As it is, the cryptocurrency market is experiencing a bloodbath with sellers wiping more than $30 billion in the last three days alone. While this is happening, EOS is leading the slide losing more than 15 percent in the last 24 hours after confusion surrounding its mainnet let and consequent BP voting. Holders are finding it hard to vote even when the regulatory environment continue to thaw to cryptocurrencies.
Lets look at the charts:
Bitcoin (BTC) Technical Analysis
Talks of price manipulation through spoofing and related malpractices continue to saturate the crypto-world. There is even an investigation with the CFTC pointing their fingers to exchanges participating in the creation of the CME’s and CBoE’s Bitcoin Futures index. Bitstamp and CoinBase are some of the exchanges that have been asked to submit their trading investigation by the Futures regulatory body as they try to comb through and discern what is really happening to Futures prices. But is this really warranted as Jesse Powell of Bitstamp pose? Well, we shall wait and see to see what will come out of this investigation even as Bitstamp reconsider their value and cost of taking part in making this Future’s trading a success.
Back to price action and yesterday’s flash crash saw Bitcoin prices trending below $7,000 as they dip closer to this year’s low. As it is, bears seem to be in charge but technically, that might not be the case or even a cause for shorting because not only are prices trending near this year’s lows at $6,500 but shorting at important levels as these cannot be a prudent move. Notice that yesterday’s bear move was technically a climactic sell near the apex of this year’s descending triangle as visible from the chart. I will recommend being neutral at current prices and see what happens today.
Ethereum (ETH) Technical Analysis
According to statistics from coin market cap, Ethereum has a record 100 million ETH coins in supply. That’s what users have to content with a network that has no coin burn and with increasing supply, coin prices would definitely shrink in response. Hopefully with Casper and Vitalik’s PoS, the network would have to deal with this. While this is happening, South Africa’s Wala is showing that ETH micropayment is possible if their activities within the three African countries is anything to go by.
From what we can judge from the daily chart, bears are leading the way. Indeed, after yesterday’s climax sell like what’s happening in BTC, prices are finding support at main support at $500. Now, while we can trade in response to June 10 sells, it’s better to take a neutral stand today and see what will happen despite the high trade volumes. This after all might be a correction from April bulls and highs and trading against medium trends can be a risky affair. I remain bullish and the only way this assertion would turn true is if we see prices burst through June highs of $650. If not and we see a strong follow through below $500, then we shall sell and aim for April lows at $350.
Ripple (XRP) Technical Analysis
Undoubtedly, banks like any other businesses are risk adverse and won’t want to sink their money on a product that might be prone to bugs and other vulnerabilities. That is why in the next coming days, their revolutionary software, Ripple Version 1.0.0 would be up for voting as it is subject to various amendments. Lest you forget, the Ripple team spent more than six years of code making sure that it remains as flawless as possible. Come June 19, 2018, banks and other organizations using Ripple Ledger Consensus algorithm would have to upgrade to this new version ensuring that no one organization has real control over the network.
Price wise, bears are incessant and with yesterday’s rapid depreciation, week ending June 3 gains would be completely reversed if prices test May 29 lows of 50 cents. That may happen today considering the level of yesterday’s market participation pushing prices lower. In my view, our short-term target when we trade with the trend and shorting on every high would be 40 cents or April lows.
Bitcoin Cash (BCH) Technical Analysis
Even in the midst of this market turmoil, there is some positive news trickling in from SE Asia. After a month of public hearing and research by Thailand’s SEC, Bitcoin Cash and six other cryptocurrencies including Bitcoin, Ethereum, Ethereum Classic and Stellar are now legal. Besides, in line with the new shift, exchanges are supposed to reapply for new licenses. Already 10 cryptocurrency firms have sought the regulator’s approval but out of those, five are more likely to qualify as exchanges while the rest would become brokerage firms and dealers. Of course, in line with BCH objectives of becoming a go-to medium of exchange and liquidity exposure with increasing BCH listing, the coin is likely to appreciate in coming days.
From the chart, our main support line is at $850 and that’s where sellers might test. As always, we prefer trading with the chart and that should be our trade plan today. After all, BCH is down 11 percent in the last 24 hours and losses might increase following June 10 sell off. I recommend shorting on every highs in lower time frame with stops at June 10 highs of $1100 with bear targets at $600.
EOS Technical Analysis
What is seeing is typical and often happen shortly after product launches. In the case of EOS, it’s a mix of anger and BP voting that is coinciding with the general negative sentiment in the crypto market. It’s less than 48 hours since the launch and more than 98 percent of coin holders are yet to vote. It’s ridiculous for sure and it has investors in social media venting their frustration. Voting entails submitting your private keys and that’s a no-no for some holders. It’s quickly turning into a game of saw.
Unless otherwise, EOS is a straight sell and this is totally unrelated with BTC or other main coin sentiment. It’s because of the confusion surrounding this vote and the apathy by EOS holders to vote. As such, I recommend sells with targets at $7 especially if we see a break down below $10 main support line.