Get up to date on the latest analysis and trading tips with our Crypto update week 8
- Predicting NEO’s Next Rally
- STX Performs Breakout
- FTM is Trapped, What Now?
- Trading the Volatile ANKR like a Pro!
NEO has had 2 massive rallies already; let’s see what they can tell us about the next one!
What is NEO?
NEO is a cryptocurrency and a blockchain platform launched in 2014 under the name Antshares before rebranding to NEO in 2017. NEO is often referred to as the “Ethereum of China” due to its similarity in design and functionality to Ethereum and its goal of becoming the leading platform for smart contracts and decentralized applications (dApps).
Like Ethereum, NEO allows developers to build dApps and smart contracts on its platform, with the added benefit of supporting multiple programming languages, including C#, Java, and Python. The NEO blockchain also uses a consensus mechanism known as delegated Byzantine Fault Tolerance (dBFT), which is designed to provide high levels of transaction throughput and scalability while maintaining security and decentralization.
Using the past to predict the future
As with any investment, technical analysis can be a useful tool for predicting the future movements of NEO. Looking back at the price history of NEO, we can see that the cryptocurrency had a remarkable bull run in 2017 that ended in January 2018. Following the bull run, NEO entered a severe bear market that saw the coin lose almost 98% of its value.
However, the bear market ended in March 2020, and NEO has experienced a strong rally, with the coin delivering over 3,500% profit to investors who bought at the bottom of the bear market. Following the bull run, NEO again experienced a 96% drop, which suggests that the price may have already reached its lowest point or is very close to doing so.
It’s worth noting that before NEO made its big rally, it had numerous smaller rallies of 200% to 300%, which could be what we are seeing currently.
Looking Ahead: The current 100% rally could be a precursor to even more significant gains for NEO in the future, especially if the project continues to deliver on its promise of becoming a leading platform for decentralized applications.
What is Stacks? Stacks (STX) is a cryptocurrency that runs on the Stacks blockchain, a layer-1 blockchain that connects to the Bitcoin network. The Stacks blockchain uses a unique consensus mechanism called Proof of Transfer (PoX), which allows STX holders to earn Bitcoin rewards by locking up their STX tokens.
STX Breakout
In recent weeks, STX has been making headlines for its impressive price performance. As mentioned in our last analysis, STX had been attempting to break through the $0.33 resistance level, which it had struggled with for some time.
However, STX managed to not only break above the $0.33 resistance level but also the secondary $0.50 resistance level. This was a significant milestone for the cryptocurrency and could signal further price appreciation in the future.
Possible Retracement?
The next resistance level in STX’s path to its all-time high is $1.00. If STX can break through this level, it could see further upward momentum, potentially leading to a retest of the $1.80 resistance level. Of course, this is not guaranteed, and the price of STX could just as quickly begin retracing from its current levels.
If STX does begin to retrace, the $0.50 and $0.33 levels could act as support. The 100 Simple Moving Average (SMA) could also act as a mobile support and resistance level.
Looking Ahead: If STX continues its rally, it will have to break through the $1.00 and the $1.80 resistances. If STX commences a retracement, the $0.50 and $0.33 levels in addition to the 100 SMA are ready to act as support.
FTM is trapped between two levels, so what happens now?
What is FMT? Fantom (FTM) is a decentralized blockchain platform designed to facilitate instant transactions at low fees, making it ideal for businesses and developers who need to process large volumes of transactions.
FTM’s current situation
FTM experienced an impressive rally recently, with its value increasing by 220% from January 1 to February 3. Despite this surge, FTM is still priced relatively low compared to its all-time high, which would require a further 600% increase in value to reach.
However, FTM has been struggling to break above the $0.66 resistance level and is currently trapped between the $0.66 resistance and the $0.40 support. If FTM manages to break through the current resistance level, the next levels it would have to overcome are $1.00 and $1.60.
On the downside, if FTM breaks below the $0.40 support, $0.165 is the next significant support level. However, given the current market conditions, it is unlikely that the price will drop that low. Instead, the 200 Simple Moving Average (SMA), which acts as a mobile support and resistance, is a more probable level of support.
Bottom Line: FTM is an exciting cryptocurrency to watch as it continues to gain popularity and attract investors. Its low transaction fees and fast transaction times make it an attractive option for businesses and developers. However, as with any investment, it’s essential to do your research and proceed with caution before investing in FTM or any other asset.
Let’s look at how you can make a profit trading ANKR.
What is ANKR? Cryptocurrencies are known for their volatility, but few can match the explosive movements of Ankr (ANKR). ANKR is a blockchain platform that enables users to deploy and manage their own nodes, providing them with secure and reliable access to cloud computing resources.
Trading ANKR
Trading ANKR can be different from most other cryptocurrencies due to how it moves. While altcoins usually follow Bitcoin’s trend, ANKR can have sudden and violent movements. This makes trend-following indicators less effective, but momentum oscillators such as the Relative Strength Index (RSI) and Williams %R work better as a result.
From our limited testing, we have found the Classical RSI on the 4-hour chart period with a period of 3 and overbought at 70 and oversold at 30 works well as a trading strategy for ANKR. For our backtesting, we took into account a 0.1% fee per trade. All trades were taken with the entire amount, and no slippage was considered. The backtesting period was from July 2019 until today.
The strategy yielded returns of 5,340.93%, which is ten times more than the buy-and-hold return of 585.09% for the same period. However, it’s important to note that the maximum drawdown was significant at 73%, even though it was less than the 93% of the buy and hold.
Disclaimer: While past performance does not guarantee future success, ANKR remains an interesting cryptocurrency to watch due to its unique trading characteristics and potential for explosive growth. As with any investment, it’s essential to do your research and proceed with caution before investing in ANKR or any other cryptocurrency.