The harshest week for the global crypto economy ended the last Friday and the ongoing week commenced on a high note. The market quickly rebounded back on Monday which included economies of stablecoins alongside cryptocurrencies.
Amongst the biggest movers were Litecoin and Ethereum Classic from cryptocurrencies and USDC, BUSD, and Tether from stablecoins.
In particular, the stablecoin economy saw enormous trading activity on Monday wherein trade volume exceeded roughly $183 Billion. Out of this $183 Billion trade volume, a major portion of it belonged to Binance’s stablecoin BUSD.
Below is the performance analysis of Monday’s biggest movers.
Analysis of Litecoin
On Monday, Litecoin (LTC) started off its trading session with a 15% surge which consequently made the past week’s losses good.
A single unit of LTC, which was selling at $68.66 on Sunday, was switching hands at $79.53. The value surge has put Litecoin on its journey toward reaching its strongest level of $84.92.
Monday’s head starts for Litecoin could be attributed to the coin’s moving beyond a crucial resistance level in its 14-day relative strength index (RSI).
Litecoin rebounded and got back on track when it surpassed the 40.00 mark in the RSI. It is now currently ahead of Mark 41 and moving onto the next crucial level.
The next milestone for Litecoin would be to regain the $85.00 value from which level the coin had dropped to $68.66.
Analysis of Ethereum Classic
A significant economic rebound was also seen in the Ethereum Classic (ETC) which fell further low on Monday in the initial hours of trading.
ETC started off Monday’s trading session at a decreased value of $17.05 however the value rebounded and took the price to $20.20.
The surge has also worked out in favor of ETC as it substantially eased up the bullish sentiment in particular.
As of now, the value of ETC has further increased from $17.05 to $19.65. This reflects that beginning from Monday, ETC’s value has been swelled up by at least 15%.
ETC’s present RSI movement is tracking at 48.00 which means that the bulls are now going after fetching further gains for the coin.
As the RSI inclines, it suggests that the buying confidence of the investors would continue rising. They will focus more on acquiring more tokens losing no confidence at all.
Their entire focus would be to ensure that they keep on adding as many tokens as possible so they can push the RSI higher.
As the RSI rises hits and crosses the 50.00 level, things will become even more promising for ETC. More investors currently standing in the neutral zone will soon join the bullish trend, moving LTC’s price even higher.
Stablecoin Market Analysis
Monday’s surge not only rebounded the global crypto economy but also boosted the trading volume of stablecoins significantly.
The only exception on the day was with regard to USDC which was finding it hard to save the USDC/USD pair from devaluing.
Consequently, the pair was devalued along with other top five stablecoins which are also pegged to the USD.
As of now, USDC has managed to close the gap between USDC/USD and has been trading at $0.99.
However, the only backdrop for USDC is that traders are looking more inclined towards exchanging USDC with Tether instead of USDC/USD momentarily.
Similarly, a lesser majority of traders are also swapping USDC with either BUSD or some other coin instead.
As of now, Tether’s pegging with the USD is two cents more in addition to $1.02. At one point in time on Monday, Tether also managed to further increase the value to $1.04 and then to $1.076 per coin.
Binance’s Stablecoin (BUSD)
A similar situation of value increase also occurred to BUSD which went as high as $1.03 per coin on Monday. Even DAI was able to replicate identical value gains as had been fetched by BUSD on the same day.
On Monday, the stablecoin economy saw trade volume exceeding $183 Billion out of which over $94 Billion came from BUSD trading.