Stellar (XLM)
$0.041527 (2.09 %) View coin |
Cardano (ADA)
$0.031898 (3.25 %) View coin |
General Event (CRYPTO)
View coin
Newsletter
01 October 2018

3 coins to keep an eye on | Issue #10

Hello everyone!

Bitcoin’s downtrend supply line squeezes closer and closer to the 6,000 USD support. While this catalyst approached, the charts show more bullish signs for Bitcoin. This bodes well for the cryptocurrency market as a whole.

With signs that the bear market could be coming to a close soon, the altcoin market has seen many surges over the last month. Many coins are showing clear signs of - at least - temporary reversal.

Some tremendous gains have been made, and it is a logical time for hopeful longer-term investors to begin considering positions and entering longs as they hope to catch the bottom of the 2018 bear market.

As always, both traders and investors should be exceptionally cautious and protect their capital right now. A sudden drop in Bitcoin under the 2018 support could prompt catastrophic panic. However, traders focused on a shorter timeline can capitalize on the current bullish sentiment until a market-wide reversal or continuation of the downtrend becomes more certain.

Here are three coins which have hot events this week to keep on eye on that may provide opportunities for those traders.

@tradeprophet


Stellar (XLM)

Stellar (XLM)

Price
0.259971 USD (1.13 %)
0.00003925 BTC (0.66 %)

Market Cap
4 884 845 736 USD
737 511.00 BTC

Volume (24h)
68 476 319 USD
10 338.51 BTC

Trade
Binance

XLM saw a dramatic surge in the last two weeks from its accumulation zone. It briefly tapped the downtrend supply line which has lasted throughout 2018 - and was promptly rejected.

Despite this rejection, XLM appears to be showing more signs of life. After printing a TD9 candle, which often marks a new resistance or support zone, on the TD Sequential indicator, it has steadily consolidated for a week.

A retest of the bullish orderblock below not only held but also prompted a long lower wick. This signals interest from buyers anxious to join the uptrend. Since then, volume has steadily decreased while also recently being accompanied by a longer bullish candle body.

When this volume and candle body pattern follows a series of candles with long upper and lower wicks, it can mean that supply is being absorbed and the bulls are ready to begin pushing through exhausted sellers.

A retest above near the downtrend supply line seems likely, and would also print a bullish pennant on the daily chart, which provides further incentive for more buyers to join the push.

The confluence of these bullish signs along with the Lightning Beta Network release today may be a catalyst for buyers to continue absorbing the supply from traders “selling the news”. This would provide bulls with a short-term long opportunity for the downtrend supply retest.

Should this downtrend supply line break, a much longer bullish run could be in the cards.


Cardano (ADA)

Cardano (ADA)

Price
0.085081 USD (-0.44 %)
0.00001285 BTC (-0.76 %)

Market Cap
2 205 895 327 USD
333 045.00 BTC

Volume (24h)
49 685 909 USD
7 501.55 BTC

Trade
Binance

In mid-September, ADA aggressively punched through its downtrend supply line. After this short and dramatic burst upward it has steadily consolidated. In this consolidation, we can see a few bullish patterns forming.

An ascending triangle with a failed breakout is forming under a significant weekly level. A bullish pennant capped by the failed ascending triangle breakout is also forming on the daily charts

when wicks are considered. Additionally, ignoring wicks shows us a pattern resembling a bullish flag.

Meanwhile, the guppy indicator shows us some interesting data. The shorter term “trader” EMAs are pushing up against the longer term “investor” EMAs. As this happens, the investor EMAs are flattening out from their negative slope into a more level angle.

While this does not necessarily indicate a reversal, it does suggest that longer-term investors have finally stopped selling into the rally as the market waits for either the bears or the bulls to seize the initiative and ignite momentum in one direction or the other.

Along with the guppy’s indication of bullish trader sentiment, the close over the daily countback line zone provides a buy signal for aggressive traders anticipating a reversal. So far the zone provided by this countback line has held, which indicates some strength in price’s movement upwards.

As price consolidates under the bearish orderblock just above, a short-term move upward at some point this week seems likely. This could either slice through the resistance above or confirm the top of a bullish flag.

The roadmap update this Thursday could encourage this short-term upwards movement. Should the market as a whole continue to maintain the bullish momentum of the past few weeks then this move upward could potentially reach much further.


General Event (CRYPTO)

General Event (CRYPTO)

Price
0.910708 USD (-1.49 %)
0.00013750 BTC (-1.70 %)

Market Cap
1 617 410 USD
244.00 BTC

Volume (24h)
32 092 USD
4.85 BTC

Trade
Livecoin

We can see in CoinMarketCal’s event list that HXX has regularly been performing airdrop snapshots every Friday.

Given HXX’s limited number of exchanges and their lack of quality charting tools, comprehensive technical analysis is more difficult. However, the charts do hint at a potential opportunity this week.

While in a downtrend on a higher timeframe, HXX has shown quick bursts upward on the chart before each Friday - presumably from tokens being quickly acquired before the snapshot.

Airdrop snapshots can be a good time for agile traders to catch a quick move upward as players quickly enter the market to capitalize on the snapshot’s returns. Amplifying this effect is HXX’s low market cap - under two million USD.

While not yet showing undeniable signs of reversal, HXX did set a higher low during September. Price is currently hovering on the level from which the bullish impulse on September 18th originated, which seems to be serving as support.

At a minimum, this Friday may be another opportunity for a quick intra-week trade before the snapshot is taken. A more significant move upward, fueled by profits and sentiment from the recent altcoin surge, could print a higher high on the chart. This would offer more evidence of reversal and encourage entry from longer-term investors.

Cardano has a planned hard fork today at epoch 176 to help it transition from a federated network to a Proof-of-Stake (PoS) consensus model. Cardano’s current mainnet has operated with limited functionality since its launch in 2017. Today’s hard fork, dubbed OBFT (Ouroboros BFT), bridges this old ne...
Newsletter
20 January 2020
3 coins to keep an eye on | Issue #65
Last week was another win for the bulls as BTC continued climbing. A 13.86% gain at the highest point at $9169 and a close with a 6.41% gain at $8698 flooded the market with euphoria. However, a quick drop right to $8450 before the close hints at weakness. It's unclear if this is the calm before a reversal, or whether the bul...
Newsletter
29 July 2019
3 coins to keep an eye on | Issue #40
Bitcoin dangles on the edge of the precipice. A move up or down could significantly affect the bearishness or bullishness of the chart - but the final direction remains to be seen. Meanwhile, the altcoin marketcap has held relatively steady for the last week. Many altcoin charts are beginning to look more bullish and may g...

3 coins to keep an eye on 👀