Bitcoin (BTC) price continues to defy gravity and strong bullish breakouts often lead to short sellers quickly covering their positions. A repeat of this occurred on February 9 when Bitcoin rallied following news of a $ 1.5 billion Bitcoin purchase from Tesla. Bybt data shows that $ 1.34 billion Bitcoin futures were liquidated due to the sharp rally.
Another notable event is the launch of CME Ether (ETH) futures contracts on February 8th. Many traders feared that the launch would drive down Ether prices, similar to the weakness seen in Bitcoin shortly after the futures launch in 2017. However, that hasn’t happened and the ether is still going strong.
Besides the major cryptocurrencies, several small tokens with strong use cases also performed well. Let’s examine three codes that have performed well in the current bullish environment.
HNT / Dollar
The number of daily use tools connected to the Internet has increased over the years and with more added, Helium (HNT) wants to allow users and companies to build, connect and send data over a network of nodes.
The number of new helium nodes saw a sharp jump from 3,271 active nodes at the end of April 2020 to the 18,001 active nodes in active use today. Another positive sign is the sale of the original helium miner, but the company recently formed a partnership with three new third-party manufacturers for its mining hardware.
The number of hotspots in use could receive a further boost as Helium plans to enter China in March and has been linked with HBTC to meet the massive demand in Southeast Asia.
In terms of use case, the network is trying to solve parking issues, autonomous cooling tower operating systems, real-time monitoring of agricultural commodities, and support for COVID-19 medical innovations. The network growth and use cases show a positive picture of the protocol.
HNT rose from an intraday low of $ 2,160 on February 1 to an intraday high of $ 4.009 today, an 85% rise in no time. The trend favors the bears but the bears are not ready to accept defeat yet.
The long wick in the candles from Feb 6th to Feb 8th shows bears selling aggressively near the $ 4 resistance level. However, sellers were unable to capitalize on this strength and initiate a deeper correction.
This has drawn buying on the dip by the bulls and traders are currently trying to push the price above $ 4 and resume the bullish trend. If they succeed, the HNT / USD pair could rise to $ 5.15.
On the other hand, if the price falls again from current levels, the pair may consolidate in a narrow range for a few days. The Relative Strength Index (RSI) above 80 indicates that markets are overheating in the short term and may be ripe to enter a corrective or consolidation phase.
The first sign of weakness will be a breakdown and close below the 20-day exponential moving average ($ 2.712).
Avax / USD
Traders use many strategies to make money in the markets and among them, algorithmic trading, is rapidly gaining popularity as it removes emotions from trading. Velox plans to bring algorithmic decentralized exchange trading to Avalanche (AVAX) in the first quarter of this year, which may attract a new breed of traders.
Besides the various trading products, risk management also plays a major role in a trader’s success. To meet this requirement, Avalanche is working to integrate with the DSLA and UNION protocol to provide risk control and insurance services to DeFi users.
True decentralization occurs when most operations are devoid of centralized services. Often times, developers have to rely on centralized cloud services for their application database and computing. To address this issue, Avalanche has partnered with Aleph.im to provide decentralized cloud services to teams building new products.
Stable currencies play an important role in the crypto world, and electronic money has announced plans to launch several European stablecoins such as the digital euro, Swiss franc, Norwegian kroner, Swedish krona and Danish kroner into an avalanche.
OKCoin also became the first US exchange to add support to AVAX and began trading from February 3. OKCoin also plans to drop over $ 1 million in AVAX tokens in the next few days.
AVAX jumped from $ 10.80 on Jan 28 to an intraday high of $ 33.8167 on Feb 8, a 213% rise in about two weeks. This sharp bullish move pushed the RSI above 90, indicating that the markets have been in the short-term overbought territory.
This resulted in a profit taking on February 8th, as evidenced by the long wick on the candlestick today. The selling continues today and the bears will now try to push the price down to the 38.2% Fibonacci retracement level at $ 25.0129.
If price bounces off this support, it will indicate that traders are eager to buy on a shallow pullback. The bulls will then try to resume the uptrend again. If they manage to push the price above $ 33.8167, the AVAX / USD pair could rise to $ 47.
On the other hand, if the price drops below $ 25.0129 for the bears, the correction may deepen to the 20-day moving average ($ 16.90). Such a move would indicate weak momentum. The pair can then stay inside the range for a few days before the start of the next trend movement.
Pickled / US Dollar
Buybacks have been one of the preferred mechanisms that companies use in legacy financing to boost the value of their shares. The company’s treasury also acts as a source of funds that ensures the company’s liquidity and minimizes operational and financial risks.
Pickle Finance (PICKLE) fulfilled these two functions with the launch of its Smart Locker, which not only serves as a PICKLE-consuming buyback mechanism that can be used in community initiatives.
Pickle launched two new canisters, one with BAC / DAI and the other with MIC / USDT in January, which delivered astronomical returns. While conventional banks are paying little returns on deposits, it is not surprising that Pickle’s high yields are a big pull.
The protocol announced that DILL, developed in conjunction with Yearn Finance, has passed several audits and is ready for implementation. Investors who lock in PICKLE coins for four years will receive DILL, which is the non-tradable symbol. DILL owners will receive withdrawal, performance, and protocol fees plus rewards on their deposits.
PICKLE rose from its intraday low of $ 13.69 on Feb 1 to an intraday high of $ 35.89, a 162% gain in no time. The token saw widespread moves between February 6 and 8, pushing the RSI above 84.
Usually, after a period of large daily ranges, volatility decreases and price trades in a narrow range. The PICKLE / USD pair formed an inside candlestick pattern today, indicating hesitation among the bulls and bears about the next trend movement.
If hesitation to the upside recedes and the bulls push the price above $ 35.89, the pair may continue its uptrend and reach $ 44 then $ 50 as the bears are likely to form stiff resistance.
Contrary to this assumption, if the downtrend uncertainty is resolved and the price bears sink below $ 27.72, the pair might drop to the 20-day moving average ($ 20.51). If this happens, the pair may consolidate for a few days before taking the next directional move.
The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risks, you must do your research when making a decision.
