Market Meditations | April 6, 2021
Our Top 3 Altcoin Picks
Green all around today, with many coins rallying. Plenty to be excited about but of course, it can be difficult to know what to focus on.
That’s why, today, we’ll be providing an update on our top 3 altcoin picks.
As always, we will also cover the hottest crypto market news and insights ?
Read, enjoy and share with your network. Let’s all build wealth together.
Crypto. It can be difficult to focus sometimes when everywhere we look is green. Amongst the impressive rallies all around, two have caught our eye. Worth noting the LINK rally off the back of Grayscale Investments, the world’s largest digital asset manager, adding Chainlink cryptocurrency to its Digital Large Cap Fund. XRP has also been performing strongly, with CoinDesk citing support from the XRP community as the likely driver.
Legacy. S&P 500 futures edged lower, suggesting the rally that drove the gauge to an all-time high may pause amid fresh block trades related to the implosion of Archegos Capital Management.
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Top 3 Altcoin Pick
Price was rejected at $17.347 before coming back up to test and ultimately break the level shortly thereafter. To maintain our bullish bias, we need this $17.347 level to hold as support. Note that this level is not only a psychological support as a retest of the breakout but is also confluent with the 0.618 Fibonacci level and multiple moving averages.
? Given Solana’s currency hype and momentum in the market, however, I do not expect the $20 psychological support to break and this level would be a valid high risk entry.
For traders looking to build a more aggressive position, they may look at the $22 level. Note, however, that this is a high risk entry because price has already rallied upwards of 40% in one week.
If we lose the $20 level, I expect the short term aggressive bullish momentum to slow and price to retest the 0.5 Fibonacci level at $18.50. This would be a valid long entry for traders looking to build a position.
On the upside, I’m looking for $28, confluent with the 0.236 extension, and $30, one of the biggest key psychological resistance levels for the coin.
Like $SOL, $UTK has also rallied nicely over the past week having moved 30% to the upside.
Whilst the market structure is technically bullish the $0.67 level needs to hold as support. If this level fails to hold, our bullish market structure is invalidated and we will need to reassess in the short term.
? Traders looking to get long can buy this $0.67 level. If the $0.67 level fails to hold as support, then price action will begin to look like a double top.
A less risky, higher probability play would be to wait for price to breakout above the $0.75 level. If we do break this level, I’ll target very simple psychological resistance levels, namely $0.75, $0.80, and $1.00.
We see that price recently bounced off the 0.382 and 0.5 Fibonacci levels and rallied 30% to the upside shortly thereafter. This provided fantastic opportunities for day traders and scalpers.
That said, the price has since come down and broken the 0.618 Fibonacci level support. This level is currently acting as resistance which is a bearish sign in the short term. However, I am extremely bullish on this project as it fits the NFT narrative, so I do expect to see further upside after we reclaim the 0.618, 0.5, 0.382 Fibonacci levels as support respectively.
? I’d like to remind you that of the 3 altcoins I’ve shared here, $ERN has the lowest market cap. This means whilst you can benefit from quick 30% moves to the upside, the volatility also works against you when price moves to the downside. This makes the asset relatively risky.
In the short term, we want to see the 0.786 fibonacci level continue to hold as support before a move back up.
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LITECOIN NEWS AND ANALYSIS
CoinShares Launches Physically-Backed Litecoin ETP
According to an April 6 announcement, CoinShares has launched its CoinShares Physical Litecoin. Listed under the ticker symbol LITE, each unit of the Litecoin ETP is backed with 0.2 LTC at launch, providing investors with passive exposure to the Litecoin network’s native asset. LITE is now listed on Bloomberg, with an opening price of $44.5.
? Fact check:
An ETP is an exchange-traded product. These are types of securities that track an underlying security, index, or financial instrument. ETPs trade on exchanges. The price of ETPs will fluctuate intraday and come from the underlying investments that they track.
Litecoin is currently ranked the 9th largest coin by market capitalization. It is nearly identical in technical details to Bitcoin, featuring some core differences like smaller block times.
The growth of the crypto ETP industry is exciting and has only just begun, with more and more institutional demand and buy in.
TETHER NEWS & ANALYSIS
Tether to Launch USDT Stablecoin on Polkadot and Kusama
Today, Tether announced that it would launch its USDT stablecoin on the Polkadot and Kusama networks. This would make the stablecoin available on a total of 10 networks. Albeit nearly $23 billion worth of USDT has been issued on Ethereum and according to data from The Block, it hasn’t gotten much traction on other networks yet.
This would also be a big development for Polkadot. USDT would be the first ever stablecoin on Polkadot. Tether CTO Paolo Ardoino told The Block:
“Polkadot, with its parachain structure, has the ability to grow significantly in the coming years. This growth will be driven by its high level of scalability”
Today’s puzzle is focussing on expected outcomes. This is step one of understanding probability, expectation and even risk. If you’re interested in this check out our Risk Management Course.
I have two spinners: one is a square, and the other is a regular pentagon.
Both spinners are spun at the same time and the two scores obtained are added together.
How many possible totals are there?
Scroll down for the answer ?
Investing in NFTs, Web3 and the Future of Crypto with Charles Read
Charles is the founder of Web3 venture capital fund Rarestone Capital.
8 (well done if you got this ?)
The possible totals are 2, 3, 4, 5, 6, 7, 8 and 9 which is 8 different options.
To help you visualise this the table below shows all the possible combinations of the two spinners.
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