Altcoins Daily Preview: Jan 10 Losses Weighing Heavily on Stellar Lumens (XLM) and Cardano (ADA)
Latest Cardano News
Wyoming may be dry, cold and with cheap power but that’s where Cardano will call home. Their shifting from Japan and establishing bases here comes at a time when the state better known for their allowing businesses to pay 16 types of taxes with crypto—via BitPay and their openness—the state has more LLCs than any other state, is putting forth a bill–Digital assets-existing law, that will better place cryptocurrencies in a path towards advancement and eventual legalization of cryptos.
But we must understand that existing policies lack clarity. That’s why the proposal sponsored by a Bit-Partisan Republican Senator Tara Nethercott seeks to properly classify digital assets as well as allow banks to offer custodial solutions.
As reported by Forbes, the senator had this to say:
“Wyoming is an innovative and forward-looking State that is open for business. We are excited for what the future holds and want to continue taking the lead with shaping the future of business. The time is now to provide the pathway for blockchain and cryptocurrencies and Wyoming has the nimbleness and responsiveness to the needs of these industries to respond accordingly to the growing and adapting landscapes of cryptocurrency”
Note this though, banks won’t have control of your assets and because they operate as Qualified Custodians meeting the demands of the SEC, your assets won’t be classified as deposits but as under assets under administration. Then again, these approved custodians can operate from all the 50 US States.
At tenth, ADA is quite stable in the last week but down 6.7 percent in the last day. Regardless, the trend is clear over the near-term. Although ADA is under immense pressure against the USD. Nonetheless, bulls may drive prices above 6 cents in the medium-term. It’s easy to see why.
The trend is positive sloping and despite yesterday’s strong sell pressure, prices didn’t sink below the minor support trend line or the double bar bull pattern of Jan 14. This is bullish and as long as prices are above Dec 28 lows of 3.6 cents as laid out in our last trade plan, ADA prices may expand towards 6 cents. However, before loading up, we recommend patience until after there are strong gains above 5 cents.
After that, traders can buy at spot prices with stops at 4 cents with first target at 6 cents. On the flip side, any drop below 4 cents could see ADA losses increase towards 3 cents.
XLM/USD Price Analysis
To reiterate our previous layouts, XLM is trading in a bear breakout pattern against the USD. Immediate resistance—previous support is at 15 cents.
Therefore, if this pattern is to be reversed as XLM bulls initiate a momentum build up reversing losses of Nov 2018, prices must rally above 15 cents. Before then, aggressive traders must wait for a close above Jan 14’s highs of 11 cents.
That will be the foundation for a potential rally. If not and yesterday’s losses trigger a slide in line with Jan 10 losses, prices might drop below Dec 2018 lows 8 cents as XLM melt towards 2.5 cents.
All charts courtesy of Trading View—Streams from BitFinex and Bittrex