During the last year, most altcoins have followed a similar trend w.r.t. respect to each other. Bitcoin’s dominance and price changes has been the leading factor causing price changes in altcoins.
Nonetheless, we have had a glimpse of the alt-season from the past couple of months. One notable trend that is beginning to form is how some altcoins move together.
Bitcoin Cash [BCH] and Bitcoin SV [BSV], the two hard-forks of Bitcoin, have had certain degree of correlation in price movements. However, the volatility in Bitcoin SV is higher than BCH. Hence, the risk-reward ratio is higher as well.
‘Hash-rate follows price’ – Hence, the rise in price is also causing an increase in the total hash rate of the cryptocurrencies as well.
Bitcoin SV miners failed at their attempt to lead the BCH hash-rate, as the price took a bullish run. The movements in the total hash rate of these two cryptocurrencies are very close.
XRP and XLM
One other pair which usually moves in tandem are XRP and Stellar [XLM]. The correlation between most altcoins have been positive in the last year. Nevertheless, the movements between these altcoin pairs are synced more closely together.
In the past few days, the trend between XRP and XLM was noticed once again as they record equivalent gains of nearly 20%. The gains in one usually prompt traders’ attention towards the other as well.
Recently, the exchange tokens also exhibited similar gains following the run-up in OKex Coin [OKB]. The correlation between these pairs can be used to implement diversification of one’s portfolio altcoins portfolio.
What are some of the other crypto pairs that move together? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com