Altcoins showed an equal battle between bulls and bears last week and rebounded with a strong retracement over the past 7 days. Total market capitalization of crypto assets has plummeted more than 5-7 percent after retreating from lows.
Two major alternative assets, Binance Coin and Stellar, which ranked 4th and 17th by market cap, respectively, have shown strength.
Binance Coin (BNB):
Founded in July 2017, Binance is one of the largest cryptocurrency exchanges in the world and aims to bring cryptocurrency exchanges to the forefront of global financial activity. The company has become the world’s leading crypto exchange. BNB is the native token of the Binance exchange.
The BNB has led the recovery trend in altcoins since the market reset. The asset rebounded quickly as it fell from $ 225 to $ 430 within a week before seeing another correction and trading at $ 340 levels. The volumes have shown good resilience and we did not see many profit bookings when prices were falling, suggesting that the asset is viewed as an investment and should be held for the long term. Investor confidence in the investment is also strong. BNB is the third largest cryptocurrency by market cap, currently standing at $ 53 billion.
Market Cap and Rank: $ 53 billion (4th place)
ETMarkets.comBNB formed the “Higher Tops Higher Bottom” formation last week and rose to $ 433. However, prices resisted these levels and declined nearly 26 percent to hit a weekly low of $ 319. Tech-wise, the BNB took several supports around the crucial $ 322 (50 percent Fibonacci retracement level) level within the four hour timeframe and started moving upward. The uptrend is likely to continue unless the support levels are broken.
Stellar is based on an open network that allows money to be moved and stored securely to promote financial inclusion of participants by expanding the global reach of the network. Over time, the Stellar network shifted its focus to helping financial companies 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 types of money – dollars, pesos, bitcoin, pretty much anything. It is specifically designed to make traditional forms of money more useful and accessible. The network was launched in 2015 and has since processed more than 450 million transactions from over 4 million individual accounts.
It’s unique in that each transaction only costs 0.00001 XLM. It has also managed to win the trust and support of some global giants. It was only a few years ago that Stellar and IBM launched World Wire, a tool that allows FIs to transact with bridge assets such as stablecoins on the Stellar network.
Market Cap and Rank: $ 8 billion (17th place)
ETMarkets.comXLM, after hitting the $ 0.274 low, rebounded well, rising nearly 72 percent to $ 0.473. The asset then withstood those levels and prices fell nearly 34 percent. Tech-wise, XLM hit tweezer bottom at $ 0.3 on the four-hour timeframe, indicating a shift in trend directions, and began to move up, creating the higher top, higher bottom formation.
In conclusion, we may see some pullback until these support levels are held and for further uptrend the asset will need to break through and hold the resistance level at $ 0.4.
(Nirmal Ranga is Vice President Trading at ZebPay. Views are his own)