• XLM/USD has recent bottom area breached firmly by the market bears.
• XLM/BTC suggests there is still some further room for another squeeze to the downside.

Stellar Lumens is really heading to no man’s land. XLM/USD is running at its fifth consecutive session in the red, dropping a chunky 25% within this period. The selling pressure has intensified after recently stabilizing and forming a bottom. This was seen between the 25^th – 27^th November, following the chunky market fall throughout the month of November. The low area was formed around the $0.1350 mark. Bulls not too long after capitalized on this, driving the price up to around $0.1750. This move took XLM/USD into a prior area of demand, which started to act as new resistance.

Bears Break Bottom

XLM/USD daily chart

Given the strength of this current downside momentum, vital support has been breached. As detailed above, XLM/USD had formed a bottom and observed buyers defending between $0.1450-$0.1350. This has now folded, given the punishing pressure from the bears. There was some technical hope that a strong bounce would have been seen, with a possible double bottom formation. However, that not proving the be the case, with a fresh wave of sellers coming into play. XLM/USD being sent to the south to print a fresh yearly low.

Downside Targets

The bears are on course to see a convincing daily close below the recent bottom area. This will likely spark further panic selling or speculative pressure to the downside. Logically, the next major downside target could be the psychological $0.10 cent mark. Should this continue at the current pace lower seen, then that price target can be seen in the coming days or so. A drop down to the price territory would mean another 20% lower from the current level, at the time of writing. It is also worth noting a decent pick up in volumes have been observed, which isn’t too surprising.

XLM/BTC Suggests No Slowdown

XLM/BTC daily chart

Furthermore, analyzing XLM/BTC, it suggests that a slowdown of this current pressure is not likely to stop just yet. The rate is trading at its lowest level seen since October 16^th. Next support via the daily view can be eyed at another 4% south. The price may attempt to stabilize down at 0.00003310, this appearing to be a neckline of a possible head and shoulders pattern. The left shoulder has already been formed, with the head currently under way to completion. A firm bounce could be seen here, for the bulls send the price back north, in constructing a potential right shoulder.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Ken Chigbo

4.5 stars on average, based on 69 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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• Maker is outperforming most of its peers with the recent gains produced.
• The surge higher has put MKR into the top 20 cryptocurrencies by market cap.

Maker (MKR) initially made solid gains as much as 6% on Tuesday before cooling. This move was very much out-performing the rest of the market. This being part of a strong surge the upside seen since 25^th November, having jumped a chunky 35%.  As a result, MKR has burst into the top 20 coins by market cap. At the time of writing, this is seen at $296 million, ahead of Bitcoin Gold’s market cap of $279 million.

Decentraland Platform to Leverage MKR

Decentraland, a virtual reality platform powered by the Ethereum blockchain, will be auctioning their digital spaces. These are also known as “LAND”. Users will be able to purchase these LAND parcels, using MKR and Dai tokens. This comes after Decentraland had its first LAND auction in January 2018. They marked this as a huge success, where users spent over 161 million MANA – Decentraland’s ERC20 token on LAND. This was said to equal roughly $30 million at the time.

This time around, Decentraland have noted that there are currently, 9,300 of LAND parcels. These have no ownership, and as a result the community of Decentraland are opting for a second auction. This move will contribute towards distribution of the virtual real estate. They have noted the use of MKR and Dai, will make it much easier for people to join. All facilitated, under this partnership with MakerDAO.

Technical Review – MKR/USD

MKR/USD daily chart

Maker on 25^th November, like much of the market, formed a bottom after the bloodshed that hit the vast majority of cryptocurrencies. MKR/USD stabilization kicked in around the $300 price territory, where a known demand area is seen. The last time the fell down to this area was on 12^th September. After falling into this territory, buyers pilled in, sending MKR/USD rocketing up around 170%. As a result, the price printed a high at $810, which at the time was the highest level since June.

Furthermore, given the recent bottom as described above, it has formed a double bottom technical pattern via the daily chart view. It would mean the neckline is seen up at the mentioned high print, $810. Should current upside momentum maintain its current course, a retest could certainly be achievable up within that high area.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Ken Chigbo

4.5 stars on average, based on 69 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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• BCH/USD has broken the recent bottom area of $150, making room for another wave of selling.
• Roger Ver, speaking to Bloomberg in Tokyo, was bullish on the long-term fundamentals of cryptocurrencies in general.

The Bitcoin Cash price continues to get slammed by the market bears, with a lack of mercy being shown. BCH/USD is currently trading within its fourth consecutive session in the red. At the time of writing, the cryptocurrency has lost around 23% over that mentioned period. Since 7^th November, when the big selling came into play, the price has tanked a whopping 77% in value – a serious under performance in comparison to many of its peers. Bitcoin Cash is not being helped by the general bear market, but particularly suffers post the hard fork event.

Long-Term Future Remains Bright

In an interview with Bloomberg in Tokyo, Roger Ver was questioned on whether there really is any longevity for cryptocurrencies. He covered the following: “As a self-proclaimed fundamentals investor I believe that the long-term the future is brighter than ever for cryptocurrencies. There is more awareness, more adoption, and more stuff happening all over the world”. It doesn’t come at a surprise that he remains very much bullish despite the prolonged downturn seen across the market.

Technical Review – BCH/USD

BCH/USD daily chart

Firstly, as touched upon earlier, there is no shying away from the intensity of the current downside pressure. The price is moving within complete unknown territory, the abyss. Whether looking at BCH/BTC or BCH/USD, there is nothing to reference in terms of historical levels. It is just down when the sellers become exhausted and the dust settles. Given the movement south, it wouldn’t be too surprising if this is causing heavy reluctance for potential incoming investors of Bitcoin Cash. Furthermore, current momentum would even suggest, that there is still some more room to the downside.

Following the steep drop from 7^th November right up until 25^th November, BCH/USD was given time to consolidate. This took place from 25^th November up to 4^th December, forming a near-term bottom around $150. Price action formed a range block within this consolidation mode, during the mentioned period. The session of 4^th December saw enough bearish pressure, to force a break and daily close below that recent bottom of $150. As a result, playing to the textbook, a breakout to the downside could pick up momentum after the bears made a move from the range block formation.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Ken Chigbo

4.5 stars on average, based on 69 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

Feedback or Requests?