Crypto Crash: Altcoin Analysis

With Bitcoin, Ethereum, and Litecoin, all dropping nearly 8% on the day (November 21^st, 2019), it’s essential to check on the other side of this market: altcoins. This article will analyze the performance of some select altcoins relative to the US Dollar.

Basic Attention Token (BAT)

At it’s the lowest point of the day, Basic Attention Token was trading nearly -13.5% below it’s open. From that low, it has since recovered a good amount of that loss and is now down -5.75% from its open. It appears Basic Attention Token may find some support against the bottom of the cloud (Senkou Span B) on the daily chart. Senkou Span B is also the 38.2% Fibonacci retracement level from the prior swing low of 0.1436 on September 26^th, 2019, to the confirmation lower swing high on May 11^th, 2019. Below this level, there is little support for Basic Attention Token. The next level of support would be the 23.6% Fibonacci retracement, which would be nearly -20% lower from today’s open.

Komodo (KMD)

Not two weeks ago, Komodo was a prominent leader and outperformer of not just the altcoin market, but the entire cryptocurrency market. From it’s most recent swing high of 1.1091 on November 17^th, 2019, it has fallen as much as -40% over four days! It’s currently showing a -9% loss for today and could extend those lows. There are two primary areas of support. First is the Chikou Span which is trading just below the top of the Cloud (Senkou Span B). I would anticipate the Chikou Span to at least return to the same value as Senkou Span B. Below, that value area is the top of the Cloud just below the current daily candlestick: 0.6239. If price were to drop down to that level, then it would represent not only a -20.90% loss for the day but a staggering -43.84% loss in four to five days. That would mean Komodo would wipe out two weeks worth of gains in under one week.

Stellar (XLM)

Stellar, like Komodo, was a greater leader and outperformer market-wide. But just one look at its daily chart and we see a laughable and sad chart. Over the past ten days, only one day out of ten has see the close of the daily candlestick be greater than the open. From the most recent swing high on November 5^th, 2019, Stellar has dropped more than -37% in sixteen days. The big question here is this: will Stellar continue to make new all-time lows? If there is one thing that Stellar has done a marvelous job in the past two years is its persistent and strong ability to create new all-time lows on a widespread basis. There was some bullish bias a few weeks ago – hints that Stellar could lead the altcoin market into an original bull run – but not anymore. Stellar looks like it’s going to lead the altcoin market; again, it is a fantastic one-sided race to the bottom. It will be exciting to see how Stellar responds to the flash crashes that will inevitably start very soon.