Traders invest in LINK, BAND and Qtum as bitcoin prices fall
The recent bitcoin downturn temporarily reduced its dominance to 49.5%, the lowest level since August 2018. This has led more traders to predict that altcoins could overtake bitcoins in the short term.
In the last few months, Bitcoin price performance does not seem to have had much of an impact on Altcoins.
The main factor that can lead to the further growth of altcoins compared to bitcoins is the widespread increase in the popularity of diffuse decentralized financial space. "DeFi exchanges show more trading volume than Coinbase," said Thomas Farley, vice president of the New York Stock Exchange, in an interview with CNBC.
Let's look at the principles and technical specifications of the three tokens that have been increasing over the past few months.
LINK / USDT
ChainLink (LINK) is one of Oracle's most popular decentralized solutions, and to support the pace of innovation in the crypto industry, it outlined its vision for the future in its new white paper, Chainlink 2.0, on April 15, where There are second tier networks that store Oracle Networks and calculate data outside the chain before blocking input to the blockchain. This new concept could enable developers to quickly build intelligent hybrid contracts, similar to the application programming interfaces (APIs) that developers build on the web.
Another positive point for LINK investors was announced when Gary Skill announced on April 6 that he would add it to his large digital investment fund. Although this allocation is only 0.87%, considering this issue can make it the focus of fundamental investors.
LINK is correcting its sharp uptrend from $ 23.61 on March 24 to a high of $ 44.33 on April 15. Although prices fell below the moving average on April 18, cows are buying aggressively at lower levels, as evidenced by the long-tailed candlestick daily.
Since then, bears and cows have struggled with the 20-day moving average ($ 35.89). The cows are trying to defend the support of the 20-day moving average EMA and start the next ascending phase while the bears are trying to increase the correction by breaking the support.
The 20-day moving average and the relative strength index (RSI) above 57 indicate a slight advantage for buyers. If the cows are able to raise and maintain their price above $ 40, the LINK / USDT pair can retry $ 44.33. Failure of this resistance can start the next stage of the uptrend, which can reach $ 50 and then $ 55.72.
If the price stays below the 20-day moving average, this uptrend will be invalidated. Such a move could lower the price to a simple 50-day moving average ($ 31.42) and delay the start of the next uptrend.
BAND / USDT
The BAND peaked at $ 23.30 on April 15, rising 109% in about two and a half months.
The protocol announced its partnership with Google Cloud on April 15 and continues to build partnerships to increase its market share. Last month, the company partnered with Krystal, Equilibrium and Polygon. In addition, one of the largest financial institutions in Thailand (SCB 10X) cooperated with Band as a ninety-one credit rating.
BAND is currently trading in the $ 11.50 to $ 20.62 range. The cows had raised the price above the resistance on April 15 and 16, but as a result of the defeat could not increase.
QTUM / USDT
The QTUM peaked at $ 20.72 on April 19, growing 173 percent in more than two months.
On March 31, Qtum co-founder Patrick Dai said the protocol was working to enable smart contracts for FileQueen over the Qtum network. On the same day, Dai joked that dissimilar tokens were also being launched on Qtum.
The Dodge QTUM on April 19 showed that the uptrend may lose steam. The short-term weakness was further confirmed by the continuing downward trend on April 20.
The cows are currently trying to defend the 20-day moving average ($ 15.08). A sharp jump from this support indicates that the emotions remain positive and the cows are shrinking.
Buyers are likely to try to lower the price to $ 18.63 and then to $ 20.72. The failure of this resistance will be a sign of the resumption of the uptrend.
However, a negative divergence in the RSI indicates that the movement may be weakening. If the bear falls below the 20-day moving average, the QTUM / USDT pair could fall below the 50-day SMA ($ 10.47) moving average, where buyers are taking steps to halt their price decline. .