- These three altcoins have capitalized on the optimism of the cryptocurrency market.
- Waves, YFI and XRP gained over 50%, but correction may follow.
The cryptocurrency market has been on fire recently. Bitcoin broke through critical resistance of $ 18,000 and tested a new 2020 high, with all major altcoins gaining ground.
The total capitalization of all digital assets in circulation has grown to $ 535 billion, after gaining more than $ 80 billion in the past seven days. The market was driven by speculative sentiment and FOMO, caused by the breaking through of critical Bitcoin hurdles.
The best artists of the week are Yearn.Finance, Wave and XRP. These altcoins have gained over 50% in the past seven days.
Yearn.Finance hits resistance at $ 30,000
Yearn.Finance (YFI) hit the area above $ 30,000 on Friday, November 20, and fell to $ 26,300 at the time of writing. The coin has lost more than 6% overnight; however, it is still 57% higher on a weekly basis. Yearn.Finance is currently the 32nd largest digital asset with a current market capitalization of almost $ 800 million. The average daily trading volume is recorded at $ 860 million.
YFI, 4 hour chart
It should be noted that the token faces an area of significant resistance. Based on IntoTheBlock’s “In / Out of the Money Around Price” model, nearly 2,000 addresses have previously purchased more than 4,200 YFI tokens between $ 26,600 and $ 28,000. The bulls will have a hard time absorbing this supply wall. Once that happens, the price can catapult above $ 30,000 and retest $ 34,000, the peak of the previous rally.
YFI in / out of the money around the price
Meanwhile, the path to the South looks like the path of least resistance at this point as the first barrier approaches $ 25,000. The IOMAP cohort shows that only 239 addresses bought less than 1000 pieces around this price. This insignificant supply can be easily crushed by the downward momentum created by the rejection of the resistance zone.
Waves bulls aim for $ 8
Waves is another big winner of the week. The 37th largest digital asset with the current market cap of $ 670 million has jumped over 50% in the past seven days to trade at $ 6.5 at the time of writing.
The waves hit $ 2 at the end of September. After a short period of consolidation, the token resumed recovery and in mid-November regained all of the losses incurred on the August sell-off.
A strong move above the psychological resistance of $ 5 reinforced by the peak of the August rally created significant bullish momentum and pushed the price up to $ 7.37, the highest level since March 2018.
Waves, 3 day graph
From a technical point of view, the price can go back to $ 5. If the old resistance is verified as support, Waves will resume the rally and retest the recent high of $ 7.37 followed by $ 8. If the support gives way, the sell can be extended to $ 3.7 and $ 3.
XRP is the biggest winner of the top 3
Ripple’s is another winner of the week. The third largest digital asset gained more than 52% and the area retested above $ 0.43 on Sunday before falling to $ 0.40 at the time of writing.
XRP, 3 day chart
The price hit its highest level since June 2019, as the sustained move above $ 0.33 created strong bullish momentum. As FXStreet previously reported, with little to no obstacles on the way north, XRP / USD has the potential to revisit $ 0.45 before the end of the week.