Bitcoin (BTC) and Alt Technicals: Tron (TRX), Neo (NEO), Stellar (XLM), Cardano (ADA)

January 10, 2019 / by Bill Noble

Looking at the big picture, the Cyrpto.IQ Trading Desk pointed out that a lot of the FOMO in alt’s occurred on Bitfinex. We suspect this may have occurred because people holding Bitcoin (BTC) at this exchange tried to move money out of Bitcoin into alts.

This may have happened for two reasons: 1) FOMO in alt’s 2) Bitmex BTC holders may have been looking to escape Bitcoin because of talk that miners were power contracts roll from six cents a unit to two cents per unit. This, in theory, could lower the cost of production ion for Bitcoin (BTC) and lead to aggressive miner selling.

We owe a debt of gratitude to the Crypto.IQ trading desk. They did not buy into the FOMO in Tron (TRX). We can see their rationale, looking on the charts. Tron (TRX) on Binance failed at resistance on the three-day chart (Figure 1).

 class= Figure 1

Even though Tron (TRX) did blow through some resistance below 700 satoshis, we also noticed that it failed at resistance detected in retrospect at 840. That level is the 76 percent retracement of the recent decline (Figure 2). Said plainly, Tron (TRX) ran into a technical wall. 646 and 570 are support levels we will be watching.

 class= Figure 2

Both Neo (NEO) and Stellar (XLM) both failed at Fib speed resistance lines. Neo (NEO) failed at 2,179 satoshis (Figure 3). That is not good.

 class= Figure 3

Stellar (XLM) failed at 1,278 (Figure 4). The Stellar (XLM) chart is particularly disturbing. The set of Fibonacci speed resistance angles has acted as both support and resistance in the past. This fact enhances the power of the rejection of the recent decline and could have really negative implications.

 class= Figure 4

Cardano (ADA) failed at horizontal resistance near 1,322, so 1,125 is the next support level below the market (Figure 5).

 class= Figure 5

Bottom Line: This recent failure in alts and the breakdown in the overall crypto space is disturbing given what we have heard about the possible change in Bitcoin (BTC) cost of production. Looking at the human element, the move from FOMO in alts to FUD in big caps could create a dramatic price decline as emotional buying could be replaced by even more emotional selling.

It took tremendous discipline not to get caught up in alt FOMO. The Crypto.IQ Trading Desk, once again kept the analytics group and clients out of the FOMO trap. They even set up a short well in advance to take advantage of this down move.  

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