Total Market Cap Analysis
Let’s first look at what the overall market is doing. As you know, all coin prices are highly correlated with bitcoin’s price action and by extension with the whole market. Every time we see a surge or plunge of the total market cap, it spills over to the individual coins and their prices.
Market has lost almost $30 billion in three days dropped through a crucial Fib786 height at $241 billion after invalidating the uptrend line it formed and respected since end April. A drop to support at $219 billion is now likely.
This should be the rebound zone back up to test the $241 billion mark from the other side.
As mentioned above, the overall market movements influence individual coins and ETN is no exception.
You can see that ETN hovered around 55-60 sats for couple of days, from May 20-22. It then slumped down to the current channel between 45-52 sats. The 51 sats zone is proving to be a tough resistance for ETN and electroneum doesn’t seem to have enough power to penetrate it any time soon. Should that happen, however, a target would be 57 sats resistance height.
46 sats is a must hold level for ETN, otherwise, we might be setting a new all time low.
ETN is below every moving average and EMA20 is the first one that needs to be broken, at 55 sats. EMA20 is a good shorting zone for short-term day traders as ETN keeps failing at penetrating it on its bounces.
If we apply Tom DeMark’s TD Sequential indicator on the chart, we see an interesting signal. This indicator serves the purpose of identifying a price point where an uptrend or a downtrend exhausts itself and reverses. TD Sequential indicator consist of two components. TD Setup is the first one and it is a prerequisite for the TD Countdown – the second component.
TD Buy Setup requires at least 9 consecutive closes are lower than the corresponding closes 4 trading days earlier (Close[i] < Close[i − 4]; Index: i ~ Current Bar). ETNBTC closed the TD Setup and downtrend hasn’t ended. This means that exhaustion point for bears is not yet reached and we will continue with the second part of TD Sequential – TD Countdown that would mean additional 13 candles that count the number of days in which the close is lower than the low 2 days earlier (Close[i] < Low[i − 2]; Index: i ~ Current Bar). TD Countdown is currently at the third bar out of 13.
Should this play out, ETN might stoop to the new low all the way down at 30 sats. Considering the overall market’s bearish sentiment, ETN bulls’ odds for the near-term future are looking bad.
One potentially positive pattern on the charts for ETN is the formation of an ascending triangle pattern, usually considered as a bullish reversal indicator.
NEO seems to have lost the support at 155k and is looking to form a new one at Fib382 at 147k. That is its current height that needs to be sustained or NEO loses another 10k satoshis on its way down to 137k.
On the daily, NEO is still in the bear trend, if we measure it by the alignment of moving averages 20, 50 and 200. There is also a rising wedge pattern forming on the chart. The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.
Additionally, there is also a bearish spinning top formed on the yesterday’s price bar, a further indicator that NEO price drop is more likely than not. Combined with the total market movements, shorting NEO might be a good idea now.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions or seeking shelter in stablecoins, especially in the initial phases of bitcoin pumps and dumps. So it is always a good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.