Cryptos' Shared Fate


Assuming that a project is isolated from the market is nearly impossible in the crypto ecosystem. Even in the extreme examples such as the unique cycle of XRP & XLM, they follow a similar pattern in the whole crypto market cycle.

The market has interesting dynamics in terms of suppressing and stimulating the risk appetite of the investors. For instance, the market starts with a bullish move by Bitcoin. Afterward, the eyes are always on ETH / BTC chart to catch a dip level to move funds from Bitcoin to altcoins.

This is, in many cases, the sign that the whole market may go up. Also, in the upside move by Ethereum, we always see the outperformance of Super Hype coins like we see RNDR, TIA, AVAX, and SOL. They are the inner boosters of hype in the ecosystem.

Once the first moves start to show up, investors follow the charts in the parity of X coin / USDT but it tends to change into X coin / BTC because many long term crypto investors know that the unwritten rule in the ecosystem is to increase amount of BTC with altcoin trades. Thus, when the USDT charts are in the zone of price discovery, BTC charts are here to show the way the market is heading towards.

Simply, the chart of TIA / USDT is a perfect example of it. There is almost no idea how well the token performs after that point and the upper levels are hard to assess as support and resistance levels.

Option 1: The Fibonacci will guide with very broad support and resistance levels. Option 2: Every psychological resistance price ( $10 - $11 - $12) will be used to take some profit.

The Saturation & Flow of Money

All cryptocurrencies share the same fate. They gain or lose value together even if their leverage changes.

When you look at the weekly charts, you will recognize a similar pattern in almost all cryptocurrencies that are listed in top tier crypto exchanges. They are forming similar technical charts, most probably, because the bots on the exchanges enter buy and sell orders at the same time for all of them. Eventually, the correlation between them gets stronger even if one goes 10x whereas the other makes 3x.

In the current bull market, we might be at the last stage of our mini cycle in which the final part is based on the valuation of all non-pump coins in the prebull market. Here, we are seeing the green candles on Hive, SPS, Polygon, WAX, and many others. That's not surprising to see that the veteran coins are still strong in fundamentals and they still have communities behind.

As long as the chart of a coin does not look like this, it gets more investment sooner or later. In an over hyped crypto market condition, it is even possible to make gainz from stablecoins' arbitrage opportunities.

It is important to remember that each coin will take its turn and utilize the liquidity in the market. Those who wait for the turn patiently get what is deserved. It has always been discussed that money will eventually hit your coin but, the moment you leave your position, the coin may start its upside move. Thus, understanding the rationale behind the phase of distribution can enable decent returns, as well.

What do you think about the case of common destiny in crypto ecosystem? Share your thoughts and observations below 👇

Hive On ✌🏼

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