Crypto wrap: Market looks ‘a bit overbought’; IoTeX enjoys a ‘massive pump’ on exchange listings
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Cryptos could be due for a pullback after such a strong run of gains, one Australian analyst has warned.
Since July 21, the overall cryptocurrency market has soared 62 per cent, going from US$1.19 trillion to US$1.9 trillion. There’s been just two days of declines (on August 2-3) amid the 20 days of advances.
Bitcoin has rallied 55 per cent in those 22 days, going from US$29,330 to US$45,639, while Ethereum has risen 84 per cent, from US$1,718 to US$3,178.
“The last three or four weeks, it’s been a very strong run, especially Ethereum,” Sydney-based City Index analyst Tony Sycamore told Stockhead.
“But looking at the price action has been really interesting, because the news — aside from that London fork — hasn’t been particularly positive,” Sycamore said, noting that a crypto-friendly compromise in Joe Biden’s $1 trillion infrastructure bill fell through at the last minute.
“For the last 24 to 48 hours, I would have thought that the cryptocurrency market would have reacted quite negatively to that. But it’s held onto those gains.
“In the short-term now, I think there could be a pullback, particularly in something like Ethereum that’s run particularly hard. I suspect we’ll see a pullback towards US$2,800, US$2,600 — in that area would offer a very good opportunity to buy.”
Bitcoin has had a respectable but less stellar run, and is holding above its 200-day moving average of around $45,000, Sycamore said. But the original crypto seems to be losing momentum as well.
“My gut sense is there’s going to be a pullback in the short term, before we go higher again,” said Sycamore. “So for me, they look a little bit overbought, due for a breather, and then we go higher again.”
Just 20 of the top 100 tokens had lost ground in the 24 hours to 3.12pm AEST, while the overall crypto market was up 1.6 per cent.
BTC was down 0.2 per cent to US$45,596, while Ether was up 0.2 per cent to US$3,177.
A token called IoTeX was the biggest gainer, soaring 95 per cent in the past 24 hours after being listed on Coinbase Pro and Binance Futures.
The private “blockchain-within-a-blockchain” for the internet of things hit an all-time high of US14.16 before lunch and was trading at 13.29c at 3.17pm AEST.
— 🐺 T h e C r y p t i c W o l f 🐺 (@TheCrypticWolf1) August 11, 2021
IoTeX tokens were trading for just US2.2c over the weekend had haven’t changed hands for more than 5c since May.
Question of the day;
— Michaël van de Poppe (@CryptoMichNL) August 11, 2021
The token is currently the No. 81 crypto with a market cap of US$1.29 billion.
XDC Network also pumping hard, rising 49.3 per cent to US14.7c. The token is an “enterprise-ready hybrid blockchain for global trade and finance”.
Last week it launched a decentralised email solution, LedgerMail, in partnership with Pingala Software.
$XDC is giving me life today!!!!!
— Crypto Fo (@XRPeeznutz) August 12, 2021
— 🆇🆁🅿🅶⭕️🆁🅳 🇨🇦 (@xrpgord) August 12, 2021
TrueFi’s TRU token had hit an all-time high as well, at US90c. (For what it’s worth, Stockhead on Monday quoted Apollo Capital’s David Angliss as saying the coin for uncollateralized lending looked undervalued).
BitTorrent, XRP, Telcoin, Klaytn, Tron, Polygon and Yearn.finance were the other double-digit gainers in the top 100, rising between 17 and 11 per cent.
On the flip side, Helium and Axie Infinity were both down after yesterday’s strong gains, falling 10.1 and 6.5 per cent, respectively. Safemoon fell 6.6 per cent.