Here are Two Crypto Pairs with Maximum Correlation in Price Movements
Here are Two Crypto Pairs with Maximum Correlation in Price MovementsImage Source: Fine Art America
During the last year, most altcoins have followed a similar trend w.r.t. respect to each other. Bitcoins dominance and price changes has been the leading factor causing price changes in altcoins.
Nonetheless, we have had a glimpse of the alt-season from the past couple of months. One notable trend that is beginning to form is how some altcoins move together.
Bitcoin Cash [BCH] and Bitcoin SV [BSV], the two hard-forks of Bitcoin, have had certain degree of correlation in price movements. However, the volatility in Bitcoin SV is higher than BCH. Hence, the risk-reward ratio is higher as well.
BCH/USD and BSV/USD Daily Chart Comparison (TradingView)
Hash-rate follows price – Hence, the rise in price is also causing an increase in the total hash rate of the cryptocurrencies as well.
Bitcoin SV miners failed at their attempt to lead the BCH hash-rate, as the price took a bullish run. The movements in the total hash rate of these two cryptocurrencies are very close.
BCH vs. BSV Hash Rate (Source)XRP and XLM
One other pair which usually moves in tandem are XRP and Stellar [XLM]. The correlation between most altcoins have been positive in the last year. Nevertheless, the movements between these altcoin pairs are synced more closely together.
In the past few days, the trend between XRP and XLM was noticed once again as they record equivalent gains of nearly 20%. The gains in one usually prompt traders attention towards the other as well.
XRPUSD/XLMUSD Price Comparison (TradingView)
Recently, the exchange tokens also exhibited similar gains following the run-up in OKex Coin [OKB]. The correlation between these pairs can be used to implement diversification of ones portfolio altcoins portfolio.
What are some of the other crypto pairs that move together? Please share your views with us.
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.