- Litecoin is the best performing altcoin in the top 50 on a weekly basis.
- Chainlink is ready to continue growing.
- The popularity of Wrapped Bitcoin is gaining momentum.
The cryptocurrency market has been on fire recently. Bitcoin broke through 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 increased to $ 394 billion, having earned over $ 40 billion in the past seven days. The market has largely recovered from the previous week’s losses suffered as 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 have managed to capitalize on the upturn in the cryptocurrency market.
LTC beats the market with 18% gains
At the time of writing, LTC / USD is trading at $ 56.9. The eighth largest digital asset, with current market cap of $ 3.2 billion, has gained more than 18% over the past seven days, becoming the best-performing altcoin of the week in the top 50.
On the intraday charts, LTC / USD is attempting to break out of the local resistance line at $ 56.8. Once out of the way, the upside is likely to take hold with the next focus on $ 64. This barrier limited the currency’s recovery during the August consolidation pattern. A higher move will bring $ 69 (2020 highest level) and $ 70 in focus.
LTC / USD 4-hour chart
On the upside, initial support comes in at $ 51. This level served as a formidable resistance during the better part of September and October until it broke on October 21 amid the strong rally across the board. A sustainable move below this area will invalidate the near-term bullish scenario and allow for a deeper decline to $ 45.5, followed by $ 41.5.
Litecoin IOMP data
Data on the chain shows that a major area of resistance lies on the $ 60 approach, as over 74,000 addresses holding over 2.6 million coins have their breakeven point there.
However, on the downside, the first supply area approaches $ 54, as over 3.7 million coins were bought around this price. The next supply wall is seen around $ 51, which coincides with the technical barrier above.
Chainlink is unstoppable once $ 13 is cleared
Chainlink (LINK) is another top performer of the week. The sixth largest digital asset has gained over 16% over the past seven days, trading at $ 12.30 at press time. LINK’s market capitalization is recorded at $ 4.8 billion, while its average daily trading volume is 1.47 billion, in line with long-term data.
LINK / USD 4-hour chart
On the intraday chart, LINK / USD broke the $ 11.6 resistance with the next bullish target created by a psychological $ 13. This barrier limited the recovery in early September and could trigger the downward correction if the bullish trend of the LINK should not gain momentum. Once out of the way, the upside is likely to catch on with the next focus at $ 15.6.
On the downside, the initial barrier is created by the aforementioned $ 11.6 which served as support for the channel in September. A sustainable move below this area will trigger further selling at the psychological $ 10 and $ 9.70.
Chainlink IOMP data
Data on In and Out of the Money Positioning (IOMP) confirms that there is a major hurdle on the $ 13 approach as over 4,000 addresses holding nearly 17 million coins have their breakeven point there. In particular, there are no significant barriers above this area.
On the negative side, the strongest bidding zone is approaching $ 10.00.
Wrapped Bitcoin capitalizes on the growth of its big brother
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 stablecoin. Currently, there are over 110 095 WBTCs in circulation, while their average daily trading volume stands at $ 29 billion. For comparison, Bitcoin’s average trading volume comes in at $ 27 billion.
Bitcoin wrapped chart
The boom in DeFi explains the growing popularity of tokenized Bitcoins as it allows BTC holders to participate in the new profitable sector without converting their tokens into ETH or other coins.