Huobi Pro has recently published the latest weekly cryptocurrency update. The Huobi data analytics division, Huobi Research, regularly publishes extensive reports on weekly coin correlation and future trends.
In this week’s update, that include all the major cryptocurrencies, with the emphases on BTC, ETH, and TRX, the significant clues that indicate the possible shift in trend come from the data analytics of the secondary markets performance - a clear sign of a bullish sentiment and the call to open long positions on several coins.
TRON leads the way
While the market cap data alone might give you a different impression, by analyzing Pearsons correlations and p-values computed from log-returns of volume-weighted average daily prices over the past week, TRON, with 7% increase, is taking the leading position as the biggest gainer among the top 10 cryptocurrencies.
In the same time, IOTA, with the 13% drop and the price volatility rate of 0.0063 sd is the biggest loser.
But TRON ist also among the top 3 cryptocurrencies with the biggest turnovers along with BTC and EOS.
EOS leads the way in this segment with 80% turnover, followed by TRON that reached 49.4% this week. BTC is in the third place with 29.3%.
On the other side of that medal, Stellar, Ripple, and Cardano mark the lowest turnover rates with 7.8%, 10.6%, and 16.1% respectively.
But the most significant “anomaly” depicted in Huobi Research weekly report is definitely the notable change in price correlations between top 10 cryptocurrencies.
Cryptocurrencies have stopped moving in tandem
According to Huobi’s analysis, the strongest correlations in price are noted in the following pairs:
• IOTA/XRP (0.93)
• IOTA/NEO (0.92)
• IOTA/BCH (0.91)
On the flipside, the weakest correlations are between these pairs:
• IOTA/ETH (0.12)
• EOS/NEO (0.22)
• EOS/IOTA (0.28)
The following chart best represents the current trends in price correlations:
(Courtesy of Huobi Research, http://research.huobi.com)
This could indicate a significant change in global trends where the use-case and application potentials of the cryptocurrency and its respective mainnet’s blockchain(s) are setting the individual trend not necessarily connected to the moving of the more prominent cryptocurrencies, namely BTC and ETH.
The prediction
As Huobi’s report clearly indicates, the bearish trend is coming to an end. What we should expect in the following period is the slow correction in prices of all major cryptocurrencies and trend reversal.
However, two cryptocurrencies are most likely to see the upward trend already in the following week with the real potential to break current resistance lines and remain bullish over the longer period. One is TRON.
The network has recently announced burning of 1 billion tokens to control the inflation; the event that should take place on Independence Day. With such a high-volume cut in the total supply, the price should remain stable in the future with the likely surge on the short-term.
The price of TRON is currently low but it has the tremendous potential to break above $0.1 by the end of the year. Hence, going long seems like the best possible action.
The second undervalued crypto with the potential to return to its previous levels is definitely NANO. Founded in 2015, NANO, a low-latency payment platform that requires minimal resources which makes Nano ideal for peer-to-peer transactions, is quickly becoming the globally adopted crypto of choice.
Currently exchanging at $2.36, NANO is one of those cryptocurrencies (tokens) that will most certainly reap the benefits of the above-mentioned use-case and application potentials that will largely influence the level of adoption and thus, the price of a particular cryptocurrency.
Just like with TRON, going long with NANO, while the price is still low, seems like the most optimal action at this point.
(Disclaimer: I do not own NANO or TRX. Please do your own research before investing in cryptocurrencies.)