Weekly Altcoin Price Analysis: First Results of 2016
Excellent moves of Litecoin and Peercoin prices, the triumph of DASH, Dogecoin and ETH, and a deep depression of Neucoin
It sounds strange but Litecoin in 2016 feels quite strong. You would probably ask: how so, if the price fell to $2.90 and continues to decrease? But take a look at the chart of LTC:BTC – Litecoin exchange rate is fixed higher than 0.008, and even reaching 0.0084. This means that the price of $2.90 speaks not about weakness of Litecoin, but about the weakness of Bitcoin during a whole bunch of bad news (the report of RAND on need of fight against digital currencies, bankruptcy of Cryptsy, the next split in Bitcoin Foundation and a statement of Mike Hearn). Moreover, new discussions on the size of the Bitcoin block have begun again
In the beginning of 2016 Litecoin price was noticeably higher than $3.40. It has created a small triangle with an exit up to $3.64 by January 7. But then Litecoin started falling continuously having reached today's $2.90.
Now it is impossible to give the forecast for the next week. The negative factors didn't affect the Bitcoin price fully yet. Panic sales are still possible, which will give us an opportunity to buy really inexpensive Litecoins. But price correction are possible and it can turn the trend up at any time.
DASH price grows by 10-20% a day. DASH price even grew from $3 to $4, despite the falling of Bitcoin.
DASH don't care about the problems with block size, emergence of new forks or the problems of regulators and exchange collapses. The exchange rates have already reached 0.01, or 100 DASH for one Bitcoin. Traders willing to buy DASH may now only dream about the exchange rates of 0.0055, which were available only a month ago.
Throughout the whole week, a steady uptrend was developing and next week we may expect corrections to begin. For example, it may drop the price to the level of 0.0075. However, one note: it is impossible to be sure that this correction surely has to happen.
Dogecoin grew more than by 30%, having surely fixed on 40 Satoshi in the beginning of 2016. The top was reached on January 9 with the price of 49 Satoshi. It especially pleased those who bought Dogecoin on January 8 for 30 Satoshi. It seems now that we won't see the price of 30 Satoshi again for a long time. But buy orders on 33-36 are still possible and even desirable.
Next week it is worth expecting price fluctuations around 40 Satoshi or falling to 35 Satoshi and below.
ETH breaks records with the continuous growth that proceeds this week. It jumped from 0.0022 to 0.0034, thus trading volumes are record-breaking high as well.
This success is connected with the active advertising and PR campaign of Ethereum and an anti-advertising of Bitcoin that began synchronously. At the moment no possible changes of the trend are visible, but also I would not recommend traders to make purchases next week, as its already too late. If the price growth proceeds, it may stop being so rough at any moment. Moreover, ETH can stop moving up and even fall sharply.
Peercoin feels very strong in 2016. Though, exchange rates of PPC:USD fell, the PPC:BTC pair grew by more than 10%, having fixed at the level of 0.001 and above. This is a psychologically important level, 1000 Peercoin for one Bitcoin. Now it is desirable to hold this level for as long as possible.
While Bitcoin price is falling Peercoin made a jump to $0.496 and then rolled down to $0.354. Peercoin hasn't seen such volatility for a long time, as this jump and falling of the price were made within just three days.
Now purchases lower than $0.40 are of interest, especially, if Bitcoin price fluctuation gets a definite direction.
Neucoin moves on the road of disappointments. The chart of this cryptocurrency in the beginning of 2016 looks bad. By the end of 2015 the price of Neucoin was about $8 for 1000 Neucoin and purchases were favorable as the price jumped to $9-10. But in 2016 we see an absolutely different picture on the chart.
Symbolically, what exactly on December 31, 2015 the price of Neucoin was higher than $8. Each following day of 2016 the Neu price moved lower and reach today's $2.7 for 1000 Neucoins. And it is difficult to tell where this falling may stop. Next week the emergence of a new local bottom is possible at any moment. But the rebound or a turn of a trend is also probable. Placing buy orders at the level of $1.5 for 1000 Neucoin looks attractive as well. But for those who have bought this altcoin for $8 and above for 1000 Neucoin it will take a lot of patience now to exit with profit.