Even after the recovery from the lows, major cryptocurrencies continue to surge. Can the top five performers extend their upwards move?
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The market data is provided by the HitBTC exchange.
Public trust towards establishments and large corporations has been on a decline. Sheila Warren, head of Blockchain and Distributed Ledger Technology at the World Economic Forum, said that if used properly, blockchain technology has the ability to solve this problem.
Wealthier nations trade more cryptocurrencies compared to poorer countries, according to research by crypto news outlet The Block. The United States generates 24.5% of the total traffic directed to cryptocurrency exchanges globally, with 10% to Japan in second place and 6.5% to South Korea in third.
Unlike previous occasions, every dip is presently being viewed as a buying opportunity, which confirms that a new uptrend has started. Cryptocurrencies backed by a positive news flow are skyrocketing higher, which shows a strong bullish sentiment. What do the charts of the top five performers of the past week project? Let’s find out.
BSV/USD
Bitcoin sv (BSV) was the best performer once again as it ended with gains of over 100% in the past seven days. The massive spike in price was attributed to the fake news circulating in Chinese media about Craig Wright having transferred 50,000 bitcoin from the biggest Bitcoin wallet to Binance. As a result, the fake news reports said that Binance CEO Changpeng Zhao would publicly apologize and re-list BSV.
While most of the BSV news was taken up by the fake news, in another development, Australian firm Tokenized launched a protocol on the BSV blockchain that can help businesses create tokens for real-world assets. Can the cryptocurrency maintain its upwards move, or will it give up its gains? Let’s find out.
During the week, the BSV/USD pair witnessed huge volatility. It rallied to a high of $254 and then flash crashed to a low of $44.765 on crypto exchange Bitfinex. However, it quickly recovered from the lows and has been trading between $175 and $200 since then. After the sharp rise, we expect the digital currency to become range-bound and consolidate its gains for a few weeks.
On the downside, the cryptocurrency might find support close to $152.015, which is the 50% retracement level of the rally from the recent lows. If this support level cracks, the next zone to watch out for is between $134.360 and $127.947.
On the upside, if the bulls propel the price to new lifetime highs, it can move up to $307.789 and above it to $340.248. However, we give it a low probability of occurring unless we see another leg of a news-based rally.
TRX/USD
Tron (TRX) had slipped out of the top 10 rankings on CoinMarketCap during the week. But a tweet by founder Justin Sun about a forthcoming major announcement propelled the prices higher. As a result, the digital currency reclaimed its spot in the top 10. Earlier, Tron announced the development of a decentralized file system that will “allow users to receive and host storage on their computers with other individuals and businesses.”
The TRX/USD pair was stuck inside a range for over nine months. After numerous failed breakouts, it has finally sustained the current upwards move. This new uptrend has started after a long stay inside the range. Hence, we expect it to surprise on the upside. The first target to watch out for is $0.052818328, and above this, the pair is likely to pick up momentum.
On the downside, the first support is at $0.02815521. If the cryptocurrency rebounds from this level during the next pullback, it will confirm the breakout as valid and will act as a higher floor on any declines. But if the next correction breaks down from $0.02815521, it will indicate weakness and might extend the stay in the range.
ATOM/USD
Cosmos (ATOM) was the third-best performer of the week as it surged on May 30. During the week, Atomic wallet announced that it will add the ATOM token to its new public release. What does the chart project?
As the ATOM/USD pair has a short trading history, we shall use the daily charts to analyze it. The pair broke out of a symmetrical triangle on May 30 and made a new lifetime high at $6.603: this is a bullish sign. The pattern target of the breakout from the triangle is $7.905.
Currently, the digital currency has been finding support close to the previous highs of $5.660, which shows demand at the first support level. After a few days of consolidation, we anticipate the bulls to resume the upwards move towards its target objective. The cryptocurrency will lose momentum if it slips and sustains below the support at $5.660: a fall below $4.8 will invalidate the current breakout and indicate weakness.
MIOTA/USD
Iota (MIOTA), with its release of a new tool dubbed “Coordicide,” has taken a major step towards decentralization of its transaction validation. MIOTA can now be traded over-the-counter on the Cumberland exchange, a DRW company. Can this news help it trade higher over the next few days?
Two weeks ago, the MIOTA/USD pair broke out of the overhead resistance of $0.385033. It thereafter held the retest of the breakout levels from the week before, which is a bullish sign as it confirms $0.385033 as the new floor.
During the week, the cryptocurrency easily scaled above our first target objective of $0.50, but faced some profit booking at higher levels. Its next target objective is a rally to $0.80. However, it is unlikely to be a straight dash towards the target; the pair might face some supply close to $0.60, where it might consolidate for a few days before resuming its recovery. Our bullish view will be invalidated if the bears sink the cryptocurrency back below the critical support of $0.385033.
ETC/USD
The developers and contributors at ethereum classic (ETC) could not arrive at a consensus to implement the hard fork, dubbed “Atlantis.” There was some objection regarding one of the 10 proposals, as a result of which the upgrade will go back to the drawing board. In another development, in response to the 51% attack faced in January of this year, the Astor-Network testnet based on ECIP-1059 was implemented. This is likely to safeguard the network from future attacks.
The ETC/USD pair is looking strong. It has resumed its recovery after a week of consolidation and can now move up to $10.040-$11.880 resistance zone, which might act as a stiff hurdle for a few days.
A breakout from the resistance zone can push the price towards $15, and above it to $20. With both the moving averages flattening out, the advantage is gradually shifting from the bears to the bulls.
Our bullish view will be invalidated if the price reverses direction from the overhead resistance zone and plummets below $5.22403.
NEXO/USDT
Nexo (NEXO) claims to be the world’s first instant crypto credit line provider. The firm is present in more than 200 jurisdictions and offers loans in over 45 fiat currencies. Having processed $500 million for more than 200,000 Nexo users, the company will soon launch a Nexo Card, starting with Europe. The card will allow its clients to use the credit limit to buy anything, similar to any other card but with better terms.
Though most of the past year was spent in a crushing bear phase, the company had successfully paid a dividend of $912,071.00 to the NEXO token holders in December 2018. It will announce the ex-dividend date for its next dividend pay-out in June. The month also has other exciting announcements in store for the NEXO token holders. First will be the launch of the NEXO mobile app for both Android and iOS users with its next update. Next, the TRON foundation’s TRX token will be added as a collateral option on the demand of the community.
Nexo is laying the groundwork to retain and build on its leadership position in the forthcoming cryptocurrency boom. It is currently ranked 104 as per CoinMarketCap. While the fundamentals look positive, let’s see what the chart projects.
The NEXO/USD pair has largely been trading inside $0.1029813 and $0.0628250 for the past few months. The attempt by the bears to breakdown found buyers at $0.0502510. This week, the bulls propelled the price above the overhead resistance, but are struggling to sustain it. If the price closes (UTC time frame) above $0.1029813, it might signal the start of a new uptrend that has a target objective of $0.1431376, and above it to $0.1557116.
However, if the price fails to sustain above $0.1029813, it might extend its stay inside the range for a few more weeks. The pair will weaken on a breakdown of the support zone of $0.0628250-$0.0502510.
The market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.
*Disclaimer: NEXO is a featured cryptocurrency from one of Cointelegraph’s sponsors, and its inclusion did not affect this price analysis.
