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Altcoin Roundup: Post-crash prices give investors a chance to build a diversified portfolio

Welcome to Cointelegraph Market’s Altcoin Roundup, an in-depth newsletter that focuses on investing from the perspective of fundamental analysis and seeks to identify emerging blockchain projects and tokens that fill niche demands within the growing cryptocurrency market.

The concept of multi-sector investing has long been advocated in traditional finance as the conventional approach to building a balanced portfolio. Typical allocations include representation of stocks, government and corporate bonds, commodities and real estate.

Now that the cryptocurrency market has grown to a multitrillion-dollar ecosystem with numerous emerging assets, clear sectors are beginning to emerge. Savvy crypto investors looking to apply portfolio diversification practices to their holdings should begin to pay attention.

Total cryptocurrency market capitalization. Source: CoinMarketCap

The previous Altcoin Roundup discussed some of the top layer-one solutions and coins like Polkadot/DOT, Cosmos/ATOM and Solana/SOL that have been gaining prominence over the past year, but these projects could also fall under the large-cap investment umbrella alongside high-profile assets like Bitcoin (BTC), Ether (ETH) and Cardano’s ADA.

Once an investor has an adequate representation of blue-chip projects, other emerging sectors like decentralized finance (DeFi), oracles and stablecoins can be considered.

DeFi: Uniswap, Aave and PancakeSwap

Decentralized finance emerged during the summer of DeFi in 2020, and the sector helped kick off the current bull market by bringing a new level of excitement to the crypto ecosystem, which was in need of the next big innovation.

One of the best metrics used to demonstrate the rising success of DeFi as a whole is the total value locked (TVL) ranking, which collectively reached an all-time high at $157.63 billion on May 14, according to data from Defi Llama, and stands at $116.62 billion at the time of writing.

Total cryptocurrency market capitalization. Source: CoinMarketCap

The release of Uniswap’s decentralized exchange (DEX) interface — which enabled new projects to immediately launch and made tokens available to the general public — helped ignite a wave of growth and innovation across the market that continues to expand to this day.

In less than a year, Uniswap evolved into the top DEX serving the crypto community, seeing an all-time record of $5.74 billion in 24-hour trading volume during the market sell-off on May 19 and $5.37 billion in total volume locked on the platform.

Daily DEX volume. Source: Dune Analytics

The vast array of liquidity pools is the primary allure for investors looking to diversify their crypto portfolio. Through these pools, stakers have the ability to earn a yield by providing liquidity for the exchange in return for a portion of the trading fees. A number of pools offer staking returns ranging from 25% to 2,000%, and traders are able to select pools based on a variety of factors, including their appetite for risk.

While Uniswap has led the way for DEXs, there are other options like Aave’s lending platform that has emerged as the highest-ranking DeFi protocol by total value locked, with more than $14.1 billion in TVL at the time of writing.

Aave’s recent decision to offer layer-two (L2) access on Polygon has brought renewable energy to the AAVE ecosystem, as traders and liquidity gladly migrated to the lower-fee environment offered on Polygon. This resulted in a significant boost in TVL for both AAVE and Polygon’s native token, MATIC, which is now the second-ranked protocol by TVL, with $11.08 billion locked on the protocol.

Every balanced portfolio also has a small 1% to 5% allocation reserved for higher-risk assets, and the crypto market has no shortage of high-risk, high-growth assets.

For tokenholders who are open to a little more risk in return for higher yields, the Binance Smart Chain-based PancakeSwap boasts a TVL of $7.67 billion, and offers annual percentage rates (APR) of up to 482.54%, according to the project’s website, with all rewards paid out in the protocol’s native CAKE token.

Stablecoins are the new “savings accounts”

Though a token that stays pegged to a fixed value may not sound like the most attractive opportunity for investors, stablecoins have evolved to play a crucial role in the functioning of the wider cryptocurrency ecosystem.

Stablecoins often serve as the backbone of trading pairs on centralized and decentralized exchanges, as well as offering traders a simple way to lock in gains.

The two most prominent stablecoins are Tether (USDT) and USD Coin (USDC), which have circulating supplies of $60.9 billion and $21.6 billion tokens, respectively. Tether is currently the most traded crypto token, boasting 24-hour trading volumes that range from $100 billion to $290 billion.

Tether (USDT) vs. USD Coin (USDC) vs. DAI circulating supply. Source: CoinGecko

Other popular stablecoins include Binance USD (BUSD), the stablecoin created for use within the Binance Smart Chain ecosystem, as well as the algorithmically controlled stablecoin DAI, which is minted via pledging collateral on the Maker protocol.

For those looking to earn a little extra yield while in the safety of stablecoins, there are multiple options available such as depositing tokens into a lending protocol like AAVE to earn up to 5% on deposits or the decentralized stablecoin exchange Curve, which offers yields of up to 50% for some stablecoins pools offered.

Other popular options include supplying liquidity for the various decentralized exchanges like PancakeSwap, which offers 8.64% for its DAI-BUSD liquidity pool, or QuickSwap, which offers a reward plus fee of the annual percent yield of 15.01% for its USDT-USDC pool and 26.75% for its DAI-USDC pool.

Oracles

In a world that is becoming increasingly dominated by digital data, no cryptocurrency portfolio would be complete without access to an oracle provider. These entities are the industry’s heavyweights that facilitate the secure exchange of data and information within the cryptocurrency ecosystem, as well as wider financial markets.

Currently, Chainlink is one of the most dominant oracle projects and a key player that comprises a thriving open-source community of data providers, node operators, smart contract developers, researchers and security auditors.

While the Chainlink network doesn’t currently offer a direct way to earn a yield through a simplified staking or governance mechanism, it is easy for tokenholders to put their stash to work in DEX liquidity pools and DeFi protocols like Aave.

For investors who are not ready to trust decentralized exchanges and DeFi platforms, centralized yield-bearing companies like Nexo, Celsius and BlockFi are also available for crypto investors looking to earn a return on their holdings.

Centralized exchanges like Coinbase and Binance also offer direct staking capabilities. For example, investors could stake BAND for up to 11.7% APR on major exchanges.

As a result of the May sell-off, which saw more than $1.2 trillion in value wiped out of the cryptocurrency market, many of the top projects are now well below their all-time high values and trading at what some investors would describe as “bargain bin” prices.

While market participants remain unsure as to which way prices are headed in the short term, it would be wise to investigate these opportunities sooner rather than later, as the notoriously volatile crypto market can make significant moves at the drop of a hat.

Want more information about diversification into the above mentioned projects?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Altcoin Roundup: Post-crash prices give investors a chance to build a diversified portfolio

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How to verify DeFi tokens?

The recent rise of the DeFi industry has attracted the attention of many investors while the lack of solid regulations has resulted in numerous scams. In this article, we are going to discuss DeFi tokens and give some advice on what investors can do to avoid money losses.

What is a DeFi token?

In a nutshell, a DeFi token is an asset or a utility token residing on blockchain and fueling its parent service or a platform. The spike in popularity of the decentralized industry has initiated numerous DeFi protocols developed for different goals and implemented in the environment of decentralized finance. The key practical use cases of DeFi tokens include:

  • Lending and borrowing
  • Creation, transfer, and exchange of value
  • Securitization, assetization, and equitization
  • Financial options and other types of betting based on smart contracts

The value of some famous protocol tokens has increased considerably and therefore attracted the attention of investors. If we look at the Polkadot project, for instance, we can see that its DeFi token price has increased by 900% over the course of the last 5 years. 900%, and that’s no joke!

However, with the growth of the DeFi token list, it becomes more challenging to select trustworthy projects for beginning investors. In the conditions of the decentralized industry boom, dozens of new cryptocurrency tokens appear every day, 90% of which may cease to exist soon after the launch. Liquidity is another problem of crypto coins as they are created with the only purpose of quick profits.

How to choose the right assets not to get into the trap? The understanding of basic notions helps to determine more reliable DeFi crypto coins for a secure investment.

DeFi Pulse: the total value locked in DeFi has been steadily growing over the past year

What is DeFi?

So what is DeFi crypto? DeFi is a short term for decentralized finance, which is an umbrella term for decentralized financial applications or blockchain projects issuing their own cryptocurrency tokens. Their main feature is that they function without involving a third party in their work.

The DeFi platforms exclude the necessity of financial intermediaries thus forming an alternative financial infrastructure with DeFi instruments. In fact, DeFi is a reconstruction of the traditional financial system but in a decentralized environment. DeFi is based on smart contracts that will be discussed below.

What are smart contracts?

Smart contracts represent pieces of code that are used to alleviate the exchange of services, goods, funds, data, etc. The use of smart contracts is the main difference between decentralized facilities and centralized financial institutions where transactions are controlled by intermediaries.

The external data is processed without a centralized source so different mechanisms are employed for its verification. For example, reliable price feeds can be used to prove the accuracy of the DeFi tokens’ value. Smart contracts can pick up this data in an automated way and process the programmed activities accordingly.

To fuel the execution of smart contracts, tokens are used. As it’s been mentioned above, tokens are tricky as the whole industry provides fruitful ground for fraudsters of all kinds. Here’s what you can do about it.

How to verify DeFi tokens

While it’s rather challenging to enlist your token on centralized platforms, the DeFi platforms have made it simple. Thus, the most popular DeFi platform Uniswap enables the creation of open, free listings making the launch of new DeFi projects simple as 1-2-3.

On the other hand, there is no strict threshold keeping scammers away from the system, hence numerous fraud projects have emerged and flooded the industry. For instance, scammers can take a real, legitimate asset and launch a token with an identical ticker on a decentralized platform to mislead users and make them buy their worthless assets.

Those who don’t want to suffer losses invest in what is called ‘blue crypts’, which are recognized, well-established, and financially sound assets from the top DeFi coins. Numerous reputable resources come up with a list of DeFi coins that deserve to be trusted. At the time of writing, the DeFi leaderboard includes such decentralized platforms as Maker, Compound, Uniswap, Aave, and Chainlink that issue the best DeFi coins.

Here are some tips on how to select the best assets for investment and protect yourself against scams:

  • There is a high probability of losing money when there is no solid technology behind the project, especially in the case of long-term investment. Check the project’s white paper to see if there is any innovation or if the document is simply copy-pasted from somewhere else.
  • It is preferable to invest in projects that were highly assessed by reputable experts in the industry.
  • Check how big is the portion of tokens allocated for the team. A too-large percentage (20%+) may lead to centralization while the total lack of vesting is not good either. Why would not the project reward its faithful workers?
  • Explore the code or read the results of third-party smart contracts audits before investing. The failure in the code can lead to a hack and massive losses for users.
  • Analyze the whitepaper and litepaper of the project to learn more about it and assess its potential. A project with thoroughly developed documentation is less prone to be a scam.
  • There should be a team of non-shady people behind the project. The transparency of the team allows performing relevant checks on its members’ backgrounds to estimate their experience and skill set in their LinkedIn profiles, reputable publications, etc.
  • It is essential to double-check the address of the project’s website and the contract address on a DEX. Analyze such details as the total liquidity, volume, and recent transactions.
  • Use Tokenguard to read ICO reviews of the projects and verify the security of cryptocurrency tokens before adding them to your investment portfolio.

Following these guidelines wouldn’t fully protect you against losses. However, they can significantly reduce their chances. Remember: forewarned is forearmed.

How to verify DeFi tokens?

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Bitcoin price drops below $34,000, pulling altcoins to multi-month lows

On May 21 the crypto market was hit with a fresh round of fear, uncertainty and doubt (FUD) which sparked another, albeit more muted, sell-off in Bitcoin (BTC) price and a majority of the altcoins. 

For the second time in less than 3-weeks, China was again the culprit as rumors that regulators were looking to crack down on Bitcoin mining and trading. Media also reported that authorities in Hong Kong proposed banning retail traders from cryptocurrency trading.

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) bulls were holding the $40,000 support level prior to the announcement from China but quickly lost it and had to regroup at the $36,000 support before further downside ensued.

BTC/USDT 4-hour chart. Source: TradingView

While the turnaround seen across the market on Thursday helped assuage fears of the return to a crypto winter, some analysts, including Jarvis Labs co-founder Ben Lilly, correctly assessed that “we are not out of the woods” prior to Friday’s drawdown. 

Still, there is room for hope that the price of BTC could manage to hold its ground and climb higher as activity seen in whale wallets showed heavy inflows at $39,931, indicating a new possible level of support. 

Exchange activity spikes during sell-off

Cryptocurrency exchanges played a big part in Wednesday’s price action as highlighted in the recent Delphi Daily report by Ashwath Balakrishnan. 

According to Balakrishnan, Binance was responsible for:

“Facilitating nearly $100 billion worth of spot trades” and decentralized exchanges on the Ethereum (ETH) network “recording over $10 billion in volume.”

Ethereum DEX daily volume. Source: Delphi Digital

This marked the “single highest day of volume for all DEXes” on record led by Uniswap (UNI) which saw “nearly $6 billion of volume” transacted as retail traders ran for the exits.

According to Micah Spruill, managing partner and chief investment officer at S2F Capital, approximately $9 billion in value was liquidated during this week’s correction in a similar washout to what was experienced in March 2020.

All coins liquidations across centralized exchanges. Source: Coinalyze

Spruill also pointed to the “historic levels of Bitcoin being moved off the exchange on May 19 when compared to the net exchange outflows over the last several years,” highlighting the fact that this was the highest dollar denominated amount of net outflows in history and is “extremely bullish.”

To get a better grasp on the current sentiment of traders in the market, Spruill pointed out that retail wallets have continued to grow in numbers despite the market turmoil with the dip being quickly bought by retail investors, which is “a sign of continued growth and adoption.”

Spruill said:

“The number of new entities has been increasing this entire pullback as well, further pointing to the fact we have not experienced a bull cycle top but rather a local top within a large bull cycle.”

Altcoins crushed, again 

The continued pressure on Bitcoin spilled over into the altcoin market causing the majority of tokens in the top 100 to drop deeper into the red.

Daily cryptocurrency market performance. Source: Coin360

The overall cryptocurrency market cap now stands at $1.4 trillion and Bitcoin’s dominance rate is 44.3%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin price drops below $34,000, pulling altcoins to multi-month lows

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Bitcoin correction heralded as a ‘BTD’ opportunity, but what about DeFi?

Cryptocurrency investors are still picking up the pieces from the May 19 market-wide implosion which saw Bitcoin (BTC) drop to an unexpected low at $30,000. Post-mortem analysis now shows that the correction catalyzed a mad dash among traders running for the exits as the cascading sell-off resulted in a record 10,525 BTC liquidated across all exchanges. 

Altcoins were quick to follow suit as they joined Bitcoin in its plunge and hardly a token was left unscathed by the downturn as a wider-sell-off rippled across the market, resulting in a $437 billion haircut to the total market capitalization to $1.672 trillion, its lowest level since April 25.

Total cryptocurrency market capitalization. Source: CoinMarketCap

Decentralized finance (DeFi) took an especially hard hit as many of the lending protocols offer flash loans and other forms of leverage to users.

With Bitcoin and Ether (ETH) accounting for a large portion of the funds locked on such protocols, their rapid price decreases resulted in a similar decline in TVL across the DeFi sector which fell by 21.5% to $114.15 billion according to data from Defi Llama.

Total value locked in DeFi. Source: Defi Llama

The AAVE lending platform, which is currently the highest-ranked DeFi platform in terms of TVL according to DeFi Llama, saw its TVL decrease by 16% alongside a 26% decline in the price of AAVE token to $460. In the same time, MakerDAO (MKR), the second-ranked platform, saw its TVL fall by 26% with the MKR token shedding 16.5% in value.

AAVE/USDT vs. CAKE/USDT vs. COMP/USDT vs. MKR/USDT vs. UNI/USDT. Source: TradingView

And it wasn’t just the DeFi lending platforms that took a hit. Uniswap, the top-ranked decentralized exchange (DEX) saw its TVL decline by 17.4%, while its token value fell 26% to $25.60, its lowest level since the beginning of March.

SushiSwap (SUSHI) and PancakeSwap (CAKE), Uniswap’s direct competitors, experienced similar declines in TVL as well as token prices, with the price of CAKE falling by 25% and SUSHI collapsing by 30%.

Of course, no market downturn would be complete without some nefarious actors getting involved as was the unfortunate case for the Binance Smart Chain-based Venus (VXS) lending platform. The protocol suffered a series of price manipulations that resulted in more than $200 million worth of DeFi liquidations and over $100 million worth of bad debt on the protocol.

As a result of the attack and the overall market downturn, XVS price dropped 50% to mark a swing low at $55 and the total value locked on the protocol decreased by 46%.

In the course of a few days, the market went from chatter about the possibility of the ‘summer of DeFi 2.0’ to blood on the streets and concerns of an impending multi-year bear market. This is just the latest example of why investors shouldn’t get too comfortable in the crypto market because circumstances can change at the drop of a hat.

Despite the current downturn, DeFi’s transformational journey to reshape financial markets is just beginning and this correction could present a rare bull-market buying opportunity for those who are brave enough to recall Warren Buffet’s famous line which urges investors to:

“Be greedy when others are fearful, and fearful when others are greedy.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin correction heralded as a ‘BTD’ opportunity, but what about DeFi?

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Price analysis 5/19: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, BCH, LTC, UNI

Bitcoin’s (BTC) massive bloodbath on May 19 resulted in panic selling across the board. Several major altcoins nosedived between 25% to 50% during the day. The extent of the fall shows that many large traders may have dumped their positions and leverage traders may have been roasted.

In a report to its clients on Tuesday, JPMorgan Chase analysts pointed out that institutional investors were abandoning Bitcoin in favor of gold. Considering the volatility ratio of Bitcoin to gold, JP Morgan believes Bitcoin’s current fair value is $35,000.

Daily cryptocurrency market performance. Source: Coin360

The massive fall today is likely to scare several institutional investors and delay their entry into the space. Although there will be periodic rebounds and sharp bear rallies, the next bull run may not start in a hurry.

Galaxy Digital founder Mike Novogratz also told CNBC that the decline feels like capitulation and this breakdown may not be fixed quickly.

After the sharp decline and the subsequent rebound, let’s analyze the charts of the top-10 cryptocurrencies to determine the support and resistance levels.

BTC/USDT

Bitcoin’s close below the neckline on May 17 completed the bearish head and shoulders pattern. The buyers attempted to push the price back above the neckline on May 18 but failed as seen from the long wick on today’s candlestick.

BTC/USDT daily chart. Source: TradingView

The selling picked up momentum today and turned into capitulation as the BTC/USDT pair plunged to $29,257.95, exceeding the H&S pattern target at $31,653.73. This fall has pushed the relative strength index (RSI) deep into the oversold territory for the first time since March 2020.

Generally, after such a sharp fall, a pullback can be expected because traders who initiated short positions at higher levels may book profits and aggressive bulls may have purchased near the critical support at $28,850.

The long tail on the candlestick suggests strong buying on dips but the rise from the current levels may not be easy because the bulls are likely to encounter massive supply at the neckline. If the price turns down from this resistance, the pair could consolidate in a large range between $28,850 and $44,000 for the next few days.

ETH/USDT

Ether (ETH) broke below the 50-day simple moving average ($2,760) and the 61.8% Fibonacci retracement level at $2,467.78 today. This resulted in panic selling and the biggest altcoin plummeted below the 78.6% retracement at $1,949.41 to hit an intraday low at $1,801.60.

ETH/USDT daily chart. Source: TradingView

However, a minor positive is that buyers have aggressively bought the dip as seen from the long tail on the candlestick. If the bulls can sustain the price above the 50-day SMA, the ETH/USDT pair could rally to the 20-day exponential moving average ($3,370). This move is likely to attract selling from the bears because the sentiment has turned negative.

If the price turns down from the 20-day EMA, the pair may drop to the 50-day SMA. If this level holds, the pair may consolidate between the moving averages.

On the other hand, if the bears sink the price below the 50-day SMA, the pair may gradually drop to $1,801.60. If this level holds, the pair could remain range-bound for a few days. However, if the bears sink the price below $1,801.60, the down move may reach $1,289.09.

BNB/USDT

The buyers defended the $480 support on May 17 and 18 but the incessant selling today dragged Binance Coin (BNB) to $280. With today’s decline, the altcoin came close to a 100% retracement of the bull run that started from $233.81 on March 26.

BNB/USDT daily chart. Source: TradingView

The moving averages are on the verge of a bearish crossover, indicating the trend has changed from bullish to bearish. Any relief rally from the current level is likely to face stiff resistance at $428 and again at $480.

If the price turns down from either level, the BNB/USDT pair may retest $233.81. If this level also gives way, the next support is at $186.10. The bulls are likely to defend this zone aggressively.

ADA/USDT

Cardano (ADA) formed an inside-day candlestick pattern on May 18, which showed indecision among the bulls and the bears. The uncertainty resolved to the downside today, resulting in a massive long liquidations by the bulls.

ADA/USDT daily chart. Source: TradingView

The capitulation pulled the ADA/USDT pair down to $0.95 today, its lowest level since April 23. However, the bulls have purchased the dip aggressively as seen from the long tail on the day’s candlestick.

If the bulls can sustain the price above the 20-day EMA ($1.74), it will suggest strong demand at lower levels. The pair may then consolidate between $1.48 and $2 for a few days. Conversely, if the price turns down and breaks below $1.48, the pair could gradually drop to $1.

DOGE/USDT

Although Dogecoin (DOGE) sustained above the 20-day EMA ($0.46) for the past few days, the bulls could not achieve a strong rebound. This showed a lack of demand at higher levels.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair broke below the 50-day SMA ($0.30) and hit an intraday low at $0.21. The bulls have purchased the dip aggressively as seen from the long tail on the day’s candlestick.

If the bulls can sustain the price above $0.35, the pair could rise to the 20-day EMA. This level is likely to attract selling and the pair may then remain range-bound between the moving averages for a few days.

XRP/USDT

XRP pierced the resistance line of the symmetrical triangle on May 18 but the long wick on the candlestick suggests the bulls could not sustain the breakout. The price reversed direction today and plummeted below the support line of the triangle, which may have resulted in huge long liquidations.

XRP/USDT daily chart. Source: TradingView

However, the long tail on today’s candlestick suggests the bulls purchased the dip to the critical support at $0.88. The buyers will now try to push the price back into the triangle but they are likely to face stiff resistance at the moving averages.

If the price turns down from the 50-day SMA ($1.31), the XRP/USDT pair could again gradually drop to $0.88. If the support holds, the pair may consolidate between $1.20 and $0.88 for a few days.

DOT/USDT

Polkadot (DOT) attempted to take support at the moving averages on May 18 but the demand fizzled out at $42.59. The altcoin turned down today and deep dived to $18, the lowest level since Feb. 3.

DOT/USDT daily chart. Source: TradingView

If the price closes below $26.50, the bears may continue to pound the DOT/USDT pair and retest the $18 support.

On the contrary, if the relief rally sustains above $26.50, it will suggest the capitulation may be over. The pair could then gradually move up to $32.50 and then to the moving averages.

If the price turns down from the overhead resistance but stays above $26.50 during the next decline, a range-bound action may ensue.

BCH/USDT

Bitcoin Cash (BCH) attempted at recovery on May 18 but could not rise above the 20-day EMA ($1,134). The long wick on the day’s candlestick showed that traders are selling on rallies to stiff resistance levels.

BCH/USDT daily chart. Source: TradingView

The selling picked up momentum after the BCH/USDT pair broke below $940 and the next critical support at $686.75. The pair finally hit an intraday low at $473.84, its lowest level since March 26.

Aggressive bulls seem to have purchased at lower levels, resulting in a strong recovery as seen from the long tail on the candlestick.

However, the relief rally is likely to hit a hurdle near $940. If the price turns down from this resistance, the pair could consolidate in a large range between $442.96 and $940 for the next few days.

LTC/USDT

The bulls defended the 50-day SMA ($272) on May 17 but they could not extend the recovery above the 20-day EMA ($299) on May 18. This suggests that traders sold their Litecoin (LTC) positions during the relief rally.

LTC/USDT daily chart. Source: TradingView

Today, the selling resumed and the LTC/USDT pair plunged below the 50-day SMA and the support line of the broadening wedge pattern. This may have resulted in panic selling, dragging the price down to $143.57, the lowest level since Feb. 05.

If the price closes below the support line, the bears may resume selling and a retest of $143.57 may be on the cards. Conversely, if the price climbs back into the wedge, the pair may rise to the moving averages where it is again likely to encounter selling from the bears.

UNI/USDT

Uniswap (UNI) broke below the support line of the ascending channel on May 17 but the bulls pushed the price back into the range on May 18. However, the buyers could not clear the hurdle at the 20-day EMA ($36), indicating selling at higher levels.

UNI/USDT daily chart. Source: TradingView

The UNI/USDT pair turned down today and broke below the support line of the channel. The selling picked up momentum after the $25.52 support cracked. This may have caused long liquidation, resulting in a drop to an intraday low at $16.

However, the positive sign is that the bulls purchased this dip and are attempting to start a relief rally. This rally may face stiff resistance at $30 and then again at the moving averages. If the price turns down from this resistance, the pair may drop to $25.52 and remain range-bound for a few days.

Alternatively, if the price closes below $25.52, the bears may try to build on their advantage and sink the price to $16.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Price analysis 5/19: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, BCH, LTC, UNI

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