Weekly Cryptocurrency Price Analysis: Litecoin, IOTA, EOS, Bitcoin, and Ethereum
Regardless of this short-term alt-coin correction as visible in Bitcoin, Ethereum and other coins under our radar, we should not forget that buyers are still in charge. That’s at least from our technical evaluation when we take a top-down approach.
As such, this is the precise reason why we should be looking for undervaluation as other coins as EOS outperform the market. I see Litecoin as a good candidate that’s worthy of a second look. In my view, Litecoin has more potential for an upside since it lags the market and there is a slight under-valuation relative to other coins.
Let’s look at these charts:
We can remain upbeat as much as we want. Price wise, there is a lot of reasons supportive of that sentiment. After all, as statistics shows, Bitcoin is up 13 percent in the last 30 days and there is more room for growth.
According to venture capitalist Tim Draper, Bitcoin’s valuation shall be bigger than the cumulative market cap of Tesla, Hotmail, and Skype. It might be outrageous but if Bitcoin’s value spike to $250,000 as he had said before, then undoubtedly, his valuation will come to pass. While Draper may be in utopia, former PayPal CEO Bill Harris thinks Bitcoin is one big pump and dump scheme as it solves nothing. To him, Bitcoin has no intrinsic value, cannot be a means of exchange, neither is it a suitable store of value. These two conflicting sentiments is what keeps the market vibrant and price action is nothing but a mirror for that.
In the 4HR chart, we have this nice double bar reversal pattern and lower lows. Because of this, nothing sounds bearish than sellers who are stepping on their gas pedal and angling for previous support line at $8,500. In my view, we shall retain our bullish skew but we have to wait till a stochastic buy signal forms or when there is clear bullish reversal pattern at our support zone. Those levels stand at $8,000 and $8,500 on the upper side.
In the last seven days alone, Ethereum is up 22 percent and with a spot price of $630, its market cap stands at $63 billion at the time of writing. EOS, the market mover is launching its mainnet in less than 40 days and whether this is a threat or not, price action will show.
After Amazon Web Service launched a blockchain template where companies can easily launch their blockchain apps instead of starting from scratch, ETH prices were buoyed. Safe the minor correction, I project Ethereum to continue with its chart up in the coming weeks. In the development front, Casper is ready for review. This EIP dubbed the Hybrid Casper Friendly Finality Gadget is simply a new consensus protocol that lays the foundation for a shift to PoS from PoW which is energy inefficient.
Ethereum’s Much Awaited Casper Update Is “Ready For Review” | BTCMANAGER https://t.co/zhywxGjxyO
— Ethereum Network (@EthereumNetw) April 23, 2018
In our chart, we shall maintain our bullish stance but with a correction in progress, traders should be neutral until better technical formations are in place. First, notice that stochastics are bearish and with diverging percentage k and d, sell momentum is undoubtedly high in the 4HR chart. Besides, we have these double bar bear reversal pattern happening at a point of confluence with overbought stochastics.
Like with Bitcoin, patience should be an asset. consequently, we place potential reversal zones anywhere between $500 and $580. The minor support trend line should provide further bull support.
Earlier on in the week, $44 million was moved through the Litecoin network and the charges were 40 cents. If anything, that is super impressive and goes on to demonstrate how decentralization is beneficial and above all, cheap.
Other than this demonstration, there is nothing much from the fundamental front other than news of Charlie Lee joining the advisory board of DMG Blockchain. This company is into mining as a MaaS and due to demand, Charlie Lee expertise is needed to help propel the company further as the demand for Litecoin Mining services picks up.
— Crush The Street (@CrushTheStreet) April 24, 2018
From price action, altcoins are reading from the same script. Generally, buy pressure is waning and regardless of the overly bullish sentiment, buying on dips can be a good trading plan in the course of the week.
In our case, Litecoin prices are trending within a breakout and because of this, our previous resistance now support is influential. In one way or another, I expect Litecoin bulls to find support at $140 if not at $125 in the short term. Either that or when a stochastic buy signal prints should buyers enter this trade.
To put things in perspective, EOS is up 110 percent in the last 30 days. On April 24, we saw a 50 percent spike in EOS and the result was that obliteration of $12 which had been the main resistance line from our previous EOS technical analysis.
As you may now be aware, EOSIO mainnet launch is less than 40 days aware and several entities plan on securing the network by becoming Block producers. BitFinex and Huobi are some of the exchanges who have tendered their candidacy and are now hunting for votes. While at it Antpool, the miner-manufacturer looks to venture in by many have reservations.
Bitfinex is pleased to present itself as an EOS Block Producer candidate. https://t.co/g90NsJkGUm
— Bitfinex (@bitfinex) April 23, 2018
It’s clear that EOS sellers are now driving prices lower despite April 24 surge. In my view, this depreciation should continue until there is price equilibrium. That’s where buyers may resume their longs.
As we can see, there is a stochastic sell signal in place and a couple of lower lows following an over-extension, prices may as well test $9.50 on the lower side. I recommend looking for long opportunities anywhere between $9.50 and $11.50 especially if a stochastic buy signal prints within this zone.
After Hannover Messe and clear demonstration of IOTA’s potentials, this coin is a long-term buy hold. In fact, price action is cementing this view because, in the last 30 days, IOTA is up 50 percent with a $5.20 billion market cap.
All we know is that IOTA is branding itself as a figurehead in the tech sector. Several companies aside Fujitsu as DXC, Bosch and Deutsche Telekom are openly supportive of IOTA and we expect more to follow suit.
Price wise, IOTA is bullish but short-term correction is inevitable. Price doesn’t move in straight lines. Since there is a stochastic sell signal, I expect prices to trickle down and find support at around $1.5. At around that price level, if there are bullish reversal patterns with a stochastic buy signal, bulls should enter this trade and aim at $3.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.