With Bitcoin holding firm between $22,500 and $23,500 for the past few days, one would expect the market’s altcoins to hold steady and consolidate as well. However, while Bitcoin has remained bullish, many alts were unable to sustain their market momentum, with the likes of Binance Coin, Chainlink, and EOS exhausting themselves on the price charts.
Binance Coin [BNB]
Binance Coin, the crypto-market’s most-popular exchange token, has registered a topsy-turvy price movement over the past few months. While BNB did see spurts of hikes in the months past, they weren’t to last, with the exchange token soon falling to its normative price ranges.
This seemed to be the case at press time as well as while BNB did hike by 13% on the charts, it was soon correcting itself to head towards its previous price levels. At the time of writing, Binance Coin was registering YTD returns of 134.85%. It should be noted that the said hike may have been precipitated by CZ revealing discussions on BNB coin burns.
A look at BNB’s technical indicators, however, seemed to suggest that the crypto’s downturn won’t last as Parabolic SAR’s dotted markers were well below the price candles, and Relative Strength Index was gradually steadying itself right between the overbought and oversold zones.
Chainlink, the industry’s tenth-largest cryptocurrency by market capitalization, despite a series of interrupted bullish hikes over the past few months, hasn’t quite hit the heights of August 2020. As previously mentioned, while Bitcoin has been consolidating around $23,000, altcoins like Chainlink haven’t shared such bullishness, with LINK falling by almost 19% in the last week alone.
In fact, at the time of writing, LINK was trading very close to its immediate support level on the price charts.
Following the said correction, the mouth of LINK’s Bollinger Bands seemed to be expanding slightly, a sign of incoming price volatility. Further, the red bars on the underside of Awesome Oscillator’s histogram suggested negative market momentum.
Chainlink was in the news recently after Zeus Capital implied that after Ripple, Chainlink might be the next to face the music from the United States’ regulatory agencies.
Once one of the mainstays at the top of the crypto-market, EOS, at the time of writing, was positioned 16th on CoinMarketCap’s charts. Following months of sideways movement in the months of September and October, the cryptocurrency finally saw some degree of volatility come November, with Bitcoin’s bullish movement pushing EOS to levels unseen since August.
However, it would seem that such momentum has long since exhausted itself, with the crypto falling by 25% in just a week.
The scale of the corrections was evidenced by the crypto’s technical indicators. MACD line was sharply diverging from the Signal line, and Chaikin Money Flow was dipping towards zero and pointed to capital outflows gaining strength.