Altcoin Price Devaluation Continues Despite Positive Announcements
It’s an across the board altcoins price capitulation and leading this march is Cardano (ADA) that is 20 percent down in the last week. While bears are yet to retest the coin’s main support, chances are we might see them blasting though 12 cents and even testing 7 cents-it’s ATLs in coming weeks. In the meantime, it’s no better for Ethereum Classic, Monero, Tron and even Ethereum as they print an average 10 percent loss week over week.
Let’s have a look at the charts:
Cardano (ADA) Technical Analysis
- It’s yet another milestone for Cardano and after several platform improvement they are now launching the TestNet version of IELE, their virtual machine for testing any developed smart contract before releasing them into the mainnet.
- Sp8e, a gaming dApp that is built on top of the Cardano blockchain has said they are done with the second stage of its MVP development. With the completion of the second stage, it means blockchain integration is simplified and there is verification of all generated randomness is possible.
Even after strong buy pressure in the last two weeks, ADA prices did stall before collapsing. In fact it has been an epic fall with ADA shedding 21 percent in a weekly basis effectively cancelling our previous Cardano (ADA) trade plan.
Remember, then we had place stops at 15 cents and at current spot rates, our stop has been hit. As things stand, we shall retain a neutral approach because our risk reward ration won’t allow for shorts. Prices are 2 cents away from the main support line.
The best and prudent way of trading ADA is to wait for reactions at 12 cents keeping in mind that any collapse below 2018 lows means sellers might drive prices towards 7 cents, ADA’s ATLs.
Ethereum (ETH) Technical Analysis
- Samurai & J Partners Co. Ltd is the latest Japanese company that is regulated and listed at the TSE to offer loans backed with Bitcoin, Bitcoin Cash and Ethereum. In a special program dubbed, Samurai Crypto Loan, the TSE listed company will offer these crypto backed loans up-to $2.7 million per annum- through its subsidiary, Samurai Asset Finance. Interest rates would range from 7 percent to 15 percent per annum.
- Recently, Joseph Lubin the co-founder of Ethereum and the Founder of Consensys said Ethereum is more than a cryptocurrency and that it can comfortably exist in India, an emerging economy that is embracing e-governance. As a decentralized network with smart contracts, Ethereum can be used in cloud computing, database management and delivery of government services. He says Consensys plans on opening a regional hub in India.
Undoubtedly, sellers are in charge and so far, ETH prices are down 13 percent week over week. While we were neutral expecting to see gains above $550, it clear that prices are breaking out a mid-range wedge and adding on to the losses.
Solely because of this, we shall wait for reactions at $400 and wait for confirmation of that June 10 bear candlestick. If that happens then we might be well inside the third phase of a bearish break out pattern with recent consolidation at $550 being retests of previous support now resistance and break out level.
In that case, ideal targets as indicated in previous ETH trade plans would be $350 and later $300.
Tron (TRX) Technical Analysis
- Wallets are considered gateways for blockchains and with it users can transact hence boosting adoption. It’s in the same line of thought that the Tron Foundation have released the first version of TronWallet for their Android mobile users. Users can download it at Google Playstore for free.
TronWallet is now available on Android! Send, receive, freeze $TRX, vote for the Super Representatives, participate in token sales from your phone with this decentralized wallet built by Getty/IO! iOS version available soon, more info on @TronWalletMe https://t.co/QS4SdIB9ru
— TRON Foundation (@Tronfoundation) July 31, 2018
Overly, the announcement of Tron wasn’t widely embraced by the community and we can see a sign of disappointment because Tron prices are not finding support. As a matter off act, after July 30, prices did print below 3.5 cents triggering our stops.
By doing so we are seeing a reversal of July 29 losses and attempts of higher highs above 4 cents. At current prices, TRX sellers are retesting July lows and odds are our sell trigger in line with our previous Tron (TRX) trade plan would be hit.
When that happens, sellers should unload TRX with stops at 3.5 cents with first targets at 2.5 cents and 2.0 cents.
Monero (XMR) Technical Analysis
Like the rest of the markets, Monero (XMR) is on a slide losing 12 percent in the last week alone and over 20 percent in the last month. With those metrics alone, we can see that XMR is technically in a down trend.
Well, supporting this is June 10 break below $150-our immediate resistance and previous support which has been retested on a couple of occasions. Now, as highlighted in our previous Monero trading plan, buyers need to edge and close above $150 for XMR bulls trades to be valid.
However, that is a tall order because should we see a close a below $110 and that two month support trend line, then we shall be completely in sync with bears and moving inside the third phase of a bear break out pattern: the trend continuation phase.
Ideal bear targets would be at $70 with stops at July 31 highs at $140.
Ethereum Classic (ETC) Technical Analysis
- The network is exploring about prospects of developing side-chains as they try to balance the advantages of a “private network” and the security of the mainnet.
Why use an $ETC sidechain?
1. Its cheaper
2. You are in charge. – don’t have to convince Vitalik
— Ethereum Classic (@eth_classic) June 5, 2018
Though ETC market cap is up the liquidity ladder and now perched at position 15, ETC sellers are on a rampage shaving 12 percent off ETC in the last week. That depreciation is clear and for the first time in more than 20 days, ETC prices are trading below $15.
What’s more, there was a spike in trading volumes during July 31 break below. Now, from past Ethereum Classic (ETC) technical analysis, our main support stood at $12.
While we suggest selling and trading with the trend, conservatives can take a pause for conclusive tests or break below $12. By selling at current spot prices, safe stops should be at August 1 highs at $16.
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.