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Tron Price Prediction for 2019: How Much Will Be Cost TRX in 2019?
Tron Price Prediction for 2019: How Much Will Be Cost TRX in 2019?

Ethereum Breakout in Full Force

  • Thomas Hughes
    ⭐ Features

    Ethereum has been stuck inside a horizontal channel for a relatively long time and once that channel broke price continued in the direction of the breakout.

Ethereum Breakout in Full Force
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ETH has been stuck inside a horizontal channel (between $205 and $192) for a relatively long time and as I’ve predicted, once that channel broke price continued in the direction of the breakout. The move higher can be attributed to a recent surge in volume for the entire crypto market but also to positive sentiment that surrounds Ethereum itself. Sentiment for the world's most advanced blockchain began to improve immediately following the Serenity (aka Ethereum 2.0) roadmap reveal during the Devcon4 conference in Prague.  

Charts at a Glance

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During the last 24 hours, ETH/USD has climbed 3.19% and a solid 11.26% during the last 7 days. In the process, the pair has escaped the channel topped by the $205 level and also re-tested the broken level, turning it into support.

A re-test is usually seen after a breakout, when price returns to the recently broken level and then bounces once again in the direction of the breakout. At that point is typical to see prices surpassing the initial post-break out high. That price action sequence is perfectly exemplified by the ETH/USD pair:

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The next target is most likely the resistance at $230 but given that price action is overextending, and the Relative Strength Index is in overbought territory and shows bearish divergence, we expect a retracement lower before significant advances can be made.

Support zone: 205

Resistance zone: 230

Most likely scenario: move closer to 230, followed by retracements lower

Alternative scenario: stagnation with a bearish bias (long wicked candles show possible end of the

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Contents

Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

👉MUST READ John McAfee Says Exactly When Bitcoin Will Hit $1 Mln, IBM’s Jesse Lund Goes for More Modest Forecast

Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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