Altcoins EOS and Tron led the cryptocurrency market higher on Tuesday, signaling the return of speculative interest in virtual currencies outside of bitcoin and Ethereum.

EOS, Tron Surge More than 30%

Cryptocurrencies rose more than $36 billion on Tuesday, reaching a high of $435.7 billion in the early evening, according to latest available data. That’s the highest level since early March when the market peaked around $474 billion.

All major coins gained, but none more than EOS and Tron, which are currently ranked fifth and 11th by market cap, respectively.

EOS has nearly tripled in value over the past two weeks, with prices briefly approaching $16 a coin on Tuesday. At the time of writing, the cryptocurrency was trading at $15.40 for a 24-hour gain of 32%, according to CoinMarketCap. EOS is now valued at $12.6 billion with daily trading volumes approaching $3.2 billion.

The hyped up Tron project rose by a similar amount, achieving a daily high near $0.08 a coin. TRX was last seen trading at $0.076 for a 24-hour gain of 31%. With a market cap of nearly $5 billion, Tron generated more than $1.5 billion in trading volumes on Tuesday.

EOS and Tron are benefiting from the influx of capital entering the cryptocurrency market as well as news of new exchange listings around the world.

On Monday, EOS confirmed that its currency was added to the eToro trading platform, which boasts more than 9 million users. Though traditionally a forex platform, eToro has expanded significantly to offering leading cryptocurrencies like bitcoin, Ethereum, Ripple XRP and Litecoin. Various news reports have also indicated that China’s Huobi also wants to start listing EOS.

Meanwhile, Tron founder Justin Sun recently confirmed that TRX will be available on Coinbene, a Malaysian exchange. Trading in TRX will go live on Wednesday.

Bitcoin Surges

The price of bitcoin surged on Tuesday as trading volumes topped $10 billion on the major exchanges. BTC/USD rose 7.4$ to $9,627 for a total market cap of $163.6 billion.

Since bottoming near $6,000 earlier this month, bitcoin has recovered more than 50% of its value. BTC trades were valued at $10.4 billion on Tuesday, easily tops among cryptocurrencies. However, the relative gain in altcoins has diminished bitcoin’s overall share of the market to 37%. That’s the lowest since mid-February.

Bitcoin hasn’t traded above $10,000 since early March. A return to those levels seems apparent given the recent shift in market sentiment.

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.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
(3 votes, average: 3.67 out of 5)
You need to be a registered member to rate this. Loading...

Sam Bourgi

4.5 stars on average, based on 352 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.

Follow @HackedCom

Feedback or Requests?

The major cryptocurrencies are having another strong session, with all of the top 10 coins sporting gains, adding more than 5% on average since yesterday. The largest digital currencies are trading in clear short-term uptrends, with the broad declining trendlines also being broken in most cases.

That said, the short-term momentum indicators are overbought with regards to altcoins, and now several majors triggered short-term sell signals following the first signal by IOTA yesterday. While this doesn’t mean that traders should exit all short-term positions here, taking some profits and/or setting tighter stop losses is advised, as there will likely be opportunities with much better risk/reward profiles to re-enter the market.

BTC/USD, 4-Hour Chart Analysis

Bitcoin finally topped the $9000-$9200 resistance zone after a period of relative weakness, further boosting the already positive overall picture. The momentum of the move is still not stellar, but the coin is still not severely overbought, and although a deeper pullback is still likely soon and short-term traders shouldn’t open new positions here, a test of the $10,000 level is still possible in the coming days. The long-term setup is clearly bullish, and investors could still add to their holdings during the short-term pullbacks, with further support found at $8400.

ETH/USD, 4-Hour Chart Analysis

Ethereum continued to rally, despite the already overbought reading, and now the coin is severely overbought, and a correction is very likely in the coming days, so short-term traders should exit their positions or use tight stop losses here. We expect the rally to continue after a correction, and long-term investors should hold on to their coins. Resistance zones are ahead near $735 and $780, while primary support is between $625 and $645.

Altcoins Overbought but Uptrend Intact

XMR/USD, 4-Hour Chart Analysis

While correlations are getting lower and lower among the major coins, which is a bullish sign, most of them are already overbought from a short-term perspective. Although further gains are still possible, chasing those coins higher here is not a good strategy, even as the long-term setups remain encouraging.

Litecoin, ETC, and NEO are not severely overbought yet, while Ripple, Stellar, and Cardano are already in short-term corrections clearing the overbought readings, but traders should be cautious with Dash, EOS, Monero, and IOTA as they are ripe for a move lower.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
(4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this. Loading...

Mate Cser

4.5 stars on average, based on 231 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Follow @HackedCom

Feedback or Requests?

The altcoin-led rally continued since our previous look at the long-term charts, and the major coins all confirmed a new short-term uptrend. Most of the largest digital currencies also broke out from their broad declining trends, as the total value of the segment is now more than 50% above the level around the correction low.

BTC/USD, Daily Chart Analysis

The overall picture remained positive, with only Bitcoin’s weakness causing headaches for crypto bulls, as the most valuable coin is hovering close to declining trendline that dominated trading throughout the first quarter of the year.

Despite the short-term weakness, BTC is still among the stronger majors from a long-term perspective, and with the secular uptrend clearly being intact, long-term investors should hold on to their coins and add to their holdings on the short-term pullbacks.

Crucial resistance is still just ahead between $9000-$9200, with further levels at $10,000 and $11,300, while support is found near $8400, $7650, and in the $6150-$6250 zone.

ETH/USD, Daily Chart Analysis

Ethereum built upon its recent relative strength, and the coin broke out convincingly above the declining trendline, and reached the next key resistance zone between $625 and $640 before the momentum of the move stalled.

While there are still several strong zones ahead, with the closest ones near $725 and $845, barring a quick move back below the declining trendline, the coin should continue the advance. With the long-term MACD still just in neutral territory, long-term investors could add to their holdings during short-term corrections, with key support levels at $500, $450, and $400.

(more…)

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
(5 votes, average: 5.00 out of 5)
You need to be a registered member to rate this. Loading...

Mate Cser

4.5 stars on average, based on 231 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Follow @HackedCom

Feedback or Requests?