'V' Recovery? ETC Posts Big Gains In Sideways Market
The price of ethereum classic's cryptocurrency is on a tear, reporting double-digit gains Tuesday amid an otherwise sidways market.
Feb 13, 2018 at 1:35 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/32IKVQ3CW5E6TPRQOPLYQA42T4.jpg)
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The price of ETC, the native currency of the ethereum classic blockchain, is reporting double-digit gains Tuesday, a move that effectively recovers losses seen over the last two weeks.
As of writing, ETC is changing hands at $31.70 on Bitfinex, having clocked a two-week high of $32.90 earlier in the day's trading session. The cryptocurrency has appreciated by 20 percent in the last 24 hours, as per data source CoinMarketCap.
Stepping back, the move effectively means ETC has come full circle, returning back to a level last seen at January's end. The broad-based sell-off in the crypto markets that began on Jan. 30 saw ETC drop 57 percent to $14.00 (Feb. 6 low), and in this context, the rise to $32.90 marks the completion of a "V-shaped recovery."
So far, the asset's investor community is associating the jump in prices with top forecaster Cryptonaire's decision to include ETC in the list of verified digital assets (VDA). Investors believe the move will likely generate more public interest in the cryptocurrency, resulting in a pickup in trading volumes.
That said, the technical charts also point to a bright future ahead.
ETC chart
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The above chart (prices as per Bitfinex) shows:
- Bulls have scored another brownie point by pushing ETC's above 50-day MA.
- The relative strength index (RSI) is above 50.00 (bullish territory) and rising, thus further doors are open for further gains in ETC.
- The momentum studies: 5-day MA and 10-day MA are curled up in favor of the bulls.
View
- ETC will likely break above $34.38 (61.8 percent Fibonacci retracement of the drop from Jan. 14 high to Feb. 6 low) and test $40.00 levels in the short-run.
- The RSI on the 4-hour chart shows overbought conditions, so a minor pullback to upward sloping 5-day MA (currently seen at $27.01) cannot be ruled out.
- Only a daily close (as per UTC) below $21.003 (Feb. 11 low) would signal bullish invalidation.
Boomerang image via Shutterstock
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