Why These Altcoins Are Trending Today — May 20

The crypto market has witnessed an uptick in trading activity today, reflected by an increase in the total market capitalization. This signals bullish sentiment across the various digital assets, with many altcoins gaining traction in today’s session.

Amid this rally, MERL, ENA, and COLLAT are some of the top altcoins capturing market attention.

Merlin Chain (MERL)

MERL is a trending altcoin today because it has bucked the general market uptrend. The token currently trades at $0.092, noting a 15% price dip over the past day.

During that period, the token’s trading volume has soared by 91%, reaching $33 million. This creates a negative divergence that hints at an extended price decline for MERL.

When an asset’s price drops while trading volume climbs, it suggests strong selling pressure, with more traders offloading the asset than buying it. This indicates bearish sentiment and signals the potential continuation of MERL’s price dip.

In this case, the token’s price could fall to $0.088.

MERL Price Analysis. Source: TradingView

On the other hand, if demand spikes, MERL’s price could soar to $0.108.

Ethena (ENA)

ENA is another altcoin that is trending today. Unlike MERL, ENA’s price performance mirrors the broader market uptick, with the token posting a 5% surge over the past day.

However, the underlying sentiment among market participants remains bearish. This is reflected by ENA’s plunging Chaikin Money Flow (CMF), which forms a bearish divergence with its rising price.

At press time, this momentum indicator, which measures how money flows into and out of an asset, is below the zero line at -0.03.

When an asset’s price climbs while the CMF falls, it suggests weakening buying pressure. This signals that ENA’s price rally may lack strong backing and could soon reverse the trend.

In this case, its price could fall to $0.34.

ENA Price Analysis. Source: TradingView

On the other hand, if the rally continues, ENA could climb to $0.39.

Collaterize (COLLAT)

COLLAT’s value is up by 50% today. During Tuesday’s early Asian trading session, the altcoin rose to an all-time high of $0.082. While it has since retraced to trade at $0.071 at press time, buying activity is still underway.

This is reflected by the setup of its Moving Average Convergence Divergence (MACD) indicator. At press time, the token’s MACD line (blue) rests atop its signal line (orange).

An asset’s MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.

When the MACD line is above the signal line, it indicates bullish momentum. This suggests that COLLAT’s price may continue to rise. In this scenario, its value could revisit its all-time high of $0.082.

COLLAT Price Analysis. Source: TradingView

With a decline in buying pressure, COLLAT’s value could fall to $0.064.