And the Altcoins Shall Lead Them

•  ChainLink (LINK) has held support well and jumped above its moving average.

•  As exchanges add new altcoin options and exposure increases, prospects for a true “alt season” get better and better.

So far today, price action for both Bitcoin (BTC, Tech/Adoption Grade “A-”) and Ethereum (ETH, Tech/Adoption Grade “A-”) looks a lot like yesterday’s movements.

So, let’s cover some of the altcoins that have had notable performances so far this week.

Chainlink is up about 6% so far today, bouncing back above its 21-day moving average and knocking on the door of $30. A close above $30 would be a bullish sign for LINK and could potentially lead to another shot at a new all-time high. 

News has been good so far this week, as LINK is one of five new products added to the Grayscale lineup. The decentralized oracle network is gaining adoption and could become a cryptocurrency mainstay as this bull market progresses. 

All of this has us leaning bullish on LINK; we’re looking for a test of $32 at some point in the next few days. 

Here’s LINK in U.S. dollar terms via Coinbase:

Cardano (ADA, Tech/Adoption Grade “B-”) had a very good day yesterday, gaining 20% to cross back above its 21-day moving average. The $1.00 level held as a strong support over the past week, and ADA is now trading at about $1.23.

The strong showing at $1.00 by the ADA bulls should be an encouraging sign to investors, as Cardano was overdue for a cooling-off period but managed not to fall too far during the correction. 

The next upward resistance level is $1.30, after which ADA should make a run at its recent high of $1.54. If ADA can close above its moving average today and tomorrow, a run at $1.54 is likely.

Here’s ADA in U.S. dollar terms via Binance:

Filecoin (FIL) has been on an absolutely amazing run since February. Starting at $22 on Feb. 1, it’s trading at $79 today on news of being added to the Grayscale lineup. FIL is up about 25% today and almost 90% over the last seven days. 

Filecoin is a blockchain file storage solution that offers competitive prices relative to non-blockchain alternatives such as Amazon Web Services.

It was a 2017 ICO darling that generated a lot of hype before going dormant during the crypto winter of 2018-19. It finally launched in October 2020, though it’s just now reigniting some of that initial hype.  

There might be more room to the upside for FIL especially as institutions now have the means to invest through Grayscale. 

Here’s FIL in U.S. dollar terms via Coinbase:


Notable News, Notes and Tweets

•  NYDIG CEO Robby Gutman hinted at a new wave of crypto adoption.

•  Gutman might be onto something: Morgan Stanley (NYSE: MS) is now offering access to Bitcoin funds.

•  We still have a long way to go, though, as respected financial news outlets are still publishing underinformed opinion pieces like this one.

What’s Next

The most interesting thing in today’s cryptocurrency news is that the total market cap for the industry is up even though both Bitcoin and Ethereum are down.

The reason for this “phenomenon” is the altcoin market. 

It’s definitely too early to give an official call to the start of altcoin season. But it is safe to say we’re starting to see things heat up in those markets.

Institutions will soon have access to five new altcoins via Grayscale, and retail exposure is increasing as well with Coinbase adding a few new assets in recent days. More demand usually results in higher prices due to basic economics. And it does seem that altcoin demand is trending upward. 

Not all altcoins will rise with the tide here, so stick with us as we separate substance from hype. 

Best,

Alex

About the Crypto Analyst

Alex has been actively researching and investing in cryptocurrencies since 2017. He contributes research and reports to several Weiss crypto publications, with a primary focus on helping to create crypto trading strategies.

Crypto
See All »
A
ETH $3,604.43
B
ALGO $0.154876
B
B
ADA $0.418144
B
B
B
B
SOL $149.80
B
UNI $11.56
B
ZRX $0.471385
B
AAVE $85.22
B
ARB $0.93357
B
CRO $0.09882
B
B
B
B
MKR $2,431.37
B
Crypto Ratings
Loading...
Weiss Ratings