Trading Analysis of the month: Energy Web Token “EWT”
EWT/BTC [LIQUID]
As the Crypto Society Telegram community has expressed keen interest in staying updated with the Energy Web Token (EWT) we have now reviewed and compiled for you the below analysis:
Due to having the earliest historical data for EWT, we always look and review the EWT/BTC pair on the Liquid exchange.
— Bull & Bear —
The overall market conditions for the ALT coins hasn’t been favourable since Bitcoin has been flexing its muscles and many alts have been hugely hit during this time. As such, with EWT it’s clear to see the recent downwards ‘slide’ since the previous consolidation near all time highs.
This retracement, however, is not similar to many of the other alts out there; we spot a clear drop off in the trading activity of the coin — mainly since the Kucoin hack — and is reflected in the steady downwards selling pressure with extremely low volumes.
EWT has surprisingly disappointed us many times along this downward journey, breaking many supports. Not by aggressively cutting through them, but slowly and steadily seeping past them in the background.
However — it is not all doom and gloom!
First things first:
Decreasing price + Decreasing volume = Bullish
From ATL’s (All time Lows) to ATH’s (All time Highs), we currently find ourselves having retraced perfectly into the golden pocket.
This is a perfect place to always be looking for reversal trends in the crypto market in general — and though we’re not seeing a bounce as of yet, we are currently squeezing that falling wedge riiiight till the end…
Furthermore, we are creating some nice bullish divergences on HTF’s (High time frames), which is a strong signal that the momentum is shifting favouring the upside.
And lets not forget all those juicy news articles; partnerships & scope of the project itself, with the newest one being about turning the blockchain industry ‘green’:
https://medium.com/energy-web-insights/how-green-blockchains-can-drive-renewable-energy-demand-84863629c82
— Summary —
All that being said, it’s safe to say that none of us expect any upwards movement until the coin starts getting actively traded and we see increased liquidity in the token again — which in short means, either new people start trading on existing exchanges OR new exchanges list the token; the latter being highly more likely & impactful.
When this does happen, it wouldn’t be surprising at all to see a real aggressive move upwards very swiftly; a re-incarnation of sorts.
— The Play —
Due to the uncertainties mentioned above, we are not going to be making an active trading call.
However, the token is truly a gem with some real ‘meat on the bones’ and thus, an excellent HODL. [DYOR!]
If you don’t own any as of yet or if you would like to add to your existing bags, a great accumulation strategy at these levels would be to ladder down buys from 42k downwards.
Accumulation Zones:
#1–42k sats
#2–38k sats
#3–34k sats
#4–30k sats
We do not believe we will be seeing such low prices, but fat fingers do occur and until we see new exchanges EWT could continue to disappoint.
So be ready & take advantage of it!
Your CS TA team❤
— The Chart —
