Crypto Weekly Review: EOS, Cardano Ascend as Bitcoin Eyes Back-to-Back Monthly Gains

After a difficult start to the week, cryptocurrency valuations rocketed to the north on Wednesday, led by big advances in EOS (EOS) and Cardano (ADA). Bitcoin (BTC) returned above a key psychological resistance and a bevy of small-cap players from Basic Attention Token (BAT) to Ravencoin (RVN) put up significant gains. As the tide shifts from bearish to bullish, investors should be continually cost-averaging their portfolio to optimize value.

With the exception of ADA and some of the small caps, which have surged to new yearly highs, most of the major coins are trading right around their February peak. In the process, bitcoin’s dominance rate has fallen to just over half as the ‘decoupling effect’ continues to alter market dynamics.

EOS, Cardano Lead Majors

Among the top 20 cryptocurrencies, EOS and Cardano were easily the week’s top performers.

EOS’ price surged 17.8% to $4.31, where it was testing last month’s high. The Enterprise Operating System now has a market cap of just over $3.9 billion, just shy of its ICO level and slightly ahead of Litecoin (LTC) for fourth spot on the crypto market index. From a technical standpoint, EOS is still trading within a known area of demand that tracks all the way up to $4.60.

Cardano jumped nearly 20% to $0.0685, its highest level of 2019. ADA has enjoyed a sustained push to the north for the better part of three weeks thanks to strong fundamental news surrounding the Cardano Foundation. This recently included ADA integration with the Ledger hardware wallet.

Binance Coin (BNB) was another top performer this week, gaining over 10% to reach $16.60. The native token of the Binance exchange has gained 150% this year.

Bitcoin cash (BCH) approached $170 for the first time since early January, having gained nearly 8% during the week.

The cryptocurrency market as a whole improved to $143.4 billion on Friday, just shy of the yearly high.

Bitcoin’s Back-to-Back Monthly Gains

For the first time in over a year, bitcoin is on track to record its second consecutive monthly gain. The original cryptocurrency rose 1.4% this week, bringing its March tally to 6.2%, according to CoinMarketCap. Whereas February saw bitcoin add 12% on two big rallies, March has produced steady gains that were largely absent of volatility.

Bitcoin’s 30-day volatility index has fallen to the lowest level since November 13, just before the bitcoin cash hard fork. As of Thursday, the 30-day volatility gauge was 1.26%, according to bitvol.info.

The bitcoin price reached a session high of $4,197.20 on Bitfinex Friday. It was trading north of $4,080 on most major exchanges, including Bitstamp. The daily chart shows strung underlying momentum, with the relative strength index (RSI) climbing back above 60. Price action has made a significant push north of the 50-day moving average, adding to the bullish cues.

Additional reading: Bitcoin’s Bull Case Strengthens as Transactions Surge

Rise of the Small Caps

When it comes to eye-popping returns, small-cap cryptocurrencies have given Binance Coin and Litecoin (LTC) a run for their money. Last week, we talked about VeChain (VET), Tezos (XYZ) and Ontology (ONT). This week, Ravencoin (RVN) and Basic Attention Token (BAT) took the spotlight.

Ravencoin smashed another yearly high this week, as investors continued to rally behind the tokenization platform. At its highest point, the coin traded above 7 cents, which represents a peak-to-trough gain of 700% since early February. RVN is now ranked 32nd by market cap, having gained more than 60 spots since early January. RVN is up more than 42% this week.

Additional reading: Ravencoin (RVN) Just Hit a Record High: Should You Buy?

Basic Attention Token, or BAT for short, was back to trading at three-month highs following a 50% pump over the past seven days. The rally was attributed to the forthcoming launch of a marketing campaign for the platform’s Brave browser, which seeks to transform the digital advertising landscape. BAT also received considerable attention from a recent AMA session on Reddit with CFO Holli Bohren.

Analyst’s Take and the Week Ahead

As ‘crypto winter’ continues to thaw, altcoins and tokens are taking on a life of their own. With bitcoin’s dominance rate in firm retreat, investors can expect crypto valuations to rise. Although this won’t be uniform across assets, the decoupling of bitcoin and the broader market will produce more rising stars like we’ve seen in the past three months.

Litecoin (LTC), Binance Coin and EOS are the most likely candidates to continue their ascent as they seem to be the most resistant to bitcoin’s gravitational pull. Increasingly, small caps like VET, BAT, NEM and XTZ have also demonstrated price independence relative to the original cryptocurrency.

With respect to bitcoin, key technical hurdles stand in the way of a sustained push to the north. But fundamentals are improving by the day, as evidenced by the recent surge in hash rate and transaction volumes. This comes ahead of the highly anticipated launch of bitcoin futures markets, chief among them being Intercontinental Exchange’s Bakkt trading platform. Bakkt has already raised $740 million from private investors despite having no clients.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi