- Litecoin is the top performing altcoin in the top 50 week by week.
- Chainlink is ready to keep growing.
- Wrapped Bitcoin’s popularity is growing in importance.
The cryptocurrency market has caught fire lately. Bitcoin passed the critical resistance of $ 12,000 and tested a new 2020 high, with all major altcoins following the lead.
The total capitalization of all digital assets in circulation rose to $ 394 billion after gaining over $ 40 billion in the past seven days. The market has largely rebounded from the previous week’s losses caused by news that one of the most popular cryptocurrency exchanges, OKEx, has suspended all digital asset / cryptocurrency withdrawals.
The best performers of the week are Litecoin, Chainlink and Wrapped Bitcoin. These altcoins were able to benefit from the recovery in the crypto market.
LTC beats the market with an increase of 18%
At the time of writing, LTC / USD is changing hands at $ 56.9. The eighth largest digital asset, with a current market cap of $ 3.2 billion, has risen over 18% in the past seven days to become the top performing altcoin of the week in the top 50.
On the intraday charts, LTC / USD is trying to move above the local resistance line at $ 56.8. Once it’s out of the way, the uptrend is likely to gain ground when the next focus is on $ 64. This barrier limited the coin’s rebound during the August consolidation pattern. A hike will bring focus to $ 69 (the highest level of 2020) and $ 70.
LTC / USD 4 hour chart
On the flip side, the initial support is at $ 51. This level was a formidable resistance for most of September and October until it was broke across the board on October 21 am amid the strong rally. Any sustained move below this area will invalidate the short-term bullish scenario and allow a deeper drop to $ 45.5 followed by $ 41.5.
Litecoin IOMP data
The on-chain data shows that a key area of resistance is nearing $ 60, as over 74,000 addresses with more than 2.6 million coins break even there.
On the other hand, however, the first supply area is approaching $ 54 as over 3.7 million coins were purchased at that price. The next supply wall is at $ 51, which coincides with the technical barrier mentioned above.
Chainlink is unstoppable once $ 13 is cleared
Chainlink (LINK) is another top performer of the week. The sixth largest digital asset is up over 16% in the past seven days and was trading at $ 12.30 at press time. LINK’s market capitalization is $ 4.8 billion, while the average daily trading volume, in line with the long-term numbers, is $ 1.47 billion.
LINK / USD 4 hour chart
On the intraday chart, LINK / USD crossed the USD 11.6 resistance with the next bullish target being hit by psychological USD 13. This barrier limited the recovery in early September and could trigger the downward correction if the LINK’s uptrend does not gain momentum. Once it’s out of the way, the uptrend is likely to gain ground when the next focus is on $ 15.6.
The initial barrier is created by the above $ 11.6 which served as channel support in September. A sustained move below this range will result in a greater sell-off of the $ 10 and $ 9.70 psychological levels.
Chainlink IOMP data
In and Out of the Money Positioning (IOMP) data confirms that getting closer to $ 13 is a strong barrier as over 4,000 addresses with nearly 17 million coins break even there. In particular, there are no significant obstacles above this area.
The strongest supply zone is approaching near USD 10.00.
Wrapped Bitcoin takes advantage of its big brother’s growth
Wrapped Bitcoins (WBTC) is a tokenized version of Bitcoin that runs on the Ethereum blockchain. Basically, it is backed by BTC, and its price follows the price of BTC, which makes it similar to a stable coin. There are currently over 110,095 WBTC in circulation while their average daily trading volume is $ 29 billion. For comparison: the average trading volume of Bitcoin is 27 billion US dollars.
Wrapped Bitcoin Chart
The DeFi boom explains the growing popularity of bitcoins with tokens as BTC holders can participate in the new lucrative industry without converting their tokens into ETH or other coins.