Top Three Performers Among The Top 50 Altcoins

As the crypto markets flip green once again, these top three performers have stood out from the crowd in the last seven days.

Covered:

VeChain (VET)
Axie Infinity (AXS)
Cardano (ADA)

When times are bearish, not many people want to tune into the crypto markets. However, it’s times like the past week that are most critical to recognizing where the strength lies in the market, as it may foreshadow which altcoins could catch the greatest bid throughout the next bull trend. Now that Bitcoin is breaking through crucial resistance, let’s take a look at the top three performers over the past week to get an idea of where our investments may be best allocated.

VeChain (VET)

The top performer among the top 50 altcoins this week goes to the decentralized supply chain protocol VeChain (VET). VET ran more than 76% from its low of just $0.044, and the pump has the fundamentals behind it to sustain further price appreciation.

Notably, the legendary investor Tim Draper shared that VeChain partnered up with Draper University to support entrepreneurs wanting to build on the VeChainThor platform.

Great to see @VeChainOfficial team up with Draper University to bring entrepreneurs together to build on the VeChainThor platform. Gain access to @Draper_U entrepreneurial education in addition to VeChain technical resources, check it out! https://t.co/zxeMGndSUl

— Tim Draper (@TimDraper) March 25, 2022

Following the announcement, VET began its tear upwards. At the time of writing, VET is trading at $0.076.

Based on the relative strength index (RSI), which measures the overbought and oversold conditions of an asset, VET touched down at equivalent lows on the RSI to when it bottomed out back in March 2020 when the coronavirus pandemic pulled the rug out from underneath the crypto markets.

VET’s strong 76% push off the lows indicates that crypto investors found its low of $0.04 cents to be a fairly-priced entry point. Assuming the markets remain bullish and keep their momentum, I’d reckon that the $0.04 cent marked the local bottom for VET, however, it’s not quite out of the woods. To gain even more confidence in VET over the coming months, we’d like to see a reclaim over the green 50-week moving average (MA) now that it has broken through resistance under the purple 100-week MA.

Axie Infinity (AXS)

The popular crypto gaming giant Axie Infinity also makes this week’s list of the top three performers. While the metaverse trend seems to have gone quiet ever since Facebook’s ambitious move into the industry marked the local peak of metaverse euphoria, the strength we’re seeing from AXS right now may indicate that blockchain gaming is ready to come back in full force.

At the time of writing, AXS is trading at $68.75.

The one indicator I’m noticing on the weekly chart is the massive hidden bullish divergence playing out on the higher time frame. A hidden bullish divergence is created by printing a higher low in price while at the same time forming a lower low on the RSI.

Now that AXS caught a strong bid off its higher low of $44, confirming the hidden bullish divergence, only time will tell if it can sustain its breakout from the bearish downtrend. Another positive note to mention is its reclaim of the 50-week MA. You want to see price trending above this line to feel good about its shorter-term momentum, so as long as AXS can keep a bid above this MA, Axie Infinity should be in the clear to trend towards higher prices.

Cardano (ADA)

One of the most loved (or hated) layer-1 blockchains, Cardano (ADA), is having a great week. A lot of people seem to love Cardano for the strong community its charismatic founder Charles Hoskinson has fostered, while others can’t get over the fact that it behaves like a stablecoin for long periods of time before making sharp moves higher.

Despite crypto investors’ opinions, however, Cardano is plugging away and developing its decentralized finance (DeFi) ecosystem, which has been well underway since its release of smart contracts back in September ironically marked the peak of the asset’s price.

At the time of writing, ADA is trading at the illustrious $1.20 level.

And I call that price level “illustrious” because ADA has revisited this specific level several times as it behaved as a strong support and resistance level throughout 2021.

Similar to VeChain, ADA printed an equal low on the RSI to when it initially capitulated back in March 2020, which historically kicked off the first leg of the crypto market-wide bull run. This confluence we’re seeing among VET, ADA, and other top-performing altcoins could be clueing us into the fact that history is about to repeat itself yet again.

However, despite the bullish momentum we’re seeing in Cardano right now, we also want to see ADA reclaim the 50-week MA after pushing through the 100-week MA. Notice the cross between the two at the onset of 2021, when the 50-week flipped above the 100-week. If ADA can clear the $1.20 level and hold support above the 50-week MA, those are the two checkmarks needed to give ADA the green light for further price appreciation.

that’s all for this week’s list of top performers among the top 50 altcoins. Be sure to tune in next week to see which other tokens are rising to the top of the charts.