Cosmos (ATOM) has been on a exceptional rally over the previous few days despite the price of Bitcoin stalling and really present process a bearish reversal. The favored altcoin has gained 25% up to now 24 hours alone, setting a brand new all-time excessive price.
Analysts say the rally within the price of this altcoin may set off a surge within the price of one other well-liked altcoin, Algorand (ALGO).
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Cosmos Acquire Might Ship Algorand Larger: Right here’s Why
Analysts consider that Cosmos’ ongoing rally may set off a rally in Algorand, one other cryptocurrency. One dealer shared the chart under on August 23rd, drawing consideration to the similarities on the charts. The evaluation means that ALGO is primed to surge to a brand new excessive, probably above $1.00 whether it is to comply with the trail Cosmos took.
Each charts have comparable technical formations, together with similarly-positioned shifting averages and an eerily comparable inside development line.
Chart of Cosmos' and Alogrand's price motion over the previous few months with a fractal evaluation by crypto dealer Coiner Yaodx. Chart from TradingView.com
The similarities between the 2 cryptocurrencies were echoed by one other dealer, who stated that he’s “going to see if ALGO follows ATOM a bit.”
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Altcoins Could Take the Backseat
Altcoins like Cosmos could quickly take the backseat, although, particularly with Bitcoin reaching a pivotal level in its development.
Volatility is predicted with the price of BTC because the Bollinger Bands tighten. The bands are a technical indicator used to indicate market volatility and necessary technical ranges.
Analysts say that when Bitcoin is present process volatility, altcoins are imagined to take the backseat because of investor psychology.
Mohit Sorout, a founding associate of Bitazu Capital, remarked to NewsBTC;
“Most (altcoin) cycles in crypto are centered around bitcoin volatility. When it dries up, no one wants to trade btc which becomes evident from the volume as well. This leads to a large uptick in speculation on alts, driving their prices up – typically alts with strong narratives & large scale memetic behavior get the most volumes.”
As Nik Patel, a preferred crypto dealer and the creator of “Altcoin Trader’s Handbook,” echoed this evaluation. He stated that Bitcoin could outperform altcoins till the asset strikes to a brand new all-time excessive above $20,000.
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Featured Picture from Shutterstock Value tags: atomusd, atombtc Charts from TradingView.com 25% Cosmos (ATOM) Rally Might Ship This Common Altcoin Flying