Sentiment expects high volatility for the 4 cryptocurrencies

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  • The analysis company shows that many altcoins are decoupling from bitcoin.
  • High volatility can be taken advantage of by traders, although it also increases risks.

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The data signature on-chain and analysis Sentiment said that, as altcoins continue to decouple from the behavior of the price of bitcoin (BTC), there are 4 crypto assets that he considers worth watching. These are Fetch.ai (FET), Loopring (LRC), Ren (REN), and Virtua (TVK).

SAINTS stressed WHAT The supply of these 4 crypto assets on exchanges is growing. He explained that “a high level of supply generally means a greater possibility of fluctuations in the future.”

According to their data, 67.7% of the supply of TVK and 38.7% of REN are in the exchanges after registering an increase last year. Meanwhile, LRC and FET registered 27.8% and 18.6% respectively in their supply to these platforms after seeing growth in September and October.

Sentiment Expects High Volatility For The 4 Cryptocurrencies

The increase in the supply of a crypto asset on exchanges means that the number of users on these platforms has increased as they transfer their asset holdings from their wallets to sell them or make investments.

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Thus, When supply on exchanges grows, there can be more buying or selling power in your market, which creates more price volatility. If there is a greater supply than demand, its price will fall, while if the opposite happens, its price will rise.

High volatility may be the signal that some traders are waiting for profit by selling up or down through futures, and for others it is a time to stay out of the market because of the risk of losses made possible by sudden price movements.

The prices of these altcoins are separated from the behavior of BTC

While bitcoin has traded mostly between USD 26,000 and USD 27,000 in the last two months, maintaining a 65% appreciation so far this year, the four altcoins mentioned by Sentiment show different behavior.

VTK has remained at historical lows around USD 0.02 for the past two months. And it currently occupies the 525th position among crypto assets with the highest market capitalization, which is USD 24 million, according to CoinMarketCap.

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It is the native currency of Vitua, an ecosystem of metaverse and play-to-earn games. It can be traded on Binance, Coinbase, and Kucoin, among other exchanges.

Sentiment Expects High Volatility For The 4 Cryptocurrencies
The highest price touched by VTK this year was in February at USD 0.065. Source: CoinMarketCap.

On the other hand, the REN price remained sideways in the range of USD 0.050 and USD 0.042 for almost two months. The currency has not seen such a level since March 2020, before the strong bull market in 2021 when it traded above one dollar.

REN has a market capitalization of USD 43 million, which places it in 395th place in the size of all crypto assets on the market. This currency is part of the eponymous project dedicated to offering liquidity between blockchains for decentralized applications (dApps). Binance, Coinbase, and Kucoin are some of the exchanges listed on REN.

Sentiment Expects High Volatility For The 4 Cryptocurrencies
REN is currently trading at $0.50, the resistance zone formed in the last two months. Source: CoinMarketCap.

The LRC remained lateralized last month in the support zone it studied at the beginning of 2023 around USD 0.18, the minimum area it has maintained since the end of 2020. Meanwhile, it remains in the box 109 of the largest crypto assets for the registration of a market capitalization of USD 230 million.

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Sentiment Expects High Volatility For The 4 Cryptocurrencies
Here you can see how the LRC price has moved historically. Source: CoinMarketCap.

LRC is the native currency of the Loopring network, dedicated to offering a decentralized cryptocurrency exchange in an attempt to reduce the need for centralized platforms. It is also available on Binance, Coinbase and Kucoin.

To complete the list, FET is a crypto asset that experienced a strong increase of almost 600% at the beginning of 2023, amid the growing interest in artificial intelligence projects. As reported by CriptoNoticias, this currency is native to the Fetch ecosystem, which offers open source to create smart platforms and services.

Sentiment Expects High Volatility For The 4 Cryptocurrencies
FET has been trading around USD 0.23 for four months. Source: CoinMarketCap.

Currently, the FET price is trading around $0.23, as it has generally been for the past four months. This shows a pullback from the high of $0.55, but still maintaining a 100% increase so far this year. Like the other currencies mentioned here, this asset can be traded on Binance, Coinbase, and Kucoin, among other exchanges.

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