Lots of fundamental events are supportive of cryptocurrencies on paper. However, when we break down these technical alignments, it looks likely that Bitcoin would simply take down altcoins with it. For the second time this year, Bitcoin is trading below the main support line at $6,000 meaning selling on pull backs should be the order of the day.
Let’s have a look at the charts:
Bitcoin (BTC) Technical Analysis
Yukio Noguchi is a Japanese economist who has some bad news for Bitcoin bulls. In his preview, he has strong reasons to believe that BTC prices won’t surge any time soon. This is all thanks to the irrefutable evidence following the introduction of Bitcoin Futures late last year.
While making a reference to a research paper that went live on May 7 at the Federal Reserve Bank of San Francisco official site, there are strong pointers that links the rapid decline of Bitcoin prices with the listings of Bitcoin Futures at the Chicago Mercantile Exchange (CME). Shortly after listing, we began seeing prices peaking and dropping early this year. This according to the paper is typical of traders’ behavior and consistent to how asset prices react when Futures trading are introduced. Many thought it was a nice thing but data shows that it did allow short selling which further precipitates BTC price dump.
A single glance at the charts and BTC prices are on a decline as Yukio projects. In the last 24 hours alone, it’s down four percent and trading convincingly below the $6,000 sell trigger line. What this means is that we can begin activating sells on every pull back in lower time frames with stops above June 28 highs at around $6,400. In that case, sell targets lie at $4,500 and $3,000 in line with our previous trade plans.
Ripple (XRP) Technical Analysis
Thanks to BitHumb cooperation with authorities, the extent of the damage caused by the hack is down $13 million to $17 million. That’s according to an official statement from the exchange. In an effort to curb stolen coin liquidation, the exchange received extensive support from other exchanges and foundations across the world preventing hackers from transacting. This plus their initial response of moving funds from their hot wallets saved the day because it is now emerging that only 5.23 million XRPs are missing. BitHumb takes full responsibility and there is a compensation plan complete with pro-rated interest rates for victims of the hack though they ought to make an application first.
Like BTC and most coins under our review, XRP is on a slide losing four percent in the last 24 hours alone. By doing that, it is down below the main sell trigger line at 45 cents meaning our sell trades are live. Because of this, I recommend selling with the trend with a long term target of 15 cents and stops at 45 cents.
EOS Technical Analysis
It’s no doubt that EOS is a unique blockchain and the first that tries to fuse a mix of DRY code and human elements through governance. It’s also the first blockchain that allows users to recover their coins-at least in the meantime-through arbitration. Now, contrary to expectation, the ECAF-which is EOS arbitration arm has been under heavy criticism for the way it handles these cases.
On his part, Dan Larimer says this is “costing the reputation of the network”. He may be right and to explain his reasons, he published a blogpost, Intention of Code, highlighting why arbitration is timely only when handling important stuff in the magnitude of DAO hacks for example. That’s the reason why Block One and Dan are proposing to amend the constitution and likely clip the “haphazard” powers of ECAF in the process.
In the daily chart, EOS prices are literally in a consolidation as they test the main support at $7. The thing is, our buys which we suggested a while back still holds. That’s as long as sellers don’t push prices below $7, our stops and short term sell trigger line. Now, considering how our trade plan is panning out, my recommendation for those who are yet to trade is to wait until there is a break out below $7 or a surge above $9. If the former did happen-EOS is in a down trend-then sell with targets at $4. However, should there be buys, buy on dips with targets at $15.
Stellar Lumens (XLM) Technical Analysis
Not only is Stellar a payment solution for those wishing to send money across the border but it is also a platform where blockchain based startups can launch their initial coin offerings (ICOs) at. It’s exactly what Chynge, a company aiming to create a private cross-border payment solution that is compliant to multi-jurisdictional regulations. After doing their due diligence, they settled on using the Stellar Protocol for obvious reasons: Not only is the platform superior in performance but the simple fact that it is optimized for financial products and services places it ahead of competitors. Chynge can take advantage of Stellar’s ability to scale vertically and horizontally as their business gets approval from different countries in the Asia-Pacific region.
Back to price action and these strong sell bars we have been seeing in the last five to seven days are indicative of unrelenting sellers. After all, sellers are in charge and the overall trend is bearish means we can sell on every high in lower time frames.
At current prices, XLM is down six percent in the past day and my suggestion is to sell with stops at 20 cents. Reasonable sell targets would be at 15 cents and 8 cents as we have reiterated before.
DASH Technical Analysis
The fastest way to boost DASH and other crypto adoption is to create channels that enable seamless exchange. ETH, BTC and the rest are successful because there is CoinBase that allows direct bank account purchase. However, the “bank” aspect means time delays and cost. As such, it would be preferable if everything is done on the blockchain.
Now enter Alt Thirty Six, an app that can “auto-convert” DASH to USD and be available for immediate use. DASH also has KuvaCash in Zimbabwe where Ryan Taylor, the CEO says DASH is offering “stable alternative for people residing in hyperinflation economies” even in the midst of wild price fluctuations.
All things constant, June 22 bearish engulfing and break down candlestick is what guides our trade plan. Overly, we remain bearish even though we are seeing nice fundamental developments in Zimbabwe. Because DASH prices are trending below $270 which also doubles up as a resistance line, selling with stops at $270 is reasonable. A nice follow through means targets at $160 is feasible more so if DASH sellers keep up the pace.
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.