Bulls Manage to Keep Ark Above $0.50; Can They Keep Pushing Price Toward $1?

Ark has seen a 8.60% price decline over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around $0.6633 after seeing a 6.80% price increase over the past 7 trading days.

Ark is a cryptocurrency devoted in 2016 designed to increase the interoperability of blockchain. Currently, blockchain cannot communicate with one another. This means that the Bitcoin blockchain cannot communicate with the Ethereum blockchain and vice versa. This is the exact problem that Ark is trying to attack.

Designed by Francis-Xavier Thoorens, the cryptocurrency will utilise smart bridges to help bridge the communication between independent blockchains. Eventually this should give birth to a ecosystem of blockchains that can communicate with one another. This would then eventually aid to the reduction of users on centralised exchanges which are prone to hacks and theft. If all currency transactions are conducted through the smart bridges then users will no longer need exchanges.

The Smart Bridges within Ar use encoded listeners. These encoded listeners keep rack of operations on each individual blockchain allowing for them to communicate.

Ark is also attempting to make it easier for users to create blockchains themselves. Through their platform users can quickly create independent blockchains with just a few clicks.

Ark is currently ranked at 80th position in terms of market cap rankings across the entire industry. It currently has a total market cap ranking of $69.79 million after the 18 month old coins sees a 58% price reduction over the past 90 trading days. Ark is currently trading 92% lower than its all time high price.

Let us continue to analyse price action for Ark over the long term.

Price Analysis

ARK/USD – LONG TERM – WEEKLY CHART

ark analysis 18 sept 2018

Analysing price action from the long term perspective above, we can see that Ark had experienced a significant bullish run toward the end of 2017 as price action started from a low of $0.3013 on the 16th of July 2017 and extended to an all time high of $11.4193 on the 10th of January 2018. This was a price increase of over 4900% from low to high.

We can see that after price action rolled over and began to decline rapidly after hitting the all time high. It continued to fall throughout the year not really finding too much support at any level for long. It did however, find relative resistance at the .886 FIbonacci Retracement priced at $1.56. This Fibonacci Retracement is measured from the entire bullish run outlined above.

We can also see that, despite the precipitous price decline, price action is still yet to complete a 100% Fibonacci Retracement.

Let us continue to analyse price action a little closer over the short term to highlight any potential support and resistance areas.

ARK/USD – SHORT TERM – DAILY CHART

ark analysis 18 sept 2018 2

Analysing price action from the short term perspective above, we can see that the recent price decline has found some form of stability. It is apparent that the racket has started to trade sideways for a long period of time. This could be a sign that the extended bearish pressure may be showing signs of failure.

We can see that price action had recently found support at a long term downside 1.414 Fibonacci Retracement level (drawn in blue) priced at $0.522. At this area of support the market was rejector heavily and continued to appreciate.

We can also see that, over the previous two trading months, the Ark market has established a trading condition known as a range bound condition. We can see that the market has been trapped between the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.97 as the upper boundary of the range and the downside 1.414 FIbonacci Extension level priced at $0.5222 as the lower boundary of the range.

If the bearish pressure continues, we expect the market to be supported by the lower boundary of the trading range priced at $0.5222. In the event that the market does collapse below the lower boundary of the range we expect further support to be then located at the psychological round number handle of $0.40. Support expected below this level can then be located at the July 2017 low priced at $0.30.

ALternatively, if the bulls can regather their energy and push price action higher we expect immediate resistance to be located at the upper boundary of the trading range priced at $0.5222. Initial resistance above the trading range would be expected at the psychological round number handle of $1.

If price action can continue further higher we expect further resistance to be located at the 100 day moving average which is currently hovering around the $1.21 handle. We can see that the market has not been above the 100 day moving average since May 2018 so it will require significant momentum to break higher above.

The technical indicators within the market are currently slightly favouring the bears as the RSI trades below the 50 handle. If the RSI can break above the 50 level this would indicate that the bulls are starting to gain control of the momentum in the market and a rally may be imminent.

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