TA of my favourite low market cap crypto: CargoX 📈
By now it's painfully obvious to Bit Brain readers that I am very bullish about CargoX
For those who have still managed to miss a post which I must have linked to at least 20 times; I wrote in detail about CargoX four months ago: https://mentormarket.io/cryptocurrency/@bitbrain/cryptocurrency-spotlight-cargox.
I did a mini-update about it a week ago: https://mentormarket.io/cryptocurrency/@bitbrain/a-bit-of-crypto-news.
As I mentioned yesterday, I was so busy managing my portfolio two days ago that I didn't get a chance to post. One of the things I was doing was looking for the best coin to put a little more funds into (having sold some STEEM). For what it is worth, I decided on CargoX. Of course things never work out as planned, I set a STEEM sell order and it took a while to execute. Once it had, NEO was looking even more appealing than usual. Long story short, I turned my little bit of STEEM into exactly 2 NEO, and then decided to leave it in NEO. Because if there is one thing that Bit Brain loves even more than CargoX, it's NEO!
Tonight I want to look at CargoX (CXO) from a perspective that I don't normally present it from: a TA one.
TA of my favourite low market cap crypto: CargoX 📈
Acknowledgement: All chart screenshots are from KuCoin (which uses TradingView software).
I'm posting this today because I noticed (while doing my research as mentioned above) that CXO is looking good for a buy.
It looks like a short-term converging triangle is developing:
This is indicative of a pending breakout any time from now.
CargoX is not an old crypto, to give you some perspective; its entire history can be seen here:
Of course a triangle like that could break either way, but there are a few good reasons that I expect the break to be in an upwards direction:
1. Support
CXO is nearing its ATL support base:
2. Order book
The order book is heavily weighted in favour of buying. Of course this backs up the idea of the strong support.
Call me an optimist, but I don't see a triangle breaking downwards through a buy wall like that.
3. Fundamentally:
CargoX recently did what it was made to do for the first time. Many cryptocurrencies are still pipe dreams. Many will never make it out of the "Pipe Dream Phase". CargoX has just done its job for the first time in the real world. CargoX tokens were used to purchase an electronic Bill of Lading (B/L). The 3752 kg of Garment cargo appearing on that B/L was shipped from Shangahi, China to Koper, Solvenia. Read more about it here: https://cargox.io/news/first-ever-blockchain-based-bl-was-issued-route-china-us-first-lady-melania-trumps-home-country-slovenia/
By proving itself in the real world and being used by real shipping companies, CargoX tokens will be bought by real shipping companies. Companies that have more than just a dollar or two in their pockets... So yes, I think CargoX is a strong 'Buy".
But hey, if you'd rather hang around in Tether or BTC and wait until the end of September for some Centralised Government institution to make a ruling on Bitcoin ETFs... ... then be my short-sighted, conservative and narrow-minded guest! (If the truth hurts, then maybe you should make the decisions that will stop it from hurting 😉)
If and when CXO breaks out, I don't forsee it having any trouble breaking right through all of these short-term Fib levels. Perhaps an intial break to the 0.382, but I doubt that any level will hold it for very long. As the earlier charts show, this coin is a steep climber when it does choose to climb.
I believe that once it breaks free of this bearish range, it should turn be far freer to climb rapidly:
Thereafter I think that we can expect good growth with possible pauses at the major Fib levels as indicated below.
You can get my favourite low market cap crypto on my favourite exchange: KuCoin. For a referral link to KuCoin, click on the KuCoin picture in my signature below.
You can thank me later.
Yours in crypto,
Bit Brain
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TA is next to impossible in smaller caps because of low liquidity. I enjoyed learning about cargoX though, so thanks for that!
You can do it, as long as you realise there is extreme volatility in the short-term. Literally any investor could cause a major price event in a coin that has only traded e.g. $1000 in the previous 24 hours!
Over longer periods it's okay, you just have to account for the "hairiness" of the candles. I've never written about it, but that hairiness and those volatile little jumps are one of the things I actually look for when seeking a low cap coin to buy. They indicate massive growth potential.
Thank.
Posted using Partiko Android
My pleasure
V.good word bro
Thanks
Hey @Bitbrain, the chart looks ripe for a dip buy but the token itself looks pretty weak fundamentally, how does value accrue to a token which sole purpose is to pay for the usage of a service?
Unlike a token such as LOCI, the value of CXO does not have a USD target that it is pegged to. It's the regular old supply/demand that will determine the price. Companies that want to use CXO must buy it from the same exchanges that you and I use (KuCoin specifically). The more it gets hodled by investors, the less the supply, the greater the price. With CargoX aggressively undercutting typical B/L prices it should be in hot demand as it presents a massive cost saving. It also has possible future utility if they implement using it as payment for cargo storage too.
HEy man, by the sound of it, it seems like just another high velocity payment token for a dapp, have a look at this article, they break down very well why value can't accrue to those:
https://multicoin.capital/2017/12/08/understanding-token-velocity/
Vitalik also wrote about that back in the days:
https://vitalik.ca/general/2017/10/17/moe.html
The gist is that there is no incentive to hold high velocity payment tokens because they rapidly lose value because users constantly trade in and out of the token (to protect themselves against price volatility). Even if the dapp is successful, they'll probably end up enabling a direct BTC or fiat on ramp way to buy services thus rendering the token useless (it's happened to a lot of projects like Quantstamps: https://www.ethnews.com/quantstamp-investors-uncertain-about-qsp-tokens-validity). Check these articles out mate. That being said, if your token has a masternode utility that would be a plus be if it's just payment then it's probably not worth it as an investment.
Thank you for your very valid comments!
I am glad that you raise these questions. If nobody asked the hard questions then we would happily be living in a delusional dream-world, a most undesirable state of affairs!
The answer to your question is not quick and easy, but it is important. I started to formulate it, when I realised that others may have similar concerns and that this information could be valuable to all.
I light of that I have decided to formulate it into a short post. CXO is a fantastic investment, one I regard as one of my best. It deserves to do well and I want the people to see that and understand why. I'm not saying that just because I hold it. I hold over 50 other cryptos, some of which are admittedly rather rubbish or very high risk. e.g. I held Quantstamp (though I sold it the second that things started looking dodgy). I don't regard CXO as a dodgy investment at all (hey, I've been wrong before, but unfortunately some things will always remain unpredictable).
I would like to repost your comment and respond to it publicly for the benefit of all. Please let me know if you have any objections to this.
https://steemit.com/cryptocurrency/@bitbrain/crypto-token-economics-q-and-a-cargox
Go for it man :)
I liked this post :)
So did I 😜
Me gusto
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STOPTo support your work, I also upvoted your post!
Read this "continuation" of this post. Reasons for the token value.
https://steemit.com/cryptocurrency/@bitbrain/crypto-token-economics-q-and-a-cargox