Mt. Gox CEO Mark Karpeles States Innocence in Latest Trial

Mark Karpeles. Source: CCN

Mt. Gox was the world’s largest trading exchange until its 2014 collapse after revealing that it had lost 850,000 Bitcoin due to hackers compromising the exchange – worth $450 million at the time. While Karpeles claims this was theft, authorities believe there is more to the story.

With the trial beginning in June of this year, he was charged for embezzling approximately 340 million yen, or ~$3 million. He allegedly transferred “340 million yen belonging to customers from Mt. Gox account to his personal account between September and December 2013.” In response to this, NHK reported that his defense team said this transfer was for business reasons – not personal. Karpeles claims it was for a temporary loan.

He is also charged for manipulating data on the exchange’s interface to inflate balance numbers. Prosecutors are now seeking a 10-year sentence if found guilty, up from the original 5-year sentence he was originally facing. Located in Japan, he has been set free from bail on the premise that he does not leave Japan. According to CCN, a final verdict for the case is set to be made on March 15, 2019.

Regulators have been working to compensate users for lost funds. Meanwhile, Karpeles later found 200,000 Bitcoin in cold storage, which would have been more than enough to repay users considering the price increase of Bitcoin. We hope that all Mt. Gox users receive compensation for their lost funds, but we will have to see.

What Can We Learn from This?

After the fall of Mt. Gox, cryptocurrency investors have become increasingly cautious about where to invest their funds. Since Mt. Gox, other exchanges such as MintPal and Cryptsy have shut down for shady reasons. In fact, Cryptsy founder, Paul Vernon, fled to China to hide from authorities.

When choosing a trusted counterparty to hold your cryptocurrencies, it is important to research the team, the legal jurisdictions they are permitted to operate in, if they are insured, and if there is any history of hackings. For example, Coinbase mentions they are FDIC insured for up to $250,000, much like a regular bank. This makes US investors more comfortable using Coinbase and Coinbase Pro, over an unknown exchange, even if the unknown exchange has more options of altcoins. Additionally, many decentralized exchanges are being introduced to the market, but for now, we recommend avoiding these until they prove themselves to be technically and legally reliable.

Best practice is to never leave your crypto funds on an exchange. Unless you are an active trader who leaves positions open overnight, we recommend sending your cryptocurrencies back to your wallet at all times. This way you stay in control of your funds and get rid of all counterparty risk. After all – personal control of one’s own finances is a major driver behind the cryptocurrency revolution.

To dig one step deeper, we recommend using hardware wallets, such as the Ledger Nano S, even over desktop wallets. Hardware wallets are disconnected from the internet, so there is no way you can get compromised by hackers.

Altcoins Weekly Analysis – Cardano’s ADA, EOS and Stellar’s Lumen – 30/12/18

altcoins

Cardano’s ADA

Cardano’s ADA fell by 1.7% Sunday through Saturday, following the previous week’s 51.18% rally, to end the week at $0.04268.

A bullish start to the week saw Cardano’s ADA rally to a Monday intraweek high $0.051468, breaking through the week’s first major resistance level at $0.05120 before hitting reverse.

The reversal saw Cardano’s ADA fall through to a Friday intraweek low $0.036815, steering clear of the week’s first major support level at $0.0321 to bounce back to $0.04 levels on the day, with Cardano’s ADA unable to break back through to $0.05 levels by the end of the week

For the week ahead, a move back through to $0.044 levels in the early part of the week would support another run at $0.05 levels and the week’s first major resistance level at $0.05, with sentiment across the broader market needing to improve to support a run at the second major resistance level at $0.0583.

Failure to move through to $0.044 levels could set up a bearish week for Cardano’s ADA, with a pullback through last week’s $0.03682 low likely to bring the week’s first major support level at $0.0358 into play before any recovery, sub-$0.03 support levels unlikely to be tested, barring a material crypto market sell-off.

At the time of writing, Cardano’s ADA was up 0.3% to $0.04281.

ADA/USD 30/12/18 Weekly Chart

EOS

EOS slipped by just 0.2% in the week ending 29th December, following the previous week’s 40.35% gain, to end the week at $2.6946.

Tracking the broader market, EOS moved through to a intraweek high $3.2081, breaking through the week’s first major resistance level at $3.10 before easing back, EOS coming up short of the week’s second major resistance level at $3.49.

A mid-week pullback saw EOS fall to a week low $2.3093, EOS managing to hold above the week’s first major support level at $2.11 to move back through to $2.6 levels by the end of the week, EOS unable to recover the $3.00 handle.

For the week ahead, a move through to $2.75 levels would support another run at $3.00 levels to bring the week’s first major resistance level at $3.17 into play, with any broad based crypto rally supporting a run at the second major resistance level at $3.64 before any pullback, $4.00 levels unlikely to be hit in the week.

Failure to move through to $2.75 levels through the early part of the week could see EOS pullback through last week’s $2.3093 low to bring the first major support level at $2.27 into play before any recovery, sub-$2.00 support levels unlikely to be in play barring a crypto meltdown.

At the time of writing, EOS was down 1.39% at $2.6571.

EOS/USD 30/12/18 Weekly Chart

Stellar’s Lumen

Stellar’s Lumen fell by 4.6% in the week ending 29th December, partially reversing the previous week’s 28.6% rally, to end the week at $0.1202.

Tracking the broader market, Stellar’s Lumen rallied through to a Monday intraweek high $0.14762, breaking through the week’s first major resistance level at $0.1363 and 23.6% FIB Retracement Level of $0.1434 before hitting reverse, Stellar’s Lumen coming within range of the week’s second major resistance level at $0.1483.

The broad based cryptomarket reversal mid-week led to a pullback to an intraweek low $0.11074, Stellar’s Lumen steering clear of the week’s first major support level at $0.1045 before moving back through to $0.12 levels by the week’s end, the bearish sentiment at the end of the week pinning Stellar’s Lumen back from $0.13 levels.

For the week ahead, a move back through to $0.126 levels would support a return to $0.13 levels to bring the week’s first major resistance level at $0.1416 into play, with last week’s high $0.14762 likely to pin Stellar’s Lumen back from a break through to $0.15 levels in the week.

Failure to move through to $0.126 levels could see Stellar’s Lumen struggle through the week, with a fall through last week’s low $0.11074 bringing the week’s first major support level at $0.1048 into play before any recovery, heavier losses not expected in the week, barring materially negative news hitting the crypto wires.

XLM/USD 30/12/18 Weekly Chart

At the time of writing, Stellar’s Lumen was down 0.47% to $0.11964.

Ethereum Analysis – Now That’s a Rebound – 26/12/18

Ethereum

Ethereum Price Resistance

Following a particularly bullish week last week, which saw Ethereum rally by 54.8% to end the week at $129.61, it’s been a mixed start to the week, with Ethereum seeing a Monday 7.31% gain reverse on Tuesday, with Ethereum sliding by 7.34%.

Going into the middle of the week, Ethereum has managed to steer clear of a pullback to sub-$100 levels to call on support at the week’s major support level at $97.75, with a week low $122.15, a hold above $115 through the early part of the week has been key.

Monday’s upward momentum saw Ethereum strike an early week high $156.04, breaking through the week’s first major resistance level at $147.24 before pulling back to the week low $122.15 struck on Tuesday afternoon.

In spite of the more than 50% gains made last week and hold onto $130 levels mid-week, the extended bearish trend, formed at the end of April’s swing hi $829.97, remained intact following 14th December’s new swing lo $80.6, with Ethereum continuing to fall well short of the 23.6% FIB Retracement Level of $257.

At the time of writing, Ethereum was up 3.97% to $133.94, with support from the broader market driving Ethereum from a start of a day morning low $127.5 to a morning high $136.72 before easing back.

For the week ahead, a move back through to $140 levels would support another break through the week’s first major resistance level at $147.24 to bring $150 levels back into play, while sentiment across the broader market will need to continue to improve to support a run at $160 levels and the week’s second major resistance level at $164.86.

Failure to move back through to $140 levels could see Ethereum hit reverse later in the week, with a pullback through the current week’s low $122.15 to sub-$115 levels likely to bring sub-$100 levels and the week’s first major support level at $97.75 into play before any recovery.

Sentiment across the broader market would need to materially deteriorate for Ethereum to return to sub-$100 levels, however, with last week’s 54.8% rally providing some near-term support, Ethereum having avoided a Monday sell-off.

ETH/USD 26/12/18 Weekly Chart

Looking at the Technical Indicators

  • Major Support Level: $97.75
  • Major Resistance Level: $147.24
  • Fib 23.6% Retracement Level: $257
  • Fib 38% Retracement Level: $367
  • Fib 62% Retracement Level: $543

Altcoins Weekly Analysis – NEO, Stellar’s Lumen and Monero – 23/12/18

altcoins

NEO

NEO rallied by 27.62% Sunday through Saturday, reversing the previous week’s 6.07% fall with interest, to close out the week at $7.30.

A material shift in sentiment across the broader market supported a particularly bullish start to the week, with NEO breaking through the week’s first major resistance level at $6.71 on Monday before striking a week high $7.69 on Friday, NEO coming up against the week’s second major resistance level at $7.70 before easing back.

For the crypto bulls, 5 days in the green out of 7 saw NEO steer well clear of the week’s first major support level at $5.12, with NEO seeing only its 4th weekly gain of the 4th quarter.

For the week ahead, another bullish start to the week could deliver another weekly gain, with NEO needing to hold onto $7.00 levels through the early part of the week to support the latest shift in momentum.

A move through to last week’s $7.69 high would bring $8.00 levels and the first major resistance level at $8.09 into play, with positive sentiment across the broader market needed for NEO to take a run at the second major resistance level at $8.89 and $9.00 levels later in the week.

Failure to hold onto $7.00 levels through the early part of the week will likely lead to a partial reversal of last week’s gains, with NEO likely to call on support at the first major support level at $6.10 before any recovery, heavier losses not expected in the week.

At the time of writing, NEO was up 3.3% to $7.54.

NEO/USD 23/12/18 Weekly Chart

Monero’s XMR

Monero’s XMR jumped by 33.32% in the week Sunday through Saturday, reversing the previous week’s 13.19% slide, to end the week at $51.41.

Recovering from a bearish start to the week and a week low $38.35, Monero’s XMR rallied to a week high $55.45 on Friday before easing back, the bullish run through the week seeing Monero’s XMR break through the first major resistance level at $47.81 late in the week, while leaving the week’s first major support level at $33.18 untested.

For the week ahead, a hold onto $50 levels through the early part of the week would support a run through last week’s $55.45 high to bring the week’s first major resistance level at $58.5 into play before any pullback, resistance at $60 likely to pin Monero’s XMR back from any run at the second major resistance level at $65.5.

Failure to hold onto $50 levels through the early part of the week could see Monero’s XMR cough up some of last week’s gains, with a fall through to $48 levels signalling a possible pullback to $41 levels and the first major support level at $41.4 before any recovery, sub-$40 support levels unlikely to be tested in the week.

At the time of writing, Monero’s XMR was up 4.07% to $53.50.

XMR/USD 23/12/18 Weekly Chart

Stellar’s Lumen

Stellar’s Lumen rallied by 28.6% Sunday through Saturday, reversing a 19.25% slide in the previous week, to end the week at $0.12439.

A bullish start to the week saw Stellar’s Lumen break through to $0.11 levels, with positive sentiment across the broader market supporting a break through the first major resistance level at $0.1196 to a week high $0.12834 on Friday before easing back.

The moves through the week saw Stellar’s Lumen steer well clear of the first major resistance level at $0.0837, while Stellar’s Lumen also fell short of the 23.6% FIB of $0.1434 to leave the near-term bearish trend intact following 15th December’s swing lo $0.09353.

For the week ahead, a hold onto $0.12 levels through the early part of the week would support another positive week ahead, with a move through last week’s high $0.12834 bringing $0.13 levels and the first major resistance level at $0.1363 into play. Positive sentiment across the broader market through the week could see Stellar’s Lumen break through to $0.14 levels to bring the second major resistance level at $0.1483 into play before any pullback.

Failure to hold onto $0.12 levels through the early part of the week could see Stellar’s Lumen fall back through to $0.10 levels to call on support at the first major support level at $0.1045 before recovering, sub-$0.10 support levels unlikely to be in play through the week, barring a broad based cryptomarket sell-off.

At the time of writing, Stellar’s Lumen was up 2.9% to $0.1280.

XLM/USD 23/12/18 Weekly Chart

Pro-Bitcoin Chief of Staff Set to Enter the White House

Sources: New York Post

Donald Trump has chosen pro-Bitcoin Mick Mulvaney to act as the White House Chief of Staff come 2019.

According to a report from 2016, Mulvaney acknowledged that the Federal Reserve has “effectively devalued the dollar” and followed up by mentioning that Bitcoin is a currency “not manipulatable by any government.”

Introducing a cryptocurrency optimist to the White House is a positive signal for the future of the industry. With the United States being one of the largest consumer markets, it can have a global impact if the citizens of the US become more educated and invested in crypto.

Oddly enough, Mulvaney has a contentious past with Trump, especially during Trump’s presidential campaign. In a debate before the election, Mulvaney said:

“Yes, I am supporting Donald Trump but I’m doing so as enthusiastically as I can, given the fact that I think he’s a terrible human being.”

There are strong words, but hopefully, his new position as Chief of Staff will help to rebuild his relationship with Trump in a positive way and ultimately, push the blockchain industry forward towards mainstream use.

Aside from education, there are also clear tax issues which need to be revised to reach mainstream adoption. It would be ideal if Mulvaney can help in this initiative.

Tax Issues

Arguably, the way in which cryptocurrencies are taxed in the US can be significantly improved. Currently, cryptocurrencies are taxed similar to property, but not like real estate which has like-kind exchanges.

This means that each trade is a taxable event, triggering a realized gain or loss even if the trader did not sell back to USD. For example, if Bob purchases Litecoin with Bitcoin, then this is a taxable event. The IRS assumes that Bob sold Bitcoin to USD, then purchased Litecoin with USD, which is not the case. The US dollar was never touched in this Bitcoin to Litecoin transaction.

On the contrary, with real-estate, there are like-kind exchanges, also known as a 1031 exchange. This is a transaction type which allows for the sale of one asset and immediate purchase of another, without generating a tax liability. Many believe that the same like-kind exchange should be allowed for crypto to crypto transactions. It is assumed that many people cannot afford to pay their taxes since taxes must be paid with USD. To pay their taxes, investor and traders would need to sell their crypto to USD, which is another taxable event, just to pay taxes from previous cryptocurrency only trades. This is not only an accounting nightmare but also significantly hurts profits for cryptocurrency traders.

Another interesting perspective is to consider the fact that many people trade to accumulate cryptocurrency, not the US dollar. To be clear, many people trade explicitly to accumulate Bitcoin instead of USD.

Here’s where this gets interesting. Let’s say Bob is trading Bitcoin against other cryptocurrencies with the goal of accumulating Bitcoin, all while ignoring USD value. Meanwhile, Bitcoin’s USD value skyrockets from $1,000 to $20,000 much like it did from 2017-2018 and altcoins drop. As a result, Bob most likely has unrealized gains in USD, but unrealized losses in satoshi value. In other words, Bitcoin’s increase in USD has outperformed many of the altcoin dips.

To bring this full circle, let’s walk through a practical example. Bob purchases XYZ coin at a value of .01 satoshi (a rate of .01 Bitcoin). At the time of purchase, Bitcoin is priced at $1,000, which means XYZ would cost $10 (.01 * $1,000) if it can be purchased directly with fiat. A few months later, Bitcoin reaches $10,000 and XYZ’s price drops to .005 Satoshi, in terms of Bitcoin.

At this point, Bob is holding XYZ coin which is valued at $50, up 400% from the purchase price, but down 50% in Bitcoin value. If Bob wants to cut his Bitcoin losses and sell XYZ coin back to Bitcoin, then he will owe taxes because in terms of USD he has a realized gain, even though he is in losses from the satoshi perspective – which is what he is concerned with.

With these tax headaches lingering over cryptocurrency investors, it is our hope that the IRS and government officials will one day revise the tax code regarding cryptocurrency trade. Perhaps Mulvaney will be a catalyst for this change.

IOTA Analysis – It Looks Like a Bull Run – 19/12/18

IOTA Analysis

IOTA Price Resistance

IOTA rallied for a 2nd consecutive day this week, rising by 13.74% on Tuesday, off the back of a 15.35% bounce on Monday, to end the day at $0.2955.

The bullish start to the week came off the back of a positive weekend that has seen IOTA in the green for 4 consecutive days going into this morning, with IOTA up 31.1% for the current week, reversing the last week’s 5.82% loss with interest.

Through the early part of this week, supported by a broad-based cryptomarket rally, IOTA rallied from an early Monday morning low $0.2246 to a Tuesday high $0.2970.

The moves through the early part of the week saw IOTA break through the week’s major resistance levels to hold at the third major resistance level at $0.2952 by the day end on Tuesday.

In spite of the more than 30% gains Monday through Tuesday, the extended bearish trend, formed at early May’s swing hi $2.6977, remained intact following 7th December’s new swing lo $0.2051, with IOTA continuing to fall well short of the 23.6% FIB of $0.7934.

At the time of writing, IOTA was down 0.61% to $0.2937, with moves through the early hours of Wednesday seeing IOTA buck the trend from across the broader market to move into the red.

For the remainder of the week, a move back through the third major resistance level at $0.2952 would support a run back through to $0.30 levels last touched in the week of 26th November, though IOTA would need support from the broader market to hold onto $0.29 levels through the middle part of the week to break out from the third major resistance level at $0.2952.

Failure to move back through $0.295 levels could see IOTA cough up some of the week’s gains, with a pullback through the second major resistance level at $0.2601 likely to bring $0.24 levels into play before any recovery, the week’s major support level at $0.21 unlikely to be in play barring particularly negative news hitting the news wires.

For the crypto bulls, a pullback through the first major resistance level at $0.2426 would likely sound the alarm bells, with a slide to $0.22 levels later in the weekly signalling a likely full reversal and a likely loss for the week.

IOT/USD 19/12/18 Weekly Chart

Looking at the Technical Indicators

  • Major Support Level: $0.2075
  • Major Resistance Level: $0.2601
  • Fib 23.6% Retracement Level: $0.7934
  • Fib 38% Retracement Level: $1.1573
  • Fib 62% Retracement Level: $1.7455

Altcoins Weekly Analysis – ADA, EOS and Ethereum – 16/12/18

G20 to Regulate Cryptocurrency Markets

Cardano’s ADA

Cardano’s ADA fell by 10.05% Monday through Saturday, following on from the previous week’s 35.05% slide, to close out Saturday at $0.02873.

It was another bearish week, with Cardano’s ADA sliding from a start of a week high $0.03279 to a week low $0.02781, before recovering to $0.028 levels on Saturday.

The moves through the week saw Cardano’s ADA steer clear of the week’s major support and resistance levels, with Cardano’s ADA also managing to avoid striking a new swing lo following the previous week’s new swing lo $0.02724.

It was the only positive, however, with the weekly loss marking a 5th out of the last 6.

For the week ahead, a bullish start to the week on Sunday could provide some much-needed respite from the post-October sell-off, with an early in the week move through to $0.030 levels bringing the week’s first major resistance level at $0.032 into play. The bulls will be eyeing $0.035 levels, support from the broader market needed to bring the second major resistance level at $0.035 into play later in the week.

Failure to move back through to $0.030 levels at the start of the week could lead to more red for Cardano’s ADA. A pullback through $0.0295 likely to bring $0.028 levels and the previous week’s $0.02781 low into play before support kicks in. We would expect $0.026 levels and the week’s first major support level at $0.0268 to be left untested in the week ahead.

At the time of writing, Cardano’s ADA was up 3.66% to $0.02978.

ADA/USD 16/12/18 Weekly Chart

EOS

EOS fell by 5.64% against the Dollar, Monday through Saturday, following on from the previous week’s 28.79% slide, to close out the day at $1.9285 on Saturday.

While the losses were minor relative to the broader market, it was a 6th consecutive week in the red for EOS, the last weekly gain coming in the week beginning 29th October.

It was a range bound week, by recent standards, with EOS easing back from a beginning of a week high $2.127 to a Friday low $1.7746 before finding support to move back through to $1.92 levels.

Moves through the week saw EOS steer well clear of the first major support level at $1.4378, while EOS also failed to take a run at the week’s first major resistance level at $2.7678, a move through to $2.16 levels needed to support a break out in the week.

For the week ahead, a hold above $1.95 through the early part of the week would support a run back through to $2.00 levels to bring the week’s first major resistance level at $2.11 into play. Sentiment across the broader market will influence, with an early in the week move likely to bring some respite from a string of weekly losses, though we can expect some volatility to test investor nerve through the week.

Failure to hold above $1.95 in the early part of the week could see EOS hit reverse once more, a pullback through to sub-$1.90 levels likely to bring sub-$1.85 levels into play, while we would expect EOS to steer clear of sub-$1.80 levels and the week’s first major support level at $1.76 in the event of a reversal.

At the time of writing, EOS was up 2.41% to $1.9749.

EOS/USD 16/12/18 Weekly ChartEthereum

Ethereum fell by 10.53% Monday through Saturday, following on from a 19.14% fall the previous week, to close out Saturday at $82.92.

It was year another bearish week, with Ethereum falling from a start of a week high $94.62 to a weekly low and new swing lo $80.06 on Friday before finding support.

While it was the 5th week in the red out of the last 6, avoiding a fall to sub-$80 levels was key for the bulls in the week.

In spite of the heavy losses, Ethereum managed to also steer clear of the week’s major support level at $77.50, while the start of the week high $94.62 came up well short of the first major resistance level at $111.6.

For the week ahead, a move through to $86 levels and hold would support a move through to $90 levels, bringing the week’s first major resistance level at $91.6 into play that could lead to shift in sentiment and the beginnings of a recovery back through to $100 levels.

Failure to move back through to $86 levels could see the negative bias resume through the week, with any pullback through to $80 levels likely to bring sub-$80 levels and the week’s first major resistance level at $77.5, investors likely to get edgier should Ethereum fail to capitalize on gains early this morning.

At the time of writing, Ethereum was up 3.05% to $85.56.

ETH/USD 16/12/18 Weekly Chart

What is the Finney Phone and What Does it Mean for Crypto?

What is the Finney Phone and What Does it Mean for Crypto?

Finney, the first blockchain focused smartphone, is expected to begin shipping in late December. Created by Sirin Labs, the phone’s operating system is SirinOS, which is a fork of Android made with the intention of implementing blockchain technology at its core. The Finney will allow users to securely and reliably use blockchain products and services.

The phone will include a decentralized marketplace (dCENTER), a built-in cold storage wallet, token conversion services, encrypted communication, peer to peer resource sharing, and incentivized educational apps. It will also include a 12 megapixel camera and 128GB of memory.

The default cryptocurrency used to purchase apps and use their services will be Sirin’s own SRN token. Just to purchase the Finney, which is priced at $1,000, requires the use of SRN.

In preparation to satisfy clients and meet demand, Sirin Labs has partnered with Foxconn, the same manufacturer Apple uses for their iPhones. In an interview with CNN, Sirin’s CMO Nimrod May said:

“By choosing Foxconn to build the FINNEY, we’re demonstrating the public’s desire to have a mass-market smartphone that is able to safely and securely operate within blockchain and cryptocurrencies.”

Sirin Labs raised over $157,000,000 by issuing SRN tokens through an ICO. They used the capital to fund the development and marketing efforts of the Finney. While the future success of the phone is uncertain, the community is excited to see a finished product delivered.

What Does This Mean for Crypto?

The Finney phone is one step in the right direction toward mainstream adoption. There are inherent limitations with blockchain technology that hurts the user experience.

For example, most cryptocurrencies require their own wallet to be downloaded due to compatibility issues. This means that if a user wants to hold Bitcoin and Monero, they will need to download two different wallets, one for each currency. This can become cumbersome when dealing with lots of different cryptocurrencies and tokens.

Additionally, finding, using and downloading decentralized applications is not a smooth process. We expect that Finney’s decentralized marketplace, coupled with token conversion services and a built-in cold storage wallet will allow virtually anyone to explore the decentralized world at their fingertips, relieving many of the pain points users experience today.

Until the phone is released, we cannot know for certain the extent to which blockchain technology is integrated, but at the very least we view the Finney as a foundation for a robust, blockchain-focused OS.

Stellar’s Lumen Analysis – Deeper into the Red it Goes – 12/12/18

iota

It’s another bearish start to the week, following last week’s heavy losses, with the negative bias expected to pin Stellar’s Lumen back from any attempts at a bull run.

Stellar’s Lumen Price Support

Stellar’s Lumen slid by 4.69% to end the day at $0.1129 on Tuesday, taking the current’s week’s deficit to 10.32%, with the bearish trend continuing into the early part of the week, following last week’s 23.3% reversal.

Through the early part of this week, the reversal has seen Stellar’s Lumen fall to a current week low $0.1123, holding well above the week’s major support level at $0.0963, with a start of the week high $0.1261 seeing Stellar’s Lumen fall considerably short of the week’s major resistance level at $0.1500.

With Stellar’s Lumen deep in the red for the current week, the bearish trend formed at late September’s swing hi $0.305 remained firmly intact, with Stellar’s Lumen continuing to fall well short of the 23.6% FIB of $0.1493, which sits alongside this week’s major resistance level.

For the remainder of the week, a move through the start of the week’s $0.1261 high to $0.129 levels would signal a possible shift in sentiment, bringing the 23.6% FIB Retracement Level of $0.1493 and the week’s major resistance level at $0.15 into play before any pullback.

Sentiment across the broader market will need to materially improve however for Stellar’s Lumen to break through to $0.14 levels later in the week and breakout from the 23.6% FIB, with selling pressure expected to limit the upside mid-week.

Failure to move back through the start of the week high $0.1261 could see Stellar’s Lumen pullback deeper into the red through the week, with a fall through the current week’s low $0.1123 bringing last week’s $0.1012 low and the week’s major support level at $0.0963 into play before any recovery.

At the time of writing, Stellar’s Lumen was up 0.33% to $0.1132.

XLM/USD 12/12/18 Weekly Chart

Looking at the Technical Indicators

  • Major Support Level: $0.15
  • Major Resistance Level: $0.096
  • Fib 23.6% Retracement Level: $0.1493
  • Fib 38% Retracement Level: $0.1790
  • Fib 62% Retracement Level: $0.2271

Altcoins Weekly Analysis – ADA, EOS and Ethereum – 10/12/18

altcoins

Cardano’s ADA

Cardano’s ADA slumped by 35.05% in the week ending 9th December, reversing a 9.52% gain from the previous week with interest, to end the week at $0.03194.

Bearish through much of the week, Cardano’s ADA fell from a start of a week high $0.0425 to a week low and new swing lo $0.0272 on Friday, the reversal seeing Cardano’s ADA fall through the week’s first major support level at $0.0356 to call on support at the second major support level at $0.0291 before steadying.

A partial recovery through the weekend reduced some of the losses, while the weekly slide marked the 4th week in the red out of the last 5.

For the week ahead, a move through $0.0340 would signal a run at the week’s major resistance level at $0.04 level, an early move needed to give Cardano’s ADA a run at $0.050 levels later in the week.

Failure to move through to $0.0340 levels could see Cardano’s ADA give up $0.030 levels and pullback through last week’s swing to $0.0272 to test the week’s major support level at $0.0250 before any recovery, more significant losses not expected in the week.

At the time of writing, Cardano’s ADA was down 2.94% to $0.0310.

ADA/USD 10/12/18 Weekly Chart

EOS

EOS tumbled by 28.79% against the Dollar in the week ending 9th December, following on from a 15.54% slide the previous week, to end the week at $2.0467.

A particularly bearish first half of the week saw EOS slide from a start of a week high $2.88 to a weekly low and new swing lo $1.55 on Friday, the reversal seeing EOS fall through its major support levels, with EOS falling well short of the week’s major resistance levels.

Tracking the broader cryptomarket, 2 consecutive days in the green through the weekend partially offset some of the week’s losses, while the week’s reversal marked a 5th consecutive week in the red.

For the week ahead, a move back through to $2.16 would signal the beginnings of a possible recovery, with EOS needing to make a move through the early part of the week to support a run through $2.16 to bring the week’s major resistance level at $2.77 and $3.00 levels into play.

Failure to move through to $2.00 levels to take a run at the week’s major resistance level at $2.77 could see EOS take a bigger hit through the week, a pullback through the previous week’s low $1.55 bringing the week’s major support level at $1.44 into play before any recovery.

At the time of writing, EOS was down 4.49% to $1.9548.

EOS/USD 10/12/18 Weekly Chart

Ethereum

Ethereum slid by 19.14% against the Dollar in the week ending 9th December, the reversal seeing Ethereum fall from a start of a week $114.76 to end the week at $92.79.

Reversing the previous week’s 0.41% gain with interest, a particularly bearish week saw Ethereum slide through the first major support level at $100.53 and second major support level at $86.29 to a week low and new swing lo $81.02 on Friday before finding support to move back through to $90 levels by the week’s end.

The weekly loss marked the 4th in the last 5 weeks, leaving the extended bearish trend formed at an end of April swing hi $828.97 firmly intact.

For the week ahead, a hold onto $90 levels through the start of the week would support a move through to $96 levels by mid-week to bring $100 levels into play before any pullback, a broad-based market recovery needed to bring the week’s first major resistance level at $112 into play.

Failure to hold onto $90 levels through the early part of the week could see the bearish trend extend, with a pullback through to $85 levels bringing sub-$80 levels and the week’s first major support level at $77.5 into play before any recovery, more significant losses unlikely barring particularly negative news hitting the wires.

At the time of writing, Ethereum was down 2.03% to $90.91.

ETH/USD 10/12/18 Weekly Chart