Altcoins and DeFi tokens breakout as Bitcoin price nears a key resistance
DOGE, KNC and KAVA are just a few of the altcoins that posted double-digit gains as Bitcoin and Ethereum price rallied to key overhead resistance levels.
Weary cryptocurrency traders awoke to the sight of green in the markets on May 2 as bulls managed to bid the price of Bitcoin (BTC) above the crucial ‘line in the sand’ resistance at $37,500, while Ether (ETH) briefly traded at $2,800.
The rising price of both BTC and Ether has been accompanied by double-digit gains in multiple altcoins, leading some to speculate that the market is currently experiencing an oversold bounce following the recent downturn.
The leader of the pack for this most recent rally is once again Dogecoin (DOGE), which rallied 28% to an intraday high at $0.4446 following the June 1 announcement that the token would be listed on Coinbase Pro and renewed Twitter promotion from Elon Musk.
Data from Cointelegraph Markets Pro began to detect the bullish turn for DOGE on May 31, prior to the recent price rise and ahead of the Coinbase Pro announcement.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for DOGE began to register green on May 31 and reached a high of 74 on June 1, just 14 hours before the system registered the NewsQuake™ announcement of DOGE being listed on Coinbase Pro which was followed by a 45% rally.
DeFi projects gain traction
Cointelegraph Markets Pro data for Kyber Network (KNC) shows that market conditions for the project have been favorable for some time.
As seen in the chart above, the VORTECS™ Score for KNC shifted into the green zone on May 31 and stayed elevated for the next two days before reaching a high of 74 on June 1 when its price began a 75% rally.
Another DeFi-focused project that was identified by Cointelegraph Markets Pro ahead of its recent price move is Kava, which has gained 36% in the past 24 hours and currently trades at $4.68.
As seen in the chart above, conditions for KAVA have been bullish for some time as evidenced by the sustained green VORTECS™ score over the past week. The VORTECS™ score for KAVA reached a high of 75 on May 31, roughly 48 hours before starting a 45% price rally.
The May 19 correction wiped out $1.2 trillion in value across the crypto market and while shockwaves from the historic correction are still reverberating throughout the market, a handful of DeFi token and altcoins are beginning to show signs of bullish momentum.
This suggests that cautious traders are slowly easing their way back into the market in hopes that the second leg of the 2021 bull market could be underway.
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.
