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The End of the Day

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At the end of the day, it seems I wasn’t the only one flustered by the Status ICO event yesterday. These ICOs are getting very popular and are an amazing way to get in on the ground floor of some really great projects, provided that people understand the risks of course.

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However, they are starting to expose some serious flaws in the Ethereum network. The Status coin generation was supposed to last until July 4th but due to the overwhelming amount of investors, it reached its cap of 300,000 tokens in just 3 hours.

The worst part is, that it completely clogged the Ethereum network. Many websites, including Coinbase, Shapeshift, and Bitfinex, had to completely halt all transactions on Ethereum and Ethereum based tokens for several hours.

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The network was never built to handle this type of concentrated pressure and seemingly does not intend to in the future. According to a tweet from MEW this morning, this is not their problem and they don’t intend to fix it.

For anybody planning an ICO in the near future, we highly recommend to learn from this experience and figure out a way to generate your coins without causing this type of strain on the system.

Mati Greenspan
eToro, Senior Market Analyst

 

Please Note: All data, figures, & graphs are valid as of June 22nd. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Today Theresa May will attend her first EU Summit since the disastrous elections earlier this month.

May will outline her proposal for what she would like to do with the European citizens that currently live inside the UK, a particularly sensitive subject. To make matters worse, May still hasn’t struck any deal with the DUP making her an extremely fragile difficult woman.

Experts say that the Northern Irish are just playing tough to get and expect a deal by early next week, most likely with a ‎£2,000,000,000 infrastructure spending bill for Northern Ireland.

The bigger question is, what those £2 Billion will be worth next week. The Pound Sterling has been on the back foot since the elections. Yesterday it broke a 2 month low but managed to recover before the end of the day on hawkish comments from the Bank of England.

Oil Fallout

The inventories report was good yesterday, even better than expected. The EIA showed that crude stockpiles in the USA declined by 2.5 Million Barrels, where analysts were expecting a decline of 1.2 Million.

The immediate reaction was a spike up (blue circle) on less supply, but the party was really short lived. At the end of the day, a decline of 2.5 Million barrels isn’t nearly enough to shore up the massive global oversupply.

By the end of the day, the price was much lower than when it had started and managed to briefly break below the critical $42.50 level that we’d highlighted in yesterday’s update.

Litecoin For Safety

It seems we find ourselves in the midst of another sizable crypto-correction. The industry seems to be having a bit of trouble getting over the $116.5 Billion mark.

Of the top ten cryptocurrencies by market cap, nine are currently in the red. The only standout at this point is Litecoin, which is up almost 5% over the past 24 hours.

Litecoin is seen as a faster, cheaper version of Bitcoin and is currently acting as a safe haven in this fast paced market.

Here we can see LTC, against Bitcoin, and Ethereum over the past week.

Feel free to catch me on the eToro network any time @MatiGreenspan

Have an amazing day ahead!

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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Altcoins

Trade Recommendation: XMR/BTC Pair Throwback

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The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

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Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

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As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Altcoins

Trade Recommendation: FCT/BTC Bullish Reversal

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The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

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Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

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As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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