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- These three altcoins took advantage of the optimism of the cryptocurrency market.
- Waves, YFI and XRP gained over 50%, but the correction may follow.
The cryptocurrency market has been on fire recently. Bitcoin broke through the critical resistance of $ 18,000 and tested a new 2020 high, with all significant altcoins gaining ground.
The total capitalization of all digital assets in circulation has increased to $ 535 billion, having earned over $ 80 billion in the past seven days. The market has been driven by speculative sentiments and FOMO, caused by Bitcoin’s essential clearing barriers.
The best performers of the week are Yearn.Finance, Wave and XRP. These altcoins have gained over 50% in the past seven days.
Yearn.Finance hits the resistance at $ 30,000
Yearn.Finance (YFI) reached the above $ 30,000 area on Friday November 20 and retreated to $ 26,300 at the time of writing. The coin lost more than 6% on a daily basis; however, it is still 57% higher on a weekly basis. Yearn.Finance is currently the 32nd largest digital asset with a current market capitalization of nearly $ 800 million. The average daily trading volume is recorded at $ 860 million.
YFI, 4-hour chart
It is worth mentioning that the token is facing an important area of resistance. Based on IntoTheBlock’s “In / Out of the Money Around Price” model, nearly 2,000 addresses had previously purchased over 4,200 YFI tokens between $ 26,600 and $ 28,000. The bulls will have a hard time trying to absorb this supply wall. Once that happens, the price can catapult above $ 30,000 and retest for $ 34,000, the previous maximum recovery.
YFI In / Out of the Money Around Price
Meanwhile, the road to the South appears to be the path of least resistance at this stage, as the first barrier approaches $ 25,000. The IOMAP cohort shows that only 239 addresses bought fewer than 1,000 coins around that price. This insignificant offer can easily be destroyed by the downward momentum created by the rejection from the resistance area.
Waves bulls aim for $ 8
Waves is another big winner of the week. The 37th largest digital asset with current market capitalization of $ 670 million has jumped more than 50% in the past seven days, to be trading at $ 6.5 at the time of writing.
The waves bottomed out at $ 2 at the end of September. After a brief period of consolidation, the token resumed recovery and by mid-November it regained all the losses it suffered during the August sales.
A strong move above the $ 5 psychological resistance, reinforced by the August recovery high, created significant bullish momentum and pushed the price to $ 7.37, the highest level since March 2018.
Waves, 3-day chart
From a technical point of view, the price could drop back to $ 5. If the first resistance is tested as support, Waves will resume the rally and retest the recent high of $ 7.37, followed by $ 8. If the support breaks down, the sell-off can be extended towards $ 3.7 and $ 3.
XRP is the biggest winner in the top 3
Ripple’s is another winner of the week. The third-largest digital asset gained over 52% and tested the area above $ 0.43 on Sunday before retreating to $ 0.40 at the time of writing.
XRP, 3-day chart
The price reached its highest level since June 2019 as the sustainable move above $ 0.33 created strong bullish momentum. As FXStreet previously reported, with little to no barrier on the way north, XRP / USD has the potential to revisit $ 0.45 before the end of the week.
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