As Bitcoin sell off continues, alt coins are following suit. Of all coins, EOS should be finding support mainly because of a fundamental even in the next few days but that is not the case.
Yes, weekly losses are moderate when compared to IOTA or Bitcoin Cash for example-all in the top 10 but still, the down trend is completely contrarian. After that bear break below key supports, Bitcoin and Ethereum prices might go on and test $6,600 and $650 respectively.
Bitcoin (BTC) Price Analysis
There is a big hindrance for Bitcoin and cryptocurrency adoption in general: Volatility. And yes, if you want to have a feel of what price swings are, then consider the mega oscillations we saw between December 2017 and this month for example. Most coins are down 80 percent from their ATHs and this is what scares investors who would otherwise love to store value in cryptos but not anymore.
With the review and watering down of Volcker Rule that prohibits banks from gambling with deposit funds, a foundation for a paradigm shift is forming according to a report from Weiss Ratings. Remember, unlike banks, everything is done transparently in blockchain but with this rule change, investors are left exposed. Obviously, this is not good because it would be easier for banks to “play” with user funds without their knowledge.
Consequently, Weiss Ratings expect more people to shift their funds to a trustless system which is much safer, monitored and transparent.
While this is happening, there is a coincidence in the daily chart of Bitcoin price action. Like we can see, prices are down three percent in the last 24 hours with climactic sell volumes in the 4HR chart. This is definitely a reprieve. However, sellers are still trending below the $7,800 mark making this a clear sell signal after yesterday’s bear candlestick.
There are some marked characteristics that would render this a sell trade or a bullish reversal. It entirely depends on what happens today. In my part, I would love to see higher highs and rejection of sell pressure meaning a bull candlestick would be suitable for us to recalibrate our view.
If not, and today ends bearish, search for selling opportunities and eye $6,600.
Ethereum (ETH) Price Analysis
Techies love features and Circle is solving this. Circle, the owner of Poloniex exchange, backed by Goldman Sachs seems to be after traders would love to go all in and buy several coins simultaneously. The new feature, Buy the Market, is not a market fund but a tool that tags simplicity with it. Instead of a user manually buying coins, all they have to do is create a portfolio of up-to seven coins including Ethereum. He needs to fund his account and distribution of coin sizes will be done automatically depending on the coin’s market cap whenever he clicks “Buy”.
Like Bitcoin, Ethereum has a reprieve and still in the green territory as I type this. There was a rapid depreciation in the 4HR chart but then prices are inching higher meaning ETH is finding support. Now, the thing is. Should buyers help float ETH prices above May 23 highs at $650 today then I would recommend buying on dips tomorrow. If not, then we should sell in the direction of the trend.
Ripple (XRP) Price Analysis
Banks have always had their say from bank immemorial but with innovative technologies giving them a run for their money, they must surely adapt. Ripple is one reliable gate-away for their predicaments and not only would they be transacting in a secure environment, but lag time would be unheard of especially if Cobalt is implemented.
Initially we were net bullish expecting Ripple support to find support at around 60 cents but the slice through them has been astounding. From a two point approach, yesterday’s bearish candlestick was accompanied by high volumes and today there might be a follow through. In that case, sellers should aim for 40 cents, the lower limit of a consolidation as the chart shows. There is also the recent news of Ripple and Apple partnership in the near future that could change the outlook for the XRP coin.
EOS Price Analysis
Other than the general bear market sentiment, we can tie this depreciation in EOS to the general Bitcoin sell off. As long as Bitcoin slide, EOS will register losses and sooner or later print $7.5. This is despite the EOS mainnet launch coming in less than one week and yes, still people are finding it difficult to move their EOS from exchanges to their hard wallets.
Doing so without clear MEW steps is proving challenging and this might not be supportive of EOS in the long run. At the end of the day, we all know that EOS is much more than what many people believe. With the ability to stake on the platform, develop an app and get back your EOS tokens when the app fails is just but awesome. This is what gives it an edge and the more prices slide the more opportunities open up.
As it is sellers are in charge and following yesterday’s bearish candlestick breaking below main support at $13, EOS sellers are confirming it. I recommend sells in lower time frames with targets at $10 and $7.5 in the coming days.
Litecoin (LTC) Price Analysis
One impressive thing about Litecoin Foundation and Charlie Lee is their drive for Litecoin adoption. They are simply building on the core objective of cryptocurrencies as set out by Satoshi and Bitcoin. That of allowing cryptocurrencies cut off intermediaries and allow cheap transactions. Aliant Payment are doing that and with their partnership with iPayment INC, Litecoin would be exposed to more liquidity and demand which might help support tumbling prices.
Our trade plan is simple: Look for selling opportunities in lower time frames and aim for $110 and later $90. It’s that simple and by trading in those lines, you shall be aligning yourself with the existing trend now that sellers pushed prices below our main support line at $130 on May 22.
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