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bitcoin: Crypto Week at a Glance: Altcoins outperform Bitcoin and Ethereum

This week has been an interesting one for the Alt-coin markets as the assets took a dive and shaped back up with strong retracements over the last 7-day showcasing equivalent fights among the bulls and the bears of this market. The overall market capitalization of the crypto-asset markets has taken a nose-dive of almost more than 5-7 per cent after the pull-back from lows.

The two important alternative assets Binance Coin & Stellar standing at 4th and 17th rank by market capital respectively have shown a decent amount of strength and enthusiasm by traders/investors and hence, we tend to cover the technical outlook in the same for their respective price levels.

Binance Coin (BNB):

Launched in July 2017, Binance is one of the biggest cryptocurrency exchanges globally and aims to bring cryptocurrency exchanges to the forefront of financial activity globally. The company has grown to be the leading crypto exchange worldwide. BNB is the native token of the Binance exchange.

BNB has led the recovery trend among altcoins since the market reset took place. The asset saw a quick recovery, as it retraced from $225 lows to $430 within a week, before witnessing a correction again and currently trades at $340 levels. Volumes have shown good resilience, and we haven’t seen much profit booking when prices fell, indicating that the asset is viewed as an investment avenue, and to be held long term. Investor confidence in the asset is strong as well. A few weeks back, a BNB burn took place, which did not impact prices significantly. BNB is the third-largest cryptocurrency by market capitalization, which currently stands at $53bn.

Market Capitalization and Rank: $53bn (4th)

BNB last week made ‘Higher Tops Higher Bottom’ formation and surged upto $433. However, the prices resisted at these levels and retraced almost 26 per cent, and made a weekly low of $319. Technically, in the four hour time frame, BNB has taken multiple support around the crucial level of $322 (50 per cent Fibonacci Retracement Level) and has started to move upwards. The uptrend is likely to continue unless the supports are breached.

Stellar (XLM) :

Stellar is built on an open network that allows money to be moved and stored safely, with the purpose of boosting financial inclusion among participants through expanding the network’s global reach. Over time, Stellar network shifted its focus towards helping financial firms and institutions connect with one another through active participation on the blockchain.

The asset makes it possible to create, send and trade digital representations of all forms of money—dollars, pesos, bitcoin, pretty much anything. It’s specifically designed to make traditional forms of money more useful and accessible. The network launched in 2015, and since then it’s processed more than 450 million operations made by over 4 million individual accounts.

It is unique because every transaction costs just 0.00001 XLM. It has also managed to gain the trust and backing of some global giants. Just a couple of years ago, Stellar and IBM launched World Wire, a tool that allows FIs to transact on the Stellar network using bridge assets such as stablecoins.

Market Capitalization and Rank: $8bn (17th)

XLM, post making the low of $0.274 showed good recovery and surged almost by 72 per cent up to $0.473. The asset then resisted at these levels and prices retraced almost by 34 per cent. Technically, on the four hourly time frame, XLM has made ‘Tweezer Bottom’ at $0.3 indicating a shift in the trend directions, and has started moving upwards making ‘Higher Top Higher Bottom’ formation.

Hence, to conclude, we may see some pullback until these support levels are maintained and for further upside, the asset needs to break and sustain above the resistance level of $0.4.

(Nirmal Ranga is Vice President-Trading at ZebPay. Views are his own)

Read More: bitcoin: Crypto Week at a Glance: Altcoins outperform Bitcoin and Ethereum

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