Cryptocurrency Sell-off | Altcoins Undo Last Weeks Gains

Altcoins had outperformed bitcoin price growth last week: Altcoins rose substantially last week on expectations for lower regulatory actions from G20 countries. Cardano (ADA), Stellar (XLM), EOS (EOS) and IOTA (MIOTA) were among the prominent gainers despite some price correction at the end of the week. EOS posted weekly price growth of 40%, while Cardano and Stellar ended the week with mid-single digit gains.

Altcoin, however, started this week in the red; the majority of coins are declining at a high mid-single digit rate today. The broader selloff in crypto markets impacted altcoin prices. Also, the trader’s profit taking strategy following the last week bull-run and increasing regulators interference helped bears in reversing previous gains.

Cryptocurrency Sell off

Cardano price

Cardano price declined 8% today to $0.16, down sharply from the previous week high of $0.22. ADA is the seventh largest coin based on its market capitalization. There is no particular reason for the latest selloff other than the strict approach from Asian regulators. Cardano is significantly famous in Asian markets, particularly in South Korea where it generates with 41% of total trading volume.

EOS Price

EOS is also plunging at a high mid-single digit rate today. EOS fell more than 8% today to $6.12 after hitting $7.12 during the peak of last week’s bull-run. EOS.io, the blockchain technology behind the EOS last week announced a joint venture of 100 million with FinLab AG to develop projects that use the EOS blockchain. The rumors of EOS listing on Upbit had also added to last weeks bull-run.

IOTA and Stellar are in the Red

IOTA and Stellar are in the red today, but both coins are declining at a lower rate than Cardano and EOS. IOTA dipped by 6% to $1.22 today, while stellar is down 3% from previous day closing.

Analysts including Tom Lee believe the bear run of altcoins is almost over, and they’re set to expand the uptrend in the second half of 2018. Although the regulators from key Asian markets like South Korea and Japan have dropped their strict stance on cryptocurrencies, it’s still too early to predict the massive uptrend in altcoins based on technical factors and market sentiment.

Featured Image: twitter

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