The cryptocurrency market capitalization on Thursday recovered by almost 6.8 percent after establishing its yearly low just yesterday.
All the top coins recorded decent bullish corrections, with Ethereum and Monero leading the charts with maximum gains. of 17 percent each. Dash, Cardano, IOTA, Tron, and Litecoin closely followed with a double-digit percentage rise in their respective values. Bitcoin, on the other hand, surged comparatively lower than its peers – around 3 percent.
The upsurge has added $12.7 billion back to the cryptocurrency industry since its bottom formation around $186 billion. There are no fundamental factors behind the impressive upside correction – not at the time of this writing. That clearly indicates that the price action could be a result of day traders attempting to make intraday profits.
That said, the market continues to stay inside a bearish bias until the top coins attempt to invalidate their respective giant descending triangles to the upside. Let’s have a look at our top performers to understand it in depth:
Ethereum 1D Chart
The ETH/USD appreciated more than 23 percent from its intraday low near 167-fiat – and is still counting the gains. The impressive price action, however, should not be confused with a return-of-the-bulls bugle. The pair has lost more than 80 percent already to the reports of ICO failures. Fundamentally, the ETH/USD is on an accurate downtrend that could attempt a substantial pullback only after the market’s bad actors exit. The descending trendline technically represents the trend in the chart above that needs breaking up to confirm at least a medium-term bull bias.
That said, a fundamentally weak Ethereum will likely resume its downtrend until the descending trendline is broken to the upside.
Monero, on the other hand, is backed by the support of underground markets – that arguably makes the best use case for cryptocurrencies. Let’s have a look:
Monero 1D Chart
Technically, Monero has already broken above its descending trendline and is looking more comfortable towards its bullish perspectives. The XMR/USD has appreciated more than 52 percent since August 15 low near 76-fiat but is currently undergoing a correction phase on a pullback from is September 4 high near 142-fiat. That amounts to 18 percent drop on shorter timeframes.
The XMR/USD would need to restest its September high for a breakout to establish a smoother medium-term bull bias. A bear pole formation from here could put the pair on a free fall towards 76-fiat – the completion of a Head and Should pattern.
Featured image from Shutterstock. Charts from TradingView.