Downward Trending Channel
Updated
Downward trending channel for 1h candlesticks with multiple support touch points suggests downward price action at least until end of August when Monaco is supposed to release their iOS app. If they deliver, we could expect a temporary price bump. If they don't deliver, we could expect a steeper sell-off into the 0.0008 BTC level, in line with prices of their main competitor TenX who already have an MVP.
Recent price hikes from 0.0008 BTC levels to >0.0040 BTC can be partly explained by catalysts: 1) announcement of MCO being listed on a smallish Chinese crypto exchange (#16 in China), 2) pump and dumps, and 3) irrational exuberance. We would normally expect this kind of an announcement to result in a price bump, but not such a large 500% jump. The market cap is small and it would seem that whale pump and dumps are strongly in play here taking advantage of FOMO. Exercise caution.
Recent price hikes from 0.0008 BTC levels to >0.0040 BTC can be partly explained by catalysts: 1) announcement of MCO being listed on a smallish Chinese crypto exchange (#16 in China), 2) pump and dumps, and 3) irrational exuberance. We would normally expect this kind of an announcement to result in a price bump, but not such a large 500% jump. The market cap is small and it would seem that whale pump and dumps are strongly in play here taking advantage of FOMO. Exercise caution.
Note
There are no announcements for MCO right now, so the present price break outside the downward channel may be an attempt at whale pump and dumps to trigger more upward momentum in anticipation of an iOS app release.There are two announcements in the pipeline that will trigger an upward price movement: shipping of Monaco cards, and release of the iOS app scheduled at month end. No doubt whale pump and dumps will take advantage of these announcements to trigger larger than normal upward price movements. But these movements are temporary. What goes up must come down, especially in the absence of sound fundamentals.
The very short term price movement still seems bearish to me, with a bullish price jump when iOS app and Monaco cards are shipped, followed by medium-term downward price momentum towards TenX levels (main competitor).
Note
Selling opportunity if you hold MCO during current pump. One strategy is to sell a portion of your holding (quarter, third, or half), and if the price pumps further, sell some more, repeat. These pumps usually have an equally rapid dump phase creating an upside down V pattern.Note
It appears we may be in a market-wide correction, with Bitcoin leading the way, as a bearish pennant has appeared in many major crypto markets, including, BTC, ETH, LTC, and others. Prepare stops if price drops below your supports, and be ready to liquidate a portion of your holdings, and buy back cheaper when things stabilize. Checkout my other posts on the Bitcoin corrective Tsunami that may be underway.
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