Below we have taken a look at some “Micro-Cap” Cryptocurrencies from a technical standpoint. It’s important to understand that “Micro-Cap” Cryptocurrencies are similar to Penny Stocks in terms of risk. The whole Crypto industry is volatile to begin with, but we must understand that “Micro-Cap” cryptocurrencies will typically experience even higher degrees of volatility and may lack volume ( buyers and sellers ). Even if a specific cryptocurrency is up drastically, it makes sense to research price action and make sure there is sufficient volume pouring in, not just a couple buyers and sellers.
Chainlink Price Action:
Last 7 Day Performance: -0.72%
Chainlink had a heavy rally mid June and nearly went from $1.00 to $4.00. This was fueled by press that Google Cloud was going to integrate Chainlink “oracles” into Google Analytics data. The strong pump eventually cooled off and you saw sell-offs into $2.00 zones. Chainlink has held the levels relatively well and it seems like a potential uptrend is on the horizon. As you can see from the chart below, Chainlink is about to approach a “MACD” crossover. MACD measures momentum and it appears Chainlink momentum is pointing north. Historically if you look earlier on in the chart, you will see Chainlink previously had another MACD cross-over and rallied shortly after. You are also starting to see Chainlink price move above the “20 day moving average” which is the red line. By looking at the chart, you will see price has been below the 20 day moving average since early July. A new upward trend could be in the near future for Chainlink price.
QTUM Price Action:
Last 7 Day Performance: -2.1%
Since early July, QTUM has fallen sharply from $5.03 levels to a low around $2.63. QTUM has since built some solid support in this region and the chart is becoming more appealing. The first thing to notice is buy/sell volume. Recently QTUM is printing a lot more buy volume which is represented by the green bard. Histroically when you start to see a series of green bars, QTUM has trended upwards. You are starting to see this trend now with very solid MACD (momentum) as well. Similar to Chainlink, QTUM recently breached the 20 day moving average and just crossed above. It has also not done so since June 10th. Historically every-time QTUM has breached the 20 day moving average, its experienced some solid upward price action. QTUM has been trending up ever since recent news broke regarding Binance adding support for QTUM staking.