The US dollar lost about 7% of its value in 2020, while Bitcoin rose by about 300% in the same period. As the institutional adoption of Bitcoin grows, US companies can diversify their treasury with other valuable stores, and Bitcoin (BTC) has a good chance of amassing some of it.
Ark Invest’s Latest Report, “Bitcoin: Preparing for Institutions”, shows that even a meager 1% allotment by S&P 500 companies could raise the price of Bitcoin by $ 40,000. However, analysts at Ar believe the allocation is likely to be between 2.5% and 6.5%, which “could affect bitcoin’s price by $ 200,000 to $ 500,000.”
Even as the price of Bitcoin is consolidating and gearing up for the next step, several altcoins have rallied, supported by strong fundamentals and investor high expectations of their upcoming products. Today let’s take a look at three such tokens.
BAND / USD
The decentralized financial space has grown enormously in recent months and the success of the protocols relies heavily on data sources that are decentralized, fast and reliable. This is where Band Protocol comes in. The cross-chain data oracle has announced several partnerships in recent days, showing that it is gradually building its market share.
The surge in stocks like GameStop, AMC and others has caught the attention of traders in recent days. Band’s partnership with Injective Protocol to provide decentralized price oracles for various stocks to be supported on the decentralized derivatives platform could benefit the price of its own token, BAND, as successful integration would be followed by an increase in demand .
Likewise, Linear Finance, a derivatives asset protocol, will also use Band’s real-time price feeds to provide its clients with a seamless trading experience across a variety of synthetic assets.
Band is not limited to just providing price feeds of cryptocurrencies, foreign exchange assets and commodities. Elrond and Band have further expanded their partnership to bridge the two networks to provide off-chain data to various applications being developed on the Elrond network. Aside from the usual pricing feeds, Band will also fulfill data requests for sports, gaming, esports, and a lot more.
Additionally, in recent days, Band has also partnered with the Moonbeam protocol, Nervos and Fantom and broadened its existing partnership with CoinGecko.
BAND price jumped from $ 7.1532 on Jan. 22 to $ 12,949 on Tuesday, up 81% in a short space of time. Prior to this move, the price was largely stuck in the $ 7 to $ 11.50 range for the past few days.
The bulls pushed the price above the range on Tuesday, but the long wick on the day’s candlestick shows the bears are selling aggressively at higher levels. This has dragged the price back into the aforementioned trading range.
If the bulls don’t give up much ground, another attempt to break above range is likely. The 20-day exponential moving average ($ 9.28) is starting to rise and the relative strength index (RSI) is in the positive area, suggesting that the path of least resistance is upward.
If the bulls can drive and hold the price above USD 11.50, the BAND / USD pair could climb to USD 16 and then to USD 17.78. This zone can act as a solid resistance, but if the bulls can drive the price above it, momentum could pick up further.
Contrary to this assumption, if the bears successfully defend the USD 11.50– USD 12,949 resistance zone, the pair could extend its stay within the range for a few more days.
LRC / USD
The GameStop saga and the trading limits imposed on retailers brokers like Robinhood have exposed their significant shortcomings. This is likely to lure traders to decentralized exchanges where control is not with a central entity.
Trading fees are an extremely important aspect when trading, especially for smaller traders. So when Ethereum gas costs rise, these retailers are most affected. Loopring tries to solve this problem with it layer-two scaling.
Data from Dune Analytics shows that Loopring’s fee has recently increased to its highest level ever due to increasing volume. The protocol recently updated its LRC tokenomics model and announced a new fee distribution pattern for its various participants. This could further attract LRC investors who may want to take advantage of the protocol’s rising popularity.
LRC rose from an intraday low of $ 0.33651 on Jan. 22 to an intraday high of $ 0.57618 on Jan. 31, rallying 71% within days. The ascending moving averages and the RSI in the positive area suggest that bulls are in control.
The upward move is currently facing resistance near USD 0.55, and the LRC / USD pair could drop towards the 20-day EMA (USD 0.43). This is an important level to watch out for, as the couple has already received support three times at the 20-day EMA.
If the pair bounces back from the 20-day EMA, the bulls will make another attempt to resume the uptrend by pushing the price above USD 0.62167. If they succeed, the pair can rally to $ 0.71773 and then to $ 0.78.
This optimistic view will be invalidated if the bears sink and keep the price below the 20-day EMA. Such a move suggests that the bulls are no longer buying the dips, which could result in a decline to $ 0.35 and then to the 50-day simple moving average ($ 0.31).
ROOM / USD
Certain aspects of traditional financing can serve as inspiration for setting up projects in the decentralized space. Cream Finance recently announced the launch of Iron Bank, which is led by the success of the US $ 10 trillion corporate debt market.
While several peer-to-peer lending protocols exist in the crypto space, Cream has gone a step further and created a protocol-to-protocol lending mechanism. The main attraction of the Iron Bank is that it allows lending without collateral.
To control risk, Cream sets a credit limit after the protocols are whitelisted. Initially, the Iron Bank will only be available to Cream’s partners, but if this project succeeds, that’s likely to be a huge positive for the entire DeFi space.
In other news: Cream recently expanded its services by adding SushiSwap and Uniswap LP tokens as collateral options for lending and borrowing.
The platform’s CREAM token rose from $ 119.35 on January 22 to an intraday high of $ 319.9 on Tuesday, rallying 168% in a short space of time. The long wick on the candlestick of the day shows that traders were aggressively posting gains at higher levels.
If the bulls do not allow the price to fall below the 38.2% Fibonacci retracement level at $ 251.65, it will indicate accumulation at lower levels. The soaring 20-day EMA ($ 181) and the RSI near the overbought zone suggest the bulls’ advantage.
If the bulls can push and hold the price above USD 294.80, the CREAM / USD pair could climb to USD 362 and then to USD 430.
Conversely, if the bears drop the price below USD 251.65, the pair could drop to the 61.8% retracement level at USD 209.45.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries risks, you should do your own research when making a decision.