After what appeared to be a revival, crypto prices are relapsing. Ethereum Classic for example is edging close towards pre-CoinBase announcement lows after that fake bull break out triggering our buys by end of last week. On the same frame, NEO and DASH are trading within a bear break out pattern meaning there could be further losses today and days ahead.
Let’s have a look at the charts:
Ethereum Classic (ETC) Technical Analysis
One month after CoinBase announcement that they will be listing ETC in months to come, ETC prices have been slow. Yes, there have been some appreciation but it has been haphazard to say the least. While we understand that the access Americans would have to ETC would increase liquidity and trading volumes boosting prices, we must not be heads over heels on matters CoinBase support.
Question is, is everything “priced-in” just like they did to Bitcoin Cash? Remember, after their core hard fork, CoinBase said they shall begin full BCH access, trading wise on Jan 1, 2018? Well, they didn’t and instead dictated the time when trading starts availing BCH in mid Dec 2017 for their clientele. Let’s see what they will do to ETC going forward. Will CoinBase time be the best time?
Price wise ETC is down eight percent in the last 24 hours. It means our buy triggers at $18 were activated but it’s turning out that this might be a fake break out since our stop loss is going to be hit going by the rate of depreciation. So, in this case, my suggestion is to fade the market with stops at $18 and targets at $13 and later $12-our main support line and April-June lows.
IOTA Technical Analysis
For some reason, the whole IOTA Network was down on July 6 as network researchers observed. After some analysis of the cause, it was found that the main Tangle chain couldn’t regularly confirm transactions because of an anomaly called Stitching. It’s often a complicated thing to do and what this does is that many side tangles are “attached” to the main tangle making it impossible for regular nodes to choose tips. This is akin to spamming the network which in turn overloads IRI nodes (or IOTA’s reference node). Such attacks effectively reduces throughput in the network and is an ante for IOTA’s objective of infinite scalability.
Such attack vectors is not good for the network and we saw what happened on that day. Prices tumbled and it continues to meaning that sellers can actually take advantage of this depreciation.
From previous analysis, we were net bullish but it seems like our stops at $1 were hit meaning we should revert to neutral position. However, with the wave of selling, aggressive traders can sync with sellers and short on every high and aim for 70 cents. Otherwise, risk-on traders can stay on the side-line as neutrals until after we see movements either below 90 cents or up-thrusts above July 2 highs.
DASH Technical Analysis
Until we have a network that can scale and process transactions faster than centralized networks as PayPal, these corporate will always rule. DASH tries to change this narrative and not only have we seen results when it comes to transaction processing-which by the way is done under one second or less- DASH have one of the largest peer to peer network with over 4,100 master nodes. This distribution and global decentralization brings with it scalability and security. Fact is the legalization of pot in many US states opens doors for DASH to be a choice for merchants all thanks to their innovative and easy to use APIs in place.
In the charts though, DASH sellers are in charge. As it appears, DASH is now trading within a bear break out pattern with retests completed at $270 following buyers’ failure to close above resistance. So, as it stands my recommendation is to sell at current prices with stops at $265 or July 2 highs. Targets would be at $160, a key support line.
Cardano (ADA) Technical Analysis
Blockchain smart contract dApps platform continue to saturate the market but of the many Cardano stands out. The network was built from a simple peer reviewed philosophy and its innovativeness means several monetary dApps for government or financial information use can run on Cardano.
Price wise though, there is nothing much and in fact at the time of press, ADA sellers are pushing harder. ADA is down seven percent but is still perched at eight place but we anticipate more losses. As before, our main support line is at 12 cents. This level would either make or break ADA because should we see a bounce back to July 2 highs then we shall buy the recovery as before. However, any strong break below 12 cents would be treated as a sell break out and my recommendation would be to sell with targets at 7 cents.
NEO Technical Analysis
A Chinese Billionaire, Li Xiaolai, was caught on tape “tearing” into NEO and Tron. He was brave and even called Justin Sun “a scam artist”, Binance “a fraud exchange” and NEO “a worthless and a stupid project” saying people should follow Wang Lijie, an Angel Investor of NEO, and liquidate their coin holdings. Whether this is true or not, comments as such more so coming from an influential crypto figure head should be take seriously.
Like DASH, NEO is trading within a bear break out pattern and we can see how NEO rejected higher highs after hitting $40, a previous support now resistance. Technically, these lower lows are the early stages of the trend continuation phase and my suggestion is to short at current prices with stops at $40 and bear targets at $25 and later $15.
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.