As another selloff has started in the cryptocurrency market, the altcoins have all started showing similar chart patterns as they are overly codependent on the price of Bitcoin, which is reasonable considering that its dominance is around 54.6%. One of the altcoins that is showing that kind of a chart pattern is Quantstamp (QSP).
Looking at the QSP/USD daily chart we can see that after an exponential increase that lead up to the all-time high the price quickly corrected as the exponential increase was unsustainable and measuring from the all-time high to the levels on which the price is currently trading we can see a 95% retracement, which can be seen on pretty much every altcoin.
Zooming into the 4-hour chart you can see that I have labeled two corrections first being an intermediate WXY and then a ‘connector’ as an WXY in the opposite direction. Now I am expecting that this last structure completes with as a third correction in the primary direction making the primary degree count also an WXY correction.
In order to conclude the potential price target for the end of this correction I have inspected and labeled the last wave structure. As you can see from the chart below I have labeled the last wave structure as a 5 wave correction on an intermediate WXYXZ count which consists of an impulsive Y wave and the Z wave looks like a three wave minor wxy correction.
Zooming in further to the hourly chart I have projected the target for the last minor WXY and with it the last intermediate correction ending wave Z.
Using Fibonacci extension tool I have projected the price target for the final wave to be in between $0.0187 and $0.0108 ending on or slightly below the triangle’s support line which can be seen on the daily chart.
After the correction ends I would expect to see either a short-term recovery, but what is more likely that we are going to see a period of low volatility as the market is going to enter the despair faze of the market cycle leaving a flat plateau for accumulation faze.
Another thing that I haven’t mentioned is how close the alts are from $0. Some of them are close because of the high supply, but non the less if we take into the account 95-ish% retracement for the majority of the alts it looks like the price’s are defaulting and by the time this bear market ends we are going to see the bottoms of bottoms with no speculators in the market.
That kind of a shake out would be good for the cryptocurrency market as a whole as that would ‘leave the emperor naked’ for us to see what projects have real value and backing by the community and which were just designed for a quick money grab, cleaning the over saturated market.
The post Quantstamp (QSP) Price Technical Analysis: More Downside Expected appeared first on Blockonomi.
September 07, 2018 at 10:17AM https://blockonomi.com from Blockonomi https://ift.tt/2Qfoncz
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