The recent decline in Bitcoin (BTC) has temporarily brought its dominant position down to 49.5%, its lowest level since August 2018. This has led to an increase in the number of traders speculating that altcoins will outperform bitcoins in the short term.
In recent months, it seems that the price action of altcoins is disconnecting from bitcoins. Take ether (ETH), for example, which has reached a permanent high today despite the bitcoin price dropping 20% from its constant high.
Watch encrypted market data daily. Source: Coin360
The most important factor that could tip the scales in favor of alternative currencies was the huge rise in popularity of the decentralized finance field. New York Stock Exchange President Thomas Farley commented in an interview with CNBC that “DeFi exchanges are doing a lot, if not more, than Coinbase today.”
Let’s take a look at the basics and methods of three tokens that have grown in recent months.
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Link / USDT
Chainlink (LINK) is one of the most popular Oracle decentralized solutions. To support the rapid pace of innovation in the crypto industry, Chainlink outlined its vision for the future in a new newsletter called Chainlink 2.0 on April 15th.
The White Paper introduces a new architecture for creating hybrid smart contracts in which Layer 2 networks, called Oracle Decentralized Networks, store and compute data off the network before being entered into the blockchain. This new concept could allow developers to quickly create hybrid smart contracts similar to the application programming interfaces (APIs) that developers create in the web world.
Another positive result for LINK investors was achieved when Grayscale announced on April 6 that an alternative currency had been added to the Digital Large Cap Fund. Although the distribution is only 0.87%, the inclusion could catch the attention of institutional investors.
On April 2, Polkadot and Chainlink announced that the Chainlink price stream will be available as an Oracle pallet so that projects in the Polkadot ecosystem can integrate Oracle’s Chainlink through an optimized library.
LINK is currently correcting after a sharp rise from $ 23.61 on March 24 to an all-time high of $ 44.33 on April 15. Although the price fell below the moving average on April 18, the bulls were actively buying lichens, as evidenced by the long tail of the candle today.
LINK / USDT daily chart. Source: TradingView
Since then, bears and bulls have struggled with a 20-day exponential moving average ($ 35.89). The bulls are trying to protect the support of the 20-day moving average and begin the next phase of the bullish movement, while the bears are trying to extend the correction, breaking through the support.
The marginally high 20-day EMA and RSI above 57 indicate a slight advantage for buyers. If the bulls can push the price and hold it above $ 40, the LINK / USDT pair could test $ 44.33 again. A breakout of this resistance could start the next trend phase, which could reach $ 50 and then $ 55.72.
This bullish view will improve if the bears fall and keep the price below the 20-day EMA. Such a move could push the price down to the 50-day SMA ($ 31.42) and delay the start of the next phase of the uptrend.
Band / USDT
Band Protocol (BAND) was aired by Cointelegraph on February 2 for $ 11.14. The price has since climbed to a permanent high of $ 23.30 on April 15, up 109% in about two and a half months.
On April 15, the protocol announced that the oracle data will be published to Google Cloud Public Data, which can be used to create blockchain, traditional and hybrid cloud applications. The group said the Google Cloud public data integration was the first of a variety of use cases that were explored with partners to “connect traditional enterprises and blockchain applications.”
The groups continued to build partnerships to increase market share. Last month he announced partnerships with Krystal, Equilibrium and Polygon. In addition, Statistics Sweden 10X, one of Thailand’s largest financial institutions, has partnered with Band as a node auditor.
BAND is currently trading in a wide range from $ 11.50 to $ 20.62. The bulls pushed the price above the upper resistance in the April 15-16 area, but failed to gain a foothold on the breakout.