The cryptocurrency story gets even more interesting as the benchmark blockchain asset completes its halving. At an elemental level, the original cryptocurrency should rise based on the simple equation of less supply and more demand. However, blockchain ecosystems are rarely that simple.
Indeed, the bullish angle seems to have worked best since then. Cryptocurrencies are not just rising based on a single event with a specific decentralized digital asset. Rather, more mainstream investors, especially institutional investors, are recognizing the opportunities in cryptocurrencies. Cryptocurrency adoption is at an all-time high as exchange-traded funds cover the space.
On the other hand, it is worth considering the bearish case. block It was recently pointed out. In particular, mining companies face new challenges due to the dwindling supply of original cryptocurrencies. Many people may go out of business. That would reduce participation in the network and open the door to his one entity controlling most of the network, the dreaded 51% attack.
That's unlikely to happen, but it's not entirely possible. Please keep this in mind and make careful decisions. Here are seven cryptocurrencies to keep an eye on.
Bitcoin (BTC-USD)
Source: Sittipong Phokawattana / Shutterstock.com
and Bitcoin (BTC-USD) The halving event has ended and the benchmark blockchain asset found itself trading just under $67,000 late Monday night. Considering the old adage of buying rumors and selling news, this disconnect is not particularly surprising. BTC is definitely holding up well. However, it is also noticeable that the price is below the all-time high of nearly $74,000.
Now the question is, where will Bitcoin go next? To put it bluntly, I don't like the current technological attitude. Previously, I mentioned that BTC seems to be forming a bullish pennant formation. However, this pattern of development seemed to begin to break down for him around April 12th. The notable drop on April 17th makes it difficult to see if a legitimate pattern exists.
At the same time, it is worth noting that Bitcoin has struggled to break above its 50-day moving average. Additionally, the amount acquired has been decreasing since late February. With geopolitical uncertainty clouding the broader narrative, it may be best to mitigate some risk.
I am not proposing to sell BTC completely. However, it may be wise to take some of your previous profits to put something in your bag.
Ethereum (ETH-USD)
Source: Tanini Chuensomchit/Shutterstock.com
Virtual currencies have been paying attention to Bitcoin and its halving event. Ethereum (ETH-USD) is the second most valuable digital asset command relevance. In the short term, ETH looks decent without broader context. In the past 24 hours, the virtual currency has increased by more than 2% of its market value. It rose nearly 5% over the next seven days.
Still, compared to the bigger picture, Ethereum was a disappointment. There's no other way to put it. At the beginning of last month, ETH units were trading above $4,000. However, this high position did not last long. Still, with the reference price trading near the $3,500 level, there was hope that the bulls could take the lead.
Previously, I mentioned that ETH appears to be printing an ugly bullish pennant. However, the sharp decline in the April 12th session and subsequent weak reaction casts doubt on this theory. According to data from StockCharts, acquisition volume appears to have decreased since January of this year.
Given the weakness in cryptocurrencies, consider trimming some exposure to strength. Ethereum’s inability to conclusively break above its 20-day exponential moving average only adds to the skepticism.
Tether (USDT-USD)
Source: DIAMOND VISUALS / Shutterstock.com
The current benchmark stablecoins are: tether (USDT-USD) traded at full parity with the dollar. So it's not actually sending any signals about the broader health of cryptocurrencies. Having said that, it is worth noting that most of USDT's price movements over the past 7 days have occurred above the parity line. After that, traders seem to trust cryptocurrencies more than fiat currencies.
This is a positive development for blockchain proponents. However, it remains to be seen whether this momentum will continue. What stands out, and is not very encouraging, is that over the past week, USDT has fallen significantly below its 1:1 peg to the US dollar. The first time was on March 27th, and the second time was on April 12th.
Looking to the future, the situation does not seem to bode well for Tether. According to on-chain signals provided by TipRanks, the USDT consensus is mostly bearish. Moreover, all statistics give a pessimistic assessment when it comes to important indicators such as net network growth, number of profitable traders, concentration of large holders, and number of large trades.
translation? Investors should be wary of cryptocurrencies and take profits if necessary.
BNB (BNB-USD)
Source: Robert Paternoster/Shutterstock.com
Although the cryptocurrency ecosystem faces an uncertain situation, BNB (BNB-USD) represents one of the unusual ciphers that looks rather attractive. In the past 7 days, BNB has increased over 10% of its market value. Although it may increase confidence in other blockchain assets, it is still best to be careful.
From March 6th to April 10th, BNB appeared to be in an extremely bullish pennant formation. However, mimicking other cryptocurrencies, the digital asset began to stumble in the next session. By April 17th, the stock had fallen to an intraday low of $513.93, effectively destroying its pennant shape. Normally I would be pessimistic. However, a rebound after April 18th could be aimed at saving the bull market.
What makes BNB even more attractive is that it trades above key technical benchmarks such as the 20-day exponential moving average, 50 DMA, and 200 DMA. As long as the bulls continue to support decentralized assets, they have a chance to continue their march north.
Nevertheless, I'm not too enthusiastic about the decline in acquisition value since the March 13th transaction. So even with BNB I wouldn't be opposed to trimming the exposure to some extent.
Solana (SOL-USD)
Source: Rcc_Btn / Shutterstock.com
One of the hottest cryptocurrencies not named Bitcoin, Solana (Sol – US dollar) has lost some of its previous advantages. Still, from a short-term perspective, bulls are trying to turn things around. In the past 24 hours, SOL has increased his 4%. It rose more than 15% in the next seven days. That's good news. But believe it or not, there is also some bad news associated with this rally.
I don't mean to point fingers, but in the broader context, SOL's higher jumps are more symbolic of a “despair” move. As you can see, significant volatility pushed prices down alarmingly since the April 12th session. On April 17, the asset fell to an intraday low of $126.91 before rising. Unfortunately, the 20-day exponential moving average appears to be acting as upside resistance.
Even if Solana manages to overcome this barrier, the 50 DMA of $167.57 is likely to frustrate the bulls. Overall, Solana's price movement (or chart behavior) looks broken. Ideally, bulls should push the price back to $175 soon to avoid further damage.
That could happen, it's just that it's not a bad idea to make a profit here either.
XRP (XRP-USD)
Source: Shutterstock
Frustrating digital assets, XRP (XRP-USD) continues to confuse stakeholders. Previously, XRP appeared to be following a chart pattern of rising lows after a major turmoil earlier this year. Unfortunately, the token was once again hit by severe volatility. This time it was April 12th. The next day, XRP fell to an intraday low of 43.1 cents before the bulls attempted a recovery.
This is the reason behind the company's strong short-term performance. In the past 24 hours, XRP has gained about 3% of its market value. He was up almost 13% in a week after that. That in itself sounds like an amazing statistic. Unfortunately, as mentioned above, the price action reflects a reaction of desperation more than anything else.
Now, a bit of decent news is that XRP is trading above its 20-day exponential moving average. However, it is still below the 200DMA (58 cents) and 50DMA (60 cents). To be honest, I'm worried about XRP. If the bullish sentiment for other cryptocurrencies breaks down, XRP could find itself in some trouble. Watch this space closely and be prepared to reduce some of your holdings.
Dogecoin (DOGE-USD)
Source: Zarko Prusak/Shutterstock.com
It can be called the ultimate Rorschach test. dogecoin (Doge-USD) could hold a clue as to where cryptocurrencies will go next. Looking at the chart pattern from late February to now, there seem to be two possible interpretations. Let's start with the negative.
From a pessimistic perspective, DOGE may be following a busted head-and-shoulders pattern. The two shoulders can be represented by the pops that culminated on March 11th and April 20th. Additionally, the head can be represented by the topline price seen during the March 28th and his March 31st sessions. As you probably know, head and shoulders suggests a negative outcome.
On the other hand, the bullish movement from February 26th to March 4th could be a flagpole. Subsequent trading may be at a consolidation stage. Once the consolidation is complete, XRP could skyrocket.
However, if the optimistic outlook is to materialize, it will need to happen fairly soon. Acquisition volumes also need to be strong. Otherwise, the pop may end up with a fake head. With skepticism weighing on global markets, a conservative approach may make sense.
Publication date, Josh Enomoto I held long positions in BTC, ETH, USDT, and XRP. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
