Technically Speaking – December 1, 2023

We’re looking at the beginning of another breakout higher or a very ugly, nasty fakeout. 🤷‍♂️

Today we’re looking at Cardano and Chainlink – two cryptos whose charts look much like the rest of the altcoin market. 

Cardano

It’s hard to believe that $ADA‘s consolidation is almost a month long. And there’s some early warning signs that a breakout higher might be right around the corner.  ⤴️

ADAUSD Daily Chart – Click to enlarge.

I’ve highlighted Cardano’s price action, and the Composite Index’s movement to show the overall direction of price action is higher with higher lows, and the Composite Index’s overall direction is lower with lower lows – also known as hidden bullish divergence.

Hidden bullish divergence is a warning sign that the prior move is likely to continue, and there have been many hidden bullish divergences since late October. 

Because the Composite Index has slid down into its historical neutral territory and the Detrended Price Oscillator is about to cross above the zero line, a new upswing for Cardano looks imminent. 

But, and there’s always a but, be aware that Cardano’s stuck in the Cloud on the weekly chart (not shown), and the Composite Index is pointing lower after returning to its historical resistance level. 🛑

Chainlink

$LINK is one of the best-performing major market-cap cryptocurrencies of 2023. From the June lows, Chainlink has moved up almost +250%! 😱

LINKUSD Daily Chart – Click to enlarge.

Bulls are working on the highest close in over two weeks, and because the Composite Index just crossed above its slow-moving average, momentum hasn’t really begun to come in yet. 

But, like Cardano, the weekly chart warns of caution. 

LINKUSD Weekly Chart – Click to enlarge.

Depending on how long you’ve been reading the Litepaper, you’ll know I keep a strong focus on gaps between candlestick bodies and the Tenkan-Sen because those gaps often correct quickly. 

So if you’re looking at the daily and things seem bullish as hell, but nothing is happening, take a peak at the weekly chart. 🔭

More in   Crypto

View All

PUBG Publisher’s Taps Circle for Crypto Integration

I used to enjoy PvP games, but after marriage and two kids, playing games like PUGB make me feel old. It’s like I’m playing my Nintendo again for the first time and moving the controller up to jump Mario. I’m such a loser, and people scream at me in the game to let me know I suck. 🏹

But do you know what isn’t a loser? PUGB’s Overdare is partnering with Circle strategically. The BFF between Cricle and Overdare marks a significant milestone in integrating Web3 technologies within the gaming industry. By incorporating Circle’s Programmable Wallets service, Overdare aims to provide in-game wallets with $USDC payouts to gaming content creators, facilitating a seamless transition from traditional gaming platforms to the Web3 space.

Read It

Technically Speaking – February 21, 2024

My first Litepaper and first Technically Speaking since my short break and the transition to a new newsletter service have me swamped. 🥵

But there was no way I was not going to a Technically Speaking – so we’ll keep this one short and sweet. 

Read It

Zcash And Privacy Coins Sleeping Giants?

Last week (February 20, 2024), Binance abandoned principles for profits and delisted the biggest privacy crypto by market cap – and, from a principled viewpoint, one of the most important cryptocurrencies that exist: Monero ($XMR). 🤬

Fun fact: The US Government and IRS hate Monero and privacy coins so much that in 2020, they issued two $625,000 bounties to anyone who could crack it. You can read that story here. 

Read It