Altcoins The Move To Boom Amid Bitcoin

Bitcoin is heating up and cops are clearly in control. We’re about to have an exchange-traded fund (ETF) and it won’t be long before BTC hits $ 100,000, $ 120,000, $ 150,000.  altcoins

In addition to Bitcoin, a number of other Altcoins are also “moving”.

SLP / USDT

Axie Infinity has really grown tremendously over the year. Looking back, the play-to-earn blockchain games sector is poised to keep growing, and the Axies metrics look great along with their AXS token.

The platform recently launched AXS Staking and before that the team did a huge airdrop for the early adopters.

Unfortunately, as AXS rebounded, the price of SLP (the in-game currency used to purchase users and items) fell to a point where most traders are currently expecting a bottom.

Daily SLP / USDT Price Chart | Source: TradingView

The daily chart shows SLP trading pretty much at the end of May low of $ 0.06. For many traders, the structure of the market signals that an asset has bottomed out. Last week the price tried to rebound to $ 0.10 but failed to maintain momentum after that and eventually fell back into the current range.

Regardless of the fall in prices, the volume increases and this can be a sign of accumulation.

Holder hopes that at some point Axie Infinity will redefine the functionality of an SLP or control its inflation to expand utility and increase demand, but does not make any promises for the time being.

Those familiar with technical analysis will point out that the SLP is currently facing resistance at the 50-day moving average (MA) and the altcoin has flipped the 20-day MA in support. MA 20 and MA 50 will eventually converge if buyers keep bidding higher. At the same time, the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) look promising on the daily timeframe.

At this point it looks like the SLP is trying to break out of the downtrendline, but from a risk / reward perspective, opening a position is still risky as the swing low is 20% below the current price.

Risk averse traders may consider waiting for further confirmation of a trend reversal. A daily close above 50 MA and some candles with a higher high above $ 0.1 could signal that AXS is gaining momentum again.

ALCX / USD

Alchemix is ​​another altcoin that “appears to have bottomed out” and recent developments regarding the project are a sign that fundamentals are consolidating. In late October, the project was selected by Tokemak (TOKE) owners as one of the assets added to the platform’s liquidity pool, known as the “reactor”.

Tokemak is “a protocol that enables sustainable DeFi liquidity” and they have shaped the current DeFi problem in such a way that:

“Protocols struggle to coordinate users to pool liquidity between exchanges. You can create incentives for users through high APY (liquidity mining) inflation, but that is inefficient and extremely expensive. “

In fact, reactors are unilateral pools of liquidity. There the users insert their tokens and TOKE holders vote on where the liquidity is directed. The intent is to “allow logs to keep control of where the liquidity is coming from, rather than incentivizing users by spending”. This unilateral staking means liquidity providers deploy an asset, liquidity controllers deploy TOKE, and stakers receive TOKE rewards.

What does this have to do with ALCX?

TOKE works great because IDO and liquidity pools are very popular and stable. TOKE is interested and in demand. In fact, 42 other projects have chosen ALCX to implement the liquidity pool, which means the owners are eager to deploy and maintain TOKE.

Alchemix was also selected as part of the Olympus Pro product under the Olympus DAO. This product has some similarities with Tokemak. The platform aims to prevent a capital gains scenario by “enabling protocols to accumulate liquidity to ensure longevity and price stability for all participants”.

The following image briefly explains how investing in a bond over a period of time will benefit the bondholders and the protocol.

Olympus Pro | Source: Olympus DAO Finance

On October 8th, the Alchemix team announced a v2 upgrade plan for its platform and also suggested that “self-payer loans” be easier to understand for the general public. The project also intends to enable the use of collateral so that users can exercise various “loan authorization” options rather than just using interest to repay the loan.

Usually protocol upgrades and mainnet launches are bullish events for the native token, but what makes the basics of ALCX attractive is the token’s ability to cross with other protocols in the works.

On October 13th, the price of Olympus (OHM) almost reached ATH. Since the launch of Olympus Pro, the integration with Tokemak, the announcement of implementation and integration plans at Arbitrum, fee refunds from DeFi platforms such as Wonderland Money and Abracadabra, optimism about OlympusDAO has improved significantly.

Daily ALCX / USD Price Chart | Source: TradingView

From a technical analysis perspective, ALCX is still “consolidating” and, apart from the recent volume spike, appears to be in an “accumulation phase” rather than a “bottom phase”.

As with the SLP, a daily close with some higher highs above $ 490 would be an encouraging sign of a turnaround. High volume nodes on the Volume Profile Area (VPVR) indicator are also currently indicating resistance in the $ 400-480 range. A break above this level could quickly push the price to $ 700.

Other positive signals suggest more bullish momentum, such as a consecutive daily close above the 20- and 50-day MAs, with the MAs converging.

The ALCX integration with Olympus DAO, Tokemak, the upcoming v2 upgrade, the project’s recovery from the recent $ 4 million attack, and the token’s “accumulation phase” on the daily chart are also signs that the Asset may be prepared for a turnaround.

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