LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin
LTC Price Predicted to Keep Rising After Sparking Crypto Spring — Five Positives from Litecoin

Ethereum’s Feeble Recovery – More Than a Retracement?

  • Thomas Hughes

    Ethereum is posting solid gains of about 20% over the weekend, breaking the $100 barrier, but has retracted lower since then, now trading around $93.

Ethereum’s Feeble Recovery – More Than a Retracement?
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The total cryptocurrency market cap has climbed from $103 billion (Friday, Dec. 7, 2018) to a high of $116 billion reached Sunday afternoon and has since shed $3 billion, standing at $113 billion at the time of writing.

Among all this, Ethereum is posting solid gains of about 20% over the weekend, breaking the $100 barrier, but has retracted lower since then, now trading at around $93.  

Chart Analysis – ETH/USD

Chart Analysis – ETH/USD

For the first time in a while, Ethereum is showing bullish pressure and the potential for a stronger push-up. However, keep in mind that currently the move up is a simple retracement in a strong downtrend and does not have any elements of a reversal.

The two Exponential Moving Averages (20 EMA and 50 EMA) are still crossed bearish and are well apart, showing there’s still enough bearish momentum, albeit their angle is flattening, which suggests the pair could be entering a ranging phase (sideways movement, no clear direction).

It must be also noted that ETH just pierced the $100 barrier, but the bulls weren’t able to sustain such a high price, and the pair quickly moved below that key handle, trading now at $93. All of this paints a blurry picture, and one can make an argument for both directions: up as a reversal or down as trend continuation.

The best conclusion right now is that we are dealing with a bullish retracement in a downtrend, which has the potential to turn into a full-scale reversal, but we will have to wait for additional clues before we can deem one scenario or the other to be true.

Support zone: bullish trend line followed by 83

Resistance zone: 100

Most likely scenario: break of the bullish trend line followed by choppy movement (we are in a downtrend, so we favor the short side)

Alternative scenario: break of 100 and bullish cross of the 2 EMAs

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan

    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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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.

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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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