The Leading Cryptocurrency Stories for 8th Jan 2018

The Leading Cryptocurrency Stories for 8th Jan 2018

The race to become the next big crypto currency is heating up, with supporters of diverse platforms, Ethereum and Ripple, pushing their favourite currencies to a new highs on a daily basis. While the mainstream media is focused on Bitcoin, Litecoin, Ethereum and Ripple, decentralised applications continue to gain market share in various sectors. Some of them worth mentioning are NXT (enables decentralised phasing, voting, & trading), trade.io (aims to democratise financial markets), Nexus-Vector partnership (satellite based block chain network), Stellar (aiming to become a “Ripple coin” among individuals & small businesses), OmiseGo’s partnership with McDonald’s ( payment system for those who do not have a bank account or seldom use it), Stamps (an alternative to traditional funding), KWATT (tokenized electricity), Propy’s (decentralised real estate marketplace), and SingularityNET (block chain marketplace for artificial intelligence, from the creators of Sophia-the robot). While most of the coins have appreciated anywhere between 100% to 500% in the past few weeks, crypto expects believe the uptrend has just begun. Now, let us have a look at the coins which lead the crypto market.
 
 
Bitcoin (BTC)
After staying range bound between $12,000 and $16,000 for about 10 days, yesterday, Bitcoin has broken the upper band of the trading range. One of the main reasons for the bullishness is that Lightning Network, which will facilitate instant transaction between users of Bitcoin, was deployed successfully by Lightning Labs. It is yet to be made active. However, it was tested successfully by a programmer named Alex Bosworth by paying a telephone bill. In the next few months, “Lightning Transactions” will be possible. If Bitcoin breaks above, $19,240, then we may see the currency hit a level of $23,000 in a matter of a few days. Read more here.
 
Ethereum (ETH)
For the first-time in history, Ether, the token of Ethereum platform, topped $1,000 in all the crypto currency exchanges. There are multiple reasons for the rally. Firstly, Ethereum Foundation released the Casper PoS testnet update on December 31 on Github. Once Casper gets activated, Ethereum will change from proof-of-work to proof-of-stake network. When coupled with sharding, casper will enable Ethereum to process as many as 100,000 transactions per second. The market rewarded the developers by pushing the price of Ether. Notably, Visa network can process only 24,000 transactions per second. Secondly, the Brazilian government is planning to use Ethereum network to manage their petitions system. Both the facts mentioned above has sparked a strong rally in Ether. Read more here, and also here.
 
Ripple (XRP)
Investment research firm Nomura has published a report saying Bitcoin could have contributed an additional 0.3% growth to the GDP of Japan in 2017. Last month, Ripple SBI Asia led a consortium of 61 banks to test the Ripple platform for cross border fund transfer. Two leading banks in South Korea partnered them in the test. A week later, three large Japanese credit card companies – JCB, Sumitomo Mitsui Card, and Credit Saison – joined hands with Ripple SBI Asia to improve efficiency. The rising popularity of the Ripple platform among institutional players has led to a strong rally. Ripple touched a high of $3.28 on Friday. It also made Chris Larsen, a cofounder with 37% stake in Ripple, one of the richest in the planet. Read more here.
 
Ethereum Classic (ETC)
While Ethereum was making new highs, Ethereum Classic, which is the original Ethereum chain, gained $10 to trade at about $36. The rally was driven by an update regarding its Emerald development project. Ethereum Classic offers a smart contract platform similar to Ethereum. It can be used to develop DApps and is capable of hosting a cryptocurrency ICO. However, there are some other issues faced by Ethereum Classic. There are several ETC wallet solutions currently available. However, none of them can verify transactions in a trustless way. The Emerald project addresses this issue. The platform also lacks a common framework to build DApps. Additionally, there are no specific guidelines for third-party developers. Emerald project is expected to fix these issues in the ETC ecosystem. On December 31, the ETC developers provided an update which explained the features that will be available on the ETC platform shortly. Additionally, the developers, in a subtle reference to Ethereum, had pointed out that it will be free from first and second parity vulnerabilities and large token losses. That sparked a rally in the Ethereum Classic token. Read more here.
 
Stellar Lumens (XLM)
Stellar Lumens is similar to Ripple in the sense that it is aimed at individuals and small business owners who are looking for a cheap and reliable alternative to transfer funds. While Ripple was structured to facilitate inter-bank transfer, Stellar was designed for mass adoption. It is also an open-source distributed payments infrastructure platform. The token of Stellar platform, XLM, has rallied to $0.90 levels, from about $0.25 two weeks ago. Since Ripple has started gaining acceptance among major banks and other financial institutions, the market expects Stellar Lumens to gain acceptance among ordinary public. In fact, a South African company, named SureRemit, has already built a non-cash cross-border payment system on Stellar platform. Read more here. 
 
 

Our Forex Trading Plan

Ethereum. After two weeks of rally, we are seeing exhaustion in Ethereum. As shown in the chart below, resistance is building up at 1050 levels. The RSI indicator is also signalling an extremely overbought situation. Thus, we expect Ether to undergo a price correction in the week ahead.

We may use the trading platform of one of the Forex brokers listed here to go short in the ETHUSD pair. The trade will be established near $1224, with a stop loss order above $1361. The trade will be closed when the pair declines to $935 levels.

Ethereum - Technical Analysis - 8th January 2018

Our Binary Trading Plan

Bitcoin. The price chart of Bitcoin provided below indicates that the crypto currency pair is finding it difficult to break above 17,250 levels. The stochastic oscillator is also descending toward the bearish zone. Thus, we expect the crypto currency to decline again to 12,000 levels.

If Bitcoin breaks out above 17,250 levels, we may see 23,000 very quickly. So, considering the risk involved, we may use only a binary platform to speculate, as the loss is fixed at the time of entering the trade. We may buy a put option valid for one week. The trade will be established when Bitcoin changes hands at about $17,000 in the spot crypto currency market.

Bitcoin - Technical Analysis - 8th 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.


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