Surprisingly, Bitcoin (BTC) and Stellar Lumens (XLM) are two coins that are resilient absorbing sell pressure. Even though they are down, their losses are lower when compared to some as EOS and IOTA that are deep in the negative territory. Regardless, sellers are still in the forefront and we might see further losses especially in the altcoins market should we see a Bitcoin price dip below $5,800.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Following the steps of crypto friendly Gibraltar, Jamaica Stock Exchange (JSE) will soon allow investors to easily trade Bitcoin and other digital assets with assistance of Canada’s Blockstation. With a MoU already in place, investors will safely and securely trade cryptos within a regulator’s approved space and in the process becoming one of the first stock exchanges to allow crypto trading.
There is a tad bit of stability within the market and as long as BTC prices are held above $5,800—our main support and sell trigger line, there is hope for buyers.
In previous Bitcoin (BTC) price analysis, we insisted that buyers would be back in contention should there be a high volume up thrust above $6,800.
On the reverse side, any dip and close below $5,800 and the rest of the coin market—especially those without supporting fundamentals—would likely be dragged lower.
So, before any of our trade conditions are met, staying neutral with a bearish skew is but a safe trade strategy.
Stellar Lumens (XLM) Technical Analysis
Fundamentally, Stellar Lumens has been reaping it big since that big Facebook rumor. Then, grapevine had it that Facebook was actually planning on launching their own cryptocurrency on the Stellar network and while Facebook officials met with Stellar team members, the social media giant has since poured cold water on these hot rumors though it helped stabilize price for a while. Nevertheless, Facebook interest in blockchain and cryptocurrency cannot be brushed aside because they have a former board member of CoinBase–David Marcus, leading their own blockchain team.
Thanks to the overall slide in altcoins prices and especially EOS, Stellar Lumens is now the fifth most valuable coin in the sphere with a market cap of $3.96 billion at the time of press.
That however didn’t stop sellers from clipping a little bit of XLM valuation since the coin is now trading below 22 cents our previous buy trigger line. As it is, we urge patience until after there is a thrust above 26 cents—Aug 4 high volume bear highs or 18 cents, 2018 lows.
Though odds are we might see a follow through as XLM prices sync with the general trend, still conservatives should hold off until our trade plans are met.
On the flip side though, aggressive can short at spot price with stops at Aug 13 highs at 24 cents with immediate targets at 18 cents and later 15 cents.
EOS Technical Analysis
There has been a flip all courtesy of EOS sliding 35 percent in the last week alone and further shedding seven percent in the last 24 hours helping push price towards $4.
As elaborated in our last EOS trade plan, $4 is our main support line and 2018 lows and from a risk reward ratio it doesn’t make any trading sense to short at current prices. As we can see, prices are less than 50 cents away from the main support line and sell target and because of this, we suggest staying neutral with a bearish inclination though those who are net short should move their stops to break even or even lock in some profits.
Now, should there be a high volume break below 2018 lows at $4, then selling on pull backs with stops at $4 and first targets at $2 would be our trade strategy going forward.
Tron (TRX) Technical Analysis
Justin Sun’s recent acquisition and Tron’s subsidiary, BitTorrent is now one of the platform’s Super Representative.
Despite these rampant sellers, it appears likely that we might see support today and this is all because of yesterday’s candlestick. As we can see, we had that long lower wick with a small upper wick indicating that Tron was rejecting lower lows.
If that pressure spills over to today then we might see TRX slashing their losses and slowing down the drop towards Jan 24 lows, our ultimate bear targets.
On the flip side though, the only candlestick formation that can cancel this projection is if TRX buyers muster enough momentum print above Aug 13 highs at 2.2 cents and eventually retest 2.5 cent s at the back of abnormally high trading volumes.
That would show support and increasing market participation but still we need prices to close above 2.5 cents before cancellation of our short sell.
Litecoin (LTC) Technical Analysis
Charlie Lee continues to pitch Bitcoin and in a tweet he said Litecoin atomic swap feature will effectively make Litecoin Bitcoin’s side-chain secured by the latter’s proof of work mining and hash rate.
A 24 percent week over week loss compounded by a seven percent decline in the last 24 hours is fast driving Litecoin’s prices towards Q4 2017 lows and first bear targets. But, while bears are been in the forefront in the last two weeks or so, we don’t recommend sells as our risk reward ration locks us out.
It won’t make sense to say the least now that we have that nice rejection of lower lows after yesterday’s bear pin bar close.
For trend continuation, sellers should build enough momentum and breach that $50 floor and when that happens, traders can resume their sync with the trend selling at spot with stops at yesterdays high at $50-$55 with first targets at $33 or Q3 2017 lows.
If not and there is support, any close above Aug 10 highs at $65 cancels this Litecoin sell projection.
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.