The Leading Cryptocurrency Stories for 3rd Jan 2018

The Leading Cryptocurrency Stories for 3rd Jan 2018
January 3, 2018

The equity and debt markets remained lacklustre last week due to Christmas and New Year celebrations. However, it was not the case with cryptocurrency market where major shake-ups took place, as detailed below. Further, several governments have started to look at the possibility of recognising crypto currency or launch their own in the months ahead. Notably, there were some interesting technological developments that may pave the way for mass adoption of cryptocurrencies. Let us begin with Bitcoin, which has already made it to the mainstream media.
 
Bitcoin
The main network of Bitcoin went through numerous hard forks in December. A handful of forks are scheduled for January as well. Forking is the process of splitting the main network to create another altcoin, which will start following a different path. The altcoin may have some new features employed. However, recently it has been found that several altcoins were created only to ride on the crypto wave and most of them do not have a replay function or proper code.

Lightning Labs, which is working on solving the scalability issue of Bitcoin, has successfully deployed the Lightning Network on the main net of Bitcoin. So, we can expect to send or receive Bitcoins instantaneously once Lightning Network goes active. Further, it will enable millions and billions of transactions to be completed in no time. Even atomic swaps (exchanging one crypto currency with another without third-party involvement) are possible. As far as the price of Bitcoin is concerned, the cryptocurrency now seems to consolidate between $12,500 and $16,000. The entire crypto community sees the coin as a store of value, rather than a medium of payment. We expect Bitcoin to remain in the specified range for some time. Read more here.
 
Ethereum
The open-source block chain platform which facilitates the creation of decentralised applications (dapps) saw its token hit a new high of $879 in yesterday, leading to a market cap of $84 billion. Ethereum’s network faced congestion because of a game named ‘cryptokitties’ last month. To avoid such issues in the future and make Ethereum to process transactions quickly like VISA network, the developers are routinely updating the network. One of them was Casper. Its testnet was released recently. That has sparked another rally in Ether, the token of the Ethereum platform. Once it is deployed, the Ethereum platform will turn from a Proof of Work to a Proof of Stake, facilitating faster and cheaper transactions. The Ethereum community believes that it will ultimately lead to mass adoption. Casper itself is a part of a wider update called Constantinopole. Read more here.
 
Ripple
The main difference between Ripple and other altcoins such as Ethereum is that the former was specifically created for use by the banking community. Ripple is the name of the San Francisco based company, which developed the Ripple platform for banks to perform cross-border fund transfers faster and cheaper, compared to SWIFT. Ripple has joined hands with SBI Holdings, which leads a consortium of 61 Japanese banks and two South Korean banks. The technology was successfully tested just before Christmas. Earlier this week, Ripple SBI Holdings announced a partnership with three large Japanese credit card companies. That sparked a rally in Ripple token. Ripple’s market cap hit $90 billion this week. Now, Ethereum and Ripple are competing for the second place in the crypto currency market. Read more here. 
 
Cardano ADA
Before winding down for holidays, we had specifically written that Cardano ADA may rally in the weeks ahead, as it is perceived to be a competitor for Ethereum. As anticipated ADA, the token of the Cardano platform, recorded a high of $0.7871. Correspondingly, the market cap of Cardano has crossed $20 billion. We expect the token to remain bullish. Read more here. 
 
IOTA
It is a blockless, scalable alternative distributed ledger system (Tangle). The coin can be used to transfer value without any fees. The developers launched a data marketplace in early December. That triggered a rally in the coin. It is a cryptocurrency for the Internet of Things (IoT). We expect the value of IOTA coin, which is currently trading at $4.22 in the crypto market to rise further. Read more here.
 
 

Our Forex Trading Plan

Ripple. Looking at the price chart of Ripple, we are able to infer that the coin has started rising after consolidating at 1.80 levels. The MACD histogram is moving above the zero level. Thus, we expect Ripple to record new highs in the near future.

Through one of our Forex brokers, we wish to open a long position in Ripple (XRP) at $2.02 levels, with a stop loss order below 1.82. If the price of token rises as expected, we will book our profit at $3.40 levels.Ripple - Technical Analysis - 3rd January 2018

 

Our Binary Options Trading Plan

Litecoin. Litecoin shares all the features of Bitcoin, but with faster confirmation time. It has become range bound in the chart, as shown below.

The price of Litecoin is nearing the upper end of the trading band. Thus, we wish to invest in a put option valid for one week. The option may be bought only if Litecoin trades at about $280 in the crypto market.

 

 

Litecoin - Technical Analysis - 3rd January 2018

Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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