Litecoin Buys a Bank, EOS RAM issues and Bitcoin aims for $3,000
There is always mix reaction when it comes to future BTC valuation. Some analysts think price erosion will continue and even drive prices to $2,500 while others have reasons to believe that the market is bottoming out. By their own judgments, soon we shall see BTC testing the moon at $25,000 they insist. Either way, their sentiment might be correct since every depreciation/gains has an ending.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Undoubtedly, blockchain as a technology is here to stay. In fact we can compare the recent blockchain progress-development and adoption-to the early phases of internet. That’s in the 90s and we are right. Look, satoshis came up with blockchain and Bitcoin after the devastating effects of the GFC. Bitcoin is roughly nine years old but it is causing waves and disrupting existing financial frame works.
Seeing what is happening: calls for regulations, flat-out lies from industry influencers, efficacy brought about by the network and the general realization that Bitcoin is here to stay is what gives bulls hope as bears ravage price. Recently, several jurisdictions as South Korea gave cryptocurrency a breather following their well research announcement that cryptocurrencies after all pose no threat to the economy.
The depreciation was rapid yesterday with BTC losing more than $500 by day close. With that we can now see that sellers are snapping back in trend after completing that nice double bar bearish reversal pattern at around $6,800 and cancelling our bullish proposal-a fake break out. Considering these events and the realization that BTC is down four percent, my suggestion is to short on every high with targets at $6,000 and later $3,000 as laid out before.
EOS Technical Analysis
As we delve deeper into the drama around EOS, we realize that there are many big blind spots that need to be addressed. First, we can talk about the negative effect of RAM and how it is becoming difficult for developers to launch their dApps on the network. It’s not their fault, as RAM is a vital but speculative resource, prices are through the roof some BPs take this chance to hoard them for their benefit.
To even quantify, more than 82 percent of RAM has been reserved while we cannot pinpoint more than ten dApps that are making use of the network. Secondly, Block One “owns” the protocol-literally since they have more than 100 million tokens under them which they can use to vote whenever they feel like. Block One recently announced their intention further causing uproar in the community with many insisting that Block One has no business dappling with voting and centralizing governance.
Back to price and it’s the same story as before. The slide continues and thus far, EOS is down 10 percent for straight double digit depreciations in the last two days. What’s more? EOS is now testing the main support line at $7 and as before, we need them to close below that level to trigger conservative traders sell. Because of the way prices are panning out, my suggestion is to sell at current prices with stops at July 10 highs at $8. As laid out before, sell targets would be at $4.
Litecoin (LTC) Technical Analysis
The partnership deal with WEG Bank AG is strategic to say the least-and this is positive from a neutral’s perspective. Now, here’s the deal. WEG Bank AG is not a bank per say but is a financial entity that specializes in real estate loans and there are perhaps thousands of this in Germany.
Litecoin Foundation now owns 9.9 percent of the shares after TokenPay transferred it to them. However, TokenPay is waiting for BaFin approval before acquiring 70 percent more of the bank.
As sellers sweep altcoins aside, Litecoin couldn’t be spared either. Despite the depreciation being slow, it’s still down one percent in the last 24 hours. Our strategy is simple, sell and sync with the trend with targets at $50. If not and you desire confirmations then wait for breaks below $70 and sell on pull backs with stops at $80 and targets at $40. Any break above $90 cancels this sell stance.
Stellar Lumens (XLM) Technical Analysis
As usual, Stellar Lumens is slow on news but surprisingly, it’s still perched at position eight in the liquidity list. So, it’s not hard to see that there is value behind this platform that’s why it has been big valuation. At the charts, XLM is down six percent and towing with the trend.
Because of this, our trade plan is easy: sell and trade with the momentum. Ideally, sell targets will be at 8 cents and in this case my suggestion is to liquidate at current spot rates with stops at July 2 highs at 22 cents. Any rapid gains above 22 cents invalidate this projection.
Tron (TRX) Technical Analysis
Binance now allows TRX supporters to withdraw and deposit coins after two weeks hiatus following a maintenance glitch and security measures. That’s a big plus because Binance was one of those key exchanges supporting TRX migration to their new mainnet. As such, coin holders can now vote for their favorite SRs in an election that’s on going.
In the charts, sellers are in charge and trading below 4 cents, our previous support now resistance. Because of this, my suggestion is to short with stops at 3.8 or July 10 highs with targets at 2.5 cents. On the flip side, should we have buyers back then any move above 3.8 cents and 4 cents would render our trade plan null.
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.