A month ago, Newconomy covered the price rise of 0X (ZRX), following the announcement of the Coinbase listing. The coin initially moved 14% before increasing the gains in the following days. Similarly, the Basic Attention Coin (BAT) moved 16% higher following its listing on Coinbase, in addition to 29% of gains prior to the announcement.
As the exchange hinted about its plans to list five new coins back in June, investors speculate that Cardano (ADA), Zcash (ZEC), and Stellar (XLM) will follow shortly, as two have already been added – BAT and ZRX. Moreover, we seem to continue to see the trend of coins moving higher prior to their listing on the major cryptocurrency exchange.
“Today we are announcing that we’re exploring the addition of the following assets to Coinbase: Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX). We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets,” it was said in the press release.
Cardano is a blockchain platform which has a functional wallet for its built-in ADA cryptocurrency. Stellar is an open-source protocol that operates differently from proof-of-work, in a manner that it allows and requires individual nodes to choose the set of other nodes they trust as a group. Zcash is a privacy-oriented cryptocurrency working to protect the privacy of transactions.
Technically, Zcash and Stellar coins moved higher amid rumors regarding Coinbase listing, not as high as BAT and ZRX though, while Cardano stayed within a trading range of the last couple of days. Graph 1 shows ADA, the 8th biggest cryptocurrency by market cap, moving sideways.
Graph 1. Cardano (ADAUSD) price action
The price action moved outside of the symmetrical triangle (the blue lines), but unlike the normal reaction to these situations to continue moving lower, the price continued to move sideways. In case the next couple of days bring the official announcement of Coinbase to add Cardano to the list of available products, a sharp move higher is to be expected.
Both sides of the triangle should act as a resistance, but usually the fundamentally-driven moves last longer, thus a move to the major falling trend line (the red line) is not ruled out. If this move materializes and the price goes all the way to $0.10 handle, it would mean that the ADA moved more than 30% higher. Currently, the market cap is trending around $2 billion.
Graph 2 shows the ZEC’s reaction to the rumors of the Coinbase listing. Unlike the ADA, Zcash sparked almost 9% higher initially. The rumors further boosted the intention of bulls to test the descending trend line (the red line), currently around the $150 mark. The trend line is also entering the territory of the block of horizontal resistance, ranging between $140 and 150$, which should provide substantial resistance to coin’s tendency to move higher.
In case the move sustains the resistance block and still shows an intention to continue higher, the ultimate test lies in the horizontal resistance (the blue line), currently sitting around the $173 handle. The market cap has surpassed $700 million once again, placing Zcash in the 19th spot of the biggest cryptocurrencies.
Graph 2. Zcash (ZECUSD) price action
Finally, XLM looks like the most bullish coin of all three mentioned here. As it can be seen in Graph 3, the price reacted positively to Coinbase rumors and moved around 7% higher. The price action was trapped within a triangle for more than 3 months (the blue lines) before it breached the triangle resistance and closed above the $0.27 handle. On a weekly level, a close above the 200 DMA, currently around the $0.2550 handle, should facilitate more support for the bulls.
Graph 3. Stellar (XLMUSD) price action
As it normally happens, the price rotated back lower to retest the triangle resistance, now in the form of support, and it should continue higher as the new bulls join and ride the trend. In the case of the official announcement from Coinbase, expect a sharp move higher to the 61.8% Fibonacci retracement level around $0.29. If that one breaks as well, then a move above $0.30 is in the cards, where the key horizontal resistance awaits (the blue line). The rumors have helped Stellar to eclipse EOS as the 5th biggest cryptocurrency as the market cap has surpassed $5 billion once again.
Following the integration of BAT and ZRX in the Coinbase list of products, it is firmly expected that ZEX, ADA and XLM will follow the same path. Similarly, the price should react positively as well. However, be aware of the “buy the rumor sell the news” trading syndrome which could push the price higher prior to the announcement, and then push it back lower following the official integration.Leave a comment