Judging from price action, small cap altcoins are well-positioned to gain against the USD, and a 10-15% pump could be on the table.
Other big cap altcoins including Cardano (ADA), Tezos (XTZ), and EOS may also register decent gains against the greenback.
While there are bullish hints against Ripple (XRP), its performance relative to BTC is dismal and bearish.
This is the analysis of one crypto analyst who took to Twitter to express his two cents.
The reception has generated discussion from the community and some traders are confident of his assessment.
Small cap altcoins are characterized by low market capitalization against both the USD and BTC, are fragile and also volatile because of low liquidity.
These coins are mostly paired against BTC, USDT, and ETH. Only but a few are paired directly against the greenback. Some of them include ADX, MATIC, and TOMO. But the list is long and comprises of promising projects.
Meanwhile, large cap altcoins enjoy deep liquidity and sharp movements against BTC or USD often become a source of discussion. EOS, ADA, and ETH are examples.
This notice is a net positive for the altcoin community and perhaps even revive talks of an altcoin season. That’s when prices of altcoins across the board expand, consequently increasing their market share.
Although aware of the risks associated with small caps, most of which were decimated in the ravaging crypto winter of 2018, a timely entry could yield superior ROI considering its low liquidity.
As they are positively correlated with BTC, a small pump in the former often leads to 5-10X surge in altcoins, a behavior that is well notarized.
The analyst zeroed in on ADX, a token for the AdEx, an advertising platform.
While at it, MATIC also looks promising. As reported by CoinGape, the US cryptocurrency exchange, Coinbase said it would support the token in their custodial service.
Through Coinbase Custody, users will deposit and withdraw MATIC, the first Binance’s IEO. They also announced their partnership with WhiteBit, a crypto-to-fiat exchange, in a move that will boost its liquidity.
Although the token’s performance is below average and up 5% in the past 7 days, developers plan to launch their Beta Mainnet in Q1 2020. Then, staking will be possible.
Coins as ADA and EOS are also buoyed by mixed news but up 15% and 14%, respectively.
In a recent AMA, Charles Hoskinson said IOHK, the development team of Cardano, will update Haskell Wallet this week.
Meanwhile, Block One, the publisher of EOSIO platform, said its highly anticipated social media dapp, Voice, will launch on a private network.
To keep track of DeFi updates in real time, check out our DeFi news feed Here.
Goldman Sachs, the global investment banking giant has reopened its crypto trading desk, first started…
Jurrien Timmer, Director of Global Macro Fidelity Global Asset Allocation believes Bitcoin has evolved as…
Cryptocurrencies continue to entice some of the biggest global investors and even those who were…
After staying under solid pressure over the last weekend, Bitcoin (BTC) is once again back…
Twitter Inc. the social media giant has announced $1.25 billion in convertible notes days after…
Cryptocurrencies are becoming mainstream. From Visa’s and Mastercard’s approval to Paypal’s and Revolut’s foray into…