Bitcoin (BTC) price continues to defy gravity and its strong bullish breakouts often result in short sellers having to cover their positions in a rush. A repeat of this came on February 9, when bitcoin skyrocketed on the news of Tesla’s $ 1.5 billion purchase of Bitcoin. Bybt data shows that $ 1.34 billion worth of Bitcoin futures positions were liquidated due to the strong rally.
Day view of crypto market data. Source: Coin360
Another notable event was the launch of CME Ether (ETH) futures on February 8th. Several traders feared the launch would cause Ether price to drop, much like Bitcoin did shortly after its futures launch in 2017. However, that didn’t happen and Ether remains strong.
In addition to the major cryptocurrencies, several smaller tokens with strong use cases have also performed well. Let’s examine three tokens that have performed well in the current bullish environment.
HNT / USD
The number of everyday devices connected to the Internet has increased dramatically over the years. As numbers grow, Helium (HNT) aims to enable users and businesses to build, connect, and send data across a network of nodes.
The number of new helium nodes rose from 3,271 active nodes at the end of April 2020 to 18,001 active hotspots that are actively used today. Another positive sign is that the original helium miner is sold out. However, the company recently partnered with three new third-party manufacturers for its mining hardware.
The number of hotspots used could continue to rise as helium plans to enter China in March and has partnered with HBTC to meet the massive demand in Southeast Asia.
In the use case, the network tries to solve parking problems, autonomously control the operating systems of cooling towers, monitor agricultural raw materials in real time and support medical innovations from COVID-19. The growth of the network and its use cases paint a positive picture for the protocol.
HNT has risen from an intraday low of $ 2.160 on Feb.1 to an intraday high of $ 4.009 today, an 85% rally in a short period of time. The trend favors the bulls, but the bears are not ready to accept defeat just yet.
HNT / USDT daily chart. Source: TradingView
The long wick on February 6-8 shows that the bears were aggressively sold near the $ 4 resistance. However, the sellers were unable to capitalize on this strength and initiate a deeper correction.
This attracted a buy decline in the bulls and currently traders trying to push the price above $ 4 and resume the uptrend. If successful, the HNT / USD pair could rise to $ 5.15.
Conversely, if the price breaks away from current levels again, the pair may consolidate in a narrow range for a few days. The relative strength index (RSI) above 80 suggests that the markets are overheating in the short term and may be ripe to enter a period of correction or consolidation.
The first sign of weakness will be a breakdown and will be below the 20-day exponential moving average ($ 2.712).
AVAX / USD
Traders use different strategies to make money in the markets and one of them, algorithmic trading, is rapidly gaining popularity as it removes emotion from trading. Velox plans to bring algorithmic trading for decentralized exchanges to Avalanche (AVAX) in the first quarter of this year, potentially attracting a new generation of traders.
In addition to the various trading products, risk management also plays an important role in the success of a trader. To meet this requirement, Avalanche is in the process of integrating with the DSLA protocol and UNION to provide risk control services and insurance to DeFi users.
True decentralization is achieved when most operations are devoid of centralized services. Developers often have to rely on centralized cloud services for the database and computing of their applications. To solve this problem, Avalanche has partnered with Aleph.im to provide decentralized cloud services to teams developing new products.
Stable coins play an important role in the crypto universe, and e-Money has announced plans to launch several stable coins in European currency such as the digital euro, Swiss franc, Norwegian krone, Swedish krone and Danish krone at Avalanche bring.
OKCoin was also the first US exchange to support AVAX, and trading went live on February 3rd. OKCoin also plans to toss AVAX tokens worth over $ 1 million in the next few days.
AVAX rose from $ 10.80 on Jan. 28 to an intraday high of $ 33.8167 on Feb. 8, rallying 213% in about two weeks. This strong uptrend pushed the RSI above 90, suggesting that the markets were extremely overbought in the short term.
AVAX / USD daily chart. Source: TradingView
This resulted in a profit posting on February 8th, as evidenced by the long wick on the candlestick of the day. Selling resumed today and the bears will now attempt to lower the price to the 38.2% Fibonacci retracement level at $ 25.0129.
If price rebounds from this support, it suggests that traders are ready to buy with a shallow pullback. The bulls will then try to resume the uptrend. If they can push the price above $ 33.8167, the AVAX / USD pair can move to $ 47.
Conversely, if the bears cut the price below $ 25.0129, the correction could deepen to the 20-day EMA ($ 16.90). Such a move suggests that the momentum has weakened. The pair could then be held in range for a few days before the next trend move begins.
PICKLE / USD
Buybacks have been one of the preferred mechanisms used by legacy finance companies to increase the value of their stocks. A company’s treasury also acts as a source of funding, ensuring the company’s liquidity and reducing operational and financial risk.
Pickle Finance (PICKLE) achieved both functions with the introduction of its Smart Treasury, which not only acts as a buyback mechanism for PICKLE that can be used for community initiatives.
Pickle launched two new glasses in January, one with BAC / DAI and one with MIC / USDT, that delivered astronomical yields. At a time when traditional banks are paying negligible returns on deposits, it’s no surprise that Pickle’s high returns are a huge draw.
The minutes announced that DILL, developed in collaboration with Yearn Finance, has passed multiple audits and is ready to be implemented. Investors who block their PICKLE tokens for four years receive DILL, the non-tradable token. In addition to the bonuses for their deposits, DILL owners receive withdrawal, performance and protocol fees.
PICKLE rose from an intraday low of $ 13.69 on Feb.1 to an intraday high of $ 35.89, a 162% increase in a short period of time. The token saw large distance moves between February 6 and 8, causing the RSI to surpass 84.
PICKLE / USDT daily chart. Source: TradingView
Typically, after a period of large daily ranges, volatility will decrease and the price will trade in a narrow range. The PICKLE / USD pair formed an inside-day candlestick pattern today, indicating indecision between the bulls and bears about the next directional move.
If the upside indecision dissolves and the bulls push the price above $ 35.89, the pair may continue its uptrend and hit $ 44 and then $ 50 where the bears are likely to offer stiff resistance.
Contrary to this assumption, the pair may fall to the 20-day EMA ($ 20.51) if the downside uncertainty dissipates and the bears pull the price below $ 27.72. If so, the pair can consolidate for a few days before making the next move in direction.
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