Yerevan (CoinChapter.com) – Bitcoin competitors, such as Ethereum (ETH), Cardano(ADA), Litecoin (LTC), and EOSIO (EOS), have logged massive gains in the past few sessions.
Analyst Michael Van De Poppe agrees that an altcoin season is approaching. The Amsterdam-based analyst tweeted about his views, predicting more gains on the horizon for smaller coins, such as Ripple Lab’s XRP and Stellar Lumen’s Stellar (XLM).
Major Altcoins Gaining Leverage
Altcoins big and small are maintaining a well pronounced bullish bias. Ethereum, as the main rival of Bitcoin, is on a steady rise. It is trading well above its 20-day Exponential Moving Average (EMA-20) line (blue line in all the charts below) during the London session Friday. The EMA 20 provides additional support for ETH and is a strong indicator of maintaining a bullish sentiment. The second-largest cryptocurrency by market cap is trading at $3,420, with a whopping 54 percent gain in the past 2 weeks, with no intention to consolidate.
Ethereum’s bullish break is partially based on the updates the smart contract company introduced to its blockchain. It switched from proof-of-work algorithm to proof-of-stake, which positively responded from traders and institutional investors alike.
Ethereum is not the only substantial Bitcoin rival on the run. Altcoins like Litecoin are not far behind. Closing the top 10 cryptos by market cap, LTC has registered 63 percent profit in the past two weeks.
The token is trading within a classic bullish technical setup, the Ascending Channel. The formation consists of two parallel lines with a similar slope. The upper resistance line caps the breakout attempt, and the lower support line prevents breakdowns. The ascending channel predicts an all-time high $400 value for LTC in the upcoming sessions.
Cardano’s native token ADA is also gaining momentum. It finally broke out of the Parallel Channel pattern it was trading in for the past 3 months. The parallel channel is a neutral formation that can result in both bullish and bearish breakout. Cardano went bullish this time. ADA has gained 51 percent in the past two weeks and traded at 1.66 against the USD in the London session Friday.
Smaller Altcoins Follow Suit
Small-cap altcoins like EOS are riding the wave of the altcoin season, logging unprecedented gains. EOSIO, the blockchain company behind the token, has put forth a proposal to boost staking rewards. The proposal also contributed to a 100 percent surge in value, according to CoinTelegraph. The overall gain within the past two weeks stands at 140 percent.
Another minor altcoin Stellar has also locked a bullish break, and gained 54 percent in the past two weeks.
XRP is still waiting for its breakout, as the value of the token depends on the outcome of the lawsuit Ripple is currently involved in.
In retrospect, the Securities and Exchange Commission (SEC) filed a lawsuit against the blockchain startup, accusing it of selling $1.3 billion worth of XRP illegally. While the court hearings drag on, the token’s fate will be more clear after the Federal Court announces the results of the closed hearing that took place on Friday.
XRP traders, however, are hopeful, which is reflected on the chart, with XRP trading confidently above its EMA20.
What’s coming next?
Considering the consolidating price of Bitcoin ($56,479 as of the time of writing) and the pronounced bullish advances of several altcoins, it is safe to assume that the altcoin season is on the rise. Bitcoin price is a key indicator, as traders tend to turn to altcoins for profit once BTC stops offering short-term gains. Some experts believe the consolidating price of the alpha cryptocurrency indicates a decrease in volatility.
Altcoins have higher volatility than Bitcoin, which makes them a more risky investment. That said, the altcoin season promises significant gains for risk-oriented traders, at least in the short term.