While Bitcoin slows, news of Stellar Foundation acquisition of Chain did slow down XLM losses and instead injected momentum which drove prices towards the 22 cents mark. Though XLM don’t hold much swerve in the crypto space, these gains are a relief and could spur the next wave of altcoin buyers possibly rejecting lower lows. After all, the US SEC might change their stand on Bitcoin ETF and follow the Canadian route invigorating the dwindling hopes of crypto investors.
Let’s have a look at these charts
Bitcoin (BTC) Price Analysis
While the US SEC “work things out” Canada did break the ice on matters investment when they approved the first Bitcoin Trust Fund via First Block Capital Inc, an equivalent of mutual funds, allowing accredited investors to channel their capital from Retirement Savings or Tax Free Accounts to Bitcoin.
Although there are restrictions and retail traders are barred from making investment in a market that is considered volatile and risk, institutional grade investors can purchase units of this Bitcoin Trust fund available at Neo Connect under the ticker symbol FBCBT.
In this arrangement, FBCBT unit buyers would have exposure to Bitcoin but won’t be holding the underlying asset just like the way ETFs are structured. History shows that Canada always lead the US on matters finance and or adoption of new trade instruments and even as the US SEC ‘protect” their investors from “unregulated and unverified” crypto securities, the leap of faith shown by Canada might after all thaw the stance the US has towards market rejuvenating Bitcoin ETF.
Price wise, Bitcoin is pretty stable and even bullish attempts in the last day isn’t enough to change our bearish stand. After all, last week was extremely bearish with BTC registering double digit losses.
Considering the rapid rate of price declines and the level of market participation, it’s only obvious that bears might accelerate their drain.
Advised by this, we maintain a negative outlook and even though it would be ideal for sellers to breach and close below our support zone between $6,000 and $5,800, any close below $6,000 today or in the next day shall trigger the first wave of sell positions with conservatives heading full throttle once prices close below 2018 lows or the lower limit of our support zone. As before, our bear targets remain at $3,000 with expected intermediate targets at $4,500.
EOS Price Analysis
$4 billion later and it appears as if Block One, the publisher of the EOSIO blockchain has no “clue” of what to do with the money/profits. While they have been clear that part of their annual inflation would be channeled towards a treasury that will then fund dApp development, the proceeds of EOS token sale remain blurry. So far, there is no official working wallet. Neither is there a solid dApp from the team and that is a cause of worry.
A four percent drop in the last day and the weight of Sep 5 sell pressure is beginning to show in EOS.
Needless to say, following that >25 percent single day drop of Sep 5, the tune was set by sellers and as long as prices are below $7, traders shall maintain a bearish stand. From the way candlesticks are laid out, we recommend holding out trading today until after there are solid breaks below $4, the lower limit of our $1 support zone in the daily chart.
However, risk off sellers can initiate shorts at spot rate with stops at $5.5 and aim for ambitious targets at $1.5—the same targets conservative traders should aim for once EOS break and close below $4.
Litecoin (LTC) Price Analysis
There is a new update for Litecoin core: Version 0.16.2 and all users are recommended to upgrade to this new edition. Launched on Sep 3, the releasing team said the update fixed several bugs and made some improvements on the code making it more robust. Development team did away with -blockmaxsize option and instead created a lee way specifically for miners to decide the weight of their blockchain through the -blockmaxweight option.
A seven percent drop in the last day makes Litecoin one of the top losers in the top 10 coming second only after Cardano (ADA).
Visibly, chances are today we might see a whole candlestick printing below the $50 mark which also doubles up as Aug 2018 lows triggering sells as emphasized in previous LTC trade plans.
However, considering the rate of erosion, aggressive traders can load up at spot prices with stops at $60 and target the penultimate $30 support level. On the reverse side, any sudden spike of price registering gains above $60 re-balances this projection and cancels our bearish stand.
Tron (TRX) Price Analysis
Despite partnerships, exchange listings and TRX use at several outlets as Bitcoin Superstore, TRX is grappling with sellers.
From the charts, TRX is on a down trend shedding eight percent in the last day and likely to break below Aug 14 pin bar and lows at 1.5 cents.
If this happens today and a whole bear candlestick happens to print below this level, then we suggest taking shorts with targets at Jan 24 ultimate lows.
In the mean time, TRX sell trades are still running and traders can actually lock in some profits as traders anticipate bears to breach 1.5 cents.
Stellar Lumens (XLM) Price Analysis
Stellar Foundation, the custodian of the Stellar blockchain has acquired Chain in cash for around $40 million, a source privy to the matter has revealed. The new acquisition has lead to the formation of a new entity, the Interstellar where the former CEO of Chain, Adam Ludwin will act as the project CEO while Jed will fill the CTO position. The deal was concluded on Sep 5 though there has been no official communication from the two parties.
The response from the market has been immediate and so far, XLM did contain losses after initially adding eight percent.
Though we now have a three bar bullish reversal pattern printing right in the midst of sellers, the fact that this reversal did happen at around 2018 lows could potentially be a hint of positive things to come.
Because of this, traders should exit their shorts and hold off trading only until after XLM prices breach the 25 cents mark. When that happens, buyers can load on dips with targets at 30 cents and later 50 cents.
On the flip side, any clip of yesterday’s gains driving back prices below 18 cents could potentially lead to XLM printing 8 cents in days to come.
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.