Calm After the Storm: Bitcoin Cash (BCH) and Litecoin (LTC) Emerge Strongest from Rally, ETH and XRP down
After 48 hours of insane market movements (and a flurry of price predictions on crypto Twitter), the storm has calmed and we investigate who has emerged the biggest winners.
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It seemed it would never end, but Bitcoin finally hit some strong resistance at $5,300 after breaking through $4,200, $4,600 and $5k with effortless ease. It briefly threatened to retrace below the $5,000 level last night but seems to have found support and is now bobbing along contently just above $5k.
Its acquaintances in the top three coins didn’t fare quite as well, with both Ethereum (ETH) and XRP starting the day in the red.
Strong opposition overnight knocked Ethereum off it’s run to $170, dragging it back down below the crucial $160 support level in a matter of hours. While it managed to claw its way back up again to $162, it’s still trading down 1.8 percent in the past 24 hours.
There is hope that further clarification from the U.S. Securities and Exchange Commission regarding the sale of security tokens may help reignite a further rally for Ethereum.
Ripple’s XRP token began a small rally from $0.35 but got smashed by strong resistance at $0.37 and then dropped hard and fast back to $0.34. While it has managed to find some support there it doesn’t appear to be gathering any further upward momentum. Over the past 24 hours, the coin is down 1.67 percent.
But there may be good news on the horizon for XRP. Spanish banking giant Banco Santander has announced plans to inject $23 billion into the Ripple-powered payment platform One Pay FX. The move is part of a larger drive by the bank to expand its interests in emerging financial technologies.
Bitcoin Cash (BCH)
Bitcoin Cash has emerged the biggest winner in the top ten coins following the massive bullish rally. The asset is up a huge 20 percent today and has almost doubled its value over the past seven days. Despite a beat-down at $340 that dragged it all the way back to $280, the coin wasn’t giving up that easy and fought its way back to current levels of $310.
Litecoin is the day’s second-largest winner, maintaining strong nine percent gains over the past 24 hours. It sadly missed out on breaking through resistance at $100 and retraced to around the $82 levels before climbing back up to $87.50. It is still looking very strong though and may make further gains today.
While the bullish madness appears to have tapered off and volatility has returned to rational levels, the market remains strong. The current daily volume of $21.55 billion is more than double the usual levels we have experienced this year. However, despite the high volume and strong community sentiment, many analysts think the rally is over for now.
In an article for 8btc, Chloe Jiang reports that popular Chinese billionaire and crypto trader Zhao Dong believes there are still more sell-offs to come before a much larger rally in a year or two from now. He sees this as simply a market correction fuelled by trading activity on exchanges similar to that seen in 2015.
Still, a 57 percent growth in the overall market cap should give even the weariest of investors a glimmer of hope and attract new buyers. As further accumulation occurs it becomes increasingly unlikely that Bitcoin will ever test $3,000 levels again.