On previous reports, CCN
noted that the $8,200 resistance level is an important threshold to observe
given that a drop below the $8,200 mark could lead the bitcoin price back to
the $7,900 region.
Over the past 24 hours, the
cryptocurrency market has rebounded as the bitcoin price reached $8,500 and
tokens such as Tron (TRX), AirSwap (AST) and Ontology (ONT) recorded gains in
the 10 to 20 percent range.
Ontology, Tron, AirSwap
The majority of tokens in
the space have experienced an intensified movement on the downside, mimicking
the downward pressure of bitcoin but with larger margins. Consequently, even
tokens like ONT, ICON (ICX), and 0x (ZRX), which have consistently outperformed
most major cryptocurrencies throughout April and May, fell substantially.
On May 21, most of these
tokens rebounded from their recent losses, recording large gains against
bitcoin which recorded a 4 percent increase against the US dollar. Against
bitcoin, ONT recorded a 10 percent increase, AST rose by more than 15 percent
and TRX demonstrated a 9.5 percent rise.
AST is a particularly
interesting token to observe, especially as a long-term investment because
despite its hype and media coverage it received, it still remains as the 198th
largest cryptocurrency in the world with a $62 million market valuation.
Although the market cap of AirSwap is relatively small in comparison to other
tokens like ONT and ICX, AST has more room to grow in the long-term.
The Relative Strength Index
(RSI) of AST is at 53, signifying a neutral zone. Given that AST is still
demonstrating a neutral condition after a 15 percent increase against bitcoin
and both exponential and simple moving averages show a positive short-term
trend, it is likely that AST continues to grow past its current price at
Bitcoin has been on a
continuous downward trend ever since it failed to test the $10,000 support
level in early May. Over the past 7 days, the bitcoin price has remained in the
range of $7,900 to $8,785, struggling to gain momentum above $8,800, which is
considered as a major support level that could allow the price of bitcoin to
test the $10,000 support level again in the short-term.
The latest attempt of
bitcoin to breach the $8,800 support level was on May 15, nearly a week ago.
After surpassing $8,850, due to the pressure of bears, bitcoin dropped rapidly
to $7,925 and bouncing back in the $7,900 region. If the bitcoin price can
rebound to $8,800 in the upcoming days, possibly within the next 48 hours, it is
likely that the bitcoin price tests the $9,600 support level soon after, eyeing
an entrance into the $10,000 region by the end of May.
Over the past week, bitcoin
has been able to gradually build momentum from $7,900 to $8,500, which it has
not done in previous corrective rallies. The stability in the price movement of
bitcoin could provide more resilience in testing major support levels in the
for the original article from CCN.