There are indications that prices might move higher today if weekend’s price action is anything to go by. After all, in the last 24 hours alone, most altcoins in the top 10 of our liquidity table are in the green. We should generally watch how prices oscillate going forward and any surge should be pointers of trend continuation or reversal in line with our trade plan.
Let’s look at these charts:
The US Internal Revenue Service (IRS) has “long arms”, quite literally and playing by the rules if what is happening to BitFinex customers is anything to go by. Well, the recent announcement is a nightmare for BitFinex day traders because according to the exchange’s requirements, they are supposed to declare their tax information in line with the British Virgin Islands new tax law and the US Foreign Account Tax compliance Act (FATCA). In a nut shell, this obligation is part of a Know your Customer (KYC) rule and Americans with accounts at BitFinex must comply.
While we are net bearish, recent price movements seems to be building inertia for a potential uptrend. We can begin dissecting this from May 18 candlestick. That was three days ago and then, bears were in charge till that candlestick printed rejecting lower lows. Notice the high volumes and the follow through with tight price ranges. Based on this, loading longs on every dip with safe stops at $7800 can be a good trade strategy. Potential bull targets lie at $10,000.
There was a little bit of excitement at the WeAreDevelopers Conference when Steve Wozniak said Ethereum has some similarities with Apple especially when they (Apple) were starting out. Contrary to popular assertions, Steve is the brain behind the Apple brand. Yes for sure, many consider Bitcoin as Digital Gold but Ethereum is turning out as a preferred digitization platform all thanks to their ingenious smart contracts. Steve Wozniak said Ethereum shall eventually open up the world for millions of smart individuals and provide value.
Obviously, Ethereum and Bitcoin do have a positive correlation. Notice those dips and higher highs syncing with BTC prices after May 18. Like BTC, ETH prices are moving higher and should we see up-thrusts today then we can initiate longs with targets first at $830 and later $930 or February 18 highs. In that case ideal stops should be at $630 or May 12 lows. On the other hand conservatives could find value at $740. Of course that depends on if momentum would be high enough to cement our bull pressure expectations.
The month of May was eventful for the driver of cross border money service provider, Ripple. Even though there were elements of FUDs, their positive announcement on the development front, partnerships and updates on their core products carried the day. RippleNet got a thrust past the beta stage with an update while xRapid showed the power of speed and its relationship with cost savings. In a pilot program, xRapid said companies who adopt their services would see a 40 percent to 70 percent reduction in costs. Whether this would spur companies to subscribe to xRapid or not we are yet to see.
Despite the obvious benefits investors see in Ripple, buyers didn’t have enough impetus to reverse recent losses. Week over weeks, Ripple is down two percent but the cool thing is that buyers are now beginning to soak this sell pressure as they reject lower prices past 60 cents. Considering this, jumping right away before confirmation is risky and patience would be the only safe move today. Our buy triggers are at May 14 highs of 75 cents and only until then, we should be hold a neutral bias. However, aggressive traders can load up with any undervaluation in lower time frames and with bull targets at $1. As it is, safe stops should be at 60 cents.
BCH/USD (Bitcoin Cash)
Last week Bitcoin Cash upgraded their network through a hard fork which saw the size of their block increasing from 8MB to 32MB. Yes, that’s pretty impressive and goes on to show how there is no politics at Bitcoin Cash development camp. Now, there is a thorny issue here. Was this upgrade really necessary? Remember, the network currently processes an average 40kbps block size with a ball park 40,000 daily transactions. The team gave and clarified that there won’t start processing the 32MB blocks right away contrary to the propaganda going around. Instead, the block size hike would give them ample time to adjust when future block sizes approaches this limit.
Technically, there are some pretty nice developments panning out on Bitcoin Cash. We can root this to May 18 rejection of lower lows despite high volumes and the consequent short covering on May 19. After yesterdays bull candlestick BCH buyers can ramp up their positions and aim for $1600 and recent highs at $1850.
I mean guys, Vitalik and Dan Larimer are on the eyes of readers “sworn” enemies but really, these guys are cogs that the crypto world need. In my view, assuming EOS was some sort of a flash in a hot pan, Vitalik won’t have reviewed EOS code at GitHub. EOS is a platform that promises to give Ethereum a run for their money so when your future competitor goes through your work then you better know that it’s serious stuff you are working on. EOS is undoubtedly building momentum and right after snatching Australian banker, the potential of EOS remains a source of excitement for many. Near zero fees, multiple chains ability, interest alignment between block producers and coin holders and many more are some of the benefits that one gets with EOS.
Many analyst say EOS is a market leader and if we replay weekend events, that statement is true. Notice those series of higher highs, a bullish series rejecting lows at $13 and bidding past May 17 highs of $14 where EOS price action finds themselves at. Considering previous developments, this is what we expect to happen in the run up to mainnet launch on June 2. The overall sentiment looks good so buying at current valuation won’t be a bad idea.