator, meaning, when trading volume starts to rise along with the price action, this indicates strength and buying pressure. More examples can be found recently with movements on Dash (DASH), Icon (ICX), and Lisk.
The current test for Tezos is whether it can flip the 0.00257 satoshis level for support. If that’s possible, continuation towards 0.00035 satoshis and even 0.0005-0.00051 satoshis is on the table.
XTZ/USD pair leads with a massive break above $1.75
XTZ USD 1-week chart. Source: Cointrader.pro
The XTZ/USD chart currently shows a clear breakout above the $1.75 resistance after $1.20 flipped as support.
A retest of the $1.75 level would provide what might be a great opportunity to buy the altcoin but it’s highly debatable whether the price would make such a deep retracement. If Tezos is likely to hold the $2.50 level for support, a move towards $4.00 is warranted.
Binance Coin rallies on futures launch
Binance Coin has been showing strength recently as well, allegedly due to the launch of futures on the BNB/USDT pair on the Binance futures platform.
BNB USDT 1-day chart. Source: TradingView
The BNB/USDT chart shows a strong upward move, which started with the breakout above $18.80. This breakout led to a price level of $25, however, can we see a continuation of the current strong price movements? This is highly debatable as the move seems influenced by the news of the futures launch rather than a fundamental-based change in market structure.
Such a move could be described as a ‘buy the rumor, sell the news’ scenario where investors buying into an event but when the event occurs, investors realize there’s not a significant price impact and begin to sell. A scenario such as this could occur.
So what is needed for continuation in Binance Coin? A clear breakout above $25-25.50 with a daily candle close would be reassuring. If BNB could do that, extension towards $29 is warranted.
However, if a breakout doesn’t happen, possible support levels are found at $21.70 and $22.50.
BNB BTC 1-day chart. Source: TradingView
The BNB/BTC chart shows a similar move to the upside. However, it confirms the potential resistance. The price of BNB is hovering against the 0.0026 satoshis level and this level is significant as it was the previous high in June 2019.
A breakthrough of this level would give the price space to move toward the 0.00298 satoshis level. However, failure to reach this point would provide investors with a potential opportunity to step in at the 0.00232 and 0.00247 satoshis levels.
Lisk gains more than 450% in a matter of weeks
LSK USD 1-day chart. Source: TradingView
Lisk is showing a massive surge from $0.50 towards $2.80 in only six weeks which has left investors scratching their heads and wondering exactly is this happening?
Such a move starts with the break of a gigantic downtrend. At the moment, many altcoins are breaking their 2-year old downtrends and an upward momentum trend shift is likely to occur once this happens.
A similar move occurred with Lisk after it pushed above its 2-year old downtrend, leading towards an increase in volume and a parabolic movement upward.
LSK USD 1-day chart. Source: TradingView
This parabolic move led to $2.80 and is currently hovering to close above the massive resistance at $2.30, while the RSI is showing overbought signals as it’s now at 93.
If Lisk is unable to close above $2.30, a retrace is likely to occur, through which targeting the $1.60 level at first seems reasonable as support.
LSK/BTC pair shows big gaps
LSK BTC 1-day chart. Source: TradingView
Another reason for these massive movements is the amount of ‘gaps’ in the chart. I don’t mean the CME gaps which are created overnight and on weekends when the exchange is closed but cryptocurrencies are still trading. I’m referring to the big gaps between support and resistance levels on many of the altcoins.
Take, for example, the Lisk chart. After 0.0001150 satoshis, the next resistance is found at 0.0001700 satoshis, a gap of 50%. If the 0.0001700 satoshis level breaks to the upside, the next level sits at 0.0002250 satoshis.
This means that altcoins can potentially make big movements upwards, as there are no significant levels in between to classify as resistance or support.
Ultimately, Lisk needs to close above 0.0002270 satoshis for continuation. Otherwise, it’s likely to retest the 0.0001700 satoshis level for support.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
