As we approach the final days of February, the digital currency markets are heating up because of major development at the top of the market capitalization totem pole. There is a sentiment hinting that we are at a fork in the road and we are probably heading towards market shifts despite the bullish streak of major tokens such as Bitcoin and Ethereum.
Bitcoin has been boosting the entire cryptocurrency market thanks to recently posting a record high exchange price of $56,000. Ethereum continues to dance around $2,000. The total capitalization of the market has surpassed the $1 trillion mark. There is no question that the market is heating up, and this presents a serious concern because history shows that volatility can quickly erase gains.
Do you think it is still safe to trade on high prices without worrying about volatility? For example, can you confidently trade ETH from the pump, in-between, or after the price rises? With current market conditions, it is very difficult to ignore volatility, but we can still talk about crucial matters related to token pricing.
Binance Coin (BNB) is showing even more volatility than the top digital currencies. Whereas Bitcoin and Ethereum have been bolstered by positive fundamental news updates, BNB traders only have technical analysis to rely on. There are some bearish indicators that suggest BNB could be heading towards a low range of $118, which is significantly less than the Fibonacci scenario of $208.
Cardano is not being swayed too much by speculators who want the token to break through the psychological $1.00 trading level. Each time Cardano approaches this price, traders rush to sweep profits, and they have been known to reverse gains all the way down to $0.83.
Ripple (XRP) is another alt-coin that seems to have a hard time reaching the $1.00 currency exchange price. Heavy trading has XRP stuck within the range of $0.50 to $0.65. The fundamental news updates for parent company XRP Labs do not look very good because of an active lawsuit filed by the Securities and Exchange Commission, but this centralized token could reach the $1.00 in no time if Ripple Labs can prevail in court.