Ethereum, XRP, EOS, Litecoin: Crypto Markets Cling to $130 Billion as Majors Diverge
The top ten cryptocurrencies diverged on Thursday, with EOS and Litecoin leading a narrow contingency of gainers against Ethereum and XRP, which traded in the opposite direction. Cryptoassets are on track for their best month since July, rekindling optimism that the worst of the bear market had passed.
Crypto Market Update
The cryptocurrency market consolidated just north of $130 billion on Thursday, as bitcoin stabilized and the major altcoins diverged. At the time of writing, bitcoin was valued at $3,875, where it was virtually unchanged compared with Wednesday.
Ethereum, the second-largest cryptocurrency by market cap, weakened slightly to $138.39. That represents a decline of 1.1% compared with Wednesday.
XRP slipped 2.2% to $0.3127. The so-called banker’s cryptocurrency is holding comfortably above $0.3000, a level that proved difficult for the bulls to penetrate before. The next target is $0.3500, which represent a known area of supply.
Further down the crypto market index, bitcoin cash dipped 1.5% to $132.76. Stellar and Tron each fell 1.5%.
On the opposite side of the ledger, EOS gained 1.7% to $3.57. The Enterprise Operating System has outperformed the market in recent weeks but was recently subject to a cyber attack that compromised $7.7 million worth of digital currency.
Litecoin’s price climbed a mere 1.2% to $46.36 but the technical charts show a bullish formation re-emerging. The bulls are being aided by a major adoption push by the Litecoin Foundation, which recently announced two new partnership. Read: LTC/USD Bulls are Sharpening Their Horns; Litecoin Foundation Announces Two Big Partnerships for Mass Adoption Efforts.
Cryptos Eye Best Month Since July
While the bear market is far from over, crypto markets are on track for their best month since July. Coin valuations have risen by a combined $18 billion in February following multiple aggressive spikes to the north. The biggest occurred last weekend when the total market cap reached $144 billion. That rally pushed the majors into overbought territory, resulting in a sharp drop just hours later.
Bitcoin is also on track to snap a six-month losing streak that has shaved more than 60% off its market cap. At last check, the largest digital currency was tracking monthly gains of around 12%.
Although traders continue to discount market fundamentals, crypto adoption within business and institutional circles is clearly on the rise. During the bull market of 2017, such news would have sent prices rocketing higher. The disconnect between fundamentals and prices cannot go on indefinitely.
Unlike previous rally attempts, the latest uptrend in cryptos is being aided by a massive surge in trade volumes. At their highest point last weekend, virtual currency exchanges processed more than $40 billion worth of cryptocurrency trades. That’s the highest in over a year.
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.
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