Most of the major Altcoins like Ethereum and XRP are back on your level of 2017. As Bitcoin is based on a short-term bearish Trend, investors are still divided on whether Altcoins continue their recovery, or a weakening of the momentum over time.
In the last few weeks, Ethereum, XRP and other Altcoins signs of extensive have shown an upward rally, where, in particular, Ethereum maintains at 180 $ is a strong support level.
While technical analysts expect a short-term retreat for Altcoins, is a Trader for sure: The risk-reward ratio in the case of Altcoins improved, which creates in the case of Ethereum and XRP a more favourable environment for a rally.
The professional Trader “Crypto-Michael” writes on Twitter:
“Altcoins are completely returned to the level of 2017 and/or 2016. This means that you can go further down? Yes, but the R/R with upside potential from here on will be extremely better. Reminder: The mood changes to price movements, not before.“
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Why Altcoins like Ethereum and XRP are resilient
In the last seven days, the price of Bitcoin declined on the main exchanges of about $ 9,000 to 8.450 $ – more than six per cent loss against the US Dollar.
In the same period, the prices for Ethereum and XRP dropped by around three and five percent. Altcoins have become better than Bitcoin, because the main alternative crypto currencies since the peak in 2018, has already fallen by almost 90 percent.
The next weeks are a critical period for Altcoins because you have to decide whether a larger Pullback is tested to lower support levels or the current levels in the medium to long-term bottom for a longer rally would need to be used.
According to the Glassnode research team, the mood in the Bitcoin mixed-traders. Most assume, however, that BTC will soon see its decisive Moment.
While traders are in relation to the Altcoin Performance generally optimistic, less the deposits on the stock exchanges in the recent time and suggests a lack of appetite for crypto-currencies. At least in the current price class.
The research team about the current market mood:
“The mood is mixed as investors wait on the next big BTC price movement. This is a crucial Moment, because the market is moving sideways. […] The BTC-foreign Exchange deposits and inflows declined in the last week, suggesting that there is a low Trading-willingness of investors.“
Are crypto overvalued currencies currently?
Based on the Token-price bubbles-an indicator of Risk of LongHash, an incubator in Singapore, is moving Bitcoin in the overvalued area 1.2. For comparison: 1.5 and higher are considered to be “bubble risk”.
Ethereum is located together with other Altcoins in the “appropriately rated” the area between -0.5 and 0.5. This may indicate that Altcoins with a Bitcoin-slip are likely to see a deeper Pullback, Ethereum, but key support zones falls.