Stellar and Cardano are performing well despite a huge decline in cryptocurrency prices in the last two weeks. The market looks quite soft since the start of this week; the total market capitalization of cryptocurrencies continues to move in the narrow range of $550 to $570 billion in the last three days. The soft movement in the total market capitalization clearly suggests a lack of investor confidence in crypto markets.
Source Image: coinmarketcap.com
But the tone isn’t completely bearish yet, as evident from the limited downside movement.
South Korea’s decision to place taxes and other regulatory requirements on crypto trading rather than ban it, has provided a support to prices. However, warnings from major analysts along with regulatory concerns are also limiting the upside potential.
>>Crashing to Zero is a Real Possibility for Bitcoin
Overall, the range-bound movement shows that bulls and bears are struggling to set a clear stance for cryptocurrencies.
Bitcoin (BTC), the largest cryptocurrency (based on the market capitalization), generated a gain of 4.5{ef8bd95f9448fca5adbd149f5d397da97f8af0ef1f28f33a703359ee151a0c82} in the last seven days with the digital currency up 2.11{ef8bd95f9448fca5adbd149f5d397da97f8af0ef1f28f33a703359ee151a0c82} in the last 24-hours alone. Bitcoin price has been trading in the range of $11,000, but struggling to sustain the price above $12,000 mark.
The situation is also similar for Ethereum (ETH) and Ripple (XRP), the second and the third largest cryptocurrencies.
Source Image: coinmarketcap.com
Ethereum price currently hovers just above the $1,000 mark, up 4.41{ef8bd95f9448fca5adbd149f5d397da97f8af0ef1f28f33a703359ee151a0c82} in the last 24-hours, while Ripple posted a loss of 1.45{ef8bd95f9448fca5adbd149f5d397da97f8af0ef1f28f33a703359ee151a0c82} in the last 24 hours despite the double-digit gains in early trading on Wednesday.
In the last few days, the price performance of Cardano (ADA) and Stellar (XLM) was better than the top three virtual currencies. These digital currencies also generated big gains in the Wednesday trade. Its safe to say that it might be wise for investors to keep their eyes on Stellar and Cardano this week.
The sideways movement in the largest cryptocurrencies occurred in the last few days, as investors are waiting to see the real impact of regulatory requirements on digital currencies. UBS Chairman Axel Weber announced at the World Economic Forum that they are not planning to offer bitcoin trading services to their clients, as they expect a sharp price correction considering the potential regulatory requirements.
Featured Image: Depositphotos/© winst2014
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