The recent downturn of Bitcoin (BTC) temporarily reduced dominance to 49.5%, the lowest level since August 2018. This has led a growing number of traders to predict that altcoins will outperform Bitcoin in the short term.
In recent months, the altcoins price action seems to be moving away from Bitcoin. Take Ether (ETH), for example, which hit a new all-time high today even as Bitcoin’s price is 20% below its all-time high.
The main factor that could have tilted the scale in favor of altcoins is the boom in the popularity of the decentralized financial space. Thomas Farley, president of the New York Stock Exchange, pointed out in an interview with CNBC that “DeFi exchanges are doing as much, if not more, than Coinbase today.”
Let’s take a look at the fundamental and technical aspects of three tokens that have been on the rise in recent months.
LINK / USDT
Chainlink (LINK) is one of the most popular decentralized Oracle solutions. To support the rapid pace of innovation in the crypto industry, Chainlink outlined its vision for the future in its new white paper called Chainlink 2.0 on April 15.
The whitepaper presents a new architecture for building hybrid smart contracts where two-tier networks called Decentralized Oracle Networks store and calculate the data off-chain before entering the input on the blockchain. This new concept could enable developers to quickly build hybrid smart contracts, similar to Application Programming Interfaces (APIs) that developers are building in the web world.
Another positive for LINK investors was Grayscale announced the addition of the altcoin to its Digital Large Cap Fund on April 6. Although the allocation is only 0.87%, the take-up could bring it to the attention of institutional investors.
On April 2, Polkadot and Chainlink announced that Chainlink’s pricing feeds will be available as a Substrate oracle pallet, allowing projects in the Polkadot ecosystem to integrate Chainlink oracles through a simplified library.
LINK is currently correcting from its sharp rise of $ 23.61 on March 24 to its all-time high of $ 44.33 on April 15. Although the price fell below moving averages on April 18, the bulls bought aggressively at lower levels, as shown by the long tail. on the candlestick of the day.
Since then, the Bears and Bulls have been battling the 20-day Exponential Moving Average ($ 35.89). The bulls try to defend the 20-day EMA support and launch the next leg of the upward movement, while the bears try to extend the correction by breaking the support.
The slightly rising 20-day EMA and the relative strength index (RSI) above 57 indicate a small advantage for buyers. If the bulls can push and hold the price above USD 40, the LINK / USDT pair could retest at USD 44.33. A break from this resistance could start the next leg of the uptrend, which could reach USD 50 and then USD 55.72.
This optimistic view will be invalidated if the bears sink and keep the price below the 20-day EMA. Such a move could bring the price down to the 50-day simple moving average ($ 31.42) and delay the start of the next leg of the uptrend.
BAND / USDT
Band Protocol (BAND) was presented by Cointelegraph on Feb. 2 when the price hit $ 11.14. Since then, the price has risen to a record high of $ 23.30 on April 15, gaining 109% in about two and a half months.
The protocol announced on April 15 that its Oracle data is live on Google Cloud Public Data, which can be used to build traditional, hybrid blockchain and cloud applications. Band said the integration into Google Cloud Public Data was the first of many use cases explored with partners “to bridge traditional enterprises and blockchain applications.”
Band has continued to build partnerships to increase its market share. In the past month, it announced partnerships with Krystal, Equilibrium and Polygon. In addition, SCB 10X, one of the largest financial institutions in Thailand, worked with Band as a node validator.
BAND is currently trading in a wide range between USD 11.50 and USD 20.62. The bulls had pushed the price above the range’s overhead resistance on April 15-16, but they were unable to build the breakout.
This suggests that bears are active at higher levels. The sellers pulled the price back into range on April 17, trapping the aggressive bulls. Long liquidations could be one of the reasons for the sharp fall on April 18, which temporarily fell below the USD 11.50 support.
The positive sign, however, was that the bulls aggressively bought the dips on April 18, as seen from the long tail on the candlestick.
After trailing between both moving averages for the past three days, the BAND / USDT pair has broken above the 20-day EMA ($ 17.04) today. The pair could rise again towards $ 20.62, where the bears are likely to build solid resistance again.
The flat moving averages and the RSI just above the midpoint suggest that the range-bound action may persist for a few more days. A breakout and close above USD 21 could open the gates for the uptrend to resume. The next upward target could be $ 29.74.
Qtum / USDT
Qtum (QTUM) was backed by CoinTelegraph on Feb. 11 when the price hit $ 7.59. The token soared, hitting a record high of $ 20.72 on April 19, up 173% in just over two months.
The most eagerly anticipated development is the transition from a block average of 128 seconds to a block average of 32 seconds, expected to take place on April 30 through a hard fork.
On March 31, Qtum founder Patrick Dai said the protocol worked to enable smart contracts for Filecoin over the Qtum network. The same day, Dai teased that non-replaceable tokens also find their way on Qtum.
QTUM’s Doji candlestick pattern on April 19 indicated that the uptrend may be losing steam. The short-term weakness was further confirmed when the price fell further on April 20.
The bulls are currently trying to defend the 20-day EMA ($ 15.08). Strong aversion to this support indicates sentiment remains positive and bulls are piling up on dips.
Buyers will likely try to push the price towards $ 18.63 and then $ 20.72. A breakthrough of this resistance will mean the resumption of the uptrend.
However, the negative divergence of the RSI suggests that momentum is waning. If the bears drop the price below the 20-day EMA, the QTUM / USDT pair could drop to the 50-day SMA ($ 10.47), where buyers can step in to slow the decline.
A strong rebound from the 50-day SMA could keep the pair range-bound for a few days, while a break under support suggests the bears are back in play.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries risks, you should do your own research when making a decision.