Cryptocurrency analysis

BTC, XLM, IOTA, VEN and ZEC Trading Setups for July 27, 2018

Jul 27, 2018, 10:02AM
4 min, 3 sec READ

The price of Bitcoin has cooled over the last two trading sessions after a strong move higher towards the $8,500 level.

BTC

The price of Bitcoin has cooled over the last two trading sessions after a strong move higher towards the $8,500 level. The pullback in Bitcoin means we are currently trading around 6% lower than Tuesday's high at the $7,900 level. Despite the correction, the price has simply pulled back to retest the 200 moving average and it's possible that we can find support here and make another push towards the important $10,000 level. Today will be a key trading session for this setup to develop and we will know over the weekend where the next likely path for Bitcoin will be. I noted in a previous article that we would see one week of further gains as a minimum so we would need a positive weekly closing in Bitcoin to ensure that the $10,000 level is within reach.

Bitcoin price
BTC Price Index

Bitcoin has out-performed the other largest cryptocurrencies in recent weeks and this is likely to continue as the volume and potential for institutional activity is strongest in Bitcoin. CME Group CEO, Terry Duffy, underlined this point recently by stating that the futures exchange would adopt a "wait and see" approach to the listing of other cryptocurrency products. This is likely to continue for the considerable future and will give Bitcoin an advantage over the other coins with Duffy adding,

Six to eight months as a listing of Bitcoin is not a good parameter to judge the future of other cryptocurrencies.

XLM

The weakness in BItcoin over the last sessions has dragged on the cryptocurrency market, although Stellar Lumens has again been showing strength this week.

Stellar coin
XLM Price Index

The price of XLM made a strong move higher earlier in the week to trade as high as $0.35. The pullback on Thursday is now testing the weekly level at $0.30 and we would want to see support at this level to avoid a false breakout.

The price of Lumens has been strong this week after Stellar announced a strategic partnership with TransferTo, designed to improve cross-border money transfers and settlements. The move will aim to improve the cost and efficiency of international transfers and will initially provide services to seventy countries. The news caps an impressive few weeks for XLM and it's vital that we can hold above the $0.30 level to see continued gains.

IOTA

The price of IOTA has been sluggish in recent weeks, failing to hold on to any upside gains. On the weekly chart, we are still trading near the $1.00 level, which is a key support from April. There were positive developments for IOTA a few weeks back, with news of European auto giant Volkswagen partnering with IOTA to test the use of the IOTA blockchain for their maintenance schedules, however that has failed to produce any meaningful follow-through in price. 

IOTA coin
IOTA Price Index

Despite the weakness in recent weeks, there is not a lot of resistance in the way to stop IOTA hitting the $2.00 and $2.50 levels. IOTA is not a coin that is on the radar of many traders and institutions at the moment, but the tie-up with Volkswagen is worth looking further into as it may lead to other "blue chip" project partnerships in the future. 

VEN

The price of VeChain was spiking higher this week after Binance completed the swap of the VeChain mainnet token (VEN) to VeChain Thor (VET). There was also the surprise announcement of a 100 million airdrop of VTHO tokens to existing holders to celebrate the launch of VET. Binance, one of the largest cryptocurrency exchanges, announced that it had completed the swap on the 24th of July and stated that trading in VET would resume under the usual pairs of BTC, ETH, BNB and USDT.

VEN price
VET Price Index

The price of VeChain has rallied this week to probe the downtrend channel line and an important weekly resistance level at $2.50. A close above this level on the week would be positive for further gains.

ZEC

The price of ZCash is higher on the week and is threatening a close above the important $200 level that I have mentioned in previous articles. If we can close around this level for the week, it would be a positive indicator for the weeks ahead and would open up a retest of the May highs near $385.

ZEC price
ZEC Price Index

Cryptocurrency security startup BitGo, announced this week that it was adding ZCash to its platform and this supported the move higher. BitGo offers a multi-signature wallet and cold storage options for customers, which also includes institutional clients. BitGo is planning to support 100 coins by year-end and has filed for approval to build a regulated asset custody service. The news has helped ZCash to stay in a positive mood, although we would need a stronger catalyst to see some real gains in ZEC.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.