The Leading Cryptocurrency Stories for 31st Jan 2018

The Leading Cryptocurrency Stories for 31st Jan 2018
January 31, 2018

The cryptocurrency market became bearish at the beginning of this year, mainly due to the actions taken by South Korea, China, and Indonesian governments. Once that subsided, the private sector enterprises have turned the heat towards cryptocurrencies. Yesterday, Facebook announced that it has banned ads that use “misleading or deceptive promotional practices.” According to the social media platform, the ban includes ads of cryptocurrencies and Initial Coin Offerings (ICOs). As of writing this article, there is a blood bath once again in the crypto market. We shall now look at some of the important developments related to the well known crypto coins.

 

Bitcoin

Debit card provider Discover has announced that it will not provide support to Bitcoin any more. Notably, Mastercard and Visa had announced a similar decision a month ago. Discover has taken the decision due to concerns over the misuse of the card for money laundering. With this decision, the users of Bitcoin do not have any option to use Bitcoin for making purchases at retail outlets. However, a French company named ACINQ has introduced Strike, an Application Programming Interface (API) facility for receiving Bitcoin Lightning payments. Strike can be implemented easily by any web developer. So, to a certain extent, Discover’s decision to suspend the support for Bitcoin has been offset by ACINQ’s launch of Strike. However, Facebook’s decision to ban crypto ads has pushed Bitcoin below the psychological level of $10,000 today morning. Read more here.

 

Ethereum

We had always maintained that Ethereum is arguably the strongest of all other cryptocurrencies in the market as it is backed by several real-world use projects. Ethereum dropped by about $100 today, following Facebook’s announcement. However, it continues to stay strong above $1,000. Ethereum Foundation has scheduled a meeting of its core developers on Friday. The meeting is streamed live. Important updates related to the recent tests will be discussed in the meeting. The crypto market will closely monitor the meeting. Read more here. 

 

Ripple

Despite being tested by a consortium of over 100 banks, Ripple surprisingly continues to remain weak. Ripple has also entered into an agreement with MoneyGram, IDT corporation, and MercuryFX in the past few weeks. In fact, SBI Ripple Asia has announced yesterday that it is forming a consortium of 18 companies to study the possible use of distributed ledger technology in securities products. Notable companies in the consortium include Nomura, Daiwa, and SBI Securities.However, the bearish sentiment towards Ripple coin has not changed so far. The coin is struggling to stay above the psychological level of $1. Read more here and here. 

 

Sia Coin

Sia is a decentralised cloud storage platform similar in concept to Dropbox and other centralised storage provider where instead of renting storage space from a centralised entity, clients rent storage space from other peers. Nodes provide storage to clients using the Sia blockchain as contracts. Before storing the data, the data is encrypted into many pieces and uploaded to different hosts. Sia has a second cryptocurrency called Siafund where 3.9% of all successful storage contract payouts go to the holders. The Siafund is 100% pre-mined with 10,000 units in total, of which 87.5% is owned by Sia’s parent company, Nebulous Inc. Siafund is created to finance the early development of Sia without relying on donations or pre-mine. The coins has 1,462 commits from 45 developers, as of date. It is one of the promising coins in the cryptocurrency market. Read more here. 
 
 

Our Forex Trading Plan

Ethereum. Despite the weakness in the crypto market, Ethereum continues to receive support at 1000 levels. The stochastic indicator also indicates that the crypto currency is in the oversold condition. Therefore, we are expecting a trend reversal in the ETHUSD pair.

To gain from the reversal, we may use a Forex broker’s platform to open a long position near 1,000, with a stop loss order below 930. We would also exit the long position near 1140 levels.
Ethereum - Technical Analysis - 31st January 2018

 
 

Our Binary Options Trading Plan

Ripple. Ripple remains our favourite to go short due to the bearish sentiment it carries. Technically, the stochastic indicator has entered into the bearish zone. Therefore, it may take a while for the crypto coin to begin moving upwards.

To benefit from the underlying weakness, we wish to invest in a put option valid for one week. We may purchase the option only if the XRPUSD pair trades near 1.10 in the cryptocurrency market.

Ripple - Technical Analysis - 31st January 2018

Disclaimer: The trading analysis offered here is our opinion. It is not provided as trading advice, merely an indication of our trading plan. We cannot guarantee success and we encourage traders to incorporate a strong money management strategy to limit losses. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


Related Articles

Record Unemployment Rate Turns Brazilian Real Weak

  ‘Brazil’ is a popular search term at the moment due to two likely items: The Olympics and the rise

Canadian Dollar Remains Weak on Housing Bubble Concerns

  On November 30th, we had forecasted a decline in the USDCAD pair and had recommended going short at 1.3450

Multi-Year High Iron Ore Price Keeps Aussie in Uptrend

  Last week, strategists at Morgan Stanley and Societe Generale suggested going short in the AUDUSD pair. Their argument was