ETC recovered too much and is it time to stop?

The devastating crash in May invalidated the bullish narrative of the broader crypto market. With exceptions like SOL, most altcoins have but to totally recuperate. However, some cash have thus far been in a position to surpass the remainder. ETC is a chief instance.

On the primary day of 2021, ETC will trade at $ 5.50. However, its worth has risen 14 instances since then, reaching $ 62.8 at press time.

The query is, how lengthy can the rally final?

ETC price (inexperienced) and quantity (pink) | Source: Santiment

There are many elements which have sustained ETC’s restoration. ETC trading quantity has seen random spikes thus far. Without the April-May interval, the present degree ($ 4-5.5 billion) could be primarily the very best.

So was ETC’s circulating market cap, which rose from $ 5.39 billion to $ 8.94 billion in only one month. This is a sign of the big quantity of tokens which can be publicly out there and circulating within the market at this time.

ETC’s circulating market capitalization | The supply: Messari

In addition, as at ETH, new ETC issuance nearly doubled final month (from $ 0.81 million to $ 1.42 million). Whenever tokens are launched on time, the price all the time will increase. The ETC rally efficiently continued this this time.

New ETC model | The supply: Messari

Worrying indicator?

ETC’s market cap dominance continues to stagnate. In reality, it has been hovering round 0.4% for over a month. The variety of energetic addresses is additionally steadily lowering.

ETC market capitalization dominance | The supply: Messari

The variety of energetic addresses was on July twenty first. at 41.9k and on the time of writing at 35.9k. The next indicator normally signifies that extra persons are utilizing, or no less than shopping for, the cryptocurrency. Since the ETC has circled thus far, it could be stated that the situation of the community continues to deteriorate.

The correlation development between ETC and ETH additionally confirmed a change. The price of ETH has fallen 5.2% within the final 24 hours and nearly 4% in 7 days. Meanwhile, ETC is down 12% in 24 hours and up 6.1% for the week.

To be truthful, it has to be stated that ETC was in a position to decouple from ETH. In addition, the price of ETC rises and adapts to some extent independently of it.

Should anticipate What within the coming days?

ETC is at an attention-grabbing time. On August 14, the altcoin efficiently broke long-term resistance at $ 63.64 and rose to $ 76.9 earlier than falling to its present price.

With wholesome quantity, there is a very good probability that ETC may reverse up. However, if quantity plummets or the broader market would not help the rally, ETC is probably to slide into the $ 48-56 space.

Price desk ETC / USDT 4 hours | The supply: TradingView

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