Two weeks ago, we kicked off with a technical analysis of Bitcoin, which you can find here. Since nothing notable changed and the analysis is still valid, we’ll be looking at a high potential low cap altcoin today. The coin of this week is Mothership, which held a pretty hyped ICO among experienced crypto traders back in July 2017. MSP is currently trading at ~ 100% profit in USD and ~ -23% in BTC. Current rank on Coinmarketcap is #340 with a market cap of a little over $11 million.
Crypto Dundees Coin of the Week
We’ll start with a short introduction on Mothership (MSP). Obligatory comment: before investing in any cryptocurrency, be sure to always do your own research. We’ll finish with a thorough technical analysis of MSP.
What is Mothership (MSP)?
Mothership is building several blockchain financial services around the Estonian e-Residency programme. The e-Residency programme is a government issued digital ID, which allows the registration of companies entirely online. There’s a lot to this, so I would recommend looking into this programme. The Mothership platform consists of four pillars.
- Secure Exchange
The current main focus is finalising the Mothership Exchange. They’re looking to become one of the most secure cryptocurrency exchanges in the industry. One of Mothership’s strongest edges towards their competitors, is the fact that they’re backed by – and working together with – the very progressive Estonian government. This means they’ll be fully licensed once the exchange launches. Mothership is hoping to launch the exchange on December 12th, but as with many crypto projects, there’s a chance it will be delayed till the start of 2019.
- Token market
The Mothership platform will help Estonian startups launch their own tokens, which will be fully compliant with Estonian laws.
- Cloud hosting platform
Mothership will provide a cloud hosting platform to build and host your own applications.
- Mothership wallet
The Mothership wallet will be connected to your digital e-Residency ID.
From a fundamental perspective, there’s a few things to look forward to:
- Exchange is set to launch on December 12th of this year.
- The Mothership team is looking to change MSP into a security token and is also working with the Estonian government to allow STO’s on their platform.
- 50% of the MSP supply will eventually be burned through a buyback program.
We’ll start the analysis on a daily chart, zoomed out to catch the whole trading history.
When doing technical analysis, the first thing to do, is to find important trading levels. When analysing ICO projects, using fib extensions can be a very valuable way to find these levels. As you can see in the chart above, I first looked up the ICO price, which is at fib “1” and dragged it all the way down to 1 satoshi. This way all fib levels are relative to the ICO price. Important levels immediately pop up. Another thing that is noted instantly, is a break of a strong downtrend after capitulation to 50% of ICO price (fib 0.5). The current pattern is a very common pattern in crypto and is sometimes referred to as the Crypto J-Curve, illustrated below:
Although the MSP downtrend looks to be resolved, don’t take a pump like this for granted. Crypto is in a very different ballgame compared to back in December 2017. Comparing these charts is just a way to indicate a broken downtrend and spot a potential bullrun. Obviously, a lot is depended on Bitcoin’s price action in the coming days and weeks.
Doubled Ichimoku indicator
Now let’s zoom in a little on the current MSP price action, using the doubled Ichimoku indicator.
We can see there was a clear buy signal when the TK-cross happened, indicating a strong possibility for an edge-to-edge trade, which played out perfectly. Unfortunately, this opportunity already passed. We’re currently sitting on a strong horizontal support after a strong selloff, strengthened by support from the Kijun. There’s a high probability of a new range being printed here, after which we’ll continue the uptrend. With the launch of the exchange planned for December 12th or early 2019, we can expect a short term bullrun towards approximately 2k sats, which is a very strong resistance level as indicated in the chart. Please keep in mind that trading altcoins is very risky at the moment. Bitcoin is on the brink of resolving the “meme triangle”, which could make it explode either way.
Don’t forget to keep an eye out for the monthly Mothership update for October, which will be released very soon. This project has a lot of potential in the long run, it could be very profitable to consider a moonbag after the exchange launches.
Happy trading and stay safe out there!
About the author:
Crypto Dundees (Twitter-account) is a new and quickly growing trading squad based in Amsterdam, specialised in Cryptocurrency Trading. Our team consists of several Daytraders, Trading Bot developers and Fundamental Analysts. Give us a follow @CryptoDundees if you would like more valuable TA, TA lessons, FA, Project reviews, buysignals and shitposts! This article was written by team member @Ichi_MokuM. We hope you enjoyed it.
Disclaimer: the content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.