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Watch out for the Little Cryptocurrency Exchanges That Could

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A cryptocurrency getting listed on an exchange such as Binance or Bittrex usually means a sudden meteoric spike in price. Even the mere news of an exchange listing, whether true or false, contributed to massive increases in price, Ripple (XRP) being a prime model in the early months of 2018.

The Case of IOTA

IOTA

Take a look at IOTA, for instance. Listed at nearly 15 exchanges, IOTA has achieved a liquidity not many tokens have. At the time of its listing on Cobinhood, a comparable new zero-trading fee exchange with relatively low volume, IOTA’s price jumped from $1.86 to $2.58 in two days following the April 30th newsan increase of nearly 40%. IOTA’s market cap went from around $5.2B to $7.2B,

The price increase shouldn’t be surprising, but the fact that an exchange with a daily volume of around $38,000,000 was able to spike a token’s price by 40% just by listing it shows something.

Augur

Guess where the price listing news happened.

Binance, one of the largest exchanges, has a trading volume of $1,691,897,268 and is known to launch a few coins into the market cap stratosphere. Most recently, Binance listed Augur and the price jumped from $47.15 to $81.95, a near 85% leap. Augur’s marketcap went from $490M to around $900M.

Now, let’s take the above examples of Cobinhood/IOTA and Binance/Augur, and we start to see something interesting.

First, let’s assume that the primary value-add of a coin getting listed is that investors/traders get access to a larger pool of liquidity and trading volume. This increases the usability of the token and generally helps stabilize the price further (or at least add a theoretical floor to how low the price can drop).

Access to more potential buyers and sellers increases a token’s trading volume, and the forces of an open market are generally more preferable to a situation where token holders can’t liquidate their holdings.

Of course, there’s an element of brand recognition and industrry approval that varies based on exchanges. People will generally see a Coinbase stamp of approval as having more weight than that of a Houbi, but let’s not dive down this rabbit hole (yet).

All other things equal, it would be expected to see some correlation between an exchange’s daily trading volume and how high a token’s price rises immediately upon listing, but we don’t.

Cobinhood’s daily trading volume hovers at around a mere 2.2% of that of Binance, yet its listing helped IOTA gain around $2B in marketcap, whereas Binance’s Augur listing only (if only is the right word to use here) helped add $410M.

Final Thoughts

Of course, there is a myriad of other effects that influence a token’s sudden surge in price (how certain markets respond to the token, other industry news, etc).

However, if there’s one thing you leave with from this article, it’s to put smaller exchanges on your radar. Cryptocurrency traders and enthusiasts tend to watch exchanges like Coinbase, Bittrex, and Binance like hawks to catch a whiff of potential new token listings, but could be missing out on some serious gains by neglecting to watch up-and-coming exchanges.

Watch out for the little cryptocurrency exchanges that could.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 18 rated postsAlex Moskov is a writer and entrepreneur with a passion for building and creating awesome things. Alex has experience in music tech startups, digital marketing, and cryptocurrency investing.




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Altcoins

EOS Price Analysis: EOS/USD Back in Unsettled Territory, as Price Runs into Sellers Again

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  • The EOS/USD bulls are unable to sustain any upside momentum following a breach of critical support.
  • Near-term supply is eyed in the early $2.5000 region. A break above would likely open the door for another retest of the big $3.0000.

The EOS price was seen creeping lower again in the early part of trading on Tuesday. This comes after a big jump to the upside seen in the second part of the session on Monday. EOS/USD had gained a chunky double-digits, around 12%, at the close of the daily. Buyers came in after the low print on Sunday 13th at around $2.25. This was within a market demand zone, tracking from $2.25-$2.35, having supported the price on occasions in December and January.

Recap: Big Breach of Critical Support

EOS/USD daily chart.

As a reminder, EOS/USD throughout its most recent bull run, which was seen from 6th December right up to 9th January, was well-supported. An ascending trend line could be observed, providing necessary comfort to the bulls. However, all runs must come to an eventual end, and the bears smashed through this support on 10th January. Given the break through this vital area, it exacerbated the move to the downside. The price had dropped a heavy 22%, taking a big blow after a strong run.

Barriers Blocking Bulls

The bulls have been cut short for now, not being able to have sustained that momentum from the session on Monday. Trading has been extremely choppy since 19th December, via the daily chart view, highlighting a real lack of consistency in either direction. A consecutive streak longer than two days from either bear or bull camp hasn’t happened since the run higher in mid-December. This demonstrates just how mundane and non-committed market participant are for now.

In addition to the last statement above, further technical levels and areas continue to plague direction. To elaborate, there are more areas that the price must deal with now in comparison to the smooth bull run higher seen in 2017. Separately, if looking at 2018, the bears generally had an easy ride south. This is thanks to the cryptocurrency instruments being so young still in age.

Key Near-term Levels

For the bulls to see greater upside, a break of near-term supply within the early $2.5000 region will need to push prices forward. This should open the door to a fast move to see a retest of the breached ascending trend line. In proximity to this is the psychological $3.0000 mark, which has proven to be a huge barrier for the bulls. To the downside, the mentioned demand area of $2.35-$2.25 is critical, and a failure to hold will be very punishing. Lastly, EOS/USD would be subject to a move sub-$2.0000, where support can be eyed. As a further worth case, then $1.5500 to be retested, the December low.

Disclaimer: The author 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 (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 106 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

GBP Price Prediction: British Pound Jumps on Growing Backing for PM May’s Brexit Deal Ahead of Vote

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  • GBP catches a bid across the board as Prime Minister Theresa May gains ERG support.
  • Despite session gains, GBP/USD technically has vulnerabilities to downside risks, given rising channel formation.

GBP Bulls Awaken

The British pound (GBP) saw a decent jump to the upside on Monday, after an initially very choppy directionless start to the session. The buying swooping into GBP/USD came on the back of a growing number of ministers set to back Prime Minister Theresa May. Specifically, attention was grabbed after closely followed political watcher Robert Peston tweeted that “influential Tory Brexiter MP tells me he and his ERG Brexiter colleagues will be voting with Theresa May and the government all day tomorrow”. This is significant as the ERG is a very influential Brexit research group, which was previously plotting ways to oust PM May.

GBP/USD jumped to its highest level seen since 22nd November. The pair had seen an initial spike of 85 pips to the upside. Gains were capped however by a known strong area of supply; this can be seen tracking from 1.2870 up to 1.2930. The price has not been above here since 15th November 2018, and the bulls having faltered here on several occasions attempting to move above. Should GBP/USD manage to move above this zone, it would be a very strong signal that it is out of the bear market. Technically, this would be largely attractive for inviting further buyers to come in.

A detailed analysis of the upcoming Brexit vote can be viewed here: This Tuesday Will Be Zero Hour For the British Pound

Price Remains Confined Within Channel

GBP/USD daily chart. Price action remains within the confinements of a rising channel.

Another key technical observation is an ascending channel formation, which can be viewed via the daily chart. The GBP/USD pair has been moving within this since 12th December 2018, having gained over 400 pips since it took shape. The daily candle today briefly spiked above the upper tracking trend line of the pattern. However, the price was squeezed back within the confinements of this. Touted profit-taking kicked in towards the close of the European markets. This is not too surprising, as participants maintain an element of caution heading into the high-profile vote.

Given the nature of the above-described formation, should it play out to the textbook, vulnerabilities still point to a breakout south. This move would be heavily assisted should the British Prime Minister lose the meaningful vote on Tuesday. In terms of key levels to note, to the upside, a break above the 1.2930 supply zone will invite large buying pressure. To the downside, a breach of 1.2650, the lower support of the channel, will open flood gates to selling.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 106 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Crypto Update: 5 Altcoins to Watch This Week

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Just as it appeared that the crypto market was finally finding its footing, Bitcoin (BTC/USD) suddenly crashed hard last week. The bearish price action made a lot of investors jittery. Consequently, many participants either took profits or cut their losses on their altcoins positions. This drove numerous altcoins back to their support areas.

Last week’s price drop was a gentle reminder that we are still in a bear market. That’s why this week, we look at coins that are showing signs of strength while trading near firm support levels. Here are the five altcoins to watch this week.

Ethereum (ETH/BTC)

Ethereum corrected right after tapping the 200-day moving average. At that point, the market was showing signs of bullish exhaustion. You can see a bearish divergence on the daily RSI. Plus, volume was weakening while the price kept rising. Those who saw the writings on the wall managed to take profits at the top.

Daily chart of ETH/BTC

The good news is that Ethereum has an opportunity to keep its bullish momentum intact. Defending support of 0.03157 would enable the market to establish a bullish higher low setup. Bulls have a very good chance to preserve the support because both the 50-day MA and the 100-day MA are crawling around that level. They will act as additional support levels to help Ethereum stay above 0.03157.

Should bulls fail to defend 0.03157, the market’s sentiment will likely turn from slightly bullish to neutral. We can then expect Ethereum to drop back down to 0.026746.

Binance Coin (BNB/BTC)

Binance Coin refuses to follow the footsteps of Bitcoin. Even though its market structure closely resembled that of Bitcoin’s, the results were different. After apparently breaking down from a descending triangle in November 2018, Binance Coin rose from the dead and reclaimed support of 0.0014 in December.

The fakeout attracted bulls who were staying on the sidelines. As a result, Binance Coin took out the diagonal resistance of the triangle.

Daily chart of BNB/BTC

With the diagonal resistance out of the picture, BNB/BTC appears to have regained its bullish tone. If you’re looking to place long positions in the market, you might want to be patient and buy as close to 0.00146 as possible. That’s where both the 50-day moving average and the 100-day moving average are crawling.

Invalidation of this view comes if BNB/BTC trades below 0.0014.

NEM (XEM/BTC)

NEM’s corrective period may be finally coming to an end. While the market did breach the initial support of 0.0000176, it looks like it is establishing a new base at 0.00001544.

Daily chart of NEM/BTC

If market participants can keep XEM/BTC above 0.00001544, it will send a strong message that the NEM remains bullish. After all, the market would have just established its first pair of a higher high and a higher low in months.

On the other hand, if XEM/BTC goes below 0.00001544, the sentiment will likely shift from bullish to neutral.

0x (ZRX/BTC)

While 0x remains in a downtrend, there might be an opportunity to bottom-pick the market. With 0x creating a falling wedge on the daily chart as it approaches key support area of 0.000073, it might be possible to profit from a dead-cat bounce. Should ZRX/BTC break out from the falling wedge, the initial target is 0.0001.

Daily chart of ZRX/BTC

Keep in mind that 0x is still in a downtrend so have tight stop losses if you’re planning to take on this trade.

Bitcoin Gold (BTG/BTC)

Bitcoin Gold appears to be establishing a new base at 0.0033 support. Market participants have been accumulating positions around this area for over a month. If bulls can hang on for another week or so, Bitcoin Gold may just establish a bullish higher low. This will enable the market to trend higher.

Daily chart of BTG/BTC

A bullish higher low setup might inspire bulls to tap resistance of 0.005564. Otherwise, Bitcoin Gold might revisit lows of 0.00256.

Bottom Line

Last week’s crash has driven many altcoins near key support areas. Nevertheless, this gives us a chance to look at coins that are showing signs of strength and are trading near key support areas. There’s a lot of uncertainty going on in the market so make sure to place tight stop losses if you’re planning to enter any trade.

 

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3.8 stars on average, based on 308 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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