Solana, Polygon and Harmony all over the industry crash, solidifying gains when traded against Bitcoin and assisting protect crypto investor funds.
As Bitcoin goes, so go we all. It’s etched into the consciousness of crypto traders because the price of altcoins so often trends closely with the price of Bitcoin (BTC). If the first cryptocurrency rallies, so does the rest of the crypto marketplace. Whenever BTC tumbles, it invariably drags its younger sisters down onto it.
Yet, as the crypto industry matures and many blockchain jobs begin to create their own unique value, the link between the price of Bitcoin and that of numerous alternative digital assets grows more tenuous. The fact that the BTC dominance indicator now sits at a low, with Bitcoin accountable for only 40 percent of the cryptocurrency market capitalization, farther speaks to altcoins’ increasing liberty.
During major market price movements, most cryptocurrencies are still mostly connected with Bitcoin actions — as this week’s flash accident educated us. But today we’re seeing more and more instances of altcoin prices staying largely unaffected by even the most dramatic BTC price swings. Here are just three conspicuous examples from this week’s market bloodbath.
The first step here is your price chart for Bitcoin, as seen through the interface of this Cointelegraph Markets Pro platform. In the seven days prior to Thursday, BTC lost over 15% against the U.S. dollar, descending from approximately $56,000 into the mid-$30,000s before rebounding back to about $42,000 on Thursday.
So, how did popular altcoins fare against Bitcoin’s price during this enormous marketplace swing?
Polygon/MATIC analysis
Polygon, a platform for building and scaling decentralized software, is firmly positioned in the heart of the growing decentralized fund, or DeFi, ecosystem.
Against the background of the overall crypto market sliding down this week, Polygon’s token, MATIC, continued its staggering hike to new all-time highs, reaching $2.18 on May 18 — up from $0.36 a month before. Over the week which has attracted somber news for many other coins, MATIC gained 106% from the dollar and 142 percent against Bitcoin. (The chart below is denominated in dollars.)
This is the maximum score ever recorded for any token, along with a score of the size means that the version is very confident that in years past similar mixtures of data points consistently preceded consequential cost spikes.
MATIC’s rallies so far have adopted very similar scenarios in terms of social and market activity, as streaks of powerful VORTECS™ Scores (red boxes at the chart ) have frequently assembled two to three times before the next surge (red arrows).
It should be noted that VORTECS™ is trained on conditions that resulted in price appreciation around 48 hours past the score; therefore, the continuing pattern of high score followed by price gains is a remarkable validation of this methodology supporting the algorithm.
Solana/SOL investigation
A layer-one system with good fundraising and a slew of market-ready software launched on top of it in the last few months, Solana continues to be another one to defy the market’s bearish mood and tear the price charts. On May 18, SOL sprung to its all-time high over $58.
The VORTECS™ rating for SOL has been looking bullish for most of the week, before developing even more optimistic (dark green stretch marked by red box) some 30 hours before the latest spike. In general, SOL stopped the week a 4 percent up against the buck, beating Bitcoin by 23%.
From the chart here, the white line represents the value of SOL against Bitcoin as opposed to the dollar.
Harmony/ONE analysis
Harmony’s ONE token was another asset that did remarkably better than most of its counterparts this week. Reaching the price of $0.17 following a sequence of powerful VORTECS™ Scores, it came near the all-time high of $0.20 listed back in March.
When the market tumbled on May 19, Harmony took a hit as well — it had been one of the fastest to regain the day after. Over the last seven days, ONE gained about 24% from the dollar and almost 50 percent against Bitcoin, as exemplified in the chart.
When the economy turns red, parking capital safely becomes each investor’s principal concern. Traders can fall back on stablecoins — or employ several forms of analysis to attempt to figure out which altcoins are most likely to move against the wider downward tendency and be the first to make strong recovery.
The VORTECS™ Score, exclusively available to Cointelegraph Markets Guru members, might be utilized in such calculations to evaluate how bullish or bearish the outlook for every coin is at any given moment. The system’s interface enables toggling between asset prices denominated in U.S. dollars or BTC, which is helpful at times when either of those benchmark monies is in motion.
And as revealed here, that tokens with strong VORTECS™ Scores weathered this week’s economy crash better than Bitcoin should be encouraging for crypto traders everywhere, a lot of whom were advocating for additional decorrelation from the markets for ages.