Weekly Crypto Report, ADA and IOTA lead the Altseason movement

Table of Crypto performance jun 05

GENERAL OVERVIEW

The last week was a very good one for the crypto market, which registered positive returns for almost all the projects in our sample. We even had several cases of double-digit gains and a general overperformance of top coins with respect to BTC, which is almost always a sign of a healthy market.

BTC’s dominance keeps falling in in a context in which BTC itself is struggling to cross and keep the USD 10’000 level, but at the same time is not giving any sign of consistent weakness. In this scenario, altcoins are taking the center stage and the attention of investors. Altcoins’ overperformance is going on since almost a month now and an Altseason scenario could not be so difficult to imagine at this point.

In the meantime, legacy financial markets are keeping the rebound from March-lows alive and the general economic outlook is starting to moderately improve, leaving margin for the risk-on phase currently going on to prolonge.

Bitcoin price graph jun 05

Bitcoin had a good week, closing at 9’689 USD,  up 2.94% w/w.

From a technical point of view, all eyes are still on BTC ad its fight to get the 10’000 USD level. If we have a look at the weekly grapf of BTC price, we can see how this week Bitcoin was rejected at the dynamic resistance level coming from its all-time high price of December 2017 and passing through the relative high of circa 14’000 USD of June 2019.

Overall, the overperformance of top coins with respect to BTC is clearly reflected in our indexes below.

Crypto Indexes performance graph jun 05

TOP PROJECTS

All in all, the majority of the crypto projects we cover in this report overperformed BTC in a very convincent fashion. On average, results ranged from -3.98% to +32.80% w/w with a median value of +5.99% w/w, which is five points better than the last week’s one.

Scatterplot of crypto return and standard deviations jun 05

Sixteen projects out of seventeen were able to finish the week with a positive result and seven of them with a double-digit gain. Cardano (ADA) was able to cross the 30.00% gain mark, while IOTA (IOTA) realised a gain of over 20.00%.

ADA posted the best result, finishing the seven days period with a +32.80% w/w and a price of 0.08756 USD. It was the second consecutive week of the project as best performer of the group. As we already mentioned multiple times at this point, the project surged after the announcement of the Shelley update for its mainnet, which will take place on July 29th. The possibility of obtaining staking rewards through the ADA mainnet is pushing the price higher and higher and the trend in place does not seem to be slowing at all. All the other top performing coins were platforms projects, which are experiencing another period of honeymoon with investors.

ADA price graph jun 04

On the other hand, Ethereum Classic (ETC) was the worst project in our sample, losing 3.98% of its value during the week after its hard fork.

In a wider period, ADA keeps being the best performer increasing its margin on the rest, while IOTA catches the second best performer place among the coins we follow with this week performance.

crypto returns volatility jun 04

TECHNICALS

crypto price range jun 04

Looking at the last seven days’ price range, the majority of the projects are in the upper half of their price range, with ETC and Ripple (XRP) that confirm their weakness in relative terms.

crypto top projects technical signals weekly jun 05
crypto top projects technical signals monthly jun 05

On a weekly basis, none of the oins appear to be in overbought territory according to RSI, with some of them actually approaching the oversold territory or already in there, namely BTC, ADA, XLM, and ETC . Moving averages’ differences and MACD are giving more conflicting results.

On a monthly basis, Ripple appears to be in the weakest situation, while the rest of the coins are clearly trading in the upper half of their range.

We proceed to have a look at the frequency distributions of the coins’ price in terms of satoshis to have a look at the relative performances. ETC and XRP are confirming their weakness.

In a wider period, TRX improvement this week makes it besting ADA l as far as relative positioning with respect to BTC in the last 30 days.

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DISCLAIMER

The views expressed in this report reflect the analysts’ personal views about the cryptocurrencies subject of the report. These views may change without notice and are subject to market conditions. The report is prepared for information purposes only and by no means constitutes a solicitation to investment or disinvestment. All the data are taken from Binance at 14:00 UTC on the 5th of June 2020. USD and USDT are used interchangeably for illustration purposes. All the presented valuations, indicators, and analyses are subject to errors. The report is for personal use only and should not be republished or redistributed.