Hive is trading in an uptrend, like many other Altcoins. The cryptocurrency HIVE just went up +65% in a single day by breaking a falling wedge pattern with strong buying volume on multiple exchanges and surges over +92% in a week.
What is HIVE?
Hive is a decentralised information sharing network with an accompanying blockchain-based financial ledger built on the Delegated Proof of Stake (DPoS) protocol. Hive supports many different types of information sharing applications. Myriad dapps, APIs and front-ends contribute to a general and straightforward accessibility of data, transactions and records, so that this existing diversity and utility ensure that the ecosystem is welcoming to content creators, consumers, investors and builders.
HIVE Price Analysis
At the time of writing, HIVE is ranked 154th cryptocurrency globally and the current price is A$0.6775. This represents a +92% increase since July 23, 2021 (seven days ago), as shown in the chart below.
After looking at the above 1-Day candle chart, we can clearly see that HIVE was trading inside the falling wedge pattern on the HIVE/USDT pair. The first resistance was on the A$0.4755 price levels which HIVE broke with a strong bullish trend buying volume and is now heading towards the previous monthly high price at A$0.7428. Seeing that many Altcoins are holding a strong position this week after the recent bitcoin price recovery, HIVE may continue to increase in the uptrend if traders keep buying with high volume.
The chart seems to be in an cup and handle pattern, and the crypto market looks to be gearing up for something big again. First target is based on a fib, second is the cut and handle pattern, and the third is the golden fib.
“The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge.”
What Do the Technical Indicators Say?
TradingView indicators (on the one-day window) mainly suggest HIVE as a Strong Buy, except the Oscillators which indicate HIVE as a Neutral.
So Why Did HIVE Breakout?
General market sentiment seems to suggest cryptos are hopefully turning back bull run season after recent massive price corrections. Another reason for this sudden pump in price could be whales secretly buying HIVE for the next Altcoins rally. Recent news was also announced regarding CryptoPlug on the Block Event.
For this month's On The Block, we are excited to have Crimsonclad from Hive! We'll take an exploratory look into the work of Hive, the impact of blockchain technology on our community, and what the future of blockchain technology holds from her perspective. pic.twitter.com/slYy0dQ4wA
— Crypto Blockchain Plug (@CryptoPlug3) July 27, 2021
Where to Buy or Trade HIVE?
Hive has high liquidity on the Binance exchange, which could help for trading HIVE/BTC or HIVE/USDT pairs. Instead, if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is a popular choice in Australia. However, you can also buy these coins from different exchanges listed on Coinmarketcap.
Amid rising regulatory pressure in China, major cryptocurrency exchanges Huobi and OKEx have decided to discontinue their entities based in the PRC. However, this won’t affect the main crypto trading activities of both exchanges.
Huobi, OKEx Dissolves Local Companies in China
In accordance with publicly available information, the stakeholders of Beijing Huobi Tianxia Network Technology Ltd agreed to dissolve the entity on July 22. Founded in 2013, Beijing Huobi is the company that operates the Huobi exchange in China. It is reportedly 70.52 percent-owned by the CEO of Huobi Group, Li Lin.
Beijing Huobi will be dissolved in about 45 days from the aforementioned date, and all the clearing and liquidation processes will be reportedly handled by Huobi Group’s CEO.
The reason for dissolving Beijing Huobi is assumed to be the regulatory uncertainty and recent crackdown on crypto mining and trading activities in China. However, Huobi said the entity hasn’t conducted any business operations.
Because this entity has not had any business operations, it is unnecessary and has applied for cancellation.
Huobi exchange
This comes a month after OKEx exchange also dissolved a Chinese subsidiary. Beijing Lekuda Network Technology Co was founded to operate OKEx services in China. However, a decision was made on June 24 to dissolve the company.
Could We See Exchanges Become Decentralised?
Major crypto exchanges have been making several adjustments to their services of late, which suggests that a whole new wave of regulatory security may be under way. Earlier this week, the largest crypto exchange, Binance, announced the reduction of the maximum leverage for Futures trading to 20x, likewise FTX exchange.
It is likely some crypto platforms may decentralise operations as the industry becomes immersed in stringent regulatory pressure. This month, non-custodial crypto exchange ShapeShift revealed plans to completely decentralise its operations.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Chainlink (LINK)
The Chainlink Network LINK is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors, and more. The company focuses on ensuring that decentralized participation is guaranteed for all node operators and users looking to contribute to the network. Chainlink allows blockchains to securely interact with external data feeds, events, and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.
LINK Price Analysis
At the time of writing, LINK is ranked the 14th cryptocurrency globally and the current price is A$26.18. Let’s take a look at the chart below for price analysis:
LINK during Q2 provided respectable 210% gains for bulls who bought at April’s monthly open, with the price finding resistance near A$24.74
If bulls take back control this week, the top of the former gap begins at A$22.14 may provide support for at least a short-term bounce. The top of the consolidation range starting near A$20.32 is more likely to provide substantial support.
The most robust support is likely to be found in the overlapping consolidation ranges between A$18.23 and A$17.46, with a sharp slice through these levels possibly suggesting the end of the bull run.
The region from approximately A$29.81 to the most recent swing high is likely to provide some resistance. The swing high provides a reasonable first target for a possible next leg up.
If this high breaks, the 1.0 extension near A$33.27 and the 2.0 extension near A$38.72 may provide the next primary targets.
2. Dego Finance (DEGO)
Dego Finance DEGO is a decentralized ecosystem that offers a diverse combination of the non-fungible token (NFT) and decentralized finance (DeFi) tools. It is an independent, open NFT ecosystem. Any user is allowed to launch an NFT and initiate mining, auctions, and trading, covering the entire lifecycle of the product. Dego’s NFT protocol is a cross-chain, second-layer infrastructure for Blockchain projects that can be leveraged for user acquisition and token distribution.
DEGO Price Analysis
At the time of writing, DEGO is ranked the 319th cryptocurrency globally and the current price is A$13.43. Let’s take a look at the chart below for price analysis:
This month’s bulls enjoyed 190% gains at DEGO’s peak before the price confirmed stiff resistance beginning at A$14.37
The 12-hour chart shows that support may be forming between A$9.57 and A$8.89, near the weekly open.
Aggressive bulls could enter in this area, although safer entries may be found much further below near A$8.12 and A$7.56 after a sweep of the current consolidation’s swing lows.
The last swing high near A$16.37 provides a likely first target if the price does bounce from this region. Beyond this swing high, the 1.0 extension near A$19.64 and the 2.0 extension near A$23.85 may provide the next major targets
3. Fantom (FTM)
Fantom FTM is a directed acyclic graph (DAG) smart contract platform providing decentralized finance (DeFi) services to developers using its own bespoke consensus algorithm. Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms, specifically transaction speed, which developers say they have reduced to under two seconds.
FTM Price Analysis
At the time of writing, FTM is ranked the 99th cryptocurrency globally and the current price is A$0.304. Let’s take a look at the chart below for price analysis:
FTM’s 75% last week run retraced almost to its origin, narrowly missing probable support near A$0.2755 before bears swatted down the bounce near resistance around A$0.2587.
With the daily gap between A$0.2344 and A$0.2173 almost filled in a single wick, the price may not need to revisit areas below this level. However, the safer entry is still in probable support between A$0.1925 and A$0.1847, which would also sweep the lows of last week’s bounce.
The relatively equal highs near A$0.3569 provide a likely first target on lower timeframes. However, the resistance beginning at A$0.3741 may initially suppress a further move up.
A clean break through this resistance will need to contend with the next resistance near A$0.3958 under the last swing high. This swing high at A$0.4316 gives a reasonable take-profit area before a possible move to the 1.0 extension near A$0.4833.
Where to Buy or Trade Altcoins?
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia. However, you can also buy these coins from different exchanges listed on Coinmarketcap.
The CEOs of two major crypto exchanges have announced they will be lowering their maximum leverage limit for futures trades. These moves were made amid an impending regulatory storm.
Both FTX and Binance have lowered their maximum leverage limits for futures trading to 20 times leverage. The announcements follow the duly expected release of a new regulatory framework to be implemented by the US Securities and Exchange Commission (SEC) by July 28.
9) And so, after lots of back and forth, we're going to be the ones to take the first step here: a step in the direction the industry is headed, and has been headed for a while.
Today, we're removing high leverage from FTX. The greatest allowable will be 20x.
Binance previously had a maximum leverage and margin on Bitcoin (BTC) against Tether (USDT) contracts to 125 times leverage. At that level, a 100 USDT collateral deposit on Binance Futures will allow users to hold 12,500 USDT in BTC.
Binance’s new rule states that new users with registered futures accounts of less than 30 days will not be allowed to open positions with leverage exceeding 20 times. However, leverage limits for new users will gradually increase after one month from registration.
.@binance futures started limiting new users to max 20x leverage last Monday, Jul 19th, 7 days ago. (We didn't want to make this a thingy).
In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks.
The harsh reality of leveraged trading is that the majority of people who trade in those markets lose out, especially in volatile markets like cryptocurrencies. So not only do you lose your initial investment, but also any additional collateral you may have posted to keep the position open. For many who are new to the crypto market, leveraged trades could put a big hole in the bank.
Binance also recently stopped support for its stock tokens following a slap on the wrist from the Hong Kong SEC. Exchanges are likely worried about the regulatory screws tightening. Huobi has since also suspended the service to Chinese users.
Is Leverage to Blame for Market Volatility?
A July 23 New York Times article also criticised high-leverage trading in crypto as risky. The article implied impending regulatory moves against high-leverage margin trading, citing Timothy Massad, a former US SEC chairman.
Binance CEO Changpeng Zhao acknowledged that “volatility is amplified by the leverage”, according to the NYT article. But FTX CEO Sam Bankman counters by saying: “Nearly every crypto derivatives exchange allows it, and nearly every one will say the same thing: It’s a tiny fraction of volume and positions […] It’s also not what chiefly contributes to volatility.”
I tweeted a #BTC short squeeze is coming, and the "Big" short squeeze occurred at 9 am EST when CZ tweeted that Binance will limit leverage of futures to 20x to all users. $419M of futures shorts got liquidated right away sending BTC's price to ~$40K.
This is business as usual for crypto – a market that is known to be highly volatile and exposed to high levels of product leverage on these exchanges. [It’s] a perfect recipe for liquidations that can cut both ways depending on sharp spot movements to the up or downside.
Ryan Todd, research analyst, The Block
Binance De-Risking Operations Ahead of Regulatory Clampdown?
Binance has implemented various changes and has stayed abreast with regulatory requirements as they come up. With regulation becoming clearer, exchanges are trying to not get caught off guard while providing infrastructure for their clients.
What is a bull market and bear market? Whether talking about cryptocurrencies, equity, or real estate, all markets have periods where we can categorise them as either “bearish” or “bullish”. These terms refer to market conditions where a joint situation occurs over a medium or long-term period, usually lasting 1 year or more.
What is a Bull Market?
A bull market is where most assets surge in price gradually. Supply is big and investors are buying more as demand rises. We can say that the market is bullish when most assets of a specific market are in an uptrend.
When investors say they’re bullish on a market, they expect prices to rise for a long period. However, no one knows exactly how much a bull run can last, but they are usually longer than bearish markets and are less volatile.
How to Identify a Bull Market Trend
Trends are never straightforward, they have periods of fluctuation and price drops categorised as higher highs and higher lows.
It’s reasonable for a trader to follow the trend and not go against it. This is why it’s important to pay attention to price declines or consolidations when they appear. They don’t usually break the current trend (unless a big event occurs that completely flips it) but they can give you a window of opportunity to enter the market.
What Factors Can Create a Bull Market?
Several forces drive demand up or down. Take for example how the COVID-19 pandemic boosted the crypto market and practically shut down the global economy. What did happen during that time of crisis? Well, to name a few things:
Small, mid-size businesses started closing and unemployment rates skyrocketed.
Governments started sending relief packs embedded as monthly checks and injected trillions of dollars trying to help their citizens in the time of crisis.
Global central banks started printing trillions of dollars to help stabilise their respective countries.
Remote jobs became a priority for most companies globally, and people were forgetting about physical cash and paying for things using digital money on the Internet, like e-commerce websites. This reinforced and highlighted the benefits of cryptocurrencies, not only in times of financial crisis but in general.
How Did Institutional Capital Boosted the Crypto Market?
Investors knew that as central banks printed more and more money, so they wanted to hedge against fiat hyperinflation, and cryptocurrencies became an attractive alternative for them. Thus institutional capital flocked to the crypto market as more clients demanded alternative assets that could make up for a better store of value.
Investment banks like JP Morgan, Goldman Sachs, and Morgan Stanley; Payment Giants like Visa, Mastercard and PayPal; Hedge funds and institutional investors —the list goes on. They all at first condemned cryptocurrencies and their usefulness in real-time situations, and now most of these companies support them.
Investment banks started offering Bitcoin trading services among other crypto-related services to their clients. JP Morgan even offered job positions for Ethereum blockchain developers. PayPal allowed crypto custody and crypto-payments just like Visa and Mastercard.
News, adoption, and the overall benefits of crypto during these periods gave the crypto market and the decentralised finances (DeFi) ecosystem, which is now over US$60 million in total value locked, a dramatic boost.
Crypto Adoption is Accelerating
In January 2020, BTC was priced at over $7,000. By December, it was breaking one of the toughest psychological barriers: $20k, reaching over $24,000 that month. This is an increase of 224%. When institutional capital came into play and cryptocurrencies were all over the news, Bitcoin surpassed astronomical price records of over $40,000 in January 2021.
This doesn’t mean the market didn’t experience fluctuations during its bull run. The most notorious price corrections happened on February 21, when it dropped more than 20% between February 21 and 23, shortly after reaching a price record of US$58,322.
However, crypto adoption only accelerated with time, and now most institutional investors plan to own crypto by 2026.
What is a Bear Market?
Within a bear market, most assets are in a downward trend. Demand is low and most investors are selling their positions, further pushing the downtrend. However, most investors won’t call it a real bear market unless it loses 20% from recent highs. In essence:
Bearish periods apply to every market
Most assets move in a downtrend
Negative investors’ sentiment takes over
We all know The COVID-19 outburst shut down the entire economy and caused one of the toughest stock market crash in history. However, it accelerated Bitcoin’s rise to the eye of investors and amplified the narrative of Bitcoin as a safe store of value against the decaying purchasing power of the U.S. Dollar.
Bitcoin’s market performance in 2017 and 2020
Large price drops will trigger weak hands. This is usually called “panic selling.” There’s an interesting feature within the crypto market when this happens: most crypto holders (called HODLers) would look at this as an opportunity to buy as many coins as they can and profit from the next bull run. Interest is low and the usual buyers in these periods are miners and Bitcoin maximalists who want to stack as many BTC as they can.
And why do crypto traders do this? Because the crypto market has a finite supply in contrast to the infinite supply of fiat currency.
On the other hand, bullish crypto markets are dynamic with supply and demand in a perpetual state of flux as new participants and older HODLers compete for block-space, testing each other’s resolve to HODL in the face of parabolic price growth.
Let’s take Bitcoin as an example. While Bitcoin has surged in value over 9000% since 2015 it doesn’t mean the market hasn’t experienced bearish periods. In December 2017, it had one of the largest bearish runs that extended to mid-2019.
Bitcoin’s market performance in 2017 and 2020
Why Timeframes are Important
Using time frames properly is key to understanding the current state of the market so you trade it accordingly. Time frames can be classified as primary (longer periods), intermediate, and short-term, and each one will give you a different perspective of the market.
A rule of thumb is to always trade the primary time frame as market signals are more reliable. On shorter time frames, traders might find cluttered charts with exaggerated long spreads. However, this time frame works well for short-positions, so everything depends on the trader and the way he wants to trade.
Ideally, a trader bases his first technical analysis by studying the longer time frame to define in what direction the market is going. Bull markets usually last months or years, so to do a proper market analysis, setting a higher timeframe will help you have a better notion of what’s happening.
How Long Do Bear and Bull Markets Last?
Nobody knows how long these periods last. Usually, bull markets have greater and stronger rallies —they could last one year or exceed 10 years. On the other hand, bear markets have a shorter duration, but they come with more abrupt movements and volatility.
In the case of the stock market, assets don’t usually fluctuate by high points of percentage. Fiat currencies, for instance, are not stable —the degree to which they fluctuate is small and that’s why people consider them stable.
The Volatility of the Crypto Market
In contrast, the crypto market is volatile. Crypto assets can fluctuate by hundreds or thousands of points per day, and as crypto becomes mainstream and financial institutions start digging into crypto and blockchain technology, the price has been subject to harsh market corrections and explosive price surges.
News, institutional adoption, major events (like the China FUD), or even a comment from a wealthy influencer can cause powerful price surges or corrections that either boosts the market or stagger it, shrouding investors’ sentiment with pessimism or optimism.
Closing Thoughts
bull and bear markets can always be traded. Identifying what are the market conditions will help you to better manage your capital and invest more smartly.
During a bull run, most traders would follow the trend by applying their trading strategy. Traders entering the market set lower time frames after identifying the primary trend to define their next position.
During bear markets, traders are wary and try to protect themselves from larger price drops. It’s advisable to stay in cash during these periods, wait and study the market to catch an opportunity to trade it.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Solana (SOL)
Solana SOL is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralised finance (DeFi) solutions. The Solana protocol is designed to facilitate decentralised app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
SOL Price Analysis
At the time of writing, SOL is ranked the 15th cryptocurrency globally and the current price is A$38.22. Let’s take a look at the chart below for price analysis:
After a 250% run during May, SOL has been consolidating in a gap near A$35.28 from the past few weeks.
A sweep of the lows may have created support around A$28.55, which could give aggressive bulls a chance to get on board at the range lows. If the retracement continues, the price may find support near the gaps around A$27.94 and A$25.77.
The relatively equal daily highs at A$42.83 provide a potential first target. A break of the resistance near A$44.67 might reach resistance near A$48.00 and a sweep of the last high near A$53.42.
If the price leaves the current low near A$45.87 intact, a bullish breakout from the current consolidation range could reach the extensions near A$56.37 and A$58.44.
2. Theta Network (THETA)
Theta Network THETA is a blockchain powered network purpose-built for video streaming. Launched in March 2019, the Theta mainnet operates as a decentralised network in which users share bandwidth and computing resources on a peer-to-peer (P2P) basis. Theta features its own native cryptocurrency token, THETA, which performs various governance tasks within the network, and counts Google, Binance, Blockchain ventures, Gumi, Sony Europe and Samsung as Enterprise validators, along with a Guardian network of thousands of community-run guardian nodes.
THETA Price Analysis
At the time of writing, THETA is ranked the 20th cryptocurrency globally and the current price is A$7.71. Let’s take a look at the chart below for price analysis:
Last week we saw 95% gains for THETA, but the bull run might not be over yet.
Resistance near A$7.80 is pinning the price down as it accumulates on an old monthly level near A$5.89. A sweep of this consolidation range could reach probable support near A$4.67, giving bulls a better risk-reward entry.
The last high at A$12.71 and a May high at A$16.87 are probable first targets. The area between A$11.27 and A$13.45 may provide some resistance, with extensions suggesting that A$14.35 may be a likely area of contention.
A break of this resistance could run as high as the extension at A$17.85 during this move.
3. Hedera Hashgraph (HBAR)
Hedera Hashgraph HBAR is a public network that allows individuals and businesses to create powerful decentralised applications (DApps). It is designed to be a fairer, more efficient system that eliminates some of the limitations that older blockchain-based platforms face, such as slow performance and instability. Unlike most other cryptocurrency platforms, Hedera Hashgraph isn’t built on top of a conventional blockchain. Instead, it introduces a completely novel type of distributed ledger technology known as a Hashgraph.
HBAR Price Analysis
At the time of writing, HBAR is ranked the 51th cryptocurrency globally and the current price is A$0.2702. Let’s take a look at the chart below for price analysis:
HBAR bears saw 48% retracement during July as the price approaches resistance from a weekly gap beginning at A$0.2855.
Support may have formed last weekend near A$0.2547, which would be confirmed by a strong move above this level and provide a probable area for entries. A gap beginning at A$0.2485 may also offer support if tested, along with the last movement’s base starting at A$0.2267.
Old overlapping levels and a previous move’s 2.0 extension make A$0.3541 to A$0.3862 a likely resistance area. If the price retraces near A$0.4017 before piercing this level to form a new 1.0 extension, an old monthly high near A$0.4325 may be the next target.
Where to Buy or Trade Altcoins?
These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia. However, you can also buy these coins from different exchanges listed on Coinmarketcap.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. ETNA Network (ETNA)
ETNA Network is a one-stop shop for all things DeFi, NFTs and gaming. ETNA’s NFT Factory is an all-in-one marketplace and factory, the first NFT marketplace that facilitates spot trading of supported assets. The factory allows creators to easily mint digital assets and showcase them to collectors.
ETNA Price Analysis
At the time of writing, ETNA is ranked the 1278th cryptocurrency globally and the current price is A$0.3007. Let’s take a look at the chart below for price analysis:
After a stunning 92% drop since early May, ETNA seems to have entered an accumulation phase.
The last few days have found resistance in the weekly level near A0$.2223, which may continue to hold the price down. The daily chart also shows resistance near A$0.2689, while the swing high at A$0.3375 gives a likely target if this resistance fails. A run above this level may reach the weekly gap with a high near A$0.3781.
The consolidation around A$0.1723 has provided support and could do so again. However, relatively equal daily lows near A$0.1561 give a tempting target for bears. Below this level, little exists to provide explicit support on the chart.
2. Radix (EXRD)
Radix EXRD is the first layer-one protocol specifically built to serve DeFi. Decentralised finance applications are currently built on protocols that are not fit for purpose, leading to congestion, hacks and developer frustration. Radix changes this by introducing a scalable, secure-by-design, composable platform with a DeFi-specific build environment to make it easy to build and launch scalable DeFi.
EXRD Price Analysis
At the time of writing, EXRD is ranked the 274th cryptocurrency globally and the current price is A$0.1992. Let’s take a look at the chart below for price analysis:
EXRD‘s nearly 57% drop since late March found a low in late May, with price action now trending upward through a higher-timeframe range.
The area beginning near A$0.2155 has provided strong resistance and may do so again. However, relatively equal highs near A$0.2389 offer a tempting target for bulls. A run of these highs may reach up into the daily gap near A$0.2437.
Aggressive bulls might add to their positions near A$0.1854. If the price breaks through this level, it may be reaching for the cluster of swing lows near A$0.1594 and A$0.1422. A more substantial move down may run stops below the relatively equal January and May lows, around A$0.1169, into the daily gap at this level.
3. Kava.io (KAVA)
Kava is a cross-chain DeFi lending platform that allows users to borrow USDX stablecoins and deposit a variety of cryptocurrencies to begin earning a yield. In addition to Kava’s USDX stablecoin, the Kava blockchain also includes the native KAVA token. This is a utility token used for voting on governance proposals and also functions as a reserve currency for when the system is undercollateralised.
KAVA Price Analysis
At the time of writing, KAVA is ranked the 114th cryptocurrency globally and the current price is A$6.12. Let’s take a look at the chart below for price analysis:
KAVA has been trading through a massive range since April, with the price showing mild bullishness during July.
Bulls bought at the level near A$4.28. The weekly level and daily gap near A$5.73 could prompt buyers to step in again as the price challenges the swing high and resistance around A$6.75. A strong move and acceptance above this level may reach for the swing highs at A$8.72 and A$9.99, which marks another area of resistance.
However, rejection from the current area may send the price down to retest support near A$4.81. Relatively equal lows around A$4.28 provide a rich target for a stop run. Sustained bearishness may reach the low near A$3.47 and possibly as low as A$2.86 into higher-timeframe support.
Where to Buy or Trade Altcoins?
These three coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia. However, you can also buy these coins from different exchanges listed on Coinmarketcap.
Venus XVS is trading in an uptrend, like many other Altcoins. The cryptocurrency XVS just went up +54% in a single day by breaking a falling wedge pattern with strong buying volume on multiple exchanges and surges over +86% in a week.
What is XVS?
Venus XVS is an algorithmic money market and synthetic stablecoin protocol launched exclusively on Binance Smart Chain (BSC). The protocol introduces simple-to-use crypto-asset lending and borrowing solution to the decentralized finance (DeFi) ecosystem, enabling users to directly borrow against collateral at high speed while losing less to transaction fees. The governance of the protocol is entirely controlled by XVS community members, since the Venus founders, team members, and other advisors do have any XVS token allocations.
XVS Price Analysis
At the time of writing, XVS is ranked 137th cryptocurrency globally and the current price is A$34.08. This represents a +86% increase since July 20, 2021 (seven days ago), as shown in the chart below.
After looking at the above 4-Hour candle chart, we can clearly see that XVS was trading inside the falling wedge pattern on the XVS/USDT pair. The first resistance was on the A$25.64 price levels which XVS broke with a strong bullish trend buying volume and is now heading towards the previous monthly high price at A$45.38 Seeing that many Altcoins are holding a strong position this week after the recent bitcoin price recovery with 14% in a day XVS might continue to increase in the uptrend if traders keep buying with high volume.
“The Falling Wedge is a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge.”
General market sentiment seems to suggest cryptos are hopefully turning back bull run season after recent massive price corrections. Another reason for this sudden pump in price could be whales secretly buying XVS for the next Altcoins rally. Recent news was also announced regarding Poloniex Listing XVS Coin on its DeFi Innovation Zone.
Venus XVS has high liquidity on the Binance exchange which could help for trading XVS/BTC or XVS/USDT pairs. Instead, if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is a popular choice in Australia.
Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.
1. Electro Optical System (EOS)
EOS is a platform that’s designed to allow developers to build decentralized apps DApps. The project’s goal is relatively simple: to make it as straightforward as possible for programmers to embrace blockchain technology and ensure that the network is easier to use than rivals. As a result, tools and a range of educational resources are provided to support developers who want to build functional apps quickly. EOS also aims to improve the experience for users and businesses. While the project tries to deliver greater security and less friction for consumers, it also vies to unlock flexibility and compliance for enterprises.
EOS Price Analysis
At the time of writing, EOS is ranked the 28th cryptocurrency globally and the current price is A$4.87. Let’s take a look at the chart below for price analysis:
EOS marines continue pushing the price higher, printing nearly 45% gains during the end of July.
The consolidation near A$4.75 is likely to provide support as the price continues exploring new highs. However, a set of relatively equal lows near A$4.38 provides a tempting target for a stop run into probable support near A$4.15.
A decidedly bearish shift in the market could reach probable support near A$3.85.
Almost no resistance lies overhead, although low-timeframe traders can use the resistance below recent highs near A$5.20 as a first target. Beyond this level, extensions near A$5.88, A$6.15, and A$6.45 give reasonable higher-timeframe targets.
2. Ripple (XRP)
Ripple XRP is the currency that runs on a digital payment platform called RippleNet, which is on top of a distributed ledger database called XRP Ledger. While RippleNet is run by a company called Ripple, the XRP Ledger is open-source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
XRP Price Analysis
At the time of writing, XRP is ranked the 6th cryptocurrency globally and the current price is A$0.811. Let’s take a look at the chart below for price analysis:
XRP retraced 45% during July before finding support near A$0.5937. The following bounce encountered resistance at the daily gap near A$0.6328.
Bulls might wait for a sweep of the local lows into support near A$0.7344 before stepping in. A move to this level could reach into the higher timeframe gap down to A$0.6936.
In the most bearish scenario, a significant turn in the market could push the price down to the consolidation near A$0.6422.
The local resistance is near A$0.9855 and the relatively equal swing highs give a reasonable first target. Just above, layered resistance near A$1.18 and A$1.27 could slow bulls down as they push the price towards the significant swing high at A$1.45.
3. DigiByte (DGB)
DigiByte DGB is an open-source blockchain and asset creation platform. Development began in October 2013 and the genesis block of its DGB token was mined in January 2014 as a fork of Bitcoin. A longstanding public blockchain and cryptocurrency, DigiByte uses five different algorithms to improve security, and originally aimed to improve on the Bitcoin blockchain’s security, capacity, and transaction speed. DigiByte consists of three layers: a smart contract “App Store,” a public ledger, and the core protocol featuring nodes communicating to relay transactions.
DGB Price Analysis
At the time of writing, DGB is ranked the 89th cryptocurrency globally and the current price is A$0.05837. Let’s take a look at the chart below for price analysis:
DGB bears have retraced over 145% since June, with little resistance above to end the current price discovery.
The price may find support near A$0.04655. Still, aggressive bulls should be wary of a potential stop run under the monthly open into support near A$0.04371. The area around A$0.04015 should provide strong support if the price reaches this low.
The air above the current price is thin, but the level near A$0.0695 could potentially provide some resistance in the short term. Extensions reaching near A$0.0784 and A$0.0872 make reasonable take-profit zones if the bullish trend continues.
Where to Buy or Trade Altcoins?
These three coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.
Cryptocurrency has become extremely popular in Australia and worldwide as new people enter the fast-paced world of crypto trading. After crypto trading myself since 2017, I’ve learnt so much and would like to share with you some of the guidelines I follow to protect myself and make good decisions when trading cryptos.
Disclaimer: Before you continue reading, please note that I am not a financial adviser or professional trader, and do not recommend you follow my guidelines blindly. This is a list of the guidelines I personally follow, provided to you for free educational and entertainment purposes.
Sam’s 10 Crypto Principles:
Take Profits
Manage Your Risk
Investor vs Trader
Set Your Stop Loss
Never Fall in Love with a Coin
Always Do Your Own Research
You Make Money in the Buy
Stay Aware of Your Emotions
Quality Over Quantity
Keep Up to Date with News
1. Take Profits
My rule #1 is simple. When my trade goes up, I always take profits. Sometimes I sell all of it, and sometimes I partially sell it (ie, sometimes when it has doubled in dollar value, I sell my initial investment so then I can “freeroll” on the rest to make more profits, with the plan of selling the rest at a set higher price target).
Let’s be clear – taking profit is not about getting money out of crypto, it’s about being able to actualise profits, essentially to put more in at a later time. It can either be sold back into Bitcoin (usually) or completely sold back into fiat (if I need to buy something with fiat – or pay my taxes!).
2. Manage Your Risk
Everyone has heard the saying “only risk what you are willing to lose”, this simple statement is particularly important in the crypto markets where every man (and his dog) is trading well-earnt savings, mostly with no formal trading knowledge and experience. Also, this new market is crazy, we have seen some people make millions and we have seen some people lose everything.
To manage my risk, I have a few principles I follow:
Not investing the majority of total funds in one trade (generally I use 5% per trade, and some people use as little as 2% per trade. Keeping this low means that no any single trade will drain your account).
Not buying with debt such as credit cards or borrowing to invest (this is a sure way to over-extend yourself and end up in trouble. Even temporary positions can prolong into long-term interest bearing debt).
Keeping risk within my limits = keeping my stress levels down (this one is super-important for me to continue doing this long-term – my health is always my #1 priority as the saying goes “you can’t spend a billion dollars on your death bed”).
Stay away from leverage and margin trading (the main reason I follow this principle is because I don’t fully understand how to use margin correctly yet. We’ve also seen so many people get burnt with Bitcoin margin trading recently especially when everyone is so bullish and going long “to the moon”).
A major lesson in risk management is that a ‘receding sea’ is not a lucky offer of an extra piece of free beach, but a warning sign of an upcoming tsunami.
One of the things my mentor taught me is to classify an opportunity as either a trade or as an investment. A trade would be a short-to-medium-term purchase with the clear intention of selling at a profit. An investment would be a longer-term purchase, with the intention to never sell, or at least not to sell short-to-medium-term.
Once you’ve established what the opportunity is for you, then you can make clear, concise, informed decisions about the purchase. It is then easier for you to create a plan and a strategy to follow. For example, when making a trade you can define an buy price, timeframe and sell price, and for an investment you can simply just write down why you are buying it, and not worry about selling it unless that reason changes.
You have to identify your weaknesses and work to change. Keep a trading diary – write down your reasons for entering and exiting every trade. Look for repetitive patterns of success and failure.
Having a clear strategy helps prevent panic selling should the market turn quickly and I get cold feet, which seems like most days in crypto. For example, if I am buying BTC as an investment, then I plan to simply never sell, I can simply pick up more when it dips, and might consider borrowing against it in the future. Whereas if I think an altcoin is a decent trade opportunity, I can set entry point, timeframe, and sell price before I even buy it. Sounds simple? It is.
4. Set Your Stop Loss
When I’m crypto trading, I always have a stop loss set; it just protects me from taking massive hits when I’m wrong. A stop-loss simply means to set a fixed selling price so that if it drops in price you can sell before it drops further. For example, taking a 5% loss is always better than taking a 20% loss. These saving will add up in the long run and could be the difference between a successful trader and losing one.
It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.
Where to place a stop loss depends on what coin you’re buying, how volatile the price is, and other factors. I would do some education on how to trade and place stop losses, some of my friends have said “placing a stop loss before I go to bed makes me sleep better”. There are also some great online tools that can help you automate some things.
5. Never Fall in Love with a Coin
This rule just keeps me grounded as I try to remove the human biases that occur when you buy a coin, especially if you really like a project (for any reason). Once you “own” it, you become attached to it and start telling everyone how great it is. This can be detrimental to your profits, because as cognitive dissonance sets in you may ignore red flags that arise. When you know you should sell but love the coin, so you just HODL and endure the pain, as you’d rather take the losses than be wrong. That sucks.
Pride is a great banana peel, as are hope, fear and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.
Don’t be a financial adviser (if you’re not one), you’ll be left with egg on your face if the coin suddenly turns as people you recommended it to lose their hard earnt money. Usually crypto trading tips are based purely on speculation from YouTube or bullish news stories.
When you’re emotionally married to an investment, you lose the judgment rationality that defines successful investors. I want no position to be so large in the portfolio that we’re emotionally invested in the outcome. It’s keeping that objective judgment that is so important to our success.
Doing extensive research is particularly important in the cryptocurrency market as most of the projects are brand new startups. Researching fundamentals is important for both investing and trading. Ideally you can back up a trade with both strong fundamentals and strong technicals.
DOYR allows me to form a picture of the trade in my head and make my own decisions. And when I get a tip, I don’t just buy it blindly – I’ll take a closer look at it, these are some of the things I look for:
Project website (mainly just learning about the project)
Social media (checking for recent activity and people involved)
Project category (checking the market and competitors)
Coin value proposition (what is the utility/purpose of the coin)
Circulating supply (is the supply allocation and distribution sensible)
Technical analysis (do the graphs show an obvious entry point)
Recent news (checking the crypto news to avoid making a bad trade)
Pump and dump (if I looks like a pump and dump I stay away)
You may have heard these sayings before: “you make the money when you buy” or “buy red, sell green”. This sounds simple but in reality it is very hard to follow as our human emotions grab us the opposite way.
The intelligent investor is a realist who sells to optimists and buys from pessimists.
A good example of this is back in early 2018 when we saw a lot of people buy Bitcoin at the top around AU$25,000 (after it had already shot up from AU$1,000). Then when it started to fall, they panic sold at a loss. If they decided to buy as an investment, they would have held and the price would have bounced back eventually as we saw. Whereas if they decided to buy as a trade, then the $25,000 entry point after an already short-term 84% increase, in hindsight doesn’t seem like a great idea.
Be fearful when others are greedy, and greedy when others are fearful.
Keeping control of your emotions is arguably one of the hardest things to do when trading. One principle I follow to counteract this is “never panic buy or panic sell”. In the past, there have been countless times where I have panic sold a position, only to see it go back up once I sold. The crypto market is highly volatile and this happens all the time.
Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.
If I make a bad trade, which I have many a time, I don’t dwell on it for long anymore, I just assess why it went wrong, try to correct it for next time and then forget it and move on.
If you’re always looking back at what you’ve lost, you’ll never discover the treasure that lies just up ahead.
Simply put, less is more. I would rather have 5 quality coins than 20 average coins. I generally stay away from “shitcoins” (anything with a useless value proposition) as they historically don’t survive the bear market and are very unpredictable.
It’s not surprising that most cryptocurrency project failures happen when the market is bleeding. The largest number of cryptocurrency projects disappeared during the early months of 2019 when the bear market was at its most savage.
It shouldn’t be too surprising that 92% of crypto projects fail, according to Yahoo Finance, of the 1,840 failed cryptocurrency projects since 2017, the majority were scams. It’s easier to just stay away from these and focus on the growing number of quality crypto and blockchain projects emerging.
10. Keep Up to Date with News
After running Crypto News in Australia for a few years now, I can tell you with some confidence that crypto trading and crypto news are positively correlated. A single news story can make or break a project, that’s why we always strive to publish independent unbiased news that primarily focusing on the facts, keeping our opinions to a minimum. We also publish news about about the latest scams going around, to help protect you against losing your funds.
Our partners provide you with the expert advice and help you particpate in the crypto space.
The crypto market moves fast, and new projects and developments are emerging daily, so it pays in many ways to stay updated. The best ways to stay up to date with the news:
To conclude, follow your instinct – if something doesn’t feel right, it usually isn’t. Trust yourself – make informed decisions, and stick to them. Best of luck on your crypto adventure!
For a bit of fun, here are the rules again, depicted by trading memes:
