Most coins under our review are caving in to sell pressure and while EOS and Stellar Lumens are yet to break below key support lines, DASH and XRP might collapse today or the weekend. And when they do, we might see them dropping more than 90 percent for their ATHs and registering new 2018 lows in the process.
Bitcoin Cash (BCH) Technical Analysis
To mark their one year anniversary, Bitcoin Cash processed more than three times the average daily transaction of Bitcoin core. Data from Bitinfochart shows that the BCH network processed exactly 687k transaction on august 2 while BTC could only handle about 240k during the same period. However, could this spike in transaction processing a Bitcoin Cash network stress test of some sorts?
Odds are, Bitcoin Cash price analysis would thrash our previous BCH trade plan. When we take a top-down approach, we realize that BCH prices are trending at a 12 month support trend line and being the first main support line, Aug 1 candlestick could offer support.
However, after sellers shaved four percent and pushing prices below our one month intra range support trend line, our solid proposal were cancelled.
Because of that whole candlestick closing below our minor support trend line, I recommend selling with stops at Aug 2 highs at $780 and first targets at $600, our main support line.
EOS Technical Analysis
Our EOS trade position is pretty much solid: Neutral but bearish. To elaborate, we are bearish first because the whole market is bearish and it doesn’t make sense to trade against the market sentiment.
Secondly, because we can interpret the way charts are laid out and notice that EOS prices are trading within a bear break out pattern. Bears were officially released on June 22 following that strong depreciation printing a bearish engulfing pattern as a result.
Furthermore, buyers didn’t build enough momentum even after that resuscitation of bulls in mid-July. What we had instead was a retest of the upper limit of our consolidation at $9 before sellers resumed their erosion.
As highlighted in previous EOS trade plans, we need to see high volumes break below $7 before we settle on selling on every high with first targets at $4 with stops at the break out candlestick’s highs.
Stellar Lumens (XLM) Technical Analysis
Even in the midst of a multi-month bear trend, the last two weeks bullish events could be a reliever for investors and traders.
However, for confirmations we need buyers to resume trend and convincingly close above 30 cents or that double tops marking June and July peaks.
If not and Stellar Lumens sellers compound yesterday’s four percent loss by driving prices closer to 22 cents, our initial buy trigger, then our Stellar Lumens (XLM) trade plan might be binned.
As mentioned in our previous XLM analysis, any close below 22 cents and more so 20 cents stands to usher in sellers keen on driving XLM prices to 8 cents or even lower.
Should you zoom out then you note that 8 cents is Q2 2017 highs and previous resistance now our second level of main support after 20 cents.
XRP Technical Analysis
- XRP will be added to CoinSquare, a cryptocurrency exchange in Canada. CoinSquare still in beta and shall launch in coming days.
#XRP is now live – in beta – on Coinsquare's platform
During the beta, you can:
– Fund your account with XRP
– Buy XRP with fiat or cryptocurrency
– Trade XRP for fiat or other cryptocurrencies
— Coinsquare (@Coinsquare) July 31, 2018
- Malta usurps South Korea to be the leading XRP trader in Q2 2018 according to Ripple’s Quarterly report. $73.53 million worth of XRP sold in the same period. Malta is one of the leading countries in the world that is friendly towards cryptocurrencies.
That tight 5 cents gap between 40 cents and 45 cents could either make or break XRP valuation. For starters, XRP has been stuck in a horizontal consolidation for the last 60 days or so. While it did, XRP prices did swing between a 10 cents gap with buy and sell triggers set at 55 cents and 45 cents respectively.
Now, for assurance and as laid out in all our XRP trading plans and analysis, what we need to see is a high volume break below 40 cents before we begin selling on every highs in lower time frames. When that happens, price action would have confirmed June 22 bear candlestick and bear break out pattern whose second phase, the retest was completed in July after buyers failed to breach and close above 55 cents.
Furthermore, the longer it stays this way, the longer the consolidation and the stronger the break out. Before that break out happens, we shall remain neutral and later trade with the trend as always.
DASH Technical Analysis
Earlier we mentioned the importance of $270, our immediate resistance line and how DASH prices needed to breach above it should they want to take control.
From the way it looks like, DASH buyers didn’t muster enough strength but instead caved in to sellers completing the second phase of a typical bear break out pattern—the retest.
As it did so, it ushered in the trend resumption phase where DASH sellers who didn’t short as advised in previous DASH technical analysis can unload this coin once there is a break below that M-formation and floor at $200.
Afterwards, DASH sellers can comfortably target $160 and later $120.
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.