Despite Fundamentals, RLC remains A Low Volume P&D

Updated

I once held a position on this coin, but sold eventually at a loss because I saw that people were very quick to dump this coin. Unfortunately, even though the fundamentals may be strong, price action tells me that investors don't see any value in holding this token for some reason. This can also be reflected in their online community, which remains quiet. Investors do look at online communities to gauge confidence, whether you like it or not. This is sad to me because this coin has a great partnership and is indeed being used. Unfortunately, iExec has become a pump and dump coin and is in danger of dying out. What proves this is the HUGE sell volume on the recent pump that took it almost to the 1000 mark. Many people had sell orders up there, who have been eager to dump this coin for months. Unsurprisingly, it crashed down to support immediately after the pump.

Until RLCBTC can sustain a price bump and establish a new support (ideally above 1000), I won't personally be comfortable buying into this coin. I also wanted to point out something interesting that I've noticed. Going back to the Spring and Summer of 2018, RLCBTC has alternated pump and dumps with ENGBTC. More recently, they seem to pump and dump on alternating days. Just a pattern I've noticed. Perhaps the whales enjoy these coins because they are low cap with a somewhat low supply. They also generally trade at low volume, so they're easy to manipulate.

This is not investment advice, and I'm not a professional financial advisor. This is just an observation I made, and it is purely my opinion. However, I marked this as "education" because I think it's important for people to note WHY I sold a while back, as understanding price behavior is important when looking at long term investing. So far, I've been right in removing it from my portfolio, because it has since failed to sustain any sort of rally. Of course, that can change : ) This is crypto after all!

-Victor Cobra

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The recent pump, by the way, does not count as a reversal, but a failed breakout. This is because we weren't able to sustain at a new support level above previous lows. This means that RLC is in danger of actually heading to NEW lows soon, similar to how Bitcoin crashed after it also had a failed breakout, unless something changes fundamentally...but fundamentals don't seem to affect this coin in a positive way.

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Since an update was requested, I'll give a small one, though I'm on vacation right now. RLC does not have a strong looking long term chart. It has slid down to its support (in green). If I were trading this, now would be a good short term long opportunity, with a stop loss below 460, although stop hunts can go much lower (as seen with ENG). A target could be as high as 990, but I wouldn't invest in this thing long term until it shows some real price appreciation.

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Looks like we're starting to curve upwards a bit. Still low volume, but if the market decides to continue up from here, we should see RLC make another breakout attempt.

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Well, the market failed again, so we've slid back down to the bottom support.

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So RLC is on the move with somewhat decent volume. However, we had another pretty big rejection today (shows that the sellers are still present), and most of today's volume came in on the dump. However, there is a chance that we can push higher, but only if we start to see more sustained buying with increasing BUY volume. It might be finally time for this coin to be released from its P&D status. For now though, price action looks pretty similar to past pumps.

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Since we're having some price action and a little bit of increasing volume, I'm going to pay a little more attention to RLC. I MAY enter a small trading position just for a quick profit if we break 576. We seem to be forming an ascending triangle here with increasing volume.

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Entered at 580

Trade active

Entered at 580. Stop loss at 574.

Trade closed: stop reached

So my stop was hit, but ended up getting back in. This coin is very iffy. Yet again a situation where using a stop loss in this market can drive you crazy.

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Closed the trade. Might end up being confined to this triangle for a little bit.

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Not going to post any trading updates for now. I much prefer to just stick to analysis.

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I'm still in for now, since our hourly actually closed above this breakout point, despite dipping below it briefly and stopping out people (including me). going to try to be patient with this one. If it doesn't work out, I'll just go back to holding all my positions. No more updates about my personal trading now :)

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Got out at 640 with 10% profit. This could go higher, but this was just a short term trade. I'll continue doing analysis, in case anyone is still watching RLC. We couldn't get past that 670 resistance after multiple attempts. Volume started dropping as well on the last attempt. If 600 holds, that would be a good sign that this can move higher.

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Glad I got out for now with a decent profit. This coin has a history of pump and dump cycles because mostly sellers exist at higher levels. We have support here and then down at 576, for a potential bounce. Volume is increasing again, but on the sell side.

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Testing lower support.

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If RLC can't bounce here, then the next support is around 550, and this would essentially confirm another P&D cycle.

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This is just a day-trading coin for now. We did find support in the 550 area, give or take a little. We should be good for a move up now if we break 570.

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Well we did break 570 and have a move up....but it was immediately sold. Yet ANOTHER pump & dump. My analysis was pretty spot on with this thing. I'm not touching this coin for trading anymore. It really needs more daily volume. The sellers are really relentless. Moreso than other alts, even the ones that pump 100% in a day. This tells me that a lot of people got into this project early and have lost confidence in it long term. Yes, maybe RLC will have its 100% pump day, but it's really a gamble at this point.

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Glad I didn't buy into that pump. It was tempting though. This coin is one of those things that looks good at first glance, but it always disappoints you. Will still not be adding this to my long term portfolio. I'd honestly rather buy at a slightly higher price once a clear uptrend is formed than buy into this project now.

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So, it looks like RLC is finally starting to show some positive price action! The sellers are finally being eliminated. We're starting to make higher lows and slowly creeping up against resistance. Perhaps we can test the 1000 level sooner or later.

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We're in a resistance zone now, but RLC is finally starting to look a bit healthier. If we can break 850ish, it'll be a good sign that it actually wants to move up long term, and then I may look to buy some at some point.

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Looks like we've managed to get up to the 850 resistance area! Too bad I didn't continue to trade RLC, but that's okay. I did say that we may finally have a sustained pump. The next stop is 1000 if we can continue to make higher lows.

VictorCobra

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