- Cardano and XRP have made excellent gains over the past two weeks.
- Legacy tokens have seen decent returns in November, but we need to zoom out to better understand where the market’s conviction really lies.
Ripple [XRP] and Cardano [ADA] have a market capitalization of $60.5 billion and $26.2 billion respectively and have been trading since 2014 and 2018.
They have stood the test of time so far and are among the most popular non-meme altcoins on the market.
The promise of cross-border payments and robust blockchain technology has attracted large numbers of investors to these tokens.
During previous cycles, such promises also attracted users to other coins, which are now much less prominent in the public eye. What can we learn from their price action?
XRP, ADA — Not all coins are equally popular
Source: LTC/USDT on TradingView
Let’s take Litecoin [LTC]years ago it was also called “the silver to Bitcoin’s gold”. Since bottoming on November 4, LTC has risen 35.14%.
In comparison, XRP is up 114.2% and ADA is up 135.49% over the same period.
Additionally, while XRP and Cardano broke out beyond significant multi-month formations to set new highs, LTC was firmly stuck within a record that stretched into late 2022.
While Litecoin’s weekly structure was bullish, the mid-range provided resistance.
Source: EOS/USDT on TradingView
EOS has been trading since 2018 and has a market capitalization of $988 million. This too saw a weekly bullish structure break, but is 98.2% lower than the all-time high of $22.71 from April 2018.
The token has risen 61% since last Monday’s low.
Long-term conviction is wavering
Source: SOL/USDT on TradingView
Since the November 4 low, Solana has gained just 41.8%, achieving a range breakout and a weekly bullish structure. Does this make Solana and EOS comparable in the eyes of the market?
Definitely not! SOL is up 2,650% from the 2023 low, while EOS is only 28.24% above the 2023 low. The point of this little comparison trip is that the sentiment over the past two weeks has been extremely bullish.
Bitcoin [BTC] Setting a new record above $74,000 has turned the crypto market into an up-only mode. This is sometimes referred to as ‘easy mode’ by experienced traders, and the ‘buy everything’ strategy can yield significant profits.
Participants who joined the crypto world years ago and still hold old tokens have good reason to do so, but the market has moved on.
There are newer, shinier tokens out and the past few months have been dominated by the meme and AI sectors.
Read Ripple’s [XRP] Price forecast 2024-25
The up-only mode of the crypto market does not mean that EOS and Litecoin are similar in conviction to Solana.
The coming months may even bring favorable outcomes for holders who have been underwater for years. But the takeaway from this comparison is that unless the asset is Bitcoin, you should never marry your bags.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Credit : ambcrypto.com
