Overview / Recap
As predicted last week, SiaCoin went through a good rally earlier this week as it doubled its price from our trade entry – well, almost! It hit a snag at 838, just 12 points shy of our trade exit at 850, before sellers took over the centerstage. Price is now hovering above 700 after consolidation. Let us take a brief moment to examine the 4-hour chart and see what our best course of action is.
The good news is, SiaCoin is still maintaining its bullish bias by trading above an ascending trend line. Also worth noting is that the resistance leading to 800 is thinning out just as dynamic support is building around the 700 mark. On the technical side, we can see that MACD is almost back to neutral and RSI is looking healthy above 50. Stochastics is also turning to favor a potential leg up. All this points to what seems like a larger bull trend that is slowly forming right under our noses (see the blue lines). Having said that, I would prefer to see more sideways consolidation above the trend line before we take the next elevator up.
However, if price decides to extend down the current trend line, then we will likely see another week of consolidation around the levels of the lower trend line.
Hype or Gripe
On the fundamentals side, Sia has recently introduced Obelisk, their new line of ASIC (Application-Specific Integrated Circuit) mining machines to be used for dedicated SiaCoin mining with better security, efficiency and productivity. These new Sia ASIC mining machines are expected to gradually phase out the GPU-based mining hardware that are being used by SiaCoin miners today. Despite no launch date has yet been announced, the hype surrounding the Obelisk has driven price up significantly and will continue to do so.
This concludes my analysis for today and I hope you have enjoyed it. If you want me to do more, then please...
FOLLOW, UPVOTE and RESTEEM!
Optional Trade Exit
If you would like me to share the specific targets of my trade exit for SiaCoin, would you upvote this post for me? I will reveal them under comments as soon as this post gets 100 votes. I am a full-time crypto analyst/trader and your support is what keeps me coming back here.
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Disclaimer: Please always do your own due diligence, and consult your financial advisor. My trades are solely intended for personal use. I never provide any actual trading recommendations. Trading remains at your own risk. Never invest unless you can afford to lose your entire investment.