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Just One Crypto Bucked the Market Downtrend This Week
Shadowing the losses in bitcoin, the top-25 cryptocurrencies have all fallen over the last seven days – all bar one, that is.
The broader markets seem to have been dragged lower by a 9.5 percent week-on-week drop in bitcoin (BTC), the world’s largest cryptocurrency by market cap. BTC fell below $8,000 on May 22 for the first time since April 18 and hit a low of $7,272 yesterday, as per CoinDesk’s Bitcoin Price Index (BPI).
Other major names like ethereum (ETH) and bitcoin cash (BCH) are reporting 14 percent weekly declines in price. EOS, meanwhile, is down 6 percent and XRP has shed 8.5 percent over the same period. The sole top-25 cryptocurrency to be up this week is TRON (TRX), which is reporting minor gains, possibly on the back of positive news flow.
The cryptocurrency markets could remain on the defensive next week too, as the odds are stacked in favor of a drop in bitcoin prices to below $7,000.
Further, the ethereum-bitcoin exchange rate (ETH/BTC) has rolled over in favor of the bears, having breached a key ascending trendline earlier this month. The ETH/BTC pair is widely considered an advance indicator for alternative cryptocurrencies, as many of them are built based on the ethereum blockchain. So, alternative cryptocurrencies may drop sharply if BTC extends the decline.
Looking more widely, the combined market capitalization of all cryptocurrencies dropped to $322.5 billion on May 24 – the lowest level since April 16, according to CoinMarketCap. At time of writing, the total market value stands at $336 billion – down 14 percent week-on-week.
Weekly performance: +1.83 percent
All-time high: $0.30
Closing price on May 18: $0.0693
Current market price: $0.070
Rank as per market capitalization: 9
TRON (TRX) is reporting moderate gains amid the broader market sell-off, possibly due to growing investor interest in the mainnet launch, scheduled for May 31.
The project also announced a partnership with vSport to develop a FIFA World Cup prediction platform that may have helped TRX score gains. However, the cryptocurrency may rank high on the list of top losers next week, the technical charts suggest.
A bear flag breakdown would signal a continuation of the sell-off from the April 30 high of $0.10 and open the doors for a drop to $0.05 (rising trendline support). TRX bulls would need to defend that level at all cost, as a violation there would mean a long-term bullish-to-bearish trend change.
Weekly top losers
Weekly performance: -25.89 percent
All-time high: $12.04
Closing price on May 18: $3.63
Current market price: $2.69
Rank as per market capitalization: 23
ICON (ICX) has taken a beating, having failed to capitalize on the bullish breakout seen at the end of April. The blockchain project created backed by South Korean developers entered into a partnership with LINE – Japan’s largest messaging app – earlier this month. Still, ICX nosedived 25.89 percent over the last seven days and could decline further, the technical charts indicate.
The 5-day and 10-day MAs are sloping downwards in favor of the bears. Acceptance below the long-term descending trendline would allow re-test of $1.82 (April lows). Only a daily close above the 10-day MA, currently seen at $3.26 would abort the bearish view.
Weekly performance: -25 percent
All-time high: $ 0.030134
Closing price on May 18: $0.009194
Current market price: $0.00689
Rank as per market capitalization: 19
Having breached the key rising trendline on April 18, bytecoin (BCN) fell to $0.0065 on May 24 – the lowest level since May 8. As of writing, the cryptocurrency is trading at $0.0069 on HitBTC. Prices had surged in the first half of May after the cryptocurrency exchange Binance announced its listing on the exchange on May 7.
The prospects of a further slide towards $0.0048 are high, as indicated by the downside break of the ascending trendline and the downward sloping 5-day and 10-day MAs. The RSI also dipped below 50.00 this week, confirming a bearish reversal.
A daily close above the 10-day MA, currently seen at $0.0085, would abort the bearish view. Meanwhile, a move above $0.010 would put the bulls back in the driving seat.
Weekly performance: -20.34 percent
All-time high: $953.34
Closing price on May 18: $358.81
Current market price: $285.85
Rank as per market capitalization: 21
Zcash (ZEC) turned in a poor performance this week, possibly due to profit-taking after the previous week’s 50 percent rally. Total trading volume has dropped 63 percent week-on-week, according to CoinMarketCap, which indicates the 20 percent decline is likely a healthy pullback.
That said, the tide seems to have turned in favor of the bears at least for the short-term, the technical charts indicate.
The bear cross of the 5-day and 10-day MAs and the bearish RSI (below 50.00) show scope for a drop to ascending trendline support, currently seen at $254.
A daily close below that level would mean the rally from the April 7 low of $173 has ended and could yield a deeper sell-off to $228 (May 12 low).
Odd piggy out image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Author: Omkar Godbole
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