Alt-Coins Testing Key Support Lines as Ethereum Bulls Eye $1,000
Overly, altcoins are oscillating between neutral to bullish and while we retain a bullish stand on Ethereum, Ethereum Classic, Cardano and Tron, Tron is the front runner. In four days, the Tron Foundation will announce their “secret project” and launch their Virtual Machine the next day. This would definitely give TRX some impetus to add their gains and perhaps clear 5.5 cents.
Let’s have a look at these charts:
Ethereum (ETH) Technical Analysis
MetaMask, the popular plugin that bridges the Ethereum blockchain and users willing to run Ethereum dApps without necessarily running a full node, has been suspended and delisted from Google Chrome Store. Currently, Google is mum about it and many think this is likely an “accidental” delisting based on Google keywords.
PSA: MetaMask has been delisted from the Chrome Web Store. We are unsure of why this is the case and we will update everyone as we get more information. All other browsers are unaffected.
— MetaMask (@metamask_io) July 25, 2018
Remember, sometimes back Google declared that they were banning all crypto mining plugins in Chrome Store. Luckily, other browsers as Brave, Opera and Firefox were not affected and new users can still download and run MetaMask plugins without any interruption.
It has been one month of ETH accumulation within a $150 trade range. The thing is, even if price action is consolidating horizontally, still our long or short positions are not live because none of our triggers at $550 and $400 has been hit.
Yes, generally, Ethereum might be edging higher but the last three month of price dump might negate their effort and so unless we see strong July 24 follow through, we shall continue holding a neutral to bullish stand.
In the meantime, aggressive traders can begin buying small size ETH positions at current prices with stops at July 24 lows at $435 and aim for $550 as their first targets. Once there is a close above it in line with our overall Ethereum technical analysis, then they can load with targets at $850 or April highs.
Cardano (ADA) Technical Analysis
At Blocklab, Bernardo David of IOHK said the community should have sufficient reasons to replace the Proof of Work (PoW) mechanism with other sustainable block producing consensus methods. Citing centralization where a group of mining pools can literally take over a network or effect changes and even fork out, he urged the researcher community to find alternative algorithms that benefits both the miner and the owner of the cryptocurrency.
In a proof of work consensus, it’s the miner who benefits while the investor or crypto owner is passive and rakes in profits from capital gains only. To counter this, Cardano have implemented a different approach and use proof of stake where the coin minter and investor both win.
Back to price action and ADA has been stalling for the better part of the week. In the first half of the week, bulls drove prices just shy off 20 cents, last week’s highs but for bull trend continuation, we need ADA buyers to step up and clear 20 cents.
Thereafter, we can resume buying on dips though at current consolidation, there are entry options. Ideally, because of last week’s bullish engulfing pattern, my recommendation is to buy at spot prices with stops at 15 cents and targets 40 cents as laid out in previous Cardano (ADA) trade plan.
Tron (TRX) Technical Analysis
Since inception, Tron has been mired with controversy. First there was strong allegations of plagiarism where several pages of their white paper seemed to have been copied directly from Filecoin white paper without any credit given. It didn’t stop there, keen developers could also identified code which were lifted from Ethereum, its main dApp competitor.
Of course, Tron denies these misguided “fallacy” but the acquisition of BitTorrent is spurring more heat for Justin Sun. Even though they say BitTorrent is “the genesis of decentralization movement”, it is an open secret that BitTorrent is a pirates’ platform.
On the charts, TRX is shifting from neutral to bullish after adding two percent in the last day and hopping close to the top 10. Following July 24 gains, we expect to see confirmations of previous Tron technical analysis today.
Now, the best approach to trade TRX and perhaps tap in the positive expectations that would be announced in four days is to buy once buyers close above 4 cents. Stops would be at July 24 lows at 3.2 cents with first targets at 5.5 cents.
Monero (XMR) Technical Analysis
Even though Monero (XMR) is still trading within a bearish break out pattern following that dip below main support on June 10, XMR buyers have been resilient to say the list. So far, it has been more than 40 days of consolidation between $150-immediate resistance line and $100, our main support and sell trigger line.
Before we enter this trade, we must wait for buy confirmations and that would happen only once buyers close above $150 accompanied by high trade volumes. That would effectively cancel the bear break out pattern set in motion on June 10 and set the ball rolling for buyers eyeing for April highs at $300.
Ethereum Classic (ETC) Technical Analysis
There are many benefits that Ethereum Classic have that seems to eclipse Ethereum. Among many, commentators believe ETC is the original Ethereum and not the other way run. Besides, it is secure because of their intention to retain their proof of work consensus algorithm and is free from the ICO craze that is plaguing Ethereum.
Because of this, the ETC development team in collaboration with Open Stack shall be experimenting on Cloud computing and the idea of Side chains as they try to create a solution for the Passport Program. Open Infra Foundation shall act as the intermediary providing reliable cloud federation services.
Relative to last week’s strong gains, this week’s ETC price action has been stalling to say the least. While there were hints of buy pressure after July 24 strong bullish pressure, we haven’t seen strong confirmation above key bull triggers to confirm our ETC buy stand.
Of course, in a generally bearish trend, we need strong signals to warrant buys otherwise, it will be counter-intuitive and trading against the trend. As such, close above $18 as highlighted in our Ethereum Classic Technical analysis, will be a sure reason to buy on dips after a high volume bull candlestick prints. Before then, being neutral will be a better trade approach.
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.