Price wise, the week has not been kind to altcoins. XRP, EOS and Bitcoin Cash registered new 2018 lows after dropping below key support lines while Stellar Lumens sellers did sink below 22 cents nullifying our previous bullish positions. From a top down approach, we expect this slide to continue though we might first see a ranging market retesting previous break out levels.
Let’s have a look at these markets:
Bitcoin Cash (BCH) Technical Analysis
After periods of stress testing, Bitcoin Cash trading volumes are back to normal processing 15,000 transactions per day. Besides the drop in volume, it’s also profitable to mine or trade Bitcoin now that their drive to flip Bitcoin and dominate is unlikely. The only way you to draw mainstream adoption is if the team behind BCH position it as a medium of exchange and a cheaper alternative to Bitcoin.
After a 21 percent drop on a week over week basis which was further exacerbated by than five percent drop yesterday, BCH is now trading at new 2018 lows.
It’s also below the $600 main support line and as highlighted in our previous Bitcoin Cash (BCH) technical analysis, our recommendation is pretty much straight forward.
First, our bear break out set rolling by June 22 bears is live and secondly, in the last couple of days, we have seen a multi-level break below key support line both in the daily and weekly chart.
This hints of strong bear momentum and as such, selling and syncing with the main trend is advisable. First bear targets remains at $300.
DASH Technical Analysis
Undoubtedly, blockchain technologies is here to stay and could be a basis of the next generation tech revolution. The only problem is scalability and best ways of solving that more so on the DASH network. It’s along this vein that DASH pay and Arizona State University did collaborate before. Recently they published their results findings on how to best address scalability concerns in a research titled “Block Propagation Applied to Nakamoto Networks”
At the moment, DASH is down 17 percent week over week but still perched at fourteenth place in the liquidity table.
However, from our last DASH technical plan, we were net bearish shorting the coin with stops at $240 and first targets at $160.
It seems like our targets would be hit today but I suggest locking in some profits considering the strong wave of sellers and moving targets to $100.
EOS Technical Analysis
As expected, yesterday’s EOS price movements were pretty tight hovering around Aug 8 lows. That often happen following periods of heighten volatility and wide trade ranges we saw on Aug 7 and 8 when sellers did break below $7, our intermittent support line.
With that depreciation, our sells were triggered and going forward, we recommend selling on every highs retesting $7. First targets will be at $4 with stops at $7 as highlighted in prior EOS technical analysis.
The only way this trade plan would be cancelled is if there is a spike above $7 hitting our stops and yanking back EOS back to a range.
Stellar Lumens Technical Analysis
Prior to Aug 8 double digit loss, we were net bullish on Stellar Lumens expecting prices to find support at 22 cents, previous buy trigger then support. However, prices obliterated that support effectively canceling our XLM trade plan and inviting sell pressure.
As it stands, we shall retain a neutral approach expecting sellers to drive prices towards 18 cents and 20 cents. There, if there is a break below, then we shall recommend syncing with the overall bear trend and with first targets at 15 cents and later 8 cents.
On the flip side, buyers could find support if and only if buyers muster enough momentum and edge past 22 cents and claw back Aug 4 losses closing above 26 cents.
Accompanying this revival should be high volumes indicating re-emergence of buyers. If not, then we sell on pull backs with targets mentioned above.
XRP Technical Analysis
- Ripple the company is literally chocking with lawsuits. There are three class action lawsuits in progress and though the proceedings are relatively quiet, Rosen Law Firm is investigating whether the company violated securities rules when they sold Ripple’s XRP tokens. If found culpable, then they might end up paying a heavy penalty besides concluding that XRP is indeed a security that is overseen by the SEC.
- The Seattle Based cryptocurrency exchange, Bittrex is planning on adding XRP/USD support by Aug 20 according to their recent announcement. Through what they called a Phased approach, the crypto exchange will offer more support in a gradual manner for quality purposes.
By closing below 40 cents as projected in our earlier trading plan, XRP dominated headlines. The reason was simple, XRP registered new 2018 lows, lost more than 20 percent on a weekly basis and dropped more than 90 percent from 2017 ATHs.
This confluence and unfavorable fundamentals could further worsen prices. So, in order to avoid trading against prevailing sentiment and sync with our last XRP trade plan, I suggest selling on every high in lower time frames with stops at Aug 8 highs at 38 cents with targets at 15 cents.
Nonetheless, it is likely that we might see a consolidation through the weekend with prices oscillating between Aug 7-8 trade range.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.