The crypto market continues to remain weak for the second week in a row, even though there was no specific reason for the decline. The total market capitalization of the cryptocurrency market fell to $269 billion. In fact, there were several promising developments. The European Central Bank (ECB) completed research, dubbed ‘Stella’, in partnership with the Bank of Japan and published a report on using blockchain for securities swaps.
A month ago, Australia’s Brisbane airport vendors started accepting cryptocurrencies in an effort to promote tourism. Now, the German National Tourist Board has started accepting Bitcoin and other cryptocurrencies as payment for its services. The decision to accept cryptos was made to project Germany in a positive light and an attractive tourist destination.
Across the channel, the Bank of England has begun a trial (proof-of-concept) to study and find out ways by which the real time gross settlement (RTGS) service could be used in combination with blockchain technology to improve financial services. In the US state of West Virginia, registered military voters will be able to use a Blockchain platform for mobile voting in the Primary Elections. In Asia, Singapore’s Infocomm Media Development Authority (IMDA) launched a “blockchain challenge” to promote blockchain innovation and adoption in business.
Let us look at the developments relating to the major cryptocurrencies:
Bitcoin (BTC)
Bitcoin fell below $7,000 over the weekend, mainly due to social media platforms’ (Facebook, Twitter, Snapchat, etc.,) decision to ban ads related to cryptocurrencies. Additionally, Mailchimp has started closing cryptocurrency-related accounts. While Bitcoin was bleeding, there were reports that Intel has filed a patent to make Bitcoin mining both profitable and eco-friendly. Blockstream, which develops blockchain technologies, has released a series of Lightning Apps (Lapps) last week. As the number of Lightning main net nodes has crossed 1,000, soon, we can expect Lightning Transactions of Bitcoin to become a reality.
Tron (TRX)
Tron, a blockchain network aimed at the entertainment and gambling industry, released its testnet on Saturday. The blockchain network’s founder Justin Sun also rescheduled the release of the mainnet to May, instead of July. To create one coin on the platform, developers have to purchase 1,000 TRX and these coins will be burnt. That is actually a piece of huge positive news.
However, many misunderstood that their holdings will be reduced while launching the mainnet. That sparked a selloff in the coin. However, we can expect a big reversal in the days to come. The network is extremely fast and highly scalable. Smart contracts can be deployed and transaction costs are low, compared to other networks. Therefore, the token is expected to rise slowly in the weeks ahead.
Our Forex Trading Plan
Litecoin. After recording a low of about 105, Litecoin has bounced back above the support level of 112. The moving average of the oscillator is also above the reading of zero. Therefore, we are expecting an uptrend to begin soon.
Based on the analysis, we may use our Forex trading account to go long in Litecoin. We prefer to enter near 112, with a stop-loss order below 100. After opening a long position, we will place an order to book profit near 150.
Our Binary Options Trading Plan
Ripple. Ripple coin has turned extremely weak on chart. The cryptocurrency is trading below its 50-day moving average. Furthermore, the money flow index is still in a downtrend. The next major support exists only at 0.24. Therefore, we are anticipating a further decline in the value of Ripple.
To trade the prevailing downtrend, we are considering investing in a put option, which is valid for a period of one week. Ripple should also be trading near $0.50. Only then, we would consider investing in a put option contract offered by a binary broker.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
