IOTA, Stellar Lumens, Tron, Litecoin, EOS: Technical Analysis for May 11, 2018

After periods of modest gains in the first half of the week, sellers are now shifting gears and eroding gains in most coins under our focus. Litecoin, Tron and IOTA offer good examples. In this regard, I expect to see a further buy pressure relieve with IOTA and Litecoin sellers in particular retesting previous supports at $1.5 and $140 respectively.

Let look at these charts:

EOSUSD (EOS)

At long last, we shall have a cryptocurrency price index tracking the performance of the sphere’s most liquid coins including Bitcoin, Ethereum and EOS against the USD. The new index dubbed the Bloomberg Galaxy Crypto Index (BGCI) is a collaborative initiative between Mike Novogratz, a former partner at Goldman Sachs and Bloomberg, a financial news outlet.

The reason why I really think this is positive is because Mike insists that BGCI shall usher in transparency which many institutional investors think is lacking in this space.

On the chart, we shall trade according to yesterday’s trade plan. EOS is still in consolidation mode and it is likely to continue with this oscillation and lower lows. In that case, we expect support at $15.50 and if there is a break below it then $13 could easily be our next stop.

LTCUSD (Litecoin)

Even though Litecoin is down four percent in the last 24 hours or so, chances are prices might still find support at $150. This is assuming news of TokenPay acquisition of Munich based WEG bank AG may lays the ground work for a potential partnership with Litecoin. TokenPay were the main players behind the scene accelerating Verge and Porn Hub sensational partnership.

Technically, Litecoin prices are down yes but if bears fail to drive prices below $150, a key support level as the chart shows, then yesterday’s trade plan would be valid.

So, regardless of this temporary bear move and rejection of higher highs at $160, it is likely that we might see a move back to $160 in the course of the day. If not and bears slice through $150, $140 and $125 would be reasonable targets.

XLMUSD (Stellar Lumens)

All we are seeing are swings on this pair. While Stellar Lumens sellers continue to march, eroding positive gains in the last 24 hours, it is the reaction and apparent rejection of lower lows at 35 cents that interests me.

Today, especially if we see Stellar Lumens support at 35 cents, then yesterday’s trade plan would still be valid. In that case, we shall wait until proper confirmations print out meaning bulls shall only trade longs if and only if there is a push above the middle BB and 40 cents.

Otherwise, any contrary event that sees sustained Stellar Lumens sell pressure below 33 cents would mean sellers are in charge. As such, realignment of our trade plan over the weekend will be necessary.

TRXUSD (Tron)

Chest thumping on Tron’s part and while Ethereum processes more than 750,000 transactions per day, Tron can barely manage 50k. So, even if it is faster with a vibrant community and can scale, it still has a long way to go before it dislodges Ethereum.

At the moment though, the movie continues and whether we shall have a happy ending after mainnet launch remains beyond the curtain. Patience is the word and loading on dips can be the only insurance for Tron believers now that organizations as Tipping Point community prefer Tron as a vehicle for fund raising.

Price wise, our stops are likely to be hit as Tron sellers step on the gas pedal. Tron is down three percent in the last 24 hours and with increasing bear volumes at 8 cents, we might as well see a drive towards 6.5 cents. After all, that 1.5 cent range between 6.5 cents and 8 cents are important key support levels that influences our analysis. So, if sellers maintain prices below 8 cents today, we shall change our tact and sell. In that line, bear targets should be at 6.5 cents and 6 cents.

IOTUSD (IOTA)

It would be a big boost for IOTA if Project Qubic which is apparently on everyone lips comes to pass. While it has not yet being proved, as IOTA shall official release their update on June 3, Project Qubic shall accelerate Tangle’s proof of work even when the computer or the IoT device, which must run on JINN processor, is offline. How Project “Q” works I don’t know but what I’m certain is that IOTA is up in the last month.

Obviously, patience is important if you want to trade IOTA. Considering price action and indecision in the last couple of days, bears are likely to get the upper hand and relieve buy pressure. In the last 24 hours for example, IOTA prices are down four percent meaning sellers are now testing the $2 support and psychological level.

Besides, the daily chart stochastics are bearish with diverging %k and %d signals meaning sell momentum is high. Even though selling would be risky, it is fading the market, safe stops at $2.5 and targets of $1.5 would seem reasonable.

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