Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Bitcoin Cash, NEO and Ripple
All in all, most coins under our focus are on a slide having broken our previous key support. IOTA and EOS are some of them with Litecoin movements more pronounced following that spike below $130. I’m not bearish on Litecoin unless of course, I see rallies and upthrusts above $130. On the other hand, mainly because of EOS mainnet launch, I’m bullish. Note that if EOSIO mainnet launch is a success we expect EOS to benefit from positive sentiment and appreciate. As such, buying on dips at around $7.5 and $10 or whenever there is a rejection of lower lows can be a good trading move.
Bitcoin (BTC) Price Analysis
If there is a thorny issue that demands immediate transaction is Bitcoin price volatility. In Dec 2017 for example, each Bitcoin was trading for $20,000 but four months later, it is down almost 70 percent oscillating around the $8,000 mark. It might be heaven sent for aggressive speculators but when it comes to businesses, it’s a catastrophe.
This might be the reason why most merchants don’t want to jump right in according to PayPal Chief Financial Officer John Rainey. While they have been supportive of Bitcoin since 2014 and even integrating it as a payment method for their merchants, interest from “external environment” remains low. We are yet to see how off chain solutions as Bitcoin Lightning Network would influence prices but what’s clear is that any solution that would hasten settlement in a secure way would attract interest across the board.
As it is, the general trend is bearish and Bitcoin sellers have successfully managed to reverse May 18 inspired gains. Currently, prices are trending within our previous support at $7,800 and chances are they might surge below that level. If they do with high volumes rivaling those we saw on May 18, then we can as well angle for bear targets at $7,400 and $6,500. As such, look to sell on every over-valuation ideally at around $7,800.
Ethereum (ETH) Price Analysis
Undoubtedly, Cardano infrastructure looks robust and the team behind ADA are zealous about their technology. So, Charles Hoskinson, the founder of Cardano and ADA, may be right to some degree. But like everything else, talk is cheap and translating ideas from paper to reality is a hurdle for many. Talking in Kigali, Hoskinson said his company would replace Bitcoin and Ethereum and claim the top spot. In his own words he termed Bitcoin a “miserable failure” and Ethereum a shadow of the world computer they claim to be. Whether this is true or not, Cardano as a platform and ADA as a currency or storage unit will demonstrate.
After May 21 candlesticks, Ethereum prices are on a slide after breaking below our previous support at $650. Recalling our previous trade plan, sellers should enter this market now that our sell trigger line no longer holds. Because of this, our trade plan would be simple. Sell on pullbacks towards $650 and aim for $480 or thereabouts. On the flip side, any rejection of lower lows would demand patience until after prices surge past $750 or May 20 highs.
Litecoin (LTC) Price Analysis
After Lite Pay disappointment in early April, it has been a downward spiral for Litecoin especially on the news front. This is all despite Litecoin creator Charlie Lee being active on Twitter. All in all, what is clear is that the Litecoin Foundation is ramping hard on its drive of making Litecoin a preferred coin for merchants and retailers. And why not? Litecoin cross chain atomic swaps development is on course. Syncing with this line of thought, availability of fiat-crypto or crypto-crypto operations through exchanges is a delight for them. Through a tweet that seems to imply that several exchanges were about to list LTC on their platforms, Litecoin could enjoy the much-needed liquidity and exposure.
From the daily chart, we shall trade with May 22 bearish engulfing candlestick. That’s a clear break below the lower limit of that distribution at $130 inviting sellers. Notice that during May 22 break below, there was a spike in volumes as sellers increased their sell position with yesterday’s candlestick confirming this Litecoin sell move. Because of these developments, our trade plan demands to trade with the trend with targets at $110 in the coming days assuming prices don’t find support. I recommend selling at every high in lower time frames preferably at around $125 and $130.
It’s less than a week before EOS mainnet launch happening on June 2, 2018. A definitive day for Dan Larimer, the co-founder of EOSIO and EOS Foundation, the team pushing EOS from all angles. After dedicating $3 million for Virginia Tech, a college in the US, for them to advance their objective of educating people about blockchain, EOS is now setting aside $1 billion. Through a Block One creation, EOS Venture Capital shall be responsible for funding Venture Capitalists who put their money on EOS developers keen on building on their platform.
What is EOS VC? pic.twitter.com/J6XrJI5byI
— EOS (@EOS_io) May 17, 2018
While I remain upbeat about EOS because of the obvious EOSIO mainnet launch early June, EOS prices are on a slide. I shall recommend selling with targets at $10 on the upper side and $7.5 on the lower side assuming sellers continue to step on the gas pedal. In my view, it’s likely that prices might find support at this $2.5 range and buy zone. Before then, look to trade with the correction and aim for $7.5.
IOTA (IOT) Analysis
Relative to this strong rally that began in early April to May, IOTA prices are now down more than 55 percent off May highs valuation. You can view this if you paste Fibonacci retracement tool between these recent high lows. Now, should prices convincingly break below $1.5 then odds are IOTA might find support anywhere between $1 and $1.3.
At the moment, sellers are in charge and trading with the trend can be a good trading strategy. On the contrary, should there be obvious support and rejection of lower lows in the daily chart, then wait for confirmations above $1.9 or even $2 like previously set.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.