There was a lot of hype ahead of the Coinbase listing on the Nasdaq on April 14, and several cryptocurrencies rallied ahead of the event.
However, traders usually buy the rumor and sell the news. In this case, they bought until the event, and then several investors seem to have aggressively posted gains. This resulted in a correction in several major cryptocurrencies, including Bitcoin (BTC).
Leading up to the Coinbase listing, various exchange tokens took off as traders increased their price in relation to Coinbase’s valuation of $ 100 billion. With COIN trading on Nasdaq for almost a week, let’s take a look at how the exchange tokens have been performing since trading.
BNB / USDT
Binance Coin (BNB) was trading at $ 256.72 on February 19 and from there it rose to an all-time high at $ 638.56 on April 12, yielding a return of 148.73% for investors.
VORTECS ™ data from Cointelegraph Markets Pro began to detect bullish outlook for BNB on April 2, before the rally gained momentum.
Exclusive to Cointelegraph, the VORTECS ™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the above monthly chart, the VORTECS ™ score for BNB turned green on April 2, when the price was close to $ 335.
Short periods aside, the VORTECS ™ score remained in green throughout the rally up to $ 601 on April 13. Thus, the indicator could have helped traders hold on to the rally even if other analytical methods would have warned of overbought levels.
The coin witnessed a profit posting in excess of $ 600 and adjusted to the 20-day exponential moving average ($ 463) on April 18. However, a positive sign is that the bulls have not let the price hang below the 20-day EMA.
Both moving averages continue to rise and the relative strength index (RSI) is above 68, indicating that the bulls are in control. Buyers may face resistance towards USD 600, but if they can overcome this hurdle, the BNB / USDT pair could reach as high as USD 638.56.
The bears will again try to stop the uptrend in the $ 600 to $ 638.56 zone. If the price moves down from this zone it could drop again to $ 428 and the pair could remain range bound for several days.
However, if the bulls push the price above its all-time high, the pair could pick up momentum and move towards USD 832. This optimistic view will be voided if the bears sink and hold the price below USD 428.
One such move suggests that supply is outstripping demand and the price could drop to $ 348.69.
FTT / USDT
FTX Token (FTT) rose from $ 28.82 on Feb. 19 to an all-time high of $ 59.59 on April 14, with a gain of 106.76%. Since then, the token has been in a correction phase, but the positive sign is that the bulls have not allowed the price to stay below the 20-day EMA ($ 48.70). This strongly suggests buying on dips.
The news of the FTX exchange burns by $ 6.4 million of FTT, $ 2 million more than their previous record, is likely to attract buyers as it shows the exchange is doing solid business. As more tokens are burned, the supply will decrease and as the demand increases, the price is likely to go higher.
If the bulls can push the price above USD 52.55, the FTT / USDT pair could climb towards USD 59.59. If the bulls can push price above this resistance, momentum is likely to pick up and the pair could move up towards $ 71.89.
However, if the bulls fail to bring the price above USD 52.55, it will suggest that demand is drying up at higher levels. That could strengthen the bears and they will try to bring the price down to the 50-day simple moving average ($ 41.32).
This is an important prop to watch out for, as the price hasn’t closed below it since mid-November last year. Therefore, a break below it will suggest a change in trend and open the gates for a deeper correction to $ 32.
HT / USDT
Huobi Token (HT) traded at $ 18.94 on Feb. 19 and from there it rose to an all-time high of $ 26.89 on Feb. 20, but it hasn’t gotten close to the level since then.
The token witnessed a sharp correction after hitting its all-time high, falling to an all-day low of $ 12.13 on March 25, losing about 55% from its all-time high.
In general, after a deep drop, the price consolidates in a range before starting the next trend move. The same thing happened with the HT / USDT pair too. The pair traded between USD 12.13 and USD 18 until the bulls pushed the price above resistance on April 10.
However, the bulls were unable to sustain the breakout as the price fell from $ 22.76 on April 12 and reentered on April 18.
The bulls are trying to defend the 50-day SMA ($ 16) but are struggling to keep the price above $ 18. This shows sales at higher levels. If the price drops and dips below the 50-day SMA, the pair could drop to $ 12.13, where buyers can step in.
Contrary to this assumption, if the bulls are able to hold the price above USD 18, the pair could move up to USD 22.76. A break above this resistance could challenge USD 26.89. The bulls will have to remove this resistance to resume the upward trend.
OKB / USDT
OKEx (OKB) rose from $ 12.50 on Feb. 19 to an all-time high of $ 24.74 on April 12, a gain of 98%. However, it was not a one-way street, but a rollercoaster ride for the investors.
The coin had hit an intraday high of $ 23.80 on February 22, but witnessed a sharp drop, falling to $ 12 on March 25, losing about 50% from the highs. However, instead of forming a range, the price soon started a V-shaped recovery.
Although the bulls cleared the $ 23.80 hurdle on April 12, they were unable to sustain higher levels. The OKB / USDT pair witnessed another sharp decline, reaching an intraday low of $ 13.92 on April 18.
The bulls are currently trying to start a relief rally but have hit a wall at the 20-day EMA ($ 17.98). This suggests sentiment has turned negative and traders are selling on rallies. If the price drops to below $ 14, the pair could drop to $ 12.
A break below this level could strengthen sales and the pair could drop to $ 8. The 20-day EMA is starting to decline and the RSI is just below mid-range, suggesting a small advantage for the bears.
This negative view will be voided if the bulls push and hold the price above the 20-day EMA. Above this resistance, the pair could move towards the 61.8% Fibonacci retracement level at $ 20.60. This level will likely act as a stiff resistance again, but if it scales the pair could test $ 24.74 again.
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.