The U.S. Dollar Currency Index plunged last night, coinciding with continuous spikes in COVID-19 infection cases in the past few days. This has caused other so-called safe-haven assets to surge in prices.
Gold futures have finally broken through $1,800/oz creating a temporary high at $1,820/oz, the highest level since 2011. Better yet, the World Gold Council reported that gold ETFs have increased their positions at an unprecedented rate, at more than 730 metric tonnes during the first half of 2020 alone. This signals that some investors are being doubtful of controversial central banks’ policies and the sustainability of recent stock rallies. Now, they are hedging their investments with hard assets such as gold.
In the realm of digital assets, Bitcoin price movements have been very limited, while major Altcoins are having their mini bull runs. The increase in Altcoins activities has pushed the SCN30 Index up by 6.48 points, as it makes its way to retest the local high at 165 points made right before the COVID-crash.
Dogecoin (DOGE) is undoubtedly the best performer in the SCN30 Index as the TikTok #DogecoinChallenge recently became viral, sending new cash flowing into the coin and pushing it upwards of more than 100 percent in the past two days.
There was not much love for Ripple (XRP) in the past few months, and the coin has been slow to recover. However, XRP just ripped more than 10% upward and now stands above $0.20 level. The move helped XRP to come back and stand above the 89 days exponential moving average line (89EMA in blue.) Despite being one of the top performers in the large-cap Altcoins category, XRP is set to face multiple overhead resistances.
ChainLink (LINK) is probably one of the hottest mid-cap Altcoins at the moment as it has created a fresh new ATH above the $5 level. The rumor of LINK joining the “China Chain” or China’s nationwide Blockchain Service Network helped to fuel the hype, sending LINK up another 10% last night.
From the technical perspective, the next target for LINK should be at $7 according to the Fibonacci’s retracement. However, LINK is now venturing into a BlueSky territory, where nothing can really limit its price discovery anymore. Short term pullback is highly likely as the RSI is indicating a high overbought level. Supports now lie at $6.1 and the previous high at $5.
Cardano (ADA) is still on a winning streak as it recently overtook Bitcoin Satoshi’s Vision (BSV) as the 6th largest coin by market capitalization. As the Shelley upgrade promises more decentralization and Goguen upgrade promises greater smart contract features, the news that Coinbase might be listing ADA by the end of this year has hyped up investors and speculators hopes for the “Coinbase Effect”, thus pushing the price even higher.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
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