Get up to date on the latest analysis and trading tips with our Crypto update week 44
- EOS Price Holds Support at the $1.00 Support
- Litecoin Relative Weakness Can Be a Positive Sign
- Crypto Market Cap Tops $1 Trillion
The Cryptocurrency EOS has been showing strong support near the $1.00 psychological level, hinting toward a resurrection of the bull trend. A favorable price development may take the cryptocurrency price near the $2.00 round number.
EOS Support Level
Given the current technical picture, EOS’ price is showing growing signs that the cryptocurrency may establish a base from which we can potentially rally toward the next big target, $2.00.
The lack of follow-through below the $1.00 level shows that the bulls are defending this level. EOS’ price only marginally dipped below $1.00 on October 13, but all daily closes were above the round number; hence a bounce from the current level is possible.
The Relative Strength Index (RSI) broke above the 50 midpoint for the first time since mid-July. The last time EOS’ RSI broke above the 50 midpoint, the cryptocurrency rallied over 83%. If EOS can replicate the same rally, it will put the price just shy below $2.00.
Looking forward: To the upside, we only have two major resistance levels at around the $1.40 level and $2.00 level. A daily break and close above $1.40 can open up the door for a notable upswing toward $2.00.
Litecoin (LTC) flashes relative weakness compared to the Altcoin index, but this may be a positive sign as it will mean LTC’s price has to do some catching up before it aligns itself with the overall crypto market performance. The strong bounce off the $50 round number and the daily RSI positive readings may aid the bullish case scenario.
LTC Relative Weakness
The relative weakness signal quantifies how weak the LTC price is in relation to the overall market. When compared to a benchmark like the Altcoin index, LTC’s price falls behind.
The Altcoin index has made a higher high, breaking above the September high, while at the same time, LTC’s price is trading below its September high of $67.42, making a lower high.
With the daily RSI consolidating above the 50 midpoint, there is hope that we have enough bullish momentum to break above the current 4-month consolidation pattern. LTC’s price has been moving in consolidation between the $65 resistance level and the $50 psychological level.
The RSI touched the highest reading since March 30, but it’s still far from being overbought. Consequently, the current bullish run has the potential to extend higher.
Looking forward: Yesterday’s daily close above $60 is another positive development for the bulls. However, since we’re still trading inside a consolidation pattern, there is still the danger of the ranging activity continuing unless we get a daily break and close above the September high.
The global crypto market capitalization tops the $1 trillion mark for the first time since mid-September. According to data provided by the crypto analytics platform CoinMarketCap, this is the first time the cryptocurrency market has hit this mark since September 13.
Bitcoin Market Cap
At the same time, Bitcoin’s market capitalization came close to reaching the $400 billion mark. As of October 31, 2022, the Bitcoin market cap is currently $393 billion. Bitcoin market capitalization surpassed the $1 trillion mark for the first time last November, but since then, it has steadily dropped by around 70%.
Meanwhile, the global crypto market is still notably down from the all-time high of $2.96 trillion recorded on November 2021.
Excluding Bitcoin, the total cryptocurrency market capitalization of altcoins reached $620 billion on October 31.
Among the top 100 crypto assets, only Bitcoin and Ethereum are worth more than $100 billion. In comparison, there are only 10 crypto assets worth more than $10 billion, including cryptocurrencies like Dogecoin, Solana, Cardano, BNB, Ripple, Tether and USD coin.
At the time of writing, the total market cap stabilized at $1.01 trillion after briefly dipping below the $1 trillion mark last Friday.
Sharding as it relates to blockchain is the technique of separating databases into smaller partitions or “shards” to reduce congestion in the systems and increase network scalability and consistency. Sharding is also used in numerous modern applications as a way to increase transactional speed in decentralized applications like blockchain networks.
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With more investors entering the market, new variants of crypto scams continue to generate . Fortunately, there are ways to identify and avoid such scams. Let’s discuss the most common types of crypto scams, and how to avoid them.