cointelegraph.com
On April 29 Ether's (ETH) price rose to another all-time high, boosting its market capitalization to over $320 billion. With the recent rally, Ether’s market cap has overtaken platinum and PayPal to become the 32nd most valuable asset in the world, according to data from CompaniesMarketCap.
Ether’s market dominance has risen from 10.79% at the start of the year to 15.4% currently, whereas Bitcoin’s (BTC) market cap has dropped from over 70% to 48.2% during the same period.
The sharp up-move of the past few days has pushed the relative strength index (RSI) above 83, indicating the ABBC/USD pair is overbought in the short term. The pair is likely to witness strong supply in the $0.38 to $0.44 zone.
If the price turns down from this zone, the pair could correct to the 50% Fibonacci retracement level at $0.27. Generally, strong vertical rallies witness sharp corrections, hence the 38.2% Fibonacci retracement level at $0.30 may not hold.
A bounce off $0.27 will suggest that bulls are buying the dips. They will then make one more attempt to clear the hurdle at the overhead zone. If they succeed, the pair could rally to $0.57.
On the contrary, the failure to clear the $0.44 resistance may attract further selling and the pair may drop to the 20-day exponential moving average ($0.23).
FTM/USDT
Fantom (FTM) announced on April 28 that HyperChain Capital, a digital assets management company, has invested $15 million in the Fantom ecosystem through the purchase of FTM tokens. HyperChain had earlier made an investment of $2.5 million in the ecosystem in 2018. Additionally, HyperChain also runs validator nodes on Fantom through its subsidiary Hyperblocks
Other than the investment, Fantom may have also received a boost from its latest network upgrade dubbed Go-Opera on Thursday. The team claims the upgrade will radically improve network performance and reliability with the average time to finality reducing to about one second.
Fantom has announced tie-ups with SuperFarm, Clover, and Orion Protocol in the past few days, which are likely to strengthen its offering in the decentralized finance and non-fungible token space,
The protocol has been making inroads into a few Asian countries. On April 5, Fantom announced that its technology will be used by the Afghanistan Railway Authority to increase efficiency and transparency. That was followed by the announcement of a pilot with the Pakistan Punjab Prisons Department on April 13, where Fantom will implement custom blockchain Enterprise Resource Planning software.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for FTM on April 26, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
The FTM/USDT pair could now drop to the support at $0.50. If the pair rebounds off this level, it will suggest that bulls are accumulating on dips. The buyers will then make one more attempt to push and sustain the price above $0.65.
If they succeed, the pair could start the next leg of the uptrend that may reach $0.87 and then $1. Contrary to this assumption, if the bears pull the price below $0.50, the next support could be the 20-day EMA ($0.43).
This is a critical support to watch out for because a break below it could result in a fall to $0.30. A rebound off this support could keep the pair range-bound for a few days.
AAVE/USDT
DeFi has been attracting investors in large numbers in the past few months. However, as the competition heats up, the DeFi protocols have to up their game to gain market share.
To do that, AAVE launched a liquidity mining program on April 27, which is likely to increase borrowing and lending activity, attracting more investors. The current program is set to run till July, after which the community will review and alter the parameters as needed.
The liquidity mining has been introduced only on Aave V2, which may lure investors to migrate from the protocol’s version 1 iteration that still holds a sizable portion of the total value locked.
Along with focusing on DeFi, Aave seems to be pondering about building a social media protocol on top of DeFi, as highlighted in the Cointelegraph newsletter. Although further details are awaited, the experiment may generate interest among investors as the picture clears.
AAVE has been range-bound between $280 and $489 for the past few weeks. The token rallied from $314.75 on April 25 to an intraday high at $486.71 on April 28, rising 54% in four days.
In a range-bound asset, traders generally buy the rebound off the support and close their position near the resistance. The same thing can be seen in the AAVE/USDT pair, which has turned down from the $489 resistance.
The moving averages have been crisscrossing each other without a clear sense of direction, indicating the range-bound action may continue for a few more days. The price may now correct to the moving averages and if this support cracks, a drop to $320 is possible.
This view of a consolidation will invalidate if the bulls push and sustain the price above $489. If that happens, the pair could rally to $581.67 and then to the pattern target at $698.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.